Breach Of Settlement Agreement Not A Ground To Trigger CIRP: NCLT Delhi Rejects Application For Revival Of Petition

The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri Dharminder Singh (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating an application filed in Bajaj Rubber Company Pvt. Ltd. v Saraswati Timber Pvt. Ltd., has declined to revive a petition filed under Section 9 of IBC, which was earlier withdrawn due to Settlement Agreement being entered upon between the parties and later settlement had failed. The Bench reiterated that breach of terms...

Fee Payable To Insolvency Professional ; IBBI Notifies Third Amendment To CIRP Regulations

The Insolvency and Bankruptcy Board of India ("IBBI") has amended the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("CIRP Regulations") for a third time and has notified the amendment on 13.09.2022. The amendment has introduced Clause 34B and Schedule II to the CIRP Regulations which have brought about the following changes: The fee of the interim resolution professional or the resolution professional, appointed on or after 1st October 2022 shall be...

NCLT Kochi Bench Re-Constituted, Proceedings To Be Conducted Only On Wednesday, Thursday And Friday Until Further Orders

The National Company Law Tribunal, Kochi Bench, has been re-constituted vide a Circular dated 14.09.2022, issued by NCLT as per Section 419(3) of the Companies Act, 2013. The new NCLT Kochi Bench shall comprise of: NCLT Kochi (First Half) Shri P. Mohan Raj (Judicial Member)Shri Satya Ranjan Prasad (Technical Member) The Circular has been issued in partial modification of Order of even number dated 01.07.2022 and is applicable from 15.09.2022 till further orders. The ...

NCLT Cuttack To Hear Cases Only On Monday And Tuesday Until Further Orders

The National Company Law Tribunal, Cuttack Bench, shall conduct proceedings on only Monday and Tuesday in view of NCLT Circular dated 14.09.2022 and matters shall be heard through video conferencing. The NCLT Cuttack Bench was reconstituted vide a notification dated 10.10.2021 and the Circular dated 14.09.2022 has been issued in partial modification of the said notification. At present the NCLT Cuttack Bench comprises of: NCLT Cuttack Bench Shri P. Mohan Raj (Judicial Member)Shri...

NCLT Delhi Holds Suspended Directors Liable For Running Fraudulently

The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri Dharminder Singh (Judicial Member) and Dr. Binod Kumar Sinha (Technical Member), while adjudicating a petition filed in M/s Concord Infrastructure Pvt. Ltd. v M/s Shubhkamna Buildtech Pvt. Ltd., has approved the resolution plan submitted by Mr. Sunder Kumar Singhal and Mr. Sunil Kumar Agarwal for M/s Shubhkamna Buildtech Pvt. Ltd. The Bench has also held the Suspended Directors of Subhkamna Buildtech liable...

NCLT Has Discretion To Not Admit Financial Creditor's CIRP Application? Supreme Court Allows Open Court Hearing For Review

The Supreme Court on Wednesday allowed open court hearing for the review petition filed against the judgment in Vidarbha Industries Power Ltd. vs Axis Bank Limited which held that the National Company Law Tribunal has discretion to not admit the insolvecny application filed by a financial creditor even if the corporate debtor is in default.A bench comprising Justices Indira Banerjee and MM Sundersh listed the review petition filed by Axis Bank for hearing in open court on September 19.The...

Unregistered Sale Cannot Be The Basis For Claim On Immovable Property: 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 Smt. Sabita A. Biswa v Shri Vinodkumar Pukhraj Ambavat, has declined to entertain the claim of a creditor based on an unregistered and unstamped sale deed which was only executed before the Notary and has held that such document cannot be basis for any claim with respect to the purchase of...

Time Schedule Has A Purpose ; NCLT Kolkata Declines To Entertain The Bid Submitted After The Time

The National Company Law Tribunal ("NCLT"), Kolkata Bench, comprising of Shri Rohit Kapoor (Judicial Member) and Shri Balraj Joshi (Technical Member), while adjudicating an application filed in State Bank of India v Ess Dee Aluminum Limited, has declined to entertain a revised bid received after the due time fixed by the Liquidator in the bidding notice, while observing that time lines are fixed with a definite purpose and the different stages of bidding process should conclude at the...

SEBI Order No Bar To Initiation Of CIRP; NCLT Mumbai Initiates Insolvency Proceedings Against Pancard Clubs

The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Justice P. N. Deshmukh (Retd.) (Judicial Member) and Shri Shyam Babu Gautam (Technical Member), while adjudicating an application filed in Mr. Nitin Suresh Satghare & Ors. v Pancard Clubs Limited, has initiated Corporate Insolvency Resolution Process ("CIRP") against Pancard Clubs Ltd., while observing that an Order passed by Securities Exchange Board of India ("SEBI") is no bar for initiation of CIRP under the...

IBC Cases Weekly Round-Up: 5 September To 11 September, 2022

Supreme Court CIRP Can Be Initiated Against Corporate Guarantor Without Proceeding Against Principal Borrower: Supreme Court Case Title: K Paramasivam vs Karur Vysya Bank Ltd Case No.: 2022 LiveLaw (SC) 742, CA 9286 OF 2019 The Supreme Court Bench comprising of Justice Indira Banerjee and Justice JK Maheshwari, has held that Corporate Insolvency Resolution Process (CIRP) can be initiated against the Corporate Guarantor without proceeding against the principal borrower. The...

NCLAT Delhi Sets Aside Order Of Liquidation; Grants Additional Opportunity For Inviting Resolution Plans

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 Nikhil Tandon v Sanjeev Bindal & Ors., has set aside an order for liquidation of Corporate Debtor and has given one more opportunity to the Committee of Creditors and Resolution Professional for finding out as to whether there can be any Resolution Plan to revive the Corporate Debtor. ...

Erstwhile Resolution Professional Has No Right To Be Heard Before Being Replaced Under Section 27: NCLAT Delhi

The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Justice M. Satyanarayana Murthy (Judicial Member) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in Sumat Kumar Gupta v Committee of Creditors of M/S Vallabh Textiles Company Ltd., has held that when the Committee of Creditors decides to replace the Resolution Professional under Section 27 of IBC and an application is filed before the ...