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...

NCLT Delhi Admits Unibera Developers Into Insolvency

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 an application filed in Mahi Buildhome Pvt. Ltd. v M/s. Unibera Developers Pvt. Ltd., has initiated Corporate Insolvency Resolution Process against Unibera Developers Pvt. Ltd. Mr. Ashok Kumar Jalan has been appointed as the Interim Resolution Professional (IRP).Background Facts Unibera Developers Pvt. Ltd. (“Corporate...

NCLAT Delhi Upholds Dismissal Of Application Seeking Restraint On Oyo From Proceeding With IPO

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 Jagadish v Oyo Hotels & Homes Pvt. Ltd., has upheld the Adjudicating Authority’s order rejecting applications filed by Operational Creditor to direct Oyo not to proceed with its IPO and furnish its financial statements. The reliefs sought by the Operational Creditor have been regarded as...

No Ipso Facto Absolvement Of Guarantor’s Liability Upon Approval Of Resolution Plan: Allahabad High Court

The High Court of Allahabad Bench comprising of Justice Sunita Agarwal and Justice Vipin Chandra Dixit, while adjudicating a petition filed in Narendra Singh Panwar v Pashchimanchal Vidyut Vitran Nigam Limited & Ors., has held that approval of a resolution plan under Section 31 of the IBC, does not ipso facto absolve the surety/guarantor of the Corporate Debtor of his or her liability, which arises out of an independent contract of guarantee. Background Facts M/s Trimurti...

NCLT Mumbai Approves Adani Goodhome’s Resolution Plan For Radius Estates & Developers

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri Kuldip Kumar Kareer (Judicial Member) and Smt. Anuradha Sanjay Bhatia (Technical Member), while adjudicating an application filed in Beacon Trusteeship Ltd. v Radius Estates and Developers Pvt. Ltd., has approved the Resolution Plan submitted by M/s. Adani Goodhomes Pvt. Ltd. for Radius Estates and Developers Pvt. Ltd. Background Facts Radius Estates and Developers Pvt. Ltd. (“Corporate Debtor”) entered...

“No Concept Of Automatic Restoration Of Any Water Connection”: 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 Industrial Development Corporation v Bhadrashree Steel & Power Ltd. & Ors., has held that water connection cannot be automatically restored to a Successful Resolution Applicant. A proper application has to be made seeking restoration of water connection. Background...

Google Play Store Dispute: NCLAT Delhi Directs Google To Deposit 10% Of Penalty Amount

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Rakesh Kumar (Judicial Member) and Dr. Alok Srivastava (Technical Member), while adjudicating an appeal filed in Alphabet Inc. & Ors. v Competition Commission of India & Ors., has admitted Google’s appeal against CCI order dated 25.10.2022 subject to deposit of 10% of penalty amount of Rs. 936.44 Crores. The Bench has declined to grant any interim relief. The matter is next listed on...

IBC Cases Weekly Round-Up: 2nd To 8th 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...

NCLAT Delhi Upholds Removal Of Shree Ram Urban Infrastructure’s Resolution Professional By AA

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Rakesh Kumar (Judicial Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in Srigopal Choudary v SREI Equipment Finance Ltd., has upheld the Adjudicating Authority’s decision to remove the Resolution Professional of Shree Ram Urban Infrastructure Ltd. The Bench has held that an authority empowered to appoint also has the right to remove/dismiss. Further, if...

AA Obliged To Direct For Liquidation Only If COC’S Decision To Liquidate Is In Accordance With IBC: 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 Hero Fincorp Limited v M/s Hema Automotive Pvt. Ltd., has held that the Adjudicating Authority’s obligation to direct for liquidation shall arise only when the CoC’s decision to liquidate is in accordance with IBC. The CoC resolved to liquidate the Corporate Debtor after preparation of...

AA Empowered To Direct Tenant To Vacate Premises Of Corporate Debtor: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Dr Alok Srivastava (Technical Member) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in M/s. Jhanvi Rajpal Automotive Pvt. Ltd. v R.P. of Rajpal Abhikaran Pvt. Ltd. & Anr., has held that the Adjudicating Authority is empowered under Section 60(5) of IBC to direct a tenant to vacate the property of Corporate Debtor. The NCLAT Bench has...