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)...

While Application For Approval Of Resolution Plan Is Pending Before AA, CoC Can’t Convene Meeting To Consider Other Resolution Plans: 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 Indian Overseas Bank v M/s. Rathi TMT Saria Pvt. Ltd. & Ors., has held that when a Resolution Plan approved by the CoC is pending consideration before the Adjudicating Authority for approval, the CoC is not permitted to hold any meeting for considering other resolution plans. ...

Special Bench At NCLT Principal Bench From 11th To 15th September 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 05.09.2023, intimating the constitution of Special Bench for NCLT Principal Bench (New Delhi) from 11.09.2023 to 15.09.2023. Justice Ramalingam Sudhakar (President) is on an official tour in that period. The Special Bench shall attend to the matters listed before Justice Ramalingam Sudhakar (President) and Shri Avinash Kumar Srivastava (Technical Member). The Special Bench shall comprise of: NCLT Principal...

IBC - Liquidator Can't Cancel Valid Auction On Mere Expectation Of Fetching Higher Price; No Unfettered Discretion : Supreme Court

The Supreme Court on Wednesday held that even though the highest bidder in an auction sale under the Insolvency and Bankruptcy Code 2016 has no indefeasible right to demand acceptance of his bid, the liquidator, if such a bid is rejected must furnish reasons for the same in the rejection order. A division bench of Justice B V Nagarathna and Justice Ujjal Bhuyan held that the mere expectation of the Liquidator that a higher price may be obtained is not a good ground to cancel an otherwise...

NCLT Chandigarh: New Management Of The Corporate Debtor Not Responsible For Non-Compliance Of MCA Filing Before The Insolvency Commencement Date

The National Company Law Tribunal (“NCLT”), Chandigarh Bench, comprising of Mr. Harnam Singh Thakur (Judicial Member) and Mr. Subrata Kumar Dash (Technical Member), allowed an application filed in Skyhigh Infraland Private Limited vs. Monitoring Committee of Corporate Debtor. Skyhigh Infraland Private Limited (Applicant) had moved the application as it faced difficulty in making the statutory compliances with the office of Registrar of Companies (ROC) and Ministry of Corporate Affairs...

IBBI Extends Facility Of CIRP Form Submission To Insolvency Professional Entities ( IPE) Acting As IP , No Fee Applicable Till 30th September 2023

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 01.09.2023, intimating that the facility for submitting the CIRP Forms has been extended to Insolvency Professional Entities (IPE), acting as Insolvency Professionals (IP). To facilitate submission of forms for all assignments handled by these IPEs through the facility being introduced now, CIRP forms filed till 30.09.2023 shall not attract any fee as provided under regulation 40B of the IBBI (Insolvency...

Shri Arun Baroka Takes Oath As A Technical Member In NCLAT

On 01.09.2023, Shri Arun Baroka has taken oath as a Technical Member in the National Company Law Appellate Tribunal (“NCLAT”), Delhi. Mr. Baroka is an IAS officer who recently retired from the post of the Secretary, Department of Chemicals & Petro-chemicals, Government of India. He is an Electrical Engineering graduate from IIT, Delhi and has done MBA (Marketing and Systems) from IIM, Kolkata. On 29.08.2023, the NCLAT had issued a notice intimating regarding the oath taking ...

NCLT Chandigarh: Suspended Directors Have No Vested Right In The Removal Of Liquidator

The National Company Law Tribunal (NCLT), Chandigarh comprising of Mr. Harnam Singh Thakur (Judicial Member) and Mr. Subrata Kumar Dash (Technical Member) dismissed an application filed by Kulwinder Singh Makhni (Applicant) for the removal of Mr. Sanjay Kumar Aggarwal (Liquidator) and for appointment of a new Liquidator of the Corporate Debtor. It held that the suspended director does not have the authority to recommend the liquidator's removal and the power rests with the Stakeholders...

NCLT Delhi: Financial Creditor Cannot Invoke CIRP Against Corporate Debtor To Recover Debt From Homebuyer

The National Company Law Tribunal (“NCLT”), New Delhi Court – III comprising of Mr. Bachu Venkat Balaram Das (Judicial Member) and Mr. Atul Chaturvedi (Technical Member) adjudicating a petition filed in South Indian Bank Limited vs. Magic Info Solutions Private Limited dismissed the petition to initiate Corporate Insolvency Resolution Process (CIRP) against Magic Info Solutions Private Limited (Corporate Debtor). The NCLT held that the only financial institutions directly disbursing ...

IBC Cases Weekly Round Up: 28th August To 3rd September 2023

Supreme Court EPFO Employees Must Comply With IBC Timeline For Filing Claims; Default Officers Must Face Action: Supreme Court Case Title: Employees Provident Fund Organization V. Fanendra Harakchand Munot Citation: 2023 LiveLaw (SC) 734 | CIVIL APPEAL NO. OF 2023 The Supreme Court Bench comprising Justice Sanjiv Khanna and Justice SV Bhatti, has held that the Commissioner and employees of the Employees Provident Fund Organization (EPFO) must ensure that they comply with the...

NCLT Ahmedabad Admits CIRP Petition Against Rasna Pvt. Ltd.

The National Company Law Tribunal (“NCLT”), Ahmedabad comprising of Mr. Shammi Khan (Judicial Member) and Mr. Sameer Kakar (Technical Member) adjudicating a petition filed in Bharat Road Carrier Pvt Ltd. v. Rasna Pvt Ltd. admitted the petition to initiate Corporate Insolvency Resolution Process (CIRP) against Rasna Pvt Ltd. (Corporate Debtor). It held that the Corporate Debtor’s argument as to the dispute appears to be a moonshine since it has not been able to justify the cause and reasons...

NCLT Delhi Admits Imperia Structures Ltd. Into Insolvency

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Mahendra Khandelwal (Judicial Member) and Shri Rahul Bhatnagar (Technical Member), while adjudicating a petition filed in Chirag Jain & Ors. v Imperia Structures Ltd., has initiated Corporate Insolvency Resolution Process (“CIRP”) against Imperia Structures Ltd., which launched a real estate project named “Imperia Byron/Mindspace” in Sector- 62, Gurgaon, Haryana. Mr. Gaurav Katiyar has been appointed...