NCLAT Chennai Stays Insolvency Proceedings Against Café Coffee Day’s Parent Company

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Mrs. Shreesha Merla (Technical Member), while adjudicating an appeal filed in Malavika Hegde v Indusind Bank Ltd. & Anr., has stayed the Corporate Insolvency Resolution Process (CIRP) of M/s Coffee Day Global Ltd. which was initiated by the NCLT on 20.07.2023. M/s Coffee Day Global Ltd. is the parent company of the Coffee Day Group and Coffee Day...

Special Bench At NCLT Principal Bench On 16th & 17th August 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 11.08.2023, intimating the constitution of Special Bench for NCLT Principal Bench (New Delhi) on 16.08.2023 and 17.08.2023. 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 Bench (Court No. I) Shri Ashok Kumar Bhardwaj (Judicial Member)Shri Avinash Kumar...

Weekly Digest Of IBC Cases: 31 July To 7 August 2023

NCLT Go Airlines | NCLT Issues Notice On Application Filed By RP Seeking Refund Of Cancelled Ticket Amount To Passengers Case Title: Go Airlines (India) Limited Case No.: Company Petition No. (IB)-264(PB)/2023 The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Mahendra Khandelwal (President) and Shri Rahul Bhatnagar (Technical Member), has issued notice in an application field by the Resolution Professional of Go Airlines, seeking permission to make...

Corporate Distress And Compassion: Integrating Humanitarian Values Into NCLT's Decisions

The Insolvency and Bankruptcy Code, 2016 (IBC) is a landmark legislation that aims to provide a speedy and efficient resolution of Insolvency and Bankruptcy cases in India. The IBC empowers the National Company Law Tribunal (NCLT) to admit and adjudicate applications for initiating Corporate Insolvency Resolution Process (CIRP) against defaulting companies. The IBC's primary goal is to establish a time-bound and efficient mechanism for resolving Insolvency and Bankruptcy in a transparent...

Half Yearly Digest Of IBC Cases: January To June 2023

Supreme Court “Inappropriate, Almost Bordering On Contempt”: SC Deprecates NCLAT Order Impeding Implementation Of SC Order Case Title: Indiabulls Housing Finance Ltd. v Iirf India Realty Xii Ltd. & Ors. Case No.: CIVIL APPEAL NO.9062/2022 The Supreme Court Bench comprising of Justice Sanjay Kishan Kaul and Justice Abhay S. Oka while adjudicating an appeal has set aside a status quo order passed by NCLAT Delhi which impeded the implementation of an order passed by the...

IBC | Sec. 9 Petition Not Maintainable Against Claim For Compensation Penalty Under A Contract: 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 Chandrashekhar Exports Pvt. Ltd. v Babanraoji Shinde Sugar & Allied Industries Ltd., has upheld the dismissal of a petition under Section 9 of IBC which was filed based on claim of compensation penalty under a contract. The Bench held that whether a claim for compensation penalty has...

Extent Of NCLT’s Jurisdiction Over Contractual Disputes During CIRP

A moratorium (stay) is imposed on all the legal proceedings (pending or future) by virtue of Section 14 of Insolvency and Bankruptcy Code 2016 ( IBC), when Corporate Insolvency Resolution Process ( CIRP) is initiated against a Corporate Debtor ( CD). In case a third party initiates any action against the CD (in terms of any penalty) the Resolution Professional ( RP) on behalf of the CD can file an Application under Section 60 of IBC against such third party, before the National...

Stock Broker Company Is A Financial Service Provider Under IBC: 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 in M/s Bezel Stockbrokers Private Limited v Security Exchange Board of India & Anr., has held that a stock broker company is a financial service provider under IBC. “Since Corporate Applicant, being a stock broker, was dealing in the activities of buying, selling, or dealing in securities etc.,...

NCLT Urges Parties To Take Follow Up Action On Pending Applications/Petition In E-Filing System Within 21 Days

The National Company Law Tribunal (“NCLT”) has issued a Circular dated 04.08.2023, intimating that the petitions/applications filed through E-Filing prior to 30.06.2023 are pending in the system without any follow up. The NCLT has urged the concerned parties/advocates to take a follow up action and prosecute the same within a period of 21 days (till 25.08.2023). Failing which these pending files would be treated as ‘not pursued’ and get archived. Brief background On 01.03.2020, the...

Go Airlines | NCLT Issues Notice On Application Filed By RP Seeking Refund Of Cancelled Ticket Amount To Passengers

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Mahendra Khandelwal (President) and Shri Rahul Bhatnagar (Technical Member), while adjudicating a petition filed by Go Airlines (India) Limited, has issued notice in an application field by the Resolution Professional of Go Airlines, seeking permission to make refund to the passengers whose tickets were cancelled. The notice has been issued to the respondents namely, Committee of Creditors (“CoC”) and the...

Monthly Digest Of IBC Cases: July 2023

Supreme Court IBC Overrides Electricity Act; Dues To Secured Creditors At Higher Footing Than Electricity Dues : Supreme Court Case Title: Paschimanchal Vidyut Vitran Nigam Ltd vs Raman Ispat Private Limited Citation: 2023 LiveLaw (SC) 534 | 2023 INSC 625 The Supreme Court Bench comprising of Justices S. Ravindra Bhat and Dipankar Datta, has observed that Section 238 of the Insolvency and Bankruptcy Code, 2016 overrides the provisions of the Electricity Act, 2003. It was...

No Inconsistency Between IBC And Sec. 13 & 13A Of U.P. Industrial Area Development Act: 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 VMS Equipment v Primrose Infratech Private Limited, has held that there is no inconsistency between IBC and Sections 13 and 13A of the UP Industrial Area Development Act, 1976. If security interest was created in favour of Greater NOIDA Authority prior to commencement of moratorium/CIRP, then...