IBC
NCLT Mumbai Approves Mr. Jitendra Bhandari’s Resolution Plan For Trimurti Foodtech Private Limited
NCLT Mumbai has approved a 22 crore resolution plan of Mr. Jitendra Bhandari for Trimurti Foodtech Private Limited (“Corporate Debtor”) under section 31 (1) of the Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”). The Company was admitted into Corporate Insolvency Resolution Process (“CIRP”) vide an order dated 11.08.2021. The Company initially received and admitted claims of 4.92 crores from Secured Financial Creditor, of 23.11 crores from Unsecured Financial Creditors, of 4.25...
A Loan Payable On Demand Becomes Due And Payable On Receipt Of Demand Notice: NCLT Mumbai
The National Company Law Tribunal, Mumbai Bench, comprising Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Praful Satra vs MD Development Private Limited has held that a loan payable on demand becomes due and payable on the receipt of Demand Notice Background Facts Praful Satra (“Financial Creditor”) extended an interest-free loan for a...
Unlike Section 9, There Is No Scope Of Raising A Dispute In A Section 7 Petition: NCLT Mumbai Reiterates
The National Company Law Tribunal, Mumbai Bench, comprising Shri H. V. Subba Rao (Judicial Member) and Shri Shyam Babu Gautam (Technical Member), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Idea Lenders & Anr. vs Navdurga Advisory Private Limited has reiterated that there is no scope of raising a dispute under a Section 7 petition Background Facts Idea Commercials and M/s. R.P. Lath & Sons (“Financial...
Claim Arising Out Of Partnership Business Which Is Not A Mere Claim Of Supply Of Material Is Not An “Operational Debt”: NCLT Mumbai
The National Company Law Tribunal, Mumbai Bench, comprising Shri H.V. Subba Rao (Judicial Member) and Shri Madhu Sinha (Technical Member), while adjudicating an application under Section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Manoj Stone Infra Private Limited vs Railsys Engineers Private Limited has held that a claim arising out of a mutual business understanding of partnership business, which is not a mere claim arising out of supply of material, is not an...
Financial Creditor’s Entitlement To Simple Or Compound Interest Not To Be Decided At Admission : NCLAT Delhi
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 Holy Heights Infrastructures Pvt. Ltd v K.V. Foundations India Ltd., has held that the question as to whether the Financial Creditor is entitled to simple interest or compound interest is not to be decided at the stage of admitting Section 7 petition, when debt and default have been proved....
A Person Who Comes In A Project As A Speculative Investor In Garb Of A Lender Cannot Be Accorded The Status Of A Financial Creditor: NCLT New 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 Rohit Prasad vs M/s S and N Lifestyle Infraventures Pvt. Ltd. has held that the status of “Financial Creditor” cannot be accorded to a person who, in the garb of a lender comes in the project as a speculative investor and for mere recovery...
NCLT Mumbai Order Dissolution Of Proterra Investment Advisors Private Limited Under Section 59 Of IBC
NCLT Mumbai has ordered for dissolution of Proterra Investment Advisors Private Limited (“the Company”) under section 59 of Insolvency and Bankruptcy Code, 2016(“IBC, 2016). The Company filed a petition before NCLT Mumbai through its Liquidator for initiation of voluntary liquidation proceedingsThe Company was neither carrying any business and nor earning any profits. The Board of Directors of the Company resolved to voluntarily liquidate the Company on 31.07.2021. The Company had two directors,...
Nature Of Decree Depends On The Nature Of Transaction From Which The Decretal Debt Has Arisen: NCLT Mumbai Reiterates
The National Company Law Tribunal, Mumbai Bench, comprising of Shri Kishore Vemulapalli (Judicial member) and Shri Prabhat Kumar (Technical Member), while adjudicating an application filed under section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Mr. J.K Shah and Anr vs Tridhaatu Builders LLP has reiterated that nature of decree depends on the nature of transaction from which the decretal debt has arisen. The Tribunal refused to categorize the failure to return an amount advanced...
Interest Bearing Refundable Advance Paid Under An MoU Which Has Lost Legal Force Can Still Be Categorized As Financial Debt: NCLT Ahmedabad
The National Company Law Tribunal (NCLT), Ahmedabad bench comprising of Dr. Madan B Gosavi (Judicial Member) and Mr. Ajai Das Mehrotra, (Technical Member) while adjudicating an application under Section 60(5) of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Sheth Developers Pvt Ltd & Anr. Vs Dr. Vichitra Narayan Pathak categorized an advance amount which was paid under an MoU with no legal force and which was refundable with an interest @ 18% p.a. as ‘Financial Debt’Background...
S. 66 Of IBC: Fraud Includes A Debt Which Debtor Has No Intention To Repay: NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Shri Naresh Salecha (Technical Member), while adjudicating an appeal filed in Shri Baiju Trading and Investment Private Limited v Mr. Arihant Nenawati & Ors., has held under that ‘fraud’ for the purpose of Section 66 of IBC would consist of debts which the Debtor has no intention to repay or does not expect to be able to pay. Further, fraud may also happen by...
Karnataka High Court Stays Insolvency Proceedings Against Mantri Developers Ltd
The High Court of Karnataka, Bengaluru Bench, comprising of Justice M. Nagaprasanna, while adjudicating a petition filed in Mr. Sushil Mantri v The Registrar (NCLT Bengaluru) & Ors. has stayed the Corporate Insolvency Resolution Process (“CIRP”) initiated against Mantri Developers Pvt. Ltd. by the National Company Law Tribunal, Bengaluru.BACKGROUND FACTSMantri Developers Pvt. Ltd. (“Corporate Debtor”) is a Mr. Sushil Mantri promoted company and a part of Mantri Group of Companies. The...
Entries Made In Balance Sheet Amounts To Acknowledgement Of Debt As Per Section 18 Of Limitation Act, 1963: NCLT New Delhi
The National Company Law Tribunal, New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das, (Judicial member) and Shri Rahul Bhatnagar (Technical Member), while adjudicating an application filed under section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in M/s SKC Infratech Pvt. Ltd vs M/s EOS Hospitality Pvt. Ltd. has reiterated that entries made in the Balance Sheet amounts to acknowledgement of debt as per section 18 of Limitation Act, 1963Background FactsEOS Hospitality Pvt....