NCLT Delhi: Application U/s 7 IBC Cannot Be Initiated Against A Struck-off Company; NCLT cant Suo Motu Restore The Name

The National Company Law Tribunal (“NCLT”), Delhi Bench, comprising of Manni Sankariah Shanmuga Sundaram (Judicial Member) and Dr Binod Kumar Sinha (Technical Member) has held that any application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) cannot be initiated against a company struck off by Registrar of Company (“RoC”) and the power to restore the name of such a company under section 252 of Companies Act, 2013 (“Companies Act”) is not a Suo motu power of NCLT. ...

NCLAT Delhi: Distribution To Secured Creditor Must Be Made As Per Admitted Claim And Not As Per Security Interest Over Assets Of Corporate Debtor

The National Company Law Appellate Tribunal (“NCLAT”), Delhi Bench, comprising Justice Ashok Bhushan (Chairperson) and Mr Barun Mitra and Mr Arun Baroka (Technical Members) has dismissed an appeal and held that distribution to Secured Creditor must be made as per admitted claim and not as per Security interest over assets of the Corporate Debtor. The Bench further observed that a dissenting financial creditor is entitled to the liquidation value of his debt and the distribution among...

Weekly Digest Of IBC Cases: 20th To 26th November 2023

Supreme Court IBC | No Casual Interference With Commercial Wisdom Of CoC: Supreme Court Sets Aside NCLT Direction To Reevaluate Corporate Debtor's Assets Case Title: Ramkrishna Forgings Limited v Ravindra Loonkar & Anr. Citation: 2023 LiveLaw (SC) 1007 The Supreme Court bench comprising Justice Vikram Nath and Justice Ahsanuddin Amanullah, has set aside an order whereby the National Company Law Tribunal (“NCLT”) kept the approval of a resolution plan in abeyance while...

NCLAT Delhi Upholds Initiation Of Insolvency Proceedings Against Birla Tyres Ltd., A B.K. Birla Group Company

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Shri Naresh Salecha (Technical Member), has upheld the order whereby the NCLT had initiated Corporate Insolvency Resolution Process (“CIRP”) against Birla Tyres Ltd. (“Corporate Debtor”). Background Facts Birla Tyres Ltd. is a part of B.K. Birla Group of Companies. In 1991, it was incorporated as a part of Kesoram Industries Ltd. but was later...

Special Bench At NCLT Mumbai From 28th November To 8th December 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 22.11.2023, intimating the constitution of Special Bench in NCLT Mumbai (Court VI) for the period of 28.11.2023 to 08.12.2023, since Shri KR Saji Kumar (Judicial Member) is on leave in that duration. The Special Bench shall attend to the matters listed before Shri KR Saji Kumar (Judicial Member) and Shri Sanjiv Dutt (Technical Member). The Special Bench shall comprise of: NCLT Mumbai Bench (Court No. VI) ...

Special Bench At NCLT Kochi From 28th November To 1st December 2023, Matters To Be Heard Through VC

The National Company Law Tribunal (“NCLT”) has issued a circular dated 24.11.2023, intimating the constitution of Special Bench in NCLT Kochi for the period of 28.11.2023 to 01.12.2023, since Justice T Krishna Valli (Judicial Member) is on leave in that duration. The matters shall be heard through video conferencing. 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...

No Recovery Towards TAS Can Be Made Towards Deductee Even If Deductor Is Undergoing CIRP: Delhi High Court

The Delhi High Court has held that no recovery towards Tax at Source (TAS) can be made towards the deductee even if the deductor is undergoing the Corporate Insolvency Resolution Process (CIRP).The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the deductee (petitioner) followed the regime framed in the Act for collecting TAS through an agent (Ninex) of the government, i.e., the deductor. It was the agent who was required to deposit the tax with the government....

NCLAT Delhi: Scope Of Enquiry By The Adjudicating Authority Under Section 31 Is Confined To Section 30(4) Compliance

The National Company Law Appellate Tribunal (“NCLAT”), Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr Barun Mitra (Technical Member) has dismissed an appeal and held that the scope of enquiry of the National Company Law Tribunal (“NCLT”) as per Section 31 of Insolvency and Bankruptcy Code, 2016 (“IBC”) is confined to scrutinising whether Section 30(4) IBC has been complied with. The Bench further pointed out that when the Appellant did not challenge the ...

IBC | No Casual Interference With Commercial Wisdom Of CoC : Supreme Court Sets Aside NCLT Direction To Reevaluate Corporate Debtor's Assets

The Supreme Court has set aside an order whereby the National Company Law Tribunal (“NCLT”) kept the approval of a resolution plan in abeyance while directing an Official Liquidator to conduct re-valuation of the Corporate Debtor’s assets. Consequently, the order of National Company Law Appellate Tribunal (“NCLAT”) affirming the NCLT’s order has also been set aside.An application under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 (“IBC”) was filed by the Resolution Professional...

NCLAT Delhi: Refusal To Rehear A Matter After Reserving An Order In A Company Petition Does Not Result In A Miscarriage Of Justice

The National Company Law Appellate Tribunal (“NCLAT”), Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr Barun Mitra and Mr Arun Baroka (Technical Members) has dismissed an appeal and held that refusal to rehear a matter after reserving an order in a company petition does not result in a miscarriage of justice. Background Facts Maa Durga Commotrade Pvt. Ltd. (“Corporate Debtor”) obtained a credit facility from the Karnataka Bank Limited (“KBL”) in 2010 for an...

Application For Certified Copy Filed Beyond Limitation, Not Entitled To Exclude Time In Preparation Of Certified Copy : NCLAT

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 when the application for obtaining certified copy of an NCLT order is submitted beyond the limitation period for filing of appeal (i.e. 30 days), then the Appellant is not entitled to exclude the time consumed in preparation of certified order from the period of limitation for...

NCLT Ahmedabad Directs Promoters To Deposit Rs. 7.78 Crores With Corporate Debtor Based On Forensic Audit Report

The National Company Law Tribunal (“NCLT”), Ahmedabad Bench, comprising of Shri Shammi Khan (Judicial Member) and Shri Sameer Kakar (Technical Member), has directed the Promoters/Suspended Management of Sysco Industries Ltd. (Corporate Debtor) to deposit Rs. 7.78 Crores with the Corporate Debtor on the basis of a forensic audit report. The Resolution Plan for the Corporate Debtor was approved by NCLT in 2022. Further, the amount of Rs. 7.78 Crores is to be distributed to the erstwhile CoC...