NCLAT New Delhi: Inter-Corporate Deposit In A Joint Venture Can't Be Construed As A 'Financial Debt' Under IBC

The National Company Law Appellate Tribunal ('NCLAT'), New Delhi Bench, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) has held that financial assistance given by one party to another in a Joint Venture Agreement ('JVA') by way of an Inter-Corporate Deposit ('ICD') to develop a real estate project jointly cannot be construed as a 'Financial Debt' in terms of Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts Ansal Housing Limited...

NCLT Directs Compliance Of 'Mandatory Pre-Requisite For E-Filing' Effective From 1st January 2024; Issues Detailed Instructions

The National Company Law Tribunal (“NCLT”) has issued an order dated 22.12.2023, directing all the Litigants/Advocates/Parties to follow the 'Mandatory Pre-Requisite on E-filing' on formatting, paper book marking of pleadings, use of electronic signatures, retention of originals etc., at the time of e-filing in NCLT portal https://efiling.nclt.gov.in with effect from 01.01.2024. Detailed instructions for filing have also been annexed to the Order dated 22.12.2023. On 29.08.2023, ...

NCLAT New Delhi: Barter Agreements Don't Constitute 'Operational Debt'

The National Company Law Appellate Tribunal ('NCLAT'), New Delhi Bench, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) has held that the Corporate Insolvency Resolution Process ('CIRP') cannot be initiated under Section 9 of Insolvency and Bankruptcy Code, 2016 ('IBC') based on Barter Agreement/Transactions. Background Facts AG8 Ventures Ltd. ('Corporate Debtor') had obtained registration of 11 real estate projects from the Real Estate Regulation...

NCLAT New Delhi: RERA Has Locus To Appeal Against CIRP Initiation Order And Is An “Aggrieved Person” U/S 61 Of IBC

The National Company Law Appellate Tribunal ('NCLAT'), New Delhi Bench, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) has held that the Real Estate Regulatory Authority ('RERA') has locus to challenge Corporate Insolvency Resolution Process ('CIRP') initiation Order in Real Estate Insolvency in appeal under Section 61 of Insolvency and Bankruptcy Code, 2016 ('IBC') before NCLAT. Background Facts AG8 Ventures Ltd. ('Corporate Debtor') had obtained...

Weekly Digest Of IBC Cases: 18th To 24th December 2023

Supreme Court IBC- Properties Sold In Auction Sale Before Declaration Of Moratorium Can't Be Treated As Liquidation Asset: Supreme Court Case Title: Haldiram Incorporation Pvt. Ltd. v Amrit Hatcheries Pvt. Ltd. Citation: 2023 LiveLaw (SC) 1029 The Supreme Court bench comprising Justices Aniruddha Bose and Justice Vikram Nath, has observed that the properties of a defaulting borrower sold in an auction sale could not be treated as liquidation assets if the sale was concluded...

NCLAT Delhi: Auction Purchaser In Liquidation Proceedings Entitled For Certain Consequential Reliefs

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising Justice Ashok Bhushan (Chairperson) and Mr Barun Mitra (Technical Member) has dismissed an appeal. The appeal was filed against order of the National Company Law Tribunal (“NCLT”), Mumbai Bench. The Bench held that the Successful Auction Purchaser can be given certain reliefs and concession consequent to going concern sale in the liquidation proceeding of Corporate Debtor.Background Facts On 11.06.2018 ...

NCLAT Invites Application For Position Of Law Research Associates, 7th March 2024 Last Date To Apply

The National Company Law Appellate Tribunal (“NCLAT”) has issued a circular dated 13.12.2023, inviting applications for engagement of Law Research Associates (“LRA”) on contractual basis for NCLAT Benches in New Delhi and Chennai. The last to apply is 07.03.2024. VACANCY There is vacancy for 20 Law Research Associates at the NCLAT Principal Bench (New Delhi) and for 4 Law Research Associates in NCLAT Chennai Bench. However, the vacancies are tentative. AGE AND NATIONALITY ...

When Creditor Proposes Name Of RP In Proceedings U/S 95 Of IBC, RP Must Give Declaration In Part IV Of Form C To Creditor: IBBI Clarifies

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 21.12.2023, providing clarification regarding submission of particulars and declaration by Insolvency Professional (“IP”), in instances where a creditor proposes name of such IP to act as a Resolution professional in proceedings under Section 95 of Insolvency and Bankruptcy Code, 2016 (“IBC”). The application under Section 95 of IBC, seeking initiation of insolvency resolution process against Personal...

NCLT Mumbai Approves Resolution Plan For Reliance Communications Infrastructure Ltd., Valued At Rs 455.9 Crores As Against Total Admitted Claim Of Rs 47,251 Crores.

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Justice Virendrasingh G. Bisht (Retd.) (Judicial Member) and Shri Prabhat Kumar (Technical Member), has approved the Resolution Plan submitted by Reliance Projects & Property Management Services Ltd. (wholly owned subsidiary of Mr. Mukesh Ambani promoted Reliance Industries Ltd.) for Reliance Communications Infrastructure Ltd., which is a subsidiary of Reliance Communications Ltd. previously being run by Anil...

NCLT Kolkata Approves Resolution Plan For McNally Bharat Engineering Company Ltd

The National Company Law Tribunal (“NCLT”), Kolkata Bench, comprising of Shri Rohit Kapoor (Judicial Member) and Shri Balraj Joshi (Technical Member), has approved the Resolution Plan submitted by BTL EPC Limited (part of Shrachi Group) for McNally Bharat Engineering Company Limited. The Resolution Plan is valued at Rs. 441.11 Crores, while the total admitted claims of the Corporate Debtor amounts to Rs. 5,015.28 Crores. Background Facts McNally Bharat Engineering Company...

CIRP And Avoidance Application Separate Set Of Proceedings, Adjudication Of Avoidance Application Can Survive CIRP: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member) and Shri Arun Baroka (Technical Member), has held that Corporate Insolvency Resolution Process (“CIRP”) and proceedings for avoidance of transactions are separate set of proceedings. If an avoidance application filed by Resolution Professional is pending adjudication, then the same would not stall the approval of resolution plan by...

Homebuyers Or Unsuccessful Resolution Applicant Not Entitled To File Avoidance Application: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member) and Shri Arun Baroka (Technical Member), has held that as per Section 25(2)(j) of IBC the Resolution Professional alone is empowered to file application for avoidance of transactions which are preferential, fraudulent, undervalued or extortionate in nature. The Homebuyer of the Corporate Debtor's real estate project or the...