NCLT Mumbai Allows Withdrawal Of CIRP Against Meta Arch Pvt. Ltd.

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri Kuldip Kumar Kareer (Judicial Member) and Shri Shyam Babu Gautam (Technical Member), while adjudicating a petition filed in Ardex Endura (India) Private Limited v Meta Arch Private Limited, has permitted withdrawal of CIRP against Meta Arch Private Limited. Background Facts Meta Arch Private Limited (“Corporate Debtor”) is engaged in real estate development and has projects across Kenya, Pune, Mumbai,...

NCLAT Delhi Upholds Remitting Of Resolution Plan Back To COC For Compliance Of Sec 30(2) IBC

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in Noble Marine Metals Co WLL v Kotak Mahindra Bank Limited & Ors., has upheld the order of Adjudicating Authority whereby a Resolution Plan was remitted back to the Committee of Creditors for making changes, only to the extent of a clause which provided for mandatory release of the...

No Bar On Sale Of Corporate Debtor As A Going Concern After First Auction, Permission Of AA not required: 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 Mr. Surinder Manchanda v Nolsar International Limited, has held that there is no bar on the sale of Corporate Debtor as a going concern even after the first auction has taken place and the Liquidator is not obliged to seek permission of Adjudicating Authority for conducting such sale. ...

Weekly Digest Of IBC Cases: 27 February To 6 March 2023

NCLAT Defences Of ‘Pre-Existing Dispute’ Or ‘No Amount Due’ Can Be Raised Directly In Reply To Section 9 Application: NCLAT Delhi Case Title: Greymatter Entertainment Pvt. Ltd. v Pro Sportify Pvt. Ltd. Case No.: COMPANY APPEAL (AT) (INSOLVENCY) NO. 1043 of 2021 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Ms. Shreesha Merla (Technical Member), has held that IBC does not prevent the Corporate...

Debt Arising Out Of Different Work Orders Can Be Clubbed To Meet Minimum Thershold Of Rs. 1 Crore: NCLT Mumbai Reiterates

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member), while adjudicating a petition filed in A J Buildcon Private Limited v Patel Engineering Limited, has reiterated that debts arising from different work order(s) can be clubbed to satisfy the minimum threshold limit of Rs. 1 Crore under IBC. The Bench has initiated CIRP against Patel Engineering Ltd. and appointed Ms. Neeraja Kartik...

Whether Proceedings Under NI Act Become Infructuous If Creditor Opts IBC?: Delhi High Court Issues Notice

The Delhi High Court Bench comprising of Justice Jasmeet Singh, while adjudicating a petition filed in Ashwani Arya & Anr. v Rajat Mitra Proprietor of M/s. Caldron Graphics, has issued notice in the petition filed under Section 482 of CrPC, wherein quashing of summons issued in a proceeding under Section 138 of Negotiable Instruments Act has been sought by the Director of Corporate Debtor, which is under liquidation. The issue before the Court is whether proceedings under Section 138...

NCLT Delhi Approves Resolution Plan Of Suraksha Realty & Lakshdeep Investments & Finance For Jaypee Infratech LTD.

The National Company Law Tribunal (“NCLT”), Special Bench (New Delhi), comprising of Justice Ramalingam Sudhakar (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in IDBI Bank Limited v Jaypee Infratech Limited, has approved the Resolution Plan submitted by Consortium of M/s. Suraksha Realty Ltd. and M/s. Lakshdeep Investments & Finance Pvt. Ltd. for Jaypee Infratech Ltd. Background Facts Jaypee Infratech Limited (“Corporate Debtor”)...

NCLT Delhi Approves Resolution Plan For Boulevard Projects Private Limited

The National Company Law Tribunal, Principal Bench, New Delhi comprising of Justice Ramalingam Sudhaka (President) and Shri Avinash K. Srivastava (Technical Member) has approved the Resolution Plan filed by the Resolution Professional, Amit Agarwal in the matter of Boulevard Projects Private Limited which was developing a high-end real estate project Delhi One.Background Facts: In 2018, SGM Webtech Private Limited (“SGM”) as a financial creditor filed an application under Section 7 of...

Excessive Amount Mistakenly Paid Can’t Be Operational Debt, It’s Quasi Contract: NCLT Hyderabad

The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Mr. Satya Ranjan Prasad (Technical Member), while adjudicating a petition filed in M/s. Sandvik Mining & Construction Tools AB v M/s TA Hydraulics Pvt. Ltd., has held that if an Operational Creditor mistakenly pays excess sum to the Corporate Debtor, then the excess amount would not be categorized as an operational debt, if the claim is entirely...

Shareholders Have No Locus To Challenge The Initiation Of CIRP Against Corporate Debtor: 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 Nirej Vadakkedathu Paul v Sunstar Hotels and Estates Private Limited, has held that shareholders of Corporate Debtor have no locus to challenge the initiation of CIRP against the Corporate Debtor. The Bench has upheld the initiation of CIRP against M/s McDowell Holdings Limited. ...

Special Bench At NCLT Kochi & Cuttack; Matters To Be Heard Through VC

The National Company Law Tribunal (“NCLT”) has constituted Special Bench for NCLT Cuttack and NCLT Kochi, vide a Circular dated 01.02.2023 issued by NCLT. Shri P. Mohan Raj (Judicial Member) is on leave from 02.03.2023 to 07.03.2023. Therefore, a Special Bench is being constituted to take up the matters listed before Shri P. Mohan Raj (Judicial Member) and Shri Satya Ranjan Prasad (Technical Member). The Special Bench constituted at NCLT Cuttack and NCLT Kochi Bench shall comprise ...

Monthly Digest Of IBC Cases: February 2023

NCLAT Nature Of Financial Debt Doesn’t Change Upon Breach Of Consent Terms: NCLAT Delhi Case Title: Priyal Kantilal Patel v IREP Credit Capital Pvt. Ltd. & Anr. Case No.: Company Appeal (AT) (Insolvency) No. 1423 of 2022 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has held the nature of financial debt would not change on account of breach of the consent...