IBC
IBC Cases Weekly Round-Up: 22nd August To 29th August 2022
NCLAT Once Dissolution Application Is Filed After Liquidation, Adjudicating Authority Has No Discretion :NCLAT Delhi Case Title: Sudhir Kumar Goel & Ors. v M/s Shashi Oils and Fats Pvt. Ltd. & Ors. Case No.: Company Appeal (AT) (Ins) No. 676 of 2021 The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Rakesh Kumar (Judicial Member) and Dr. Ashok Kumar Mishra (Technical Member), has held that once the liquidation process is...
Section 10A Is Not Applicable To Proceedings Against Personal Guarantors Under Insolvency & Bankruptcy Code, 2016: NCLAT New Delhi
The National Company Law Appellate Tribunal, New Delhi bench comprising of Justice Ashok Bhushan and Justice M Satyanarayan Murthy, Mr. Barun Mitra recently held that Section 10A of the Insolvency & Bankruptcy Code , 2016 is not applicable to proceedings against the personal guarantors under Section 95 of the Code. Brief Facts The Financial Creditor Siemens Financial Services Pvt. Ltd advanced a loan of INR 2.30 Crores to CMI Ltd and the Appellant stood as the Personal Guarantor...
Litigation Of Government Is Not Looked After As It Should Be: NCLAT New Delhi
The National Company Law Appellate Tribunal, New Delhi bench comprising of Justice Rakesh Jain and Dr. Alok Srivastava while dismissing an appeal field by the Rajasthan Drugs and Pharmaceuticals Ltd. expressed its displeasure as to how the litigation of the Government is not looked after the way as it should have been. The Bench was hearing the appeal filed by the Rajasthan Drugs and Pharmaceuticals against the order dated 11.11.2021 of NCLT, Jaipur where Corporate Insolvency Resolution...
IBBI Suspends Deloitte Partner's IP Registration For 3 Years And Imposes Penalty
The Disciplinary Committee of the Insolvency and Bankruptcy Board of India ("IBBI") has suspended the registration of Insolvency Professional, Mr. Savan Godiawala, for a period of three years and has also imposed a penalty of amount equivalent to payments made to Deloitte Touche Tohmatsu India LLP after 23.07.2019 till now. Brief Background Mr. Savan Godiawala is a Professional Member of Indian Institute of Insolvency Professionals of ICAI (IIIP-ICAI) and an Insolvency Professional...
Insolvency And Bankruptcy Code Will Prevail Over Customs Act Once Moratorium Is Declared: Supreme Court
The Supreme Court had held that the Insolvency and Bankruptcy Code (IBC) will prevail over the Customs Act. The bench comprising Chief Justice N.V. Ramana, Justices JK Maheshwari and Hima Kohli observed that the customs authority can only determine the quantum of duties and levies but cannot initiate recovery proceedings.While pronouncing the judgement, CJI Ramana stated that once moratorium under IBC is declared, Customs authorities have only limited jurisdiction to assess the quantum and...
NCLT Hyderabad Bench Re-Constituted, Matters To Be Heard Through Video Conferencing
NCLT Hyderabad Bench Re-Constituted, Matters To Be Heard Through Video Conferencing The National Company Law Tribunal, Hyderabad Bench, has been re-constituted vide a Circular dated 24.08.2022, issued by NCLT as per Section 419(3) of the Companies Act, 2013. The new NCLT Hyderabad Bench shall comprise of: NCLT Hyderabad, Court Room No. 2 (Second Half) Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member)Shri Veera Brahma Rao Arekapudi (Technical Member) The ...
NCLT New Delhi Bench Re-Constituted, Matters To Be Heard Through Video Conferencing
The National Company Law Tribunal, New Delhi Bench, has been re-constituted vide a Circular dated 24.08.2022, issued by NCLT as per Section 419(3) of the Companies Act, 2013. The new NCLT New Delhi Bench shall comprise of: NCLT New Delhi, Court Room No. 3 (Second Half) Shri Bachu Venkat Balaram Das (Judicial Member)Dr. Binod Kumar Sinha (Technical Member) NCLT New Delhi, Court Room No. 4 (First Half) Shri Dharminder Singh (Judicial Member)Dr. Binod Kumar Sinha (Technical...
Investment Made By Director Of A Company Is Not An Operational Debt: NCLT Kolkata
The National Company Law Tribunal ("NCLT"), Kolkata Bench, comprising of Shri Rohit Kapoor ("Judicial Member") and Shri Harish Chander Suri (Technical Member), while adjudicating a petition filed in Akshat Pandey v Avighna Films Private Limited, has held that an investment made by the Director of a Company does not fall under the purview of an Operational Debt under the IBC. Background Facts Avighna Films Private Limited ("Corporate Debtor") had two directors till 09.04.2019, ...
Tribunal Cannot Interfere With Decision Of COC To Replace Resolution Professional : NCLAT Chennai
The National Company Law Appellate Tribunal ("NCLAT"), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Mr. Kanthi Narahari (Technical Member), while adjudicating an appeal in M/s IDBI Bank Limited v C.J. Davis, had set aside the Adjudicating Authority's order disallowing the Committee of Creditors ("CoC") to replace the Resolution Professional under Section 22(3)(b) of the Insolvency and Bankruptcy Code, 2016 ("IBC"). The Bench held that the commercial wisdom of ...
Does Limitation Period For Filing Appeal Applies To Period For Curing Defects?: NCLAT Refers Question To Larger Bench
The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Justice N Satyanarayana Murthy (Judicial Member) and Mr. Barun Mitra (Technical Member), while adjudicating in an appeal filed in Mr. V R Ashok Rao v TDT Copper Limited, has observed that issue of delay in refilling of appeal is often coming before the NCLAT Bench for consideration. Accordingly, the NCLAT Bench has referred the following question to a larger Bench:...
On A Request Made By CoC, NCLT Is Empowered To Remand Back Resolution Plan To CoC For Re-Consideration: NCLT Ahmedabad
The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Dr. Deepti Mukesh (Judicial Member) and Shri Ajai Das Mehrotra (Technical Member), while adjudicating an application filed in Asset Reconstruction Company (India) Limited v GPT Steel Industries Ltd., has held that Adjudicating Authority has right to send back the resolution plan for reconsideration to the CoC, on a request made by the CoC in its commercial wisdom. Background Facts Asset Reconstruction Company...
Insolvency Plea Against Kishore Biyani Led Future Enterprises Ltd., NCLT Mumbai Issues Notice
The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Shri H.V. Subba Rao (Judicial Member) and Smt. Anuradha Sanjay Bhatia (Technical Member), while adjudicating a petition filed in Foresight Innovations Pvt. Ltd. v Future Enterprises Ltd., has issued notice to Future Enterprises Ltd. in a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 ("IBC") filed by Foresight Innovations Pvt. Ltd. for an alleged default of Rs. 1,58,78,942/-. The next date of...