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...

IBC Cases Weekly Round-Up: 16 January To 22 January 2023

NCLAT NCLAT Delhi Upholds Dismissal Of Application Seeking Restraint On Oyo From Proceeding With IPO Case Title: Jagadish v Oyo Hotels & Homes Pvt. Ltd. Case No.: Company Appeal (AT) (Insolvency) No. 1408 of 2022 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has upheld the Adjudicating Authority’s order rejecting applications filed by Operational Creditor to...

Operational Creditors Only Entitled To Minimum Of The Liquidation Value: 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 Dharmindra Constructions Pvt. Ltd. & Anr. v Rajendra Kumar Jain, has held that Operational Creditors are only entitled for minimum of the liquidation value. Background Facts Kudos Chemie Ltd. & Ors. (“Corporate Debtor”) was admitted into Corporate Insolvency Resolution Process...

Landowner In A Development Agreement Not A Financial Creditor: 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 Ashoka Hi-Tech Builders Pvt. Ltd. v Sanjay Kundra & Anr., has held that a landowner in a development agreement is not a financial creditor within the meaning of Section 5(8) of IBC and cannot be included in the Committee of Creditors. Background Facts Ashoka Hi-Tech Builders Pvt....

Section 17 Of Limitation Act Inapplicable Where Limitation Is Prescribed For Appeal: 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 Maharashtra State Electricity Distribution Company Ltd. v NRC Ltd. & Anr., has held that Section 17(1) of Limitation Act, 1963 deals with period of limitation in the case of any suit or application. On the face of it, Section 17(1)(c) does not come into play in an Appeal when limitation...

‘Filed Only For Recovery Of Balance Interest Amount’: NCLAT Delhi Upholds Dismissal Of Section 9 Petition

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 Permali Wallace Pvt. Ltd. v Narbada Forest Industries Pvt. Ltd., has held upheld the Adjudicating Authority’s dismissal of a Section 9 petition, which was filed merely for recovery of balance interest amount in view of a settlement agreement and not for resolution of the Corporate Debtor. ...

NCLT Hyderabad Grants A Series Of Concessions/Waivers To The Successful Bidder

The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Sri Satya Ranjan Prasad (Technical Member), while adjudicating a petition filed in State Bank of India v K.R.R Infraprojects Pvt. Ltd., has granted several waivers/concessions to the Successful Bidder including waiver from penalties imposed by Registrar of Companies and other authorities. Further, the Bench has granted the Successful Bidder the...

Ministry Of Corporate Affairs Invites Public Comments On Proposed Changes In IBC

The Ministry of Corporate Affairs, Government of India, has issued a circular inviting comments from the public on the changes proposed to be made in the Insolvency and Bankruptcy Code, 2016 (“IBC”). The proposed changes relate to the admission of corporate insolvency resolution process (“CIRP”) applications, streamlining the insolvency resolution process, recasting the liquidation process, and the role of service providers under the IBC. Proposed Amendments In a circular issued...

IBC - When Does Limitation Begin To Run? Analysing SC Judgment In "V.Nagarajan vs. SKS Ispat"

V.Nagarajan vs. SKS Ispat[2] is a much-misunderstood case. The National Company Law Appellate Tribunal (NCLAT), while dealing with appeals under the Insolvency & Bankruptcy Code, 2016 (“IBC”), has been dismissing many as being barred by the statute of Limitation. NCLAT cites Nagarajan to conclude it has no power to condone delay for any period over and above 15 days after the expiry of 30 days from the ‘date of the order’ (“Order”) of the Adjudicating Authority (“AA”). Consequently, an...

NCLT Mumbai Approves Promoter’s Resolution Plan For Srithik Ispat Pvt. Ltd.

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 Swastik Coal Corporation Pvt. Ltd. v Srithik Ispat Pvt. Ltd., has approved the resolution plan submitted by the Promoter of the Corporate Debtor (Srithik Ispat Pvt. Ltd.). The Corporate Debtor is engaged in the business of iron sponge manufacturing in Goa. Background Facts Srithik ...

Avoidance Applications Survive CIRP, Can Be Heard After Approval Of Resolution Plan: Delhi High Court

The Delhi High Court Bench comprising of the Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad, while adjudicating an appeal filed in Tata Steel BSL Limited v Venus Recruiter Pvt. Ltd. & Ors., has held that that avoidance applications filed under IBC survive even after approval of the resolution plan, in cases where Resolution Plans are unable to account for such applications. These applications can be heard even after CIRP stands concluded. Background Facts On...

IBC Cases Weekly Round-Up: 9 January To 15 January 2023

NCLAT AA Obliged To Direct For Liquidation Only If COC’S Decision To Liquidate Is In Accordance With IBC: NCLAT Delhi Case Title: Hero Fincorp Limited v M/s Hema Automotive Private Limited Case No.: Company Appeal (AT) (Insolvency) No.1540 of 2022 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Ms. Shreesha Merla (Technical Member), held that the Adjudicating Authority’s obligation to direct for...