IBC
NCLT Kolkata: Registration Of Assignment Of Debt Is Not Mandatory For CIRP U/S 7 Of IBC
The National Company Law Tribunal (‘NCLT’) Kolkata Bench comprising Smt. Bidisha Banerjee (Judicial Member) and Shri Arvind Devanathan (Technical Member) held that the registration of the assignment of debt is not mandatory for the Corporate Insolvency Resolution Process (‘CIRP’) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (‘IBC’). Further, the Corporate Debtor cannot go into the question of the legality of the assignment of debt since the assignment of debt was never...
Mittal Corp Ltd. To Merge With Subsidiary Of Shyam Metalics & Energy, NCLT Mumbai Approves Resolution Plan
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri Kuldip Kumar Kareer (Judicial Member) and Shri Anil Raj Chellan (Technical Member), has approved the Resolution Plan submitted by Shyam Sel and Power Limited (Subsidiary of Shyam Metalics & Energy Ltd.) for Mittal Corp Ltd. The resolution plan is valued at Rs. 351 Crores and provides for merger of the two companies post implementation of plan. Background Facts Mittal Corp Limited (“Corporate Debtor”)...
NCLAT New Delhi: Haircut In Resolution Plan Cannot Be Construed As Being Violative Of Section 30(2)(E) Of IBC
The National Company Law Appellate Tribunal (‘NCLAT’) Principal Bench, New Delhi comprising Mr. Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that a haircut in Resolution Plan cannot be construed as being violative of Section 30(2)(e) of the Insolvency and Bankruptcy Code, 2016 (‘IBC’) and the minority homebuyers have to necessarily sail with the majority within the class. Facts: The Appellants are a clutch of 25...
NCLAT Delhi: Fine For Non-Cooperation By Ex-Management Under IBC Is A “Penalty” Not “Cost” And Outside NCLT’s Jurisdiction
The National Company Law Appellate Tribunal (“NCLAT”), Delhi Bench, comprising of Justice Anant Bijay Singh (Judicial Member) and Mr Naresh Salecha (Technical Member) has held that the fine imposed on non-cooperation by ex-management u/s 19(2) or 34(3) of Insolvency & Bankruptcy Code, 2016 (“IBC”) is covered under the term “penalty” and not “cost” under Rule 149 of the National Company Law Tribunal Rules, 2016 (“Company Rules”). The Bench further observed that imposing fines is...
NCLT Delhi Approves Resolution Plan For ENN TEE International Limited
The National Company Law Tribunal (“NCLT”), Delhi Bench, comprising of Justice Ramalingam Sudhakar (Retd.) (Judicial Member) and Avinash Kumar Srivastava (Technical Member) has approved the Resolution Plan submitted by ENN TEE International Limited through its Promotor. Background Facts ENN TEE International Limited (“Corporate Debtor”) is a registered MSME engaged in the business of manufacturing and supplying Polyester and Polypropylene dope-dyed yarn and narrow fabric. The...
Weekly Digest Of IBC Cases: 23rd To 29th October 2023
Supreme Court IBC| Time-Barred Recovery Certificate Can Be Segregated From Composite Claim Under Section 7: Supreme Court Case Title: Tottempudi Salalith v State Bank Of India & Ors. Citation: 2023 LiveLaw (SC) 914 The Supreme Court Bench comprising Justice Aniruddha Bose and Justice Vikram Nath, has held that in a composite application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) based on several Recovery Certificates issued by Debt Recovery...
NCLAT New Delhi: Operational Creditor Not Entitled To Benefit U/S 14 Of Limitation Act When Suit Filed By It Was Withdrawn By Itself Without Any Liberty To Institute Fresh suit
The National Company Law Appellate Tribunal (‘NCLAT’) Principal Bench, New Delhi comprising Mr. Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that an Operational Creditor is not entitled for benefit of Section 14 of the Limitation Act where the Suit filed by it was withdrawn on its own application without any liberty to institute a fresh suit. Facts: GRI Towers India Pvt. Ltd. (Operational Creditor) filed a Suit...
IBBI Proposes Changes To Liquidation Process Under IBC, Invites Public Comments Till 10th November 2023
The Insolvency and Bankruptcy Board of India (“IBBI”) on 20.10.2023 has published a Discussion Paper on ‘Strengthening the Liquidation Process’ under the Insolvency and Bankruptcy Code, 2016 (“IBC”). The IBBI has also invited comments from the public/stakeholders regarding proposed changes to the Liquidation framework. The comments can be submitted online at www.ibbi.gov.in till 10.11.2023. The proposed changes to IBBI (Liquidation Process) Regulations, 2016, are as under: ...
E-Auction Can’t Be Set Aside On Trivial Technical Grounds For No Fault Of Successful Bidder: NCLT Hyderabad
The National Company Law Tribunal (NCLT), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Charan Singh (Technical Member), has held that an e-auction of Corporate Debtor’s asset done by Liquidator cannot be set aside on trivial technical grounds, for no fault of the successful bidder. The application for setting e-auction was filed after the distribution of proceeds as per Section 53 of IBC had taken place and the changes in Board of...
NCLAT Chennai: Threshold To Maintain Oppression Proceedings Not Limited To Holding Of Shares Alone But Extends To Manner Of Acquiring Of Shares
The National Company Law Appellate Tribunal (‘NCLAT’), Chennai Bench comprising of Justice M. Venugopal (Judicial Member) and Shreesha Merla (Technical Member) has dismissed an appeal and held that the threshold to maintain oppression proceedings is not only limited to the holding of shares alone but also extends to the manner in which the shares were acquired. Background Facts: Proceedings were initiated by Jitendra Virmani (Appellant) who is the Chairman and Founder of the Embassy...
NCLAT Chennai: Shareholders Cannot Take Decisions For The Company’s Business Or Hold Negotiations With Parties
The National Company Law Appellate Tribunal (‘NCLAT’), Chennai Bench comprising of Justice M. Venugopal (Judicial Member) and Shreesha Merla (Technical Member) has dismissed an appeal filed by Jitendra Virmani (Appellant) against Mro-Tek Realty Limited (‘Company’). The appeal was filed against the order 27.11.2019 passed by the National Company Law Tribunal (‘NCLT’) Bangalore. The Appellate Tribunal held that the Board of Directors has the onus to take decisions for the Company’s...