Weekly Digest Of IBC Cases: 8 To 21 August 2023

NCLAT NCLAT Delhi Upholds Reduction Of Resolution Professional’s Fee By NCLT Case Title: Rohit J. Vora v Religare Finvest Ltd. & Ors. Case No.: Company Appeal (AT)(Insolvency) No. 104 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 upheld the NCLT order whereby the fee of the Resolution Professional was reduced from Rs. 3.75 Lakhs + GST to Rs. 1...

Go Airlines | NCLAT Delhi Permits Lessor To Conduct Inspection Of Leased Aircraft Engines

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 Engine Lease Finance B.V. v Resolution Professional of Go Airlines (India) Ltd. & Anr., has permitted the lessor of aircraft engines of Go Airlines to conduct inspection of the leased engines. “We are of the view that inspection be permitted within 10 days from today. As observed...

NCLT Notifies Re-Constitution Of All Benches w.e.f. 21st August 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 18.08.2023, intimating the re-constitution of all sixteen NCLT Benches across India. The re-constitution has taken place in view of the Ministry of Corporate Affairs circular dated 16.08.2023, whereby the newly appointed NCLT Members were assigned benches. The reconstitution is effective from 21.08.2023. The re-constituted benches are as under: Bench Court No. Judicial ...

Differential Payments Can Be Made To Assenting And Dissenting Unsecured Financial Creditors: 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 Peter Beck and Partner Vermoegensverwaltung GMBH v Sharon Bio-medicine Limited & Ors., has held that differential payments can be made between the unsecured Financial Creditors who voted in favour of the plan and the ones who voted against it. The Bench ruled that, “we are of the view...

NCLT Mumbai Refuses To Admit Belated Claim Of EPFO Submitted Post Approval Of Resolution Plan By The CoC

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri Kuldip Kumar Kareer (Judicial Member) and Smt. Anuradha Sanjay Bhatia (Technical Member), while adjudicating an application filed in Small Industrial Development Bank of India v E & G Global Estates Limited, has refused to admit the claim of Employee Provident Fund Organization (EPFO), which was submitted belatedly after the approval of resolution plan by the Committee of Creditors. “In view of the above...

Successful Resolution Applicant Can Seek Termination Of Related Party Contracts Via Clauses In Resolution Plan: NCLT Delhi

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in India SME Asset Reconstruction Company Limited v M/s Medirad Tech India Limited, has held that the Successful Resolution Applicant can seek termination of Related Party contract/agreement through relevant clauses in the Resolution Plan. Background Facts M/s Medirad Tech India...

MCA Assigns NCLT Benches To Newly Appointed Members

The Ministry of Corporate Affairs (“MCA”), Government of India, has issued a circular dated 16.08.2023, assigning benches of the National Company Law Tribunal (“NCLT”) to the newly appointed Judicial and Technical Members. The benches have been assigned in accordance with Rule 15A of the NCLT (Salary, Allowances and other Terms and Conditions of Service of President and other Members) Rules, 2015 and in consultation with the President, NCLT. Sr. No. Name of...

NCLT Delhi Upholds Termination Of Related Party Agreements By Resolution Professional With Coc’s Consent

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in India SME Asset Reconstruction Company Limited v M/s Medirad Tech India Limited, has upheld the termination of Related Party agreements (Service & Lease Agreements) by the Resolution Professional since the Committee of Creditors (CoC) had given ‘No Objection’ for such termination. ...

NCLT Issues Circular Intimating Transfer Of Members

The National Company Law Tribunal (“NCLT”), has issued a circular dated 17.08.2023, intimating the transfer of NCLT Members to different benches. The Members have been transferred in accordance with Rule 15A of the NCLT (Salary, Allowances and other Terms and Conditions of Service of President and other Members) Rules, 2015 and in consultation with the President, NCLT. Sr. No. Name Member Present posting New Posting ...

NCLAT Delhi Upholds Reduction Of Resolution Professional’s Fee By NCLT

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 Rohit J. Vora v Religare Finvest Ltd. & Ors., has upheld the NCLT order whereby the fee of the Resolution Professional was reduced from Rs. 3.75 Lakhs + GST to Rs. 1 Lakh + GST. The Bench observed that there was deficiency in the Resolution Professional’s performance, such as failure...

NCLAT Chennai Reprimands Bank For Filing Appeal With Delay, Refuses To Condone

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in DCB Bank Limited v Ramakrishnan Sadasivam & Ors., has reprimanded the conduct of a Bank which filed an appeal exactly on the 45th day, despite having huge machinery at its disposal to prepare and file the appeal within statutory period of 30 days. “Looking from any another...

Sec. 10A Inapplicable To Defaults Committed Prior To 25.03.2020; NCLAT Chennai Says Explanation To Sec. 10A Removes All Doubts

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in Carissa Investments LLC v Indu Techzone Pvt. Ltd. & Ors., has held that the Explanation to Section 10A of IBC removes any doubt by clarifying that the prohibition to initiate CIRP would be inapplicable to defaults committed prior to 25.03.2020. “The object of the legislation was...