IBC
NCLAT Principal Bench To Resume Physical Hearing From 1st August
The National Company Law Appellate Tribunal, New Delhi, has released a Standard Operating Procedure (SOP) dated 15.07.2022 for conduct of physical hearing before the NCLAT Principal Bench, New Delhi from 01.08.2022 onwards. The SOP has been released exclusively for the hearings before NCLAT Principal Bench, New Delhi and the decision to resume physical hearing has been taken in light of declining COVID-19 positivity rate. As per the SOP, entry into the court room of the NCLAT Principal...
NCLT Mumbai Initiates Insolvency Proceedings Against Sahara Hospitality, Owner Of Hotel Sahara Star
The National Company Law Tribunal's (NCLT) Mumbai bench has initiated insolvency proceedings against Sahara Hospitality Limited, that owns Hotel Sahara Star, for an alleged default of around Rs 50 crore. Judicial Member Justice P.N. Deshmukh (retd) and Technical Member Shyam Babu Gautam admitted a Company Petition (CP) under Section 9 of the Insolvency & Bankruptcy Code, 2016 against Sahara Hospitality Limited, on account of default to Delta Electro Mechanical Private Limited. ...
National E-Assessment Centre Acted Thick Skinned: Gujarat High Court
The Gujarat High Court held that it was pandemic time when the department should have adopted a liberal approach in refusing the request for time for filing objections to the draft assessment order and finally passing the assessment order. The department acted thick-skinned. The division bench of Justice N.V. Anjaria and Justice Bharghav D. Karia has observed that the assessment proceedings were remanded to the Assessing Officer to be taken up afresh from the stage of the draft ...
NCLT Ahmedabad Denies Approval Of Resolution Plan For Being Unimplementable
The National Company Law Tribunal ("NCLT"), Ahmedabad Bench, comprising of Justice Madan B. Gosavi (Judicial Member) and Shri Kaushalendra Kumar Singh (Technical Member), while adjudicating an application filed in IFCI Ltd. v Anil Mega Food Park Pvt. Ltd., has declined to approve the Resolution Plan submitted by M2K Developers Pvt. Ltd. for Anil Mega Food Park Pvt. Ltd., for not being implementable. Background Facts Anil Mega Food Park Pvt. Ltd. ("Corporate Debtor") was admitted in...
NCLAT Chennai Rejects Claim Of PF Department For Delay Of 936 Days
The National Company Law Appellate Tribunal ("NCLAT"), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Shri Kanthi Narahari (Technical Member), while adjudicating an appeal filed in The Regional Provident Fund Commissioner v Mr. Vasudevan, has dismissed a claim filed by the Provident Fund Commissioner after a delay of 936 days and held that no indulgence or latitude can be shown for a Statutory Organization, since the law applies to all. The officials must act...
NCLT Mumbai Directs Income Tax Authority To Refund TDS To Corporate Debtor Undergoing Liquidation
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 Asset Reconstruction Company (India) Ltd. v Precision Fasteners Ltd., has directed the Deputy Commissioner of Income Tax to refund the TDS charged from the Corporate Debtor when the latter was under liquidation. Brief Background Asset Reconstruction Company (India) Ltd....
Arbitrarily Rejection Of Resolution Plan Is Void , NCLT Allahabad Declares The COC's Action As Void
The National Company Law Tribunal ("NCLT"), Allahabad Bench, comprising of Shri Rajasekhar V.K. (Judicial Member) and Shri Virendra Kumar Gupta (Technical Member), while adjudicating an application filed in Exim Scrips Dealers Pvt. Ltd v Rathi Graphic Technologies Limited, has held that principles of natural justice are applicable to proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC). The Committee of Creditors (CoC) had declined to consider the revised resolution plan...
NCLT Has Discretion To Not Admit Financial Creditor's CIRP Application Even If Corporate Debtor Is In Default : Supreme Court
The Supreme Court observed that it is not mandatory for the Adjudicating Authority to admit an application to initiate Corporate Insolvency Resolution Process even if a debt existed and the Corporate debtor is in default.However, such discretionary power cannot be exercised arbitrarily or capriciously, the bench comprising Justices Indira Banerjee and JK Maheshwari cautioned.The court observed that, ordinarily, the Adjudicating Authority (NCLT) would have to exercise its discretion to admit and...
A Report Under Section 99 Of IBC Cannot Be Filed By Resolution Professional Without The Adjudicating Authority's Directions: NCLT Mumbai
The National Company Law Tribunal, Mumbai Bench, comprising of Shri H. V. Subba Rao (Judicial Member) Shri Chandra Bhan Singh (Technical Member), while adjudicating a petition filed in Bank of Baroda Limited v Mr. Pawan V Kikavat, has directed the Resolution Professional to file a fresh a report under Section 99 of the Insolvency and Bankruptcy Code, 2016 ("IBC") for recommending approval or rejection of insolvency petition against the Personal Guarantor, which was previously filed by...
IBC Cases Weekly Round-Up: 4 July To 10 July,2022
NCLAT Resolution Professional Is Only Authorized To Operate Accounts Of Corporate Debtor : NCLAT Chennai Case Title: Beauty Etiole Pvt. Ltd. v C. Sanjeevi & Ors. Case No.: Company Appeal (AT) (CH) (Ins.) No. 316/2021 The National Company Law Appellate Tribunal, Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Mr. Kanthi Narahari (Technical Member), has held that the Resolution Professional is only authorized in law to exercise control over Bank...
Even Though Limitation Is Not Set Up As Defence, Tribunal Should Examine: NCLT Chennai
The National Company Law Tribunal (NCLT), Chennai Bench, comprising of Justice (Retd.) S. Ramathilagam (Judicial Member) and Shri Anil Kumar B (Technical Member), while adjudicating an application filed in Bank of Baroda v Rajiv Rai, has held that limitation applies to an application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 ("IBC") for initiating insolvency process against a Personal Guarantor. The Bench dismissed an application which was filed after six years...
Information Memorandum Should Reflect Creditors Claim , If It Finds Place In Balance Sheet : NCLT Indore
The National Company Law Tribunal ("NCLT"), Indore Bench, comprising of Shri Madan B. Gosavi (Judicial Member) and Shri Kaushalendra Kumar Singh (Technical Member), while adjudicating an application filed in Bank of Baroda v Divya Jyoti Industries Ltd., has held that if a claim of a creditor appears in the audited balance sheet of the Corporate Debtor, then it is the duty of the Resolution Professional to include such claims in the Information Memorandum. Background Facts Bank of...