Petitioner Fails To Prove Existence Of Debt In Section 7 Petition, NCLT Ahmedabad Imposes A Cost Of Rs. 2 Lakhs

The National Company Law Tribunal (NCLT), Ahmedabad Bench, comprising of Mrs. Chitra Hankare (Judicial Member) and Dr. Velamur G Venkata Chalapathy (Technical Member), while adjudicating a petition filed in G.L.E. India Solar Private Limited v Bright Solar Limited, has imposed a cost of Rs. 2 Lakhs on a Petitioner, who failed to prove existence of debt for the purpose of initiating CIRP under Section 7 of IBC against the Respondent. Background Facts G.L.E. India Solar Pvt. Ltd....

Party Who Benefits From Preferential Transaction Can Only Be Directed To Contribute To Corporate Debtor: NCLT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in Mr. Saptarshi Nath & Anr. v Kapil Dev Taneja, has held that under Section 44(1)(d) of IBC a direction to contribute to the assets of the Corporate Debtor can be only given to a person who has received benefits from the Corporate Debtor. The Bench concluded that in a preferential ...

IBBI Invites Suggestions To Simplify And Reduce Cost Of Compliance Of IBC Regulations

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a Press Release dated 12.10.2023, inviting suggestions to simplify, ease and reduce cost of compliance of Regulations notified under the Insolvency and Bankruptcy Code, 2016 (“IBC”). The IBBI has framed IBBI (Mechanism for Issuing Regulations) Regulations, 2018 providing for the manner of consultation, framing and review of Regulations. Apart from wide and transparent public consultation before making regulations, the...

NCLT Mumbai: Threshold Limit For A Valid Petition Under Section 9 Of IBC For Each Operational Creditor Should Be Rs. 1 Crore

The National Company Law Tribunal (‘NCLT’) Mumbai comprising of Lakshmi Gurung (Judicial Member) and Charanjeet Singh Gulati (Technical Member), dismissed the petition as non-maintainable filed in Mr. Atanu Kumar Chatterjee Vs. Rolta Defence Technology Systems Pvt. Ltd. The Petition was filed by 29 Operational Creditors to initiate a Corporate Insolvency Resolution Process (‘CIRP’) against Rolta Defence Technology System Pvt. Ltd. (Corporate Debtor). The Tribunal held that the...

Weekly Digest Of IBC Cases: 9th To 15th October 2023

Supreme Court Homebuyers Who Secure RERA Decrees Can't Be Treated Differently From Other Financial Creditors Under IBC: Supreme Court The Supreme Court bench comprising Justices S Ravindra Bhat and Aravind Kumar, has held that homebuyers cannot be treated differently from other "financial creditors" under the Insolvency and Bankruptcy Code (IBC) 2016 just because they have secured orders from the authority under the Real Estate (Regulation and Development) Act 2016. The bench set...

Special Bench At NCLT Hyderabad From 16th To 20th October 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 09.10.2023, intimating the constitution of Special Bench in NCLT Hyderabad for the period of 16.10.2023 to 20.10.2023, since Shri Sanjay Puri (Technical Member) is on leave in that duration. The Special Bench shall attend to the matters listed before Shri Rajeev Bhardwaj (Judicial Member) and Shri Sanjay Puri (Technical Member). The Special Bench shall comprise of: NCLT Hyderabad Bench (Court No. II) Shri ...

Homebuyers Who Secure RERA Decrees Can't Be Treated Differently From Other Financial Creditors Under IBC : Supreme Court

The Supreme Court has held that homebuyers cannot be treated differently from other "financial creditors" under the Insolvency and Bankruptcy Code (IBC) 2016 just because they have secured orders from the authority under the Real Estate (Regulation and Development) Act 2016.A bench comprising Justices S Ravindra Bhat and Aravind Kumar set aside an order of the National Company Law Appellate Tribunal which held that beneficiary of orders of the RERA Authority should be treated differently from...

NCLAT New Delhi: No Point In Discussing An Issue, Even If Issue Is Attractive, After The Closure Of CIRP Proceedings

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, New Delhi comprising of Justice Rakesh Kumar Jain (Judicial Member) and Naresh Salecha (Technical Member), dismissed the appeal filed in State Bank of India vs. Ritesh Prakash Adatiya & Ors. The appeal was filed against the order dated 29.03.2023 passed by the National Company Law Tribunal (“NCLT”) Kolkata whereby an application by the IRP of McLeod Russel India Limited (Corporate Debtor) has been disposed of. ...

Mere Statement Of Operational Creditor That No Dispute Exists, Is Not Enough : NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in NTT Data Business Solutions Pvt. Ltd. v Trident Ltd., has held that Operational Creditor merely responding to notice invoking arbitration by stating that no disputes exist, would not prevent the NCLT from concluding that disputes exist based on material on record. Background Facts NTT...

NCLAT Chennai: FC And OC Can’t Give Additional Facts Not Provided In Application Under Sections 7, 9 Or 10 Of IBC

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench comprising of Justice Rakesh Kumar Jain (Judicial Member) and Shreesha Merla (Technical Member), dismissed the appeal filed in State Bank of India vs. India Power Corporation Ltd. The Appellate Tribunal held that a Petitioner (Financial/Operational Creditor) cannot set up a new case/additional factual altogether that has not been set up in the main application filed either u/s 7, 9, or 10 of the Insolvency and...

NCLT Chennai Bench Reconstituted W.E.F. 12th October 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 11.10.2023, intimating the reconstitution of NCLT Chennai Bench with effect from 12.10.2023. As per the order of Ministry of Corporate Affairs dated 16.08.2023, the NCLT Benches are to be further reconstituted as and when new NCLT members join. Shri Jyoti Kumar Tripathi (Judicial Member) has been newly appointed as a NCLT Member and has been posted to the NCLT Chennai Bench. The reconstituted bench is as...

NCLAT Bench Defied Supreme Court Order? Supreme Court Directs Enquiry By Chairperson

The Supreme Court today (13.10.2023) directed for an enquiry to be conducted by the Chairperson of the National Company Law Appellate Tribunal (NCLAT) on allegations that a bench of the NCLAT had defied an order of the Supreme Court. A bench comprising CJI DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra passed the order under "extraordinary circumstances", after it was apprised by Senior Advocate AM Singhvi and Senior Advocate NK Kaul that an NCLAT bench had delivered an order...