IBC
On Approval Of Plan By MSME Directors, They Will Be Treated As New Owners: NCLT Mumbai
The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Justice P.N. Deshmukh (Judicial Member) and Shri Shyam Babu Gautam (Technical Member), while adjudicating a petition filed in Aries Agro Pvt. Ltd. v ETCO Industries Pvt. Ltd., has held that once the resolution plan submitted by MSME Corporate Debtor's promoters/directors is approved by the Adjudicating Authority, the ownership of the Corporate Debtor shall be considered as fresh, even if the directors/promoters...
Amount Paid Towards One Time Settlement Is An Asset Of The Corporate Debtor: NCLAT Delhi
The National Company Law Appellate Tribunal (NCLAT) bench comprising of Justice Anant Bijay Singh and Ms. Shreesha Merla held that the amount deposited towards the One-time settlement (OTS) by the Corporate Debtor will be an asset of the Corporate Debtor and the Resolution Professional is entitled to take custody of the same. Actif Corporation Limited proposed a OTS with Bank of India and to show its commitment towards the settlement furnished a cheque of INR 1 Crores to the Bank with...
IBC Cases Weekly Round-Up: 3 October To 9 October, 2022
SUPREME COURT Discretion Of NCLT Under Section 7(5)IBC - Observations In 'Vidarbha Industries' Made In Context Of Case: Supreme Court Refuses Review Case Title : Axis Bank Ltd versus Vidarbha Industries Power Ltd Case No.: 2022 LiveLaw (SC) 817, RP (Civil) 1043/2022 The Supreme Court Bench comprising of Justices Indira Banerjee and JK Maheshwari held that there is no ground to review the judgment in Vidarbha Industries Power Ltd. vsAxis Bank Limited which held that the National...
NCLT Mumbai Initiates Insolvency Process Against First Flight Couriers
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 Srinidhi Comprint Private Limited v First Flight Couriers Limited, has initiated Corporate Insolvency Resolution Process (CIRP) against First Flight Couriers Ltd. and Mr. Indrajit Mukherjee has been appointed as Interim Resolution Professional. Background Facts First Flight Couriers...
NCLAT Delhi Sets Aside Unreasoned Order Passed By AA For Not Satisfying "Requirements Of An Order"
The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice M. Satyanarayana Murthy (Judicial Member) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in Gandhar Oil Refinery (India) Ltd. v City Oil Pvt. Ltd., has set aside an order passed by Adjudicating Authority dismissing a petition under Section 9 of IBC, for not being a reasoned order and thus not satisfying the requirements of an order. It was observed that though no...
NCLT Rules 43 Only Empowers AA To Seek Production Of A Document, Not Parties : NCLT Hyderabad
The National Company Law Tribunal ("NCLT"), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Veera Brahma Rao Arekapudi (Technical Member), while adjudicating an application filed in Ind Barath Power Infra Ltd. v India Infrastructure Finance Co. Ltd., has held that Rule 43 of the NCLT Rules 2016 only empowers the Adjudicating Authority and not the Parties to seek production of documents/further information. Accordingly, the Bench ...
Withdrawal Of Resolution Plan Will Have Disastrous Effect: NCLAT
The National Company Law Appellate Tribunal (NCLAT)bench comprising of Justice Ashok Bhushan and Mr. Barun Mitra dismissed the appeal filed by the Resolution Applicant seeking permission to withdraw its resolution plan and held that allowing withdrawal of a resolution plan will have serious disastrous effect on the whole purpose of the Insolvency & Bankruptcy Code, 2016 (IBC/Code). The Appellant filed the appeal before the NCLAT against the order dated 21.07.2022 passed by NCLT...
IBC Cases Weekly Round-Up: 26 September To 2 October, 2022
NCLAT Voluntary Initiation Of CIRP By Bihar State Construction Corp., NCLAT Delhi Approves Case Title: Bihar State Construction Corporation Limited Employee Union v Bihar State Construction Corporation Limited Case No.: Company Appeal (AT) (Insolvency) No. 1493 of 2019 The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Shri Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member), has upheld the Adjudicating Authority's...
NCLT Can't Refer To Arbitration U/S 8 Of The A&C Act While Exercising Powers U/S 7, 9 And 10 Of The IBC: NCLAT Principal Bench
The NCLAT Principal Bench comprising of Justice Anant Bijay Singh, Judicial Member and Ms. Shreesha Merla, Technical Member in the matter of Trafigura India Pvt. Ltd. V. TDT Copper Ltd. upheld the order passed by the Adjudicating Authority which upheld the order of the AA, dismissing Appellant's S. 9 Application under IBC on the ground that unpaid amounts in the Settlement Agreement do not constitute 'operational debt' u/s 5(21) of the IBC and that the role of the NCLT is limited while...
Monthly Digest Of IBC Cases: September 2022
Supreme Court IBC - Approval Of A Resolution In Respect Of One Borrower Cannot Discharge A Co-Borrower: Supreme Court Case Title: Maitreya Doshi vs Anand Rathi Global Finance Ltd Case No.: 2022 LiveLaw (SC) 789, CA 6613 OF 2021 The Supreme Court Bench comprising of Justices Indira Banerjee and JK Maheshwari has held that approval of a resolution in respect of one borrower cannot discharge a co-borrower. The Bench observed that if there are two borrowers or if two corporate...
Voluntary Initiation Of CIRP By Bihar State Construction Corp., NCLAT Delhi Approves
The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Shri Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in Bihar State Construction Corporation Ltd. Employee Union v Bihar State Construction Corporation Ltd., has upheld the Adjudicating Authority's decision to initiate Corporate Insolvency Resolution Process ("CIRP") against Bihar State Construction Corporation Ltd. ("BSCCL"). BSCCL had...