Successful Auction Purchaser To Pay All Dues For Availing A New Electricity Connection, Except For The Arrears Of Pre-CIRP Period: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has held that the Successful Auction Purchaser in the liquidation of Corporate Debtor shall be liable to pay all dues for availing a new electricity connection, apart from the pre-CIRP electricity dues. Background Facts Shashi Oil and Fats Pvt. Ltd. (“Corporate Debtor”) was admitted into Corporate Insolvency Resolution...

NCLT Hyderabad Approves Resolution Plan For GVK Power (Goindwal Sahib) Ltd., A GVK Group Company

The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. N. Venkata Ramakrishna Badarinath (Judicial Member) and Shri Charan Singh (Technical Member), has approved the Resolution Plan submitted by Punjab State Power Corporation Limited for GVK Power (Goindwal Sahib) Limited, which is a part of GVK Group promoted by Mr. Gunupati Venkata Krishna Reddy. The Resolution Plan is valued at Rs. 1,080 Crores, while the total admitted claims of the Corporate Debtor...

NCLAT Chennai: Goods Not In Possession Of The Port, Claim By Port Can't Be Treated As Secured Creditor Under IBC

The National Company Law Appellate Tribunal ('NCLAT'), Chennai Bench, comprising Justice Rakesh Kumar Jain (Judicial Member) and Shreesha Merla (Technical Member) held that there is no actual lien to invoke Section 171 of the Indian Contract Act, 1872 ('ICA') when the goods are not in possession of the Port Authority and the claim of the Port cannot be treated as a Secured Creditor for distribution of liquidation assets under Sec. 53 of Insolvency and Bankruptcy Code, 2016 ('IBC'). ...

NCLT Allahabad: Operational Debt, Out Of Non Delivery Of Goods Due To Export Ban, Not Maintainable

The National Company Law Tribunal ('NCLT'), Allahabad Bench, comprising Shri. Praveen Gupta (Judicial Member) and Ashish Verma (Technical Member) held that a Corporate Insolvency Resolution Process ('CIRP') application under Section 9 of the Insolvency and Bankruptcy Code, 2016 ('IBC') is not maintainable for any claim arising on account of non-delivery of goods for export by the Corporate Debtor due to a ban imposed by the Government of India. Background Facts: Morex Corporation Ltd....

NCLAT New Delhi: When CoC Hasn't Confirmed Appointment Of IRP, IRP Can Be Replaced By CoC U/S 22 Of IBC

The National Company Law Appellate Tribunal ('NCLAT'), New Delhi Bench, comprising Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member), and Arun Baroka (Technical Member) held that when the Committee of Creditors ('CoC') has not confirmed the appointment of Interim Resolution Professional ('IRP'), the IRP can be replaced by the CoC under Section 22 of Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts On 09.02.2023, the Corporate Insolvency Resolution...

Special Bench At NCLT Hyderabad From 15th To 25th January 2024

The National Company Law Tribunal (“NCLT”) has issued a circular dated 04.01.2024, intimating the constitution of Special Bench in NCLT Hyderabad for the period of 15.01.2024 to 25.01.2024, since Shri Rajeev Bhardwaj (Judicial Member) is on leave in that duration. The Special Bench shall attend to the matters listed before Shri Rajeev Bhardwaj (Judicial Member) and Shri Sanjay Puri (Technical Member). The Special Bench shall comprise of: NCLT Hyderabad Bench (Court No. II) ...

NCLAT Delhi: Non-Stamping Of Agreement Doesn't Render CIRP As Non-Maintainable When Other Material To Prove Default Of Debt Exists

The National Company Law Appellate Tribunal ('NCLAT'), New Delhi Bench, comprising Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member)and Arun Baroka (Technical Member) held that the Non-stamping of document does not render the Corporate Insolvency Resolution Process ('CIRP') petition filed to be non-maintainable when there exists other material on record to prove existence of default in the payment of debt. Background Facts: An inter-corporate loan of Rs. 7 crores...

Special Bench At NCLT Kochi On 15th And 16th January 2024; Matters To Be Heard Through VC

The National Company Law Tribunal (“NCLT”) has issued a circular dated 04.01.2024, intimating the constitution of Special Bench at NCLT Kochi for 15.01.2024 and 16.01.2024, since Justice T Krishna Valli (Judicial Member) is on leave in that duration. The matters are to be heard through Video Conferencing mode. The Special Bench shall attend to the matters listed before Justice T Krishna Valli (Judicial Member) and Shri Shyam Babu Gautam (Technical Member). The Special Bench shall...

Resolution Professional Can't Question COC Decision Of Replacement: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has held that when the Committee of Creditors (CoC) passes a resolution to replace the Resolution Professional, then it is not open for the Resolution Professional to question the reasons for its replacement and ask NCLT to adjudicate upon the reasons which persuaded the CoC to pass the resolution. Background Facts On ...

Special Bench At NCLT Allahabad From 3rd To 18th January 2024; Matters To Be Heard Through VC

The National Company Law Tribunal (“NCLT”) has issued a circular dated 02.01.2024, intimating the constitution of Special Bench at NCLT Allahabad for the period of 03.01.2024 to 18.01.2024, since Shri Ashish Verma (Technical Member) is on leave in that duration. The matters are to be heard through Video Conferencing mode. The Special Bench shall attend to the matters listed before Shri Praveen Gupta (Judicial Member) and Shri Ashish Verma (Technical Member). The Special Bench...

Weekly Digest Of IBC Cases: 1st To 7th January 2024

Supreme Court IBC | Statutory Set Off Or Insolvency Set Off Inapplicable To Corporate Insolvency Resolution Process: Supreme Court Case Title: Bharti Airtel Limited and Another V Vijaykumar V. Iyer and Others Citation: 2024 LiveLaw (SC) 11 The Supreme Court has held statutory set off or insolvency set off is not applicable to Corporate Insolvency Resolution Process (“CIRP”) proceedings under the Insolvency and Bankruptcy Code, 2016 (“IBC”). Further, Regulation 29 of the...

NCLT Hyderabad: Amount In Corpus Fund For Maintenance Of Apartments By Homebuyers Does Not Qualify As 'Financial Debt' In IBC

The National Company Law Tribunal ('NCLT'), Hyderabad Bench, comprising Shri. Rajeev Bhardwaj (Judicial Member) and Shri Sanjay Puri (Technical Member) held that the amount deposited in Corpus Fund towards the maintenance of constructed apartments by Homebuyers does not qualify as 'Financial Debt' within the meaning of Section 5(8)(f) of Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: Vasathi Anandi Owners Welfare Association ('Financial Creditor') represented by the...