Greater Noida Industrial Development Authority Is A Secured Creditor Under Sec. 3(30) Of 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 filed in VMS Equipment v Primrose Infratech Private Limited, has held that the Greater Noida Industrial Development Authority (GNIDA) is a secured operational creditor under Section 3(30) of IBC. The definition of Security Interest in Section 3(31) of IBC includes a ‘charge’ and as per the Supreme ...

NCLT Bengaluru Admits Café Coffee Day’s Parent Company Into Insolvency

The National Company Law Tribunal (“NCLT”), Bengaluru Bench, comprising of Justice (Retd.) T Krishnavalli (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), while adjudicating a petition filed in Indus Ind Bank Limited v M/s Coffee Day Global Limited, has initiated Corporate Insolvency Resolution Process against M/s Coffee Day Global Ltd., which is the parent company of the Coffee Day Group and Coffee Day Enterprises Ltd., which runs a multinational coffeeshop named ‘Café...

NCLT New Delhi Admits ‘Brij Gopal Construction Co.’ Into Insolvency

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri Atul Chaturvedi (Technical Member), while adjudicating a petition filed in M/s Geocon Infra Pvt. Ltd. v M/S. Brij Gopal Construction Company Pvt. Ltd., has initiated Corporate Insolvency Resolution Process (CIRP) against Brij Gopal Construction Company Pvt. Ltd. Mr. Mukesh Kumar Jain has been appointed as the Interim Resolution Professional (IRP). ...

Weekly Digest Of IBC Cases: 24 To 30 July 2023

NCLATThere Can’t Be Discrimination Between One Class Of Creditors’; NCLAT Delhi Directs Modification Of Resolution Plan Case Title: Akashganga Processors Pvt. Ltd. v Shri Ravindra Kumar Goyal & Ors. Case No.: Company Appeal (AT) (Insolvency) No.1148 of 2022 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has directed the Successful Resolution Applicant to...

NCLT Kochi Imposes Rs. 50,000/- Cost On GST Department For Raiding Corporate Debtor During Moratorium

The National Company Law Tribunal (“NCLT”), Kochi Bench, comprising of Shri P. Mohan Raj (Judicial Member) and Shri Satya Ranjan Prasad (Technical Member), while adjudicating a petition filed in Kosamattam Finance Ltd. v Mangomeadows Agriculture Pleasure Land Pvt. Ltd. has imposed a cost of Rs. 50,000/- on the Goods and Services Tax Department (GST) for raiding the premises of Corporate Debtor during the moratorium period and seizing account documents. The Bench held the raid and seizure...

IBC | Sending Demand Notice Under Rule 7(1) To Personal Guarantor Cannot Be Termed As Arbitrary: Delhi High Court

The Delhi High Court Bench comprising of Justice Purushaindra Kumar Kaurav, while adjudicating a petition filed in Vineet Saraf v Rural Electrification Corporation Ltd., has declined to quash a Demand Notice sent to a personal guarantor under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. It has been held that mere issuance of a Demand Notice to personal...

IBC | No Writ Can’t Be Issued To Creditor, Free To Proceed Against Personal Guarantor Under IBC : Delhi High Court

The Delhi High Court Bench comprising of Justice Purushaindra Kumar Kaurav, while adjudicating a petition filed in Vineet Saraf v Rural Electrification Corporation Ltd., has refused to issue a Writ of Prohibition to prevent the creditor from approaching the NCLT under Section 95 of IBC against the personal guarantor. On the issue of whether a writ of prohibition can be issued to prevent creditor from approaching NCLT, the Bench opined that when an alternative remedy exists, then the...

Go Airlines| NCLT Delhi Permits Go Airlines To Resume Operations

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 permitted Go Airlines to operate the leased aircrafts in order to maintain the company’s status as a going concern. Background Facts M/s Go Airlines (India) Limited (“Corporate Debtor/Go Airlines”) is engaged in the business of Airlines and is the third...

Go Airlines | NCLT Delhi Imposes Moratorium On Leased Aircrafts, Categorize Them As ‘Property’ U/S 3(27) Of IBC

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 held the aircrafts leased to Go Airlines (India) Ltd. by Lessors come within the definition of ‘Property’ under Section 3(27) of IBC and thus moratorium can be imposed over leased aircrafts. The Bench observed that leasing aircrafts in aviation industry is a...

Weekly Digest Of IBC Cases: 18 To 23 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...

NCLAT Delhi Stays Insolvency Proceedings Of Container Corporation Of India Ltd., A Navratna Enterprise

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in Container Corporation of India Ltd. (CONCOR) v Roadwings International Pvt. Ltd. & Anr., has stayed the insolvency proceedings against Container Corporation of India Ltd., which is a navratna enterprise of Government of India. The alleged default was based on an Arbitral Award which was...

There Can’t Be Discrimination Between One Class Of Creditors’; NCLAT Delhi Directs Modification Of Resolution Plan

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in Akashganga Processors Pvt. Ltd. v Shri Ravindra Kumar Goyal & Ors., has directed the Successful Resolution Applicant to allocate funds to Operational Creditors in the Resolution Plan, who were left unpaid while other Operational Creditors were proposed to be paid. “However, when the...