NCLT Notifies Latest Composition Of All NCLT Benches As On 18th December 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 18.12.2023, consolidating the latest composition of all NCLT Benches as on 18.12.2023 alongwith their sitting duration/time. Several NCLT benches have undergone re-constitution since the last constitution taken place vide circular dated 18.08.2023. The present composition of NCLT benches is as under: Bench Court No. Judicial Member Technical Member ...

Condition To Submit Refundable BG, Not Violative 36-B Of CIRP Regulations: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member) and Shri Arun Baroka (Technical Member), has held that if the Request For Resolution Plan (RFPR) requires the resolution applicant(s) to submit a refundable Bank Guarantee, then such condition is not violative of Regulation 36-B of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”). ...

NCLT Mumbai: Unspent Balance And Refundable Security Deposit Of Prepaid And Postpaid Subscribers Constitutes 'Operational Debt' (Other Than Government Dues)

The National Company Law Tribunal ('NCLT'), Mumbai Bench, comprising Justice Shri V.G. Bisht (Judicial Member) and Shri Prabhat Kumar (Technical Member) held that the unspent balance of Prepaid Subscribers and the Refundable Security Deposit of Postpaid Customers shall be treated as Operational Debt (other than Government dues) under IBC concerning telecom insolvency. Background Facts Reliance Telecom Ltd. ('Corporate Debtor') is engaged in the provision of Mobile Telephony Services...

NCLT Guwahati Bench: Amount Given As Investment For Joint Venture By Financial Creditor To Corporate Debtor Is Not Financial Debt Under IBC

The National Company Law Tribunal (“NCLT”), Guwahati Bench, comprising of Shri H. V. Subba Rao (Judicial Member) and Shri Satya Ranjan Prasad (Technical Member) has dismissed a petition. The Bench has held that the amount given to a Corporate Debtor by a Financial Creditor by way of an investment for a Joint Venture does not fall within the definition of a financial debt as per the provisions of Insolvency and Bankruptcy Code, 2016 (“IBC”). Background Facts Vaishno Devi ...

NCLT Mumbai: Substance Of A Transaction Is Important Over Its Form, Accounting Entries Can Not Determine Character And Nature Of Transaction

The National Company Law Tribunal (NCLT), Mumbai Bench, comprising of Justice Shri V.G. Bisht (Judicial Member) and Shri Prabhat Kumar (Technical Member) has held that the substance of a transaction is important rather than its form and accounting entries can not determine the character and nature of a transaction. Background Facts Mr. Rakesh Bothra ('Applicant'), the Resolution Professional of Makalu Trading Ltd. filed an application to direct the Interim Resolution Professional...

NCLT Ahmedabad Directs Income Tax Department To Refund Tax To Corporate Debtor; Section 53 Of IBC Overrides Sec. 194-IA Of Income Tax Act

The National Company Law Tribunal (“NCLT”), Ahmedabad Bench, comprising of Mrs. Chitra Hankare (Judicial Member) and Dr. Velamur G Venkata Chalapathy (Technical Member), has held that Income Tax deducted and paid by the auction purchaser amounts to recovery of tax from Corporate Debtor (which is under liquidation), on priority with other creditors as mentioned in Section 53 of IBC, which is against the object and provisions of IBC. The Liquidator sold the assets of the Corporate Debtor...

NCLT Mumbai: Buyer In Liquidation Auction Sale Can't Step Back On Ill-Founded Ground Of Absence Of NCLT's Order Extending Period To Conclude Sale

The National Company Law Tribunal ('NCLT'), Mumbai Bench, comprising Justice Shri V.G. Bisht (Judicial Member) and Shri Prabhat Kumar (Technical Member) held that a Buyer in a Liquidation Auction sale can't be allowed to step back on the ill-founded ground of the absence of an Order of NCLT extending the period of 90 days to conclude the sale. Background Facts Melker TTI Biofuels Limited ('Applicant') filed an application in the Liquidation Process of Dhavalpratapsinh Mohitepatil...

IBC- Properties Sold In Auction Sale Before Declaration Of Moratorium Can't Be Treated As Liquidation Asset : Supreme Court

Recently, the Supreme Court (on December 06) 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 before the declaration of a moratorium under the Insolvency and Bankruptcy Code 2016.While doing so, the Bench of Justices Aniruddha Bose and Vikram Nath set aside the order passed by the National Company Appellate Tribunal, Delhi (NCLAT).The facts of the present case revolve around the insolvency of Amrit...

Weekly Digest Of IBC Cases: 11th To 17th December 2023

Supreme Court IBC | When Matter Heard But No Order Pronounced On The Same Day, Limitation To Commence From The Date When Order Gets Uploaded: Supreme Court Case Title: Sanjay Pandurang Kalate v Vistra ITCL (India) Limited and Others Case No.: Civil Appeal Nos 7467-7468 of 2023 The Supreme Court bench comprising Chief Justice of India Dr Dhananjaya Y Chandrachud, Justice J B Pardiwala and Justice Manoj Misra, has held that when the NCLT hears a matter on a particular date but...

NCLT Modifies Composition Of Special Bench At NCLT Principal Bench From 18th To 20th December 2023, Matters To Be Heard Through VC On 21st & 22nd December 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 15.12.2023, in supersessionof its earlier circular dated 12.12.2023, intimating the change in constitution of Special Bench in NCLT Principal Bench (New Delhi) from 18.12.2023 to 20.12.2023. The Special Bench shall attend to the matters listed before Justice Ramalingam Sudhakar (President) and Shri Avinash Kumar Srivastava (Technical Member). Previously, the Special Bench was to comprise of Justice Ramalingam...

IBC | When Matter Heard But No Order Pronounced On The Same Day, Limitation To Commence From The Date When Order Gets Uploaded: Supreme Court

The Supreme Court has held that when the National Company Law Tribunal (“NCLT”) hears a matter on a particular date but does not pronounce the order on the same date, then the limitation for filing an appeal from such order before the National Company Law Appellate Tribunal (“NCLAT”) under Section 61 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), would commence from the date when the Order of NCLT gets uploaded.However, in cases where matter was heard and order was pronounced on the same...

IBC | When Matter Heard On A Particular Date But Order Pronounced Later, NCLT Not To Affix Date Of Hearing On Order: Supreme Court

The Supreme Court has held that when a matter is heard by the National Company Law Tribunal (“NCLT”) on a particular date but the order is pronounced on another date, then NCLT must refrain from affixing the date of hearing on the order. The requirement of pronouncement of order cannot be dispensed with, since under the NCLT Rules, 2016 there is a distinction between 'hearing' and 'pronouncement'.The NCLT heard a matter on 17.05.2023 but no order was pronounced. The order was uploaded on...