NCLAT New Delhi: Resolution Plan Cannot Go Back And Forth Making CIRP An Endless Process, Even If NCLT Has Not Approved The Plan

The National Company Law Appellate Tribunal (‘NCLAT’), Principal Bench, New Delhi comprising of Justice Rakesh Kumar Jain (Judicial Member) and Arun Baroka (Technical Member), dismissed an appeal filed in IDBI Bank Ltd. vs. Jalesh Kumar Grover RP of GPI Textiles Ltd. by IDBI Bank Ltd. (Appellant) against Jalesh Kumar Grover, Resolution Professional (‘RP’) for GPI Textiles Ltd. (Corporate Debtor) challenging the NCLT Chandigarh’s order dated 27.04.2023 dismissing the Appellant’s...

Registry Remained Open,Summer Vacation Not Excluded From Computation Of Limitation: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member) and Shri Arun Baroka (Technical Member), while adjudicating an appeal filed in M K Overseas Export Pvt. Ltd. v Sapan Mohan Garg, has held that the duration of summer vacation of NCLAT cannot be excluded from computation of limitation period, since filing facility was not discontinued by the Registry and urgent matters were also...

Operational Creditor Misleads Court To Evade Prohibition Under Section 10A Of IBC, NCLT Mumbai Imposes Cost of Rs. 25,000/-

The National Company Law Tribunal (NCLT), Mumbai Bench, comprising of Ms. Lakshmi Gurung (Judicial Member) and Shri Charanjeet Singh Gulati (Technical Member), while adjudicating a petition filed in Oswal Minerals Limited v Vidhi Minerals & Alloys Pvt. Ltd., has imposed a cost of Rs. 25,000/- on an Operational Creditor who disregarded Section 10A of IBC by seeking initiation of CIRP for default occurred within prohibited period and deliberately misled the court by stating incorrect...

MCA Notification: Moratorium Under IBC Inapplicable To Agreements Under Convention & Protocol Relating To Aircraft, Aircraft Engines, Airframes And Helicopters

The Ministry of Corporate Affairs (“MCA”), Government of India, has issued a notification dated 03.10.2023 published in the Gazette of India (Extraordinary), intimating that Section 14(1) of the Insolvency and Bankruptcy Code, 2016 (“IBC”) would be inapplicable to transactions, arrangements or agreements, under the Convention and the Protocol relating to aircraft, aircraft engines, airframes and helicopters. Brief Background On 16.11.2001, the Convention on International Interests...

NCLAT New Delhi: Objective Of IBC Is To Revive Corporate Debtor And Liquidation Is The Last Resort

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, New Delhi comprising of Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra Dash (Technical Member), and Arun Baroka (Technical Member), allowed the appeals filed in Gayatri Polyrub Pvt. Ltd. vs. Anil Kohli & Anr.. The Tribunal setting aside the order dated 15.03.2023 held that the objective of the Insolvency and Bankruptcy Code is to revive the Corporate Debtor and Liquidation as the last resort in a ...

NCLAT Directs Indexing Of All Interim Applications In The Main Volume

The National Company Law Appellate Tribunal (“NCLAT”) has issued a notice dated 04.10.2023, directing the Advocates/Authorised Representatives/Parties-in-Person to index all Interim Applications (“IA”) in the main volume of the Appeal/application filed before the NCLAT. The indexing of the IAs is to be done after Memo of Parties and Synopsis, but before the Pleadings. “In compliance of the order dated 26.09.2023 passed in Company Appeal (AT) (Ins.) No.545 of 2023 and as directed by the...

Weekly Digest Of IBC Cases: 25TH September To 1st October 2023

NCLAT When Claimant Fails To Substantiate Its Claim, No Error Committed By RP In Admitting Claim As Per Balance Sheet Of Corporate Debtor: NCLAT Delhi Case Title: Engineering Mazdoor Parishad Devas Through Its General Secretary v Teena Saraswat Pandey Case No.: Comp. App. (AT) (Ins.) No. 1200 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 a ...

NCLT Delhi: Unawareness About CIRP Is No Ground To File Claims At Belated Stage

The National Company Law Tribunal (“NCLT”), New Delhi Bench comprising of Mahendra Khandelwal (Judicial Member) and Rahul Bhatnagar (Technical Member), dismissed an application filed in Toyota Financial Services India Ltd. vs. Mr. Suresh Kumar Jain by Toyota Financial Services India Ltd., a Financial Creditor (‘Applicant’) for seeking directions against the Mr. Suresh Kumar Jain, Resolution Professional (‘RP’) of MK Overseas Pvt. Ltd. (Corporate Debtor) to admit claim of the Applicant. ...

NCLAT New Delhi: CIRP Application Barred By Time Should Be Rejected Even If No Defence Of Limitation Raised

The National Company Law Appellate Tribunal (‘NCLAT’), Principal Bench, New Delhi comprising of Justice Ashok Bhushan(Chairperson) , Barun Mitra (Technical Member) and Arun Baroka (Technical Member), dismissed an appeal filed in Sheetal Impex Pvt. Ltd. vs. Shree Swastic Sales Corporation Pvt. Ltd. by Sheetal Impex Pvt. Ltd. (Appellant) against Shree Swastic Sales Corporation Pvt. Ltd. (Corporate Debtor) challenging the NCLT New Delhi’s order dated 15.03.2023 rejecting an application under...

‘Ordinary Course Of Business’ For Real Estate Industry Is Providing Construction Service, Doesn’t Include Entering Into Agreement For Investment In A Project: NCLT Delhi

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Ashok Kumar Bhardwaj (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in Pallavi Joshi Bakhru v Universal Buildwell Private Limited, has held that the ‘ordinary course of business’ for a real estate industry would mean providing construction service. An agreement between two investors to invest into a project cannot be treated as an act done by them in an ‘Ordinary...

NCLAT New Delhi Sets Aside NCLT Order : Liability Of Interest Accrued During Section 10A Period Not To Be Excluded Aside

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, New Delhi comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), allowed the appeal filed in Beetel Teletech Ltd. vs. Arcelia IT Services Pvt. Ltd. by Beetel Teletech Ltd, (Operational Creditor) for initiation of Corporate Insolvency Resolution Process (“CIRP”) against Arcelia IT Services Pvt. Ltd. (Corporate Debtor). The Appellate Tribunal setting aside the NCLT Delhi’s order...

IBBI Clarifies Interpretation Regarding Liquidator’s Fee Under Regulation 4(2)(B) Of Liquidation Process Regulations

The Insolvency and Bankruptcy Board of India (“IBBI”) has released a circular dated 28.09.2023, clarifying the interpretation and computation of the Liquidators’ fee under Regulation 4(2)(b) of IBBI (Liquidation Process) Regulations, 2016 (“Liquidation Regulations”). Brief background Regulation 4 of Liquidation Regulations provides for Liquidator’s fee. Regulation 4(1) and 4(1A) provide that the fee payable to the liquidator be decided by the Committee of Creditors (CoC) or...