Section 9 Application Must Stand The Test Laid Down By SC In M/s S.S. Engineers Vs HPCL: NCLT Jaipur

The National Company Law Tribunal, Jaipur Bench, comprising Shri Deep Chandra Joshi (Judicial Member) and Shri Prasanta Kumar Mohanty (Technical Member), while adjudicating an application under Section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC”) in Narayan Organics Private Limited Vs Prayag Polytech Private Limited has held that an application under Section 9 of IBC must stand the test laid down by the Hon’ble Supreme Court in M/S S.S. Engineers Vs Hindustan Petroleum Corporation...

Weekly Digest Of IBC Cases: 13 March To 19 March 2023

Supreme Court IBC- Resolution Professional Entitled To Take Control Of Corporate Debtor's Rights In Assets Licensed To Third Parties : Supreme Court Case Title: Victory Iron Works Ltd. v Jitendra Lohia & Anr. Citation : 2023 LiveLaw (SC) 193 The Supreme Court Bench comprising of Justice V. Ramasubramanian and Justice Pankaj Mithal, has held that a resolution professional is entitled to take control of the rights of a corporate debtor in assets which are licensed to third...

Discharge Of Liability Of The Principal Burrower Or Guarantor Does Not Automatically Discharge The Other In A Contract Of Guarantee: NCLT Chandigarh

The National Company Law Tribunal, Chandigarh Bench, comprising of Shri Harnam Singh Thakur (Judicial Member) and Shri Subrata Kumar Dash (Technical Member), while adjudicating a petition under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC”) in Jammu Kashmir Bank Limited vs Ace Engineering (India) Pvt Ltd. has held that even if, either the principal borrower or guarantor has been discharged then the other party would not stand discharged automatically till the liability is met...

NCLT Ahmedabad Approves GAIL India’s Resolution Plan For JBF Petrochemicals

NCLT Ahmedabad has approved a 2079 crore resolution plan of GAIL (India) Limited (“GAIL”) for JBF Petrochemicals under section 31 (1) of the Insolvency and Bankruptcy Code, 2016 (“IBC”). This is the second instance of a state-owned company acquiring a private sector bankrupt company , with the first being Indian Oil Corporation acquiring Mercator under IBC. JBF Petrochemicals was admitted into Corporate Insolvency Resolution Process (“CIRP”) vide an order dated 28.01.2022. The...

Corporate Debtor Not Being A Going Concern, Termination Of Essential Raw Material Supply Doesn’t Erode Value Of Assets: NCLT Ahmedabad

The National Company Law Tribunal (“NCLT”), Ahmedabad Bench, comprising of Dr. Madan B. Gosavi (Judicial Member) and Shri Ajai Das Mehrotra (Technical Member), while adjudicating a petition filed in Sundaresh Bhat v Mangalore Refinery and Petrochemicals Limited, has held that Section 14 of IBC seeks to preserve the ‘going concern’ status ‘if’ the Corporate Debtor is a running unit. In case the Corporate Debtor is not a going concern, it cannot be contended that termination of contract...

Length Of Delay Immaterial, Reason Stated For Condonation Matter: NCLT Hyderabad Reiterates

The National Company Law Tribunal, Hyderabad Bench, comprising Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Charan Singh (Technical Member), while adjudicating an application under Section 60(5) of Insolvency and Bankruptcy Code, 2016 (“IBC”) by the Deputy Director, Employees State Insurance Corporation in Asset Reconstruction Company (India) Limited vs Viceroy Hotels Limited has held that the length of delay is immaterial, but the reasons stated thereof for...

Section 9 Petition Not Maintainable If Principal Amount Repaid During Pendency Of Petition: NCLT Bengaluru Reiterates

The National Company Law Tribunal, Bengaluru Bench, comprising of Justice (Retd) T. Krishnavalli (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), while adjudicating a petition under Section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC”) in Ramesh Kumar Garg vs M/s Buildmet Pvt Ltd. has reiterated that a Section 9 petition is not maintainable if the principal amount has been repaid during the pendency of the petition and only the interest component remains unpaid. ...

Power To Award Interest As Per S. 31 Of Arbitration Act, Applies Only In Absence Of An Agreement: Delhi High Court

The Delhi High Court has ruled that Section 31 (7) (a) of the Arbitration and Conciliation Act, 1996 (A&C Act), which deals with the Arbitrator’s discretion while awarding interest in respect of the pre-reference period, applies only where there is no agreement between the parties with respect to the rate of interest to be awarded. The bench of Justice Chandra Dhari Singh remarked that the Arbitral Tribunal may not resort to Section 31(7)(b), while awarding post-award interest, when...

NCLT Ahmedabad & Indore Benches Re-Constituted W.E.F 20th March 2023, Matters To Be Heard Through VC

The National Company Law Tribunal, Ahmedabad and Indore Benches, have been re-constituted vide a Circular dated 15.03.2023 issued by NCLT. Shri M.B. Gosavi (Judicial Member) is demitting office on 18.03.2023 on completion of his tenure. Therefore, the NCLT Ahmedabad and NCLT Indore Bench are being re-constituted. The re-constituted Benches shall comprise of: NCLT Ahmedabad NCLT Ahmedabad Court Room No. I (Monday, Tuesday & Wednesday) (First Half) Shri Praveen Gupta...

Insolvency Resolution Of Company Will Not Extinguish Director's Liability Under Section 138 NI Act : Supreme Court

The approval of resolution plan of a corporate debtor under the Insolvency and Bankruptcy Code 2016 will not extinguish the criminal liability of its erstwhile director under Section 138 of the Negotiable Instruments Act 1881, held the Supreme Court.A bench comprising Justices Sanjay Kishan Kaul, Abhay S Oka and JB Pardiwala held that the company's director cannot seek discharge from N.I. Act proceedings on the ground that creditor’s debt stood settled in the proceedings under IBC.The...

IBC- Resolution Professional Entitled To Take Control Of Corporate Debtor's Rights In Assets Licensed To Third Parties : Supreme Court

The Supreme Court has held that a resolution professional is entitled to take control of the rights of a corporate debtor in assets which are licensed to third parties. Such an action of the RP will come within the ambit of Section 25 of the Insolvency and Bankruptcy Code 2016.A Bench comprising of Justice V. Ramasubramanian and Justice Pankaj Mithal held that the assets owned by a third-party, but in the possession of the Corporate Debtor held under contractual arrangements, are excluded...

Dissenting Secured Creditor Can't Be Treated Higher Than Other Creditors U/S 53 Just Because They Enjoy Security Interest: NCLT Kolkata

The National Company Law Tribunal, Kolkata Bench, comprising of Shri Rohit Kapoor (Judicial Member) and Shri. Balraj Joshi (Technical Member), while adjudicating an Application under Section 60(5) of Insolvency and Bankruptcy Code, 2016 (“IBC”) in ICICI Bank Limited Vs Mr. Pratim Bayal (Resolution Professional)& Anr has reiterated that just because a creditor enjoys security interest, it cannot be treated higher than other creditors who have financed the Corporate Debtor. ...