NCLAT Extends Benefit Of Limitation Computation To Appeals Filed Between 01.11.2022 To 23.12.2022

On 24.12.2022 the National Company Law Appellate Tribunal (“NCLAT”) had issued fresh directions for computation of limitation for filing of appeals before NCLAT. Earlier the benefit of order dated 24.12.2022 was only available to appeals filed on and after 24.12.2022. However, the NCLAT vide an Order dated 21.02.2023 has extended the benefit of Order dated 24.12.2022 to appeals which have been filed between 01.11.2022 to 23.12.2022. The conditions of limitation computation would remain...

Resolution Applicant Wilfully Fails To Implement Plan, NCLT Mumbai Orders Liquidation Without Monitoring Committee’s Mandate

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 a petition filed in BMW Financial Services Pvt. Ltd. v S.K. Wheels Pvt. Ltd., has ordered liquidation of the Corporate Debtor as the Resolution Applicant willfully failed to implement the resolution plan. The order of liquidation has been made without the mandate of the Implementation and Monitoring Committee (IMC) and to...

No Acknowledgement Of Liability Based On An Unrealized Cheque: NCLAT Chennai

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in M/s. Primee Silicones (Chennai) Pvt. Ltd. v M/s. UCAL Fuel Systems Ltd., has held that a cheque which has not been encashed, cannot amount to an ‘acknowledgement of liability’ in terms of Section 18 of the Limitation Act, 1963. Background Facts M/s. Primee Silicones (Chennai) Pvt....

Principal Amount Paid In Full, Section 9 Application Not Maintainable For Recovery Of Interest: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member), while adjudicating an appeal filed in Rohit Motawat v Madhu Sharma, has held that an application under Section 9 of IBC being pursued only for interest component, while principal amount has been paid in full, is not maintainable. The spirit of IBC is resolution of debt and not for ‘recovery’. Background Facts ...

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

NCLAT Partial Payment Of PF & Gratuity Dues Violative Of Section 30(2)(E) Of IBC: NCLAT Chennai Reiterates Case Title: Mrs. C.G. Vijyalakshmi v Shri Kumar Rajan & Ors. Case No.: Company Appeal (AT) (CH) (Ins.) No. 29 of 2021 The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Ms. Shreesha Merla (Technical Member), has held that Provident Fund and Gratuity dues have to be paid in full to the...

NCLT Mumbai Excludes Moratorium Period In Calculation Of Limitation

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri Kishore Vemulapalli (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), while adjudicating a petition filed in Piramal Capital & Housing Finance Ltd. v Manpreet Developers Pvt. Ltd., has held that if an entity which itself was admitted into CIRP and has undergone moratorium, files an application under IBC, then the period of moratorium would be excluded while computing limitation of such...

Income Tax Dues Are Government Dues; Income Tax Authority Is A Secured Creditor: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Anant Bijay Singh (Judicial Member) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in Principal Commissioner of Income Tax & Anr. v M/s Assam Company India Ltd., has held that the dues of the Income Tax dues are Government dues and Income Tax Authorities are a secured creditor. Background Facts Seri Infrastructure Pvt. Ltd. (“Financial Creditor”) filed a...

Liquidator Has No Jurisdiction To Reject/Modify Already Admitted Claims, Can Approach AA For Modification: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member), while adjudicating an appeal filed in Vijay Kumar Gupta v Canara Bank, has held that the Liquidator has no jurisdiction to reject or modify already admitted claims, if he receives any additional information. The Liquidator can only approach the Adjudicating Authority for modification of the admitted claims. ...

Borrowers Pays Full Compromise Amount: Allahabad High Court Directs Bank To Reconsider Wilful Default

The Allahabad High Court Bench, comprising of Justice Manoj Kumar Gupta and Justice Vikram D. Chauhan, while adjudicating a petition filed in Konarkagro Polytech Pvt. Ltd. & Ors. v Bank of Baroda & Ors., has directed the Bank to re-consider its decision of declaring the Borrowers (Petitioners) as wilful defaulters, as a One Time Settlement (OTS) was subsequently entered between the Bank and Borrowers and full compromise amount has been towards the Petitioner Company’s accounts....

Section 9 IBC Application Not A Suit, Hence Bar U/S 69(2) Of Partnership Act Not Attracted: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in Rourkela Steel Syndicate v Metistech Fabricators Pvt. Ltd., has held that an application under Section 9 of IBC is not a suit and hence, the bar under Section 69(2) of Indian Partnership Act, 1932 is not applicable to a Section 9 application. Background Facts Rourkela Steel Syndicate...

Partial Payment Of PF & Gratuity Dues Violative Of Section 30(2)(E) Of IBC: NCLAT Chennai Reiterates

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in Mrs. C.G. Vijyalakshmi v Shri Kumar Rajan & Ors., has held that Provident Fund and Gratuity dues have to be paid in full to the workmen/employees till the CIRP commencement date. The Bench held that the approved resolution plan violated Section 30(2) of IBC, by paying only 35.13% of...

NCLT Ahmedabad Bench Re-Constituted W.E.F 15th FEBRUry 2023

The National Company Law Tribunal, Ahmedabad Bench, has been re-constituted vide a Circular dated 09.02.2023 issued by NCLT. Dr. Deepti Mukesh (Judicial Member) of NCLT Ahmedabad Bench (Court No. II) is demitting office on 14.02.2023 on completion of her tenure. Therefore, the Bench is being re-constituted to take up the matters listed before Dr. Deepti Mukesh (Judicial Member) and Shri Ajai Das Mehrotra (Technical Member). The re-constitution has been made in partial modification...