NCLAT New Delhi: Liquidator Is Entitled To His Fee Under S. 34 Of IBC And Regulation 4 Of Liquidation Regulations And Cost Under Regulation 2B Of Liquidation Regulations

The National Company Law Appellate Tribunal ('NCLAT'), New Delhi Bench, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) has held that the Liquidator is entitled to his fee under Section 34 of the Insolvency and Bankruptcy Code, 2016 ('IBC') and Regulation 4 of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 ('Liquidation Regulations') and Cost under Regulation 2B of Liquidation Regulations. Background Facts On...

NCLT Issues Circular For Advocates To File IAs For Resolution Plan, Liquidation And Dissolution In The Proper Section

The National Company Law Tribunal (“NCLT”) has issued a circular dated 01.01.2024, intimating the stakeholders i.e. the Advocates/Litigants must file their IAs of the following categories in the proper Section that pertains to the category with effect from 01.01.2024. (i) Resolution Plan under Section 30 of IBC Code, 2016. (ii) Liquidation under Section 33 of IBC Code, 2016. (iii) Dissolution under Section 54 of IBC Code, 2016. The Circular has been issued with the approval...

IBC - Is Dissenting Financial Creditor Entitled To Minimum Value Of Security Interest? Supreme Court Refers To Larger Bench, Doubts Precedent

The Supreme Court has referred to larger bench the issue whether a dissenting financial creditor is to be paid the minimum value of its security interest as per the Insolvency and the Bankruptcy Code 2016.A bench comprising Justices Sanjiv Khanna and SVN Bhatti, in the case DBS Bank Ltd Singapore v. Ruchi Soya Industries Ltd and another, referred the following question : Whether Section 30(2)(b)(ii) of the Insolvency and Bankruptcy Code, 20161, as amended in 2019, entitles the...

NCLAT Delhi: Decisions To Liquidate Corporate Debtor By CoC U/S 33(2) Of IBC Must Be With Reasons And Cannot Be Done Arbitrarily

The National Company Law Appellate Tribunal ('NCLAT'), New Delhi Bench comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that decisions of the Committee of Creditors ('CoC') to liquidate under Section 33(2) of Insolvency and Bankruptcy Code, 2016 ('IBC') have to be with reasons and the liquidation cannot be decided arbitrarily. Background Facts: On 10.08.2023, the Adjudicating Authority admitted the application of the Corporate Insolvency...

Prospective Resolution Applicant Has No Locus To Question Promoter's Settlement Proposal Under Section 12A: NCLT Chennai

The National Company Law Tribunal (NCLT), Chennai Bench, comprising of Shri Sanjiv Jain (Judicial Member) and Shri Venkataraman Subramaniam (Technical Member), has held that Prospective Resolution Applicants have no locus to question the settlement proposal of the Promoter under Section 12A of IBC. “It is also pertinent to point out here that the Prospective Resolution Applicants also cannot state that non – compliance of Regulation 30A of IBBI (Insolvency Resolution Process for...

NCLT Kochi Bench Reconstitution Stands Withdrawn, The Earlier Bench To Continue

The National Company Law Tribunal (“NCLT”) has issued a circular dated 25.12.2023, intimating the withdrawal of reconstitution of the NCLT Kochi Bench. Given the acceptance of withdrawal of resignation of Hon'ble Member (J) Justice (Retd.) Krishna Valli by Ministry of Corporate Affairs dated 24.12.2023, the following directions have been issued: a. Order dated 22.12.2023 in respect of demitting of office by Hon'ble Member (J) Justice (Retd.) T. Krishna Valli issued by Secretary in...

Non-compliance Of Regulation 30A Of CIRP Regulations Not A Ground For Rejection Of Section 12A Application: NCLT Chennai

The National Company Law Tribunal (NCLT), Chennai Bench, comprising of Shri Sanjiv Jain (Judicial Member) and Shri Venkataraman Subramaniam (Technical Member), has held that an application under Section 12A of IBC cannot be rejected merely on hyper-technical ground of non-compliance of Regulation 30A of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”). Compliance of Regulation 30A is directory and not mandatory. “Regulation 30A...

NCLAT New Delhi: Liquidator Is Not Entitled To Charge Fee From Scheme Proponent Submitting Scheme Under S.230 Of The Companies Act

The National Company Law Appellate Tribunal ('NCLAT'), New Delhi Bench, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) has held that the Liquidator is not entitled to charge any fee from the Scheme Proponent, who has submitted the Scheme under Section 230 of the Companies Act, 2013 read with Regulation 2B of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 ('Liquidation Regulations'). Background Facts On 24.01.2022,...

Yearly Digest Of IBC Cases: 2023

Supreme Court “Inappropriate, Almost Bordering On Contempt”: SC Deprecates NCLAT Order Impeding Implementation Of SC Order Case Title: Indiabulls Housing Finance Ltd. v Iirf India Realty Xii Ltd. & Ors. Case No.: CIVIL APPEAL NO.9062/2022 The Supreme Court Bench comprising of Justice Sanjay Kishan Kaul and Justice Abhay S. Oka while adjudicating an appeal has set aside a status quo order passed by NCLAT Delhi which impeded the implementation of an order passed by the...

Supreme Court Judgements On Insolvency & Bankruptcy Code In 2023

Sabka Vishwas Scheme: Supreme Court Grants Relief To Company Which Missed Deadline Due To IBC MoratoriumThe Supreme Court Bench comprising of Justices M R Shah and Justice B V Nagarathna has remarked that “No one can be expected to do the impossible” while granting relief to a company which could not avail the benefit of settlement of tax dues under “Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, due to moratorium under IBC being imposed on it. "The appellant cannot be punished for not...

NCLT Notifies Vacation Benches; Matters To Be Heard Through VC & Registry To Remain Functional

The National Company Law Tribunal (“NCLT”) has issued a circular dated 22.12.2023 notifying the Vacation Bench for NCLT benches having vacation from 26th to 29th December 2023. Further, only urgent matters would be heard during the vacation period, on the dates convenient to Hon'ble Member(s). Matters are to be heard through Video Conferencing and the Registry would remain functional during the vacation period. The following Vacation Benches have been Constituted by the Competent...

NCLT Chennai Terminates Insolvency Proceedings Against Appu Hotels Ltd., Approves Settlement Proposal By Promoter

The National Company Law Tribunal (NCLT), Chennai Bench, comprising of Shri Sanjiv Jain (Judicial Member) and Shri Venkataraman Subramaniam (Technical Member), has terminated the Corporate Insolvency Resolution Process (“CIRP”) against Appu Hotels Ltd. while allowing an application filed under Section 12A of IBC by the Resolution Professional. The Committee of Creditors have approved the Settlement Proposal submitted by Promoter of Corporate Debtor valued at Rs. 592 Crores, whereas the...