Special Bench At NCLT New Delhi From 3rd To 13th October 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 26.09.2023, intimating the constitution of Special Bench in NCLT New Delhi for the period of 03.10.2023 to 13.10.2023, since Dr. Binod Kumar Sinha (Technical Member) is on leave in that duration. The Special Bench shall attend to the matters listed before Shri M.S.S. Sundaram (Judicial Member) and Dr. Binod Kumar Sinha (Technical Member). The Special Bench shall comprise of: NCLT New Delhi Bench (Court No....

When Claimant Fails To Substantiate Its Claim, No Error Committed By RP In Admitting Claim As Per Balance Sheet Of Corporate Debtor: 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 Engineering Mazdoor Parishad Devas Through Its General Secretary v Teena Saraswat Pandey, has held that a Claimant is obliged to substantiate its claim, failing which, the Resolution Professional’s decision to admit the claim based on the balance sheet of the Corporate Debtor cannot be...

Special Bench At NCLT Mumbai From 3rd To 20th October 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 20.09.2023, intimating the constitution of Special Bench in NCLT Mumbai for the period of 03.10.2023 to 20.10.2023, since Smt. Madhu Sinha (Technical Member) is on leave in that duration. The Special Bench shall attend to the matters listed before Ms. Reeta Kohli (Judicial Member) and Smt. Madhu Sinha (Technical Member). The Special Bench shall comprise of: NCLT Mumbai Bench (Court No. V) Ms. Reeta Kohli...

NCLT Jaipur: Persons To Whom The Flats Are Sold After Completion, Shall Be Counted For Threshold Limit

The National Company Law Tribunal (“NCLT”), Jaipur Bench comprising of Shri Deep Chandra Joshi (Judicial Member) and Atul Chaturvedi (Technical Member), allowed the application filed in Gajraj Jain & Ors. vs. Shiv Gyan Developers Pvt. Ltd. seeking impleadment of additional Financial Creditors to initiate Corporate Insolvency Resolution Process (“CIRP”) of Shiv Gyan Developers Pvt. Ltd. (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“Code”) as per the...

IBBI Amends Insolvency Professional Regulations W.E.F. 18th September 2023

The Insolvency and Bankruptcy Board of India (“IBBI”) vide its notification dated 18.09.2023, has notified amendments to the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 (“IP Regulations”). The amendments are effective from 18.09.2023. Thereafter, on 20.09.2023 the IBBI issued a Press Release, summarizing the amendments. The key amendments are as under: Introduction of a unified enrolment and registration application form to enable...

NCLT Mumbai: Operational Creditors Must File GST Liability Claims Under CIRP On Time As No Claim Can Be Admitted After Resolution Plan Approved By CoC

The National Company Law Tribunal (“NCLT”), Mumbai Bench comprising of Kuldip Kumar Kareer (Judicial Member) and Shyam Babu Gautam (Technical Member), dismissed an application filed in Abnco Vie Win Ent Pvt. Ltd. vs. Steamline Industries Ltd. by Abnco Vie Win Ent Pvt. Ltd. (Applicant), an operational creditor, seeking directions against the Resolution Professional (“RP”) of the Corporate Debtor to make payment of GST liability of Rs. 60.34 Lakhs with the GST department and to file GSTR –...

Weekly Digest Of IBC Cases: 18th To 24th September 2023

NCLAT Resolution Professional Not Obligated To Share All Information With Shareholders Of Corporate Debtor: NCLAT Delhi Case Title: M/s Dauphin Cables Pvt. Ltd. v Mr. Praveen Bansal Case No.: Company Appeal (AT) Insolvency No. 971, 972 & 973 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 IBC provisions do not indicate that all information...

RP Can’t Obtain MSME Certificate Just To Enable Back-Door Entry Of Promoter/Suspended Management Of Corporate Debtor: 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 M/s Hi-Tech Resource Management Limited v M/s Overnite Express Limited, has held that neither Section 25 nor Section 28 of IBC empowers the Resolution Professional or CoC to obtain an MSME Certificate to enable the back door entry of the defaulting Promoter/Suspended Management into the Corporate...

RP Can Obtain MSME Certificate For The Corporate Debtor Only To Avail Business Advantage Available Under MSMED Act, 2006: 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 M/s Hi-Tech Resource Management Limited v M/s Overnite Express Limited, has held that a Resolution Professional can obtain a Micro, Small and Medium Enterprises (MSME) certificate for the Corporate Debtor only for availing business advantage under the Micro, Small and Medium Enterprises...

If MSME Certificate Obtained Post Initiation Of CIRP, Promoter/Suspended Management Of Corporate Debtor Ineligible To Submit Resolution Plan: 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 M/s Hi-Tech Resource Management Limited v M/s Overnite Express Limited, has held that if the Suspended Management/Promoter obtains a MSME certificate for the Corporate Debtor post initiation of CIRP then such certificate, apart from being invalid, would not entitle them to submit a resolution...

NCLAT New Delhi: CIRP Cannot Be Initiated For Defaults During The Excluded Timeline Under Section 10A Of IBC

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, New Delhi comprising of Justice Anant Bijay Singh (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member), dismissed an appeal filed in Vikram Kumar, Proprietor, Sourya Containers Leasing Company vs. Aranca (Mumbai) Pvt. Ltd. against the National Company Law Tribunal (“NCLT”) Mumbai’s order by Vikram Kumar (Financial Creditor), the proprietor of Sourya Containers Leasing Company against Aranca (Mumbai) Pvt....

NCLT Bangalore: Interest And Cost Imposed By Commercial Court Post Initiation Of CIRP Not To Be Admitted

The National Company Law Tribunal (“NCLT”), Bangalore Bench comprising of Justice (Retd) T. Krishnavalli (Judicial Member) and Shri. Manoj Kumar Dubey (Technical Member), dismissed an application filed under under Section 60(5)(a) of the Insolvency and Bankruptcy Code, 2016 (“Code”). The application in SourcePro Service vs. Mr. Vinay Mruthyunjaya, Resolution Professional of Metrik Infraprojects Private Ltd. was for Mr. Vinay Mruthyunjaya, Resolution Professional (“RP”) to admit the entire...