NCLT New Delhi & NCLT Chandigarh Benches Re-Constituted W.E.F 18th December 2023

The National Company Law Tribunal (“NCLT”), has issued a Circular dated 12.12.2023, intimating that the NCLT New Delhi (Court No. II) and NCLT Chandigarh (Court No. I) benches have been re-constituted with effect from 18.12.2023. The reconstitution is being made in reference to the Office Order dated 11.12.2023, whereby Shri L.N. Gupta (Technical Member) has been posted to NCLT Chandigarh and Shri Subrata Kumar Dash (Technical Member) has been posted to NCLT New Delhi bench, with...

Special Bench At NCLT Principal Bench From 18th To 20th December 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 12.12.2023, intimating the constitution of Special Bench in NCLT Principal Bench (New Delhi) from 18.12.2023 to 20.12.2023, since Shri Avinash Kumar Srivastava (Technical Member) is on leave in that duration. The Special Bench shall attend to the matters listed before Justice Ramalingam Sudhakar (President) and Shri Avinash Kumar Srivastava (Technical Member). The Special Bench shall comprise of: NCLT...

Sec 240A IBC | Even If MSME Registration Obtained Post Commencement Of CIRP, Promoter Eligible To Submit Resolution Plan: Supreme Court

The Supreme Court has held that the Promoter of a Corporate Debtor is eligible to submit a resolution plan in terms of Section 240A of the Insolvency and Bankruptcy Code, 2016 (“IBC”), even if the Corporate Debtor was registered as Micro Small Medium Enterprise (“MSME”) after commencement of Corporate Insolvency Resolution Process (“CIRP”).The Bench comprising Justice Sanjay Kishan Kaul and Justice Sudhanshu Dhulia, has set aside an order passed by the National Company Law Appellate Tribunal...

IBC | Cut-Off Date To Determine Resolution Applicant's Eligibility Under S.240A Is Date Of Submitting Resolution Plan : Supreme Court

The Supreme Court has held that for the purpose of Section 240A of Insolvency and Bankruptcy Code, 2016 (“IBC”), the cut-off date to determine the eligibility of a resolution applicant to submit a resolution plan, is the date on which the resolution plan was submitted and not the date on which Corporate Insolvency Resolution Process (“CIRP”) commenced.The Bench comprising Justice Sanjay Kishan Kaul and Justice Sudhanshu Dhulia, has set aside an order passed by the National Company Law Appellate...

NCLT New Delhi: Date Of Default Or Pleadings Can Be Amended At Any Stage Of The Matter Under IBC

The National Company Law Tribunal (NCLT), New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri Atul Chaturvedi (Technical Member) allowed the application of the Applicant for amendment of the date of default and held that the amendment of pleadings (including date of default) in a Corporate Insolvency Resolution Process (CIRP) application filed under Section 7 of Insolvency and Bankruptcy Code (IBC) can be done at any stage of the matter. Background...

For Deciding Preliminary Issue Of Maintainability In Section 9 Petition, Not Necessary To Seek Written Response From Corporate Debtor: NCLT Delhi

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Mahendra Khandelwal (Judicial Member) and Shri Rahul Bhatnagar (Technical Member), has held that it is not necessary to seek written response of the Corporate Debtor at the stage of deciding maintainability of petition under Section 9 of IBC.“However, in this regard, this Adjudicating Authority is of the view that, this application is being analyzed on a prima facie issue, i.e. on the issue of maintainability of...

Weekly Digest Of IBC Cases: 4th To 10th December 2023

NCLAT No Provision In IBC For Upfront Payment To Dissenting Financial Creditors On Resolution: NCLAT Delhi Case Title: Puro Naturals JV v Warana Sahakari Bank & Ors. Case No.: Company Appeal (AT) (Insolvency) Nos.661-663 of 2023 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 there is no provision under IBC which requires the Successful ...

In Absence Of Privity Of Contract, Servicer Of Aircraft Lessors Has No Locus Standi To File Insolvency Proceedings Against SpiceJet: NCLT Delhi

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Mahendra Khandelwal (Judicial Member) and Shri Rahul Bhatnagar (Technical Member), has held that a Servicer of Aircraft Lessors, who is neither a party in Aircraft Lease Agreements nor the issuer of invoices, has no locus standi to seek initiation of insolvency proceedings against Spicejet Ltd. in the capacity of an Operational Creditor.The Bench has dismissed a petition filed under Section 9 of IBC by Willis Lease...

CCI Closes Complaint Against Survey Of India: Procurer Free To Prescribe Technical Conditions Under Tender

The Competition Commission of India ('CCI') comprising Ms. Ravneet Kaur (Chairperson), Mr. Anil Agrawal (Member), Ms. Sweta Kakkad (Member), and Mr. Deepak Anurag (Member) closed the complaint against Surveyor General of India, Survey of India ('OP-1') and Technical Committee for Purchase of Plotter, Survey of India ('OP-2'). The complaint was filed alleging contravention of the provisions of Section 3 of the Competition Act, 2002 ('Act') while procuring LED Plotters with Folders, by the Survey...

NCLAT New Delhi: Workers' Claim Through Sub-Contractor Can't Be Treated On Par With Corporate Debtor's Workmen

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 Claim of workers employed through sub-contractor filed through sub-contractor as Operational Debt cannot be treated as workmen of Corporate Debtor.Background FactsThe Appeal has been filed against the NCLT New Delhi's order dated 21.08.2023 approving the Resolution Plan submitted by...

NCLT Kolkata: Debt Arising From Foreign Arbitral Awards Can't Be Considered Financial Debt, But Can Be Treated As “Other Debts”

The National Company Law Tribunal (“NCLT”), Kolkata Bench, comprising Smt. Bidisha Banerjee (Judicial Member) and Shri Arvind Devanathan (Technical Member) have partly allowed an application and held that the debt arising out of foreign arbitral awards cannot be considered as Financial Debt, however, it can be treated as “Other Debts”. The Bench further observed that since the claim has reached finality in the view of the decree of competent foreign arbitral forums and only the...

NCLT Mumbai: Insufficiently Stamped Assignment Deed Transferring Loan To Corporate Debtor Is Void And No CIRP Can Be Initiated Under IBC

The National Company Law Tribunal ('NCLT'), Mumbai Bench, comprising of Justice V.G. Bisht (Retd.) (Judicial Member) and Mr. Prabhat Kumar (Technical Member) dismissed the Corporate Insolvency Resolution Process ('CIRP') and held that the Transfer of loan from Principal Borrower to Corporate Debtor through assignment agreement, which is not stamped is a void contract and CIRP under Section 7 of Insolvency and Bankruptcy Code, 2016 ('IBC') cannot be initiated against the Corporate...