Sec. 126 Of ICA, 1872 Can’t Be Interpreted To Mean That Co-Borrower And Guarantor Can’t Be The Same Person: NCLT Mumbai

The National Company Law Tribunal, Mumbai Bench, comprising Shri Kuldip Kumar Kareer (Judicial Member) and Smt. Anuradha Sanjay Bhatia (Technical Member), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Pegasus Assets Reconstruction Private Limited vs M/s. Whiz Enterprise Private Limited has held that Section 126 of the Indian Contract Act, 1872 cannot be interpreted to mean that co-borrower and the guarantor cannot be one and...

Monthly Digest Of IBC Cases: April 2023

Supreme Court IBC | Section 9 Petition Not To Be Dismissed If Few Invoices Are Time Barred But Remaining Invoices Are Not; Supreme Court Case Title: M/S Next Education India Pvt. Ltd. v M/S K12 Techno Services Pvt. Ltd. Citation: 2023 LiveLaw (SC) 270 The Supreme Court Bench comprising of Justice M.R. Shah and Justice C.T. Ravikumar, has held that when a petition under Section 9 of IBC is filed based on several invoices and some of the invoices are time barred, then NCLT must...

Weekly Digest Of IBC Cases: 24 To 30 April 2023

NCLAT Subsequently Modified OTS Proposal Would Further Refresh The Limitation Period: NCLAT Chennai Case Title: M/s. State Bank of India v M/s. Hackbridge Hewittic and Easun Limited Case No.: Company Appeal (AT) (CH) (Ins.) No. 05 of 2021 The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Shri Naresh Salecha (Technical Member), has held that submission of a One Time Settlement (“OTS”) proposal is...

NCLAT Chennai To Hear Urgent Matters Through VC During Vacations; Registry & E-Filing To Remain Functional

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, has issued a notice dated 28.04.2023, notifying the manner in which the Tribunal would function during the annual vacation commencing from 05.05.2023 to 31.05.2023. The Registry of NCLAT Chennai and the facility of E-filing of cases shall be operational during the said vacation period. Urgent matters to be heard through VC The urgent matters will be taken up for hearing through virtual mode. As per the ...

IBC-Corporate Debtor Cannot Take Advantage Of Its Own Default And Set Up A Plea Of Absence Of Permission Of RBI; NCLT Delhi

The National Company Law Tribunal, New Delhi Bench, comprising Shri P.S.N Prasad (Judicial Member) and Shri Rahul Bhatnagar (Technical Member), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Punjab National Bank (International) Limited vs M/s Superior Industries Limited has held that a Corporate Guarantee is not void only due to violation of The Foreign Exchange Management Act, 1999 (“FEMA, 1999”) and it is the duty of the...

NCLT Chennai Orders Dissolution Of M/S Pillar Industries India Private Limited Under Section 59 Of IBC

The NCLT Chennai bench comprising of Ashok Kumar Bharadwaj (Judicial Member) and Sameer Kakar (Technical Member) has ordered for dissolution of M/s Pillar Industries India Private Limited (“the Company”) under section 59 of Insolvency and Bankruptcy Code, 2016(“IBC, 2016). The Company filed a petition before NCLT Chennai through its Liquidator for initiation of voluntary liquidation proceedings The Company was incorporated on 11.03.2020 but it was not able to commence business...

IBC-NCLT Chennai Approves Resolution Plan For Hindustan Photo Films Mfg. Co. Ltd.

The NCLT Chennai bench comprising of Shri Ramalingam Sudhakar (Judicial Member) and Shri Sameer Kakar (Technical Member) has approved a Rs. 105.30 crore resolution plan of Mr. M.K. Rajagopalan for Hindustan Photo Films Mfg. Co. Ltd. (“Corporate Debtor”) under section 30 (6) and 31 of the Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”). The Company was admitted into Corporate Insolvency Resolution Process (“CIRP”) vide an order dated 07.01.2022. The Resolution Professional initially...

IBC-NCLT Chandigarh Approves Resolution Plan For Haryana Telecom Limited

The NCLT Chandigarh bench comprising of Shri Harnam Singh Thakur (Judicial Member) and Shri Subrata Kumar Dash (Technical Member) has approved a 25 crore resolution plan of Mr. Abhimanyu Singh Mehlawat for Haryana Telecom Limited (“Corporate Debtor”) under section 30 (6) and 31 of the Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”). The Company was admitted into Corporate Insolvency Resolution Process (“CIRP”) vide an order dated 07.02.2020. The Resolution Professional initially...

IBC-Gujarat High Court Stays The Order Of IBBI Disciplinary Committee

The Gujarat High Court Bench, comprising of Justice Vaibhavi D. Nanavati, while adjudicating a petition filed in Bhupendra Singh Rajput v Insolvency and Bankruptcy Board of India (IBBI), has stayed the order passed by the Disciplinary Committee of the Insolvency and Bankruptcy Board of India (“IBBI”), whereby the registration of an Insolvency Professional was suspended over alleged violations of the IBC provisions. The ground of challenge was that the coram of Disciplinary Committee...

NCLAT Delhi Upholds Rejection Of ‘Discovery & Inspection’ Application Filed By Corporate Debtor In Section 9 Petition

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Judicial Member) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in Baba Baidnath Spinners Pvt. Ltd. v Textile Solutions, has upheld the rejection of an application for discovery and inspection of documents field by the Corporate Debtor in a petition under Section 9 of IBC. The Bench held that the worth of document filed by the Operational Creditor is...

Subsequently Modified OTS Proposal Would Further Refresh The Limitation Period: NCLAT Chennai

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Shri Naresh Salecha (Technical Member), while adjudicating an appeal filed in M/s. State Bank of India v M/s. Hackbridge Hewittic and Easun Limited, has held that submission of a One Time Settlement (“OTS”) proposal is acknowledgement of debt in terms of Section 18 of Limitation Act, 1963. Further, any fresh or subsequent/modified OTS proposal would further extend...

Weekly Digest Of IBC Cases: 17 April To 23 April 2023

NCLAT Creditor Who Don’t Submit Claim Or Raises Issues In CIRP, Has No Right To Challenge Resolution Plan: NCLAT Delhi Case Title: Madhya Pradesh Paschim Kshetra Vidyut Vitaran Co. Ltd. v Jagdish Kumar & Anr. Case No.: Company Appeal (AT) (Ins) No. 1113 of 2020 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Shri Naresh Salecha (Technical Member), has held that a creditor who neither...