IBC
Kerala High Court Dismisses Plea Seeking CBI, ED, NIA Probe Into Alleged Byju's Insolvency Irregularities
The Kerala High Court has recently dismissed a plea seeking a court-monitored investigation by the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), and National Investigation Agency (NIA) into allegations connected with the corporate insolvency resolution process of Think and Learn Private Limited (BYJU'S). Justice G. Girish observed that the plea was not maintainable because an earlier Public Interest Litigation seeking the same reliefs on the same cause of action had been...
NCLT Mumbai Admits Canara Bank's ₹282 Crore Insolvency Plea Against Reliance Infra SPV HK Toll Road
The Mumbai Bench of the National Company Law Tribunal (NCLT) has admitted Canara Bank's insolvency petition against HK Toll Road Private Limited. The company is a Reliance Infrastructure-promoted special purpose vehicle executing the Hosur-Krishnagiri six-laning highway project in Tamil Nadu. The admission was over a default of Rs. 282.59 crore. A bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar held that the bank's Section 7 application was complete in all respects. ...
NCLT Cannot Refuse Additional Objections Solely For Want Of Express Provision In IBC: Kerala High Court
The Kerala High Court has held that the National Company Law Tribunal (NCLT) can permit additional objections in insolvency proceedings. It cannot reject such requests on the ground that there is no provision under the Insolvency and Bankruptcy Code or the NCLT Rules to entertain them. Justice Harisankar V. Menon made the observation while allowing a petition filed by BPL Limited. The Court set aside an order of the NCLT, Kochi Bench, which had refused to entertain the company's additional...
NCLT Mumbai Initiates Personal Guarantor Insolvency Proceedings Against Anil Ambani On SBI Plea
Industrialist Anil Ambani has been admitted to personal insolvency proceedings by the Mumbai Bench of the National Company Law Tribunal on an application filed by State Bank of India over guarantees furnished for loans extended to Reliance Communications Ltd (RCOM) and Reliance Infratel Ltd (RITL), involving a default of ₹853.25 crore. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar admitted SBI's application after accepting the Resolution Professional's...
Secured Creditor Cannot Be Compelled To Issue NOC For Sale Of Secured Assets: NCLT Bengaluru
The National Company Law Tribunal (NCLT) at Bengaluru has recently held that a secured creditor cannot be compelled to issue a No Objection Certificate (NOC) for the sale of secured assets merely because the corporate debtor proposes an alternative mechanism for repayment of its dues. The tribunal dismissed an application filed by Gulam Mustafa Enterprises Pvt Ltd seeking directions to Piramal Finance Ltd to issue NOCs for sale of certain mortgaged assets. A bench of Judicial Member Sunil...
NCLT Ahmedabad Admits CIRP Against Areli Commerce, Rejects Financial Hardship Defence In S.7 Case
On 10 June, the Ahmedabad Bench of the National Company Law Tribunal (NCLT) initiated the Corporate Insolvency Resolution Process (CIRP) against Areli Commerce Pvt. Ltd., holding that financial hardship, liquidity constraints and market conditions cannot be used to defeat a Section 7 petition once debt and default are established. Judicial Member Shammi Khan and Technical Member Sanjeev Sharma rejected the corporate debtor's defence and admitted the petition filed by Standard Capital Markets...
Rejection Of Personal Guarantor's Repayment Plan By CoC Has Same Effect As Tribunal Rejection: NCLT Indore
The Indore bench of the National Company Law Tribunal (NCLT) has observed that rejection of a repayment plan by the Committee of Creditors (CoC) has the same effect as rejection of the plan by the adjudicating authority, while rejecting a personal guarantor's repayment plan after it was voted down by creditors. A bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta observed: “It is pertinent to note that the rejection of the Repayment Plan by the Committee of...
NCLT Chandigarh Admits Primezone Developers To CIRP, Treats Plot Allottee Payments As Financial Debt
On 5 June, the Chandigarh Bench of the National Company Law Tribunal (NCLT) admitted Primezone Developers Pvt. Ltd. to the Corporate Insolvency Resolution Process (CIRP), holding that payments made by plot allottees constitute financial debt under the Insolvency and Bankruptcy Code. Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal admitted the Section 7 petition filed by the allottees and initiated CIRP against the corporate debtor. The Bench held: “The Corporate Debtor...
NCLT Bengaluru Dismisses Netambit's Insolvency Plea Against Flipkart, Finds Pre-Existing Dispute
The National Company Law Tribunal (NCLT) at Bengaluru has dismissed an insolvency petition filed by Netambit Value First Services Pvt Ltd against Flipkart Internet Private Limited, holding that the material on record disclosed the existence of a pre-existing dispute between the parties.A coram of Judicial Member Mahendra Khandelwal and Technical Member Ravindra Chaturvedi observed that the dispute had been raised even before the issuance of the statutory demand notice. The Bench observed:“In our...
Bombay High Court Quashes Awards Against Guarantors Despite IBC Moratorium On Debt
The Bombay High Court on Tuesday held that arbitral awards resulting in enforcement of a debt that has become temporarily unenforceable due to a statutory moratorium run contrary to the fundamental policy of Indian law. The court consequently quashed two awards obtained by Abhyudaya Co-operative Bank against guarantors of insolvency resolution bound Nirmangold Alloys Pvt. Ltd. and Nirmangold Plasttech Pvt Ltd. Justice Sharmila U. Deshmukh held that the arbitral tribunal continued proceedings...
Kerala High Court Dismisses Writ Against NCLT New Delhi Insolvency Proceedings, Cites No Jurisdiction
On 25 May, the Kerala High Court held that it cannot entertain a writ petition challenging insolvency proceedings initiated before the National Company Law Tribunal (NCLT), New Delhi, against a personal guarantor merely because the underlying credit facilities were availed in Kerala, since territorial jurisdiction under the Insolvency and Bankruptcy Code depends on the location of the corporate debtor's registered office. Justice Harisankar V Menon dismissed a writ petition filed by a personal...
Can Litigants Circumvent IBC Limitation By Filing Defective Appeals? Supreme Court's Answer Is A Resounding 'No'
The Supreme Court has recently held that litigants cannot circumvent the Insolvency and Bankruptcy Code's strict limitation regime by filing defective appeals to save the limitation and curing defects later at their convenience. A bench of Justices Dipankar Datta and Satish Chandra Sharma posed the following question: “Can or should a litigant be permitted to circumvent the rigours of limitation by filing a defective appeal as a device to save limitation and, thereafter, to opt to cure the...