NCLT Proceeded Ex-Parte Against CD On First Hearing After Notice, NCLAT Delhi Says Sufficient Opportunity Not Given As Per Rule 37(2) Of NCLT Rules

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 Ami Ashutosh Majumdar v Omkara Assets Reconstruction Pvt. Ltd. & Anr., has set aside an ex-parte order initiating CIRP against the Corporate Debtor. The NCLT had proceeded ex-parte against the Corporate Debtor on the first hearing held post issuance...

NCLT Hyderabad: NCLT Cannot Exercise Inherent Powers To Condone Delay Under Section 42 Of IBC When There Is A Clear Statutory Bar

The National Company Law Tribunal (“NCLT”), Hyderabad comprising of Justice Smt. Telaprolu Rajani (Judicial Member) and Sri Charan Singh, Member (Technical Member) dismissed an application filed in IFCI Limited. vs. BS Limited. (In liquidation) by IFCI Limited (Applicant) seeking condonation of the delay of 184 days in approaching the NCLT for filing an appeal under Section 42 of the Insolvency and Bankruptcy Code (“Code”) against the rejection of the claim order by the Liquidator of BS...

No Provision In IBC For Re-Opening Of CIRP, A Petition Can Only Be Restored For Fresh Admission In Case Settlement Fails: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench, comprising of Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member), while adjudicating a petition filed in the matter of Amluckie Investment Company Limited v Skill Infrastructure Limited, has held that the IBC does not contain any provision for restoration of CIRP which has once been closed by the Tribunal. In case liberty is given to restore the company petition in case the settlement between parties...

IBC- Admitting Claims After Resolution Plan Has Been Accepted By COC Would Make CIRP An Endless Process: Supreme Court

The Supreme Court on Monday said that admitting claims after the Resolution Plan has been accepted by the Committee of Creditors (COC) under Insolvency and Bankruptcy Code, 2016 (IBC) even though the Adjudicating Authority has yet to approve the plan, would make the Corporate Insolvency Resolution Process (CIRP) an endless process. The Apex Court was considering whether the claim pertaining to an arbitral award, in appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (Act),...

NCLT Mumbai: No Claims To Be Taken After Approval Of Resolution Plan By CoC, Citing Disruption Of Time-Bound Resolution Process

The National Company Law Tribunal (NCLT), Mumbai comprising of Mr. Kuldip Kumar Kareer (Judicial Member) and Mr. Anil Raj Chellan (Technical Member) adjudicating an application filed in Suraksha Realty Limited vs. Mr. Anuj Bajpai dismissed an application filed by Suraksha Realty Limited (Applicant) for consideration of its claim of Rs. 19.93 crores as a financial debt under section 5(8) of the Insolvency and Bankruptcy Code (Code), This claim is based on a loan agreement and a share pledge...

Weekly Digest Of IBC Cases: 4th To 10th September 2023

Supreme Court IBC - Liquidator Can't Cancel Valid Auction On Mere Expectation Of Fetching Higher Price; No Unfettered Discretion: Supreme Court Case Title: Eva Agro Feeds Private Limited V. Punjab National Bank & Anr., Civil Appeal No(S). 7906/2021 Citation: 2023 LiveLaw (SC) 753 The Supreme Court Bench comprising Justice B V Nagarathna and Justice Ujjal Bhuyan, has held that even though the highest bidder in an auction sale under the Insolvency and Bankruptcy Code, 2016...

NCLT Kolkata: Resolution Professional Deserves Remuneration For Labor And Services As Approved By CoC

The National Company Law Tribunal (“NCLT”), Kolkata comprising of Smt. Bidisha Banerjee (Judicial Member) and Shri Balraj Joshi (Technical Member) allowed an application filed in Mr. Sanjeev Jhunjhunwala vs. Mr. Bimal Kanti Choudhury against PM Cold Storage Private Limited (“Respondent”) for the payment of Corporate Insolvency Resolution Process (“CIRP”) costs and pass an Order appointing another person as the Resolution Professional (“RP”) for the Goouksheer Farm Fresh Private Limited...

MCA Refuses To Disclose In RTI The List Of Candidates Recommended By Selection Committee For Post Of NCLT Members

The Ministry of Corporate Affairs, Government of India, has declined to disclose under the ‘Right to Information Act, 2005’ the list of candidates recommended by Selection Committee, headed by Chief Justice of India, for the post of Judicial Member and Technical Member in the National Company Law Tribunal (“NCLT”), as against vacancy circular dated 12.07.2022. The reason given for non-disclosure is that such list is a part of proposal being sent to the Cabinet Committee, thus exempted...

NCLT Hyderabad Rejects Section 9 Petition For Incompliance Of Rule 5(2) Of Insolvency And Bankruptcy (Application To Adjudicating Authority) Rules, 2016

The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Charan Singh (Technical Member), while adjudicating a petition filed in M/s Tata International Limited v M/s Trident Sugars Ltd., has rejected a petition under Section 9 of IBC since the creditor failed to serve the Demand Notice as per the procedure laid down in Rule 5(2) Of Insolvency And Bankruptcy (Application To Adjudicating Authority)...

Post Occurrence Of Default, Parties Entered Into MoU And Re-Scheduled Payments: NCLT Hyderabad Declines To Initiate CIRP

The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Charan Singh (Technical Member), while adjudicating a petition filed in M/s Tata International Limited v M/s Trident Sugars Ltd., has rejected a petition filed under Section 9 of IBC based upon a default post which the Parties entered into a Memorandum of Understanding (MoU) and re-scheduled the payments. The Bench observed that the Section 9...

Proceedings Under Section 13 Of Companies Act, 2013 Can’t Be Questioned In Proceedings Under Section 7 Of IBC: 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 Ishan Singh v Spaze Towers Pvt. Ltd., has held that orders passed in the proceedings under Section 13 of the Companies Act, 2013 cannot be questioned in proceedings under Section 7 of IBC. The Bench further ruled that relevancy of a document is to be...

NCLAT Chennai: Advances By Property Buyers To Real Estate Developers Are ‘Borrowing’ And Financial Debt

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Shreesha Merla (Technical Member), dismissed an application filed in Venkat Rao Marpina vs. Vemuri Ravi Kumar by Venkat Rao Marpina, Suspended director (Applicant) of Bhrighu Infra Private Limited (Corporate Debtor) against Vemuri Ravi Kumar (Financial Creditor). The Appellate Tribunal held that homebuyers have been added in the Explanation to Section 5(8)(f)...