NCLT Mumbai Initiates Insolvency Proceedings Against Reliance Broadcast Network Limited

The National Company Law Tribunal (‘NCLT’), Mumbai bench comprising of Mr. Kuldip Kumar Kareer (Judicial Member) and Ms. Anuradha Sanjay Bhatia (Technical Member), while adjudicating an application filed by IDBI Trusteeship Services Limited, has initiated Corporate Insolvency Resolution Process (“CIRP”) against Reliance Broadcast Network Limited [“Corporate Debtor”]. Mr. Rohit Ramesh Mehra has been appointed as the interim Resolution Professional. Background Facts: The Corporate...

Defences Of ‘Pre-Existing Dispute’ Or ‘No Amount Due’ Can Be Raised Directly In Reply To Section 9 Application: NCLAT Delhi

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 Greymatter Entertainment Pvt. Ltd. v Pro Sportify Pvt. Ltd., has held that IBC does not prevent the Corporate Debtor from establishing defences of ‘Pre-existing dispute’ or ‘No amount due’ through its Reply to Section 9 application and supporting documents, even if it failed to respond to...

Shifting Entire Blame On IRP Not Justified; Creditors Must Also Play Catalytic Role In CIRP: NCLAT Delhi

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 Shri Guru Containers v Jitendra Palande, has held that creditors must not shift the entire blame on the IRP on grounds of non-performance of duty and make him the scapegoat. It is equally important for the creditors to play a catalytic role in the insolvency resolution process given the...

NCLT Chennai Bench Re-Constituted W.E.F 27th February 2023

The National Company Law Tribunal, Chennai Bench, has been re-constituted vide a Circular dated 24.02.2023 issued by NCLT. The re-constitution has been made in partial modification of order of even number dated 09.02.2023 and is effective from 27.02.2023 until further orders. The re-constituted NCLT Chennai Bench shall comprise of: NCLT Chennai, Court Room No. II (First Half) Shri Sanjiv Jain (Judicial Member)Shri Sameer Kakar (Technical Member) File No.:...

NCLAT Delhi Upholds Liquidation Of M/S Ajanta Offset And Packaging Limited

NCLAT has disposed of the appeal against the order of the NCLT, Delhi which directed the liquidation of the Corporate Debtor, M/s Ajanta Offset and Packaging Limited. NCLT had also set aside the approval of the Resolution Plan by the Suspended Board of Directors.NCLT held that the Successful Resolution Applicants, being the suspended promoters of the Corporate Debtor, cannot avail the exemptions from ineligibility under clause (c) and (h) of Section 29A of the Code. They could not submit a...

NCLAT Delhi Sets Aside Rs. 25000 Cost Imposed On Resolution Professional By AA

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 Sanjai Kumar Gupta v Gouri Prasad Goenka, has set aside an order whereby the Adjudicating Authority had imposed a cost of Rs. 25,000/- on Resolution Professional for allegedly filing a frivolous application. Background Facts Stone India Limited (“Corporate Debtor”) was admitted into...

Weekly Digest Of IBC Cases: 20 February To 26 February 2023

NCLAT Principal Amount Paid In Full, Section 9 Application Not Maintainable For Recovery Of Interest: NCLAT Delhi Case Title: Rohit Motawat v Madhu Sharma Case No.: Comp. App. (AT) (Ins) No. 1152 of 2022 The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member), has held that an application under Section 9 of IBC being pursued only for interest component, while...

Requesting Ledger/Statement From Operational Creditor Is Not Admission Of Claim, Does Not Renew Limitation: NCLT Indore

The National Company Law Tribunal (“NCLT”), Indore Bench comprising of Dr. Madan B. Gosavi (Judicial Member) and Shri Kaushalendra Kumar Singh (Technical Member), while adjudicating an application filed in Oswal Pumps Limited v Bhopal Tractors Pvt. Ltd., has held if a Corporate Debtor merely requests statements or ledger from the Operational Creditor for verification, then such act would not amount to an admission of claim and would not renew the limitation period. Background Facts ...

Advance Collected From Allottes Towards Payment Of Maintenance Charges Or Taxes Is Operational Debt: NCLT Mumbai

The National Company Law Tribunal (“NCLT”), Mumbai Bench comprising of Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member), while adjudicating an application filed in Innova Premises Co-operative Society Limited v Marathon Nextgen Realty Limited, has held that money collected from allottees for payment towards maintenance charges or taxes of the real estate project, is akin to the money paid in advance to a service provider for availing services. The...

Payment Of EPF Dues Under The IBC – Supreme Court Paves Way For Full Realization

In Ghanshyam Mishra and Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Company Ltd. , the Supreme Court had clarified that any claim not approved under the resolution plan by the Adjudicating Authority shall stand extinguished. The Apex Court had upheld the Insolvency and Bankruptcy Code (Amendment) Act, 2019 wherein the governmental authorities had been classified within the ambit of operational creditor under Section 5(20) of the Insolvency & Bankruptcy Code, 2016 [Code]. ...

NCLAT Delhi Stays Insolvency Proceedings Against Zee Entertainment Enterprises Ltd.

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 Punit Goenka v Indusind Bank Ltd. & Anr., has stayed the NCLT order dated 22.02.2023, whereby Corporate Insolvency Resolution Process (“CIRP”) was initiated against Zee Entertainment Enterprises Ltd. Background Facts Zee Entertainment Enterprises Ltd. (formerly Zee Telefilms...

NCLT Mumbai Initiates Insolvency Proceedings Against Siti Networks Ltd.

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri H.V. Subba Rao (Judicial Member) and Ms. Madhu Sinha (Technical Member), while adjudicating an application filed in Indusind Bank Ltd. v Siti Networks Ltd., has initiated Corporate Insolvency Resolution Process (“CIRP”) against Zee Entertainment Enterprises Ltd. Mr. Rohit Mehra has been appointed as the Interim Resolution Professional. Background Facts Siti Networks Ltd. (“Corporate Debtor”) is engaged in...