No Simultaneous CIRP Proceedings Against Same Corporate Debtor: NCLT Ahmedabad

The National Company Law Tribunal (“NCLT”), Ahmedabad Bench, comprising of Dr. Deepti Mukesh (Judicial Member) and Shri Ajai Das Mehrotra (Technical Member), while adjudicating a petition filed in Vrundavan Residency Pvt. Ltd. v Mars Remedies Pvt. Ltd., has held that there cannot be simultaneous CIRP proceedings against the same Corporate Debtor. The Bench declined to initiate CIRP against a Corporate Debtor which was already admitted into CIRP, but the Supreme Court had stayed the CIRP...

Nature Of Financial Debt Doesn’t Change Upon Breach Of Consent Terms: 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 Priyal Kantilal Patel v IREP Credit Capital Pvt. Ltd. & Anr., has held the nature of financial debt would not change on account of breach of the consent terms. The Bench has upheld the initiation of CIRP against a Corporate Debtor upon a subsequent Section 7 petition, which was filed...

Monthly Digest Of IBC Cases: January 2023

Supreme Court “Inappropriate, Almost Bordering On Contempt”: SC Deprecates NCLAT Order Impeding Implementation Of SC Order Case Title: Indiabulls Housing Finance Ltd. v Iirf India Realty Xii Ltd. & Ors. Case No.: CIVIL APPEAL NO.9062/2022 The Supreme Court Bench comprising of Justice Sanjay Kishan Kaul and Justice Abhay S. Oka while adjudicating an appeal has set aside a status quo order passed by NCLAT Delhi which impeded the implementation of an order passed by the...

Benefit U/S 10A Of IBC Can Only Be Claimed When Default Occurs During Prohibited Period: 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 Vishal Agarwal v ICICI Prudential Real Estate AIF-I & Anr., has held that benefit under Section 10A of IBC can only be claimed when there is clear default during the prohibited period. The Bench upheld admission of a Section 7 petition wherein default had occurred prior to 25.03.2020. ...

NCLT Prescribes Dress Code For Members, Lawyers, RP, Authorized Representative & Parties In Person

The National Company Law Tribunal (“NCLT”) has issued an order dated 27.01.2023 specifying the dress code for NCLT President, NCLT Members, Legal Practioners, Authorized Representatives, Interim Resolution Professional, Liquidator, Resolution Professional and parties in person. The prescribed dress code is as under: President and Members: Long trousers (White/Black, Black striped or Grey), National Dress with a shirt and collar band alongwith a black coat/buttoned up black coat....

Jet Airways Insolvency : Supreme Court Affirms NCLAT Order Directing Successful Bidder To Clear PF, Gratuity Dues Of Employees

The Supreme Court on Monday refused to interfere with the order of the National Company Law Appellate Tribunal which directed the Jalan Fritsch consortium, the successful resolution applicant for Jet Airways Ltd, to clear the gratuity and provident fund dues of the employees.A bench comprising Chief Justice of India DY Chandrachud, Justice PS Narasimha and Justice JB Pardiwala dismissed the appeal filed by Jalan Fritsch consortium.Senior Advocate Saurabh Kirpal, appearing for the...

IBC Cases Weekly Round-Up: 23 January TO 29 JANUARY 2023

NCLATNo Condonation Beyond 45 Days, IBC Overrides Limitation Act : NCLAT ChennaiCase Title: M/s. Platinum Rent A Car (India) Pvt. Ltd. v M/s. Quest Offices Limited Case No.: Comp App (AT) (CH) (Ins) No.448/2022 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 Section 238 of IBC overrides Section 12 of the Limitation Act, 1963. The Bench declined to...

Crown Debt Vs Other Debts – The Legislative Intent

When the Insolvency and Bankruptcy Code,2016 was passed by the Indian Parliament, it created a new precedent by lowering the priority of payment of the Crown Debt or the Statutory Dues to the dues of the Banks/Financial Institutions and other creditors, both secured and unsecured. It was a departure from the long-standing practice set in place by the Britishers from pre-independence times, where the Crown Debts i.e. dues of Income Tax, Excise, Customs, GST etc., enjoyed pre-eminance over...

NCLAT Rejects Reliance Capital’s Creditor Plea To Vacate Status Quo Order

National Company Law Appellate Tribunal (NCLAT) bench comprising of Justice Ashok Bhushan and Mr. Barun Mitra disposed off the appeal filed by the Reliance Capital Creditor namely Vistra ITCL against the NCLT Mumbai order dated 23.01.2023. Torrent Investment which emerged as the successful bidder for Reliance Capital with a bid of Rs. 8640 Crores filed an application before NCLT Mumbai challenging the fresh revised bid of Rs. 9400 Crores submitted by Hinduja Group and the NCLT Mumbai...

Withdrawal Application U/S 12a Can’t Be Entertained After Approval Of Resolution Plan By COC: 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 Hem Singh Bharana v M/s Pawan Doot Estate Pvt. Ltd. & Ors., has held that once the Committee of Creditors approve a resolution plan, no withdrawal application under Section 12A of IBC can be entertained. Approval of a Resolution Plan by the CoC prohibits the Resolution Applicant to...

After Adoption Of Swiss Challenge Method, RA Not Allowed To Submit Revised Plan: 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 Jindal Stainless Ltd. v Mr. Shailendra Ajmera & Anr., has held that after adoption of Swiss Challenge Method to find out the best plan, one Resolution Applicant cannot be allowed to submit a revised plan. Background Facts Mittal Corp Limited (“Corporate Debtor”) was admitted into...

No Condonation Beyond 45 Days, IBC Overrides Limitation Act : 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. Platinum Rent A Car (India) Pvt. Ltd. v M/s. Quest Offices Limited, has held that Section 238 of IBC overrides Section 12 of the Limitation Act, 1963. The Bench declined to condone a delay of 55 days in filing of appeal, which was caused due to time taken to obtain certified copy of...