Bank Of India Files Petition Under Section 7 Of IBC Against Future Retail Limited

The Bank of India has filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC") before the National Company Law Tribunal ("NCLT"), Mumbai Bench, seeking initiation of Corporate Insolvency Resolution Process ("CIRP") against Future Retail Limited ("FRL"). The matter has not been listed yet for its first hearing. A Framework Agreement was entered into between the Bank of India and FRL, the petition has been filed over default of payments due under the said...

Weekly Digest Of IBC Cases: April 10th To April 17th, 2022

1. NCLT KOLKATA INSOLVENCY RESOLUTION PROCESS AGAINST LEGAL HEIRS OF PERSONAL GUARANTOR BY FINANCIAL CREDITOR NOT PERMISSIBLE Case title: Bank of Baroda v Ms. Divya Jalan Case No: C.P. (IB) - 363/2021 The National Company Law Tribunal ("NCLT"), Kolkata Bench Consisting of Shri Rajasekhar V.K. (Judicial Member) and Shri Balraj Joshi (Technical Member) while dismissing an application filed by the Bank of Baroda (Financial Creditor), held that the application is not...

CIRP Can Be Initiated Based On An Unchallenged Arbitral Award: NCLT Kolkata

The NCLT Kolkata Bench comprising of Shri Rajasekhar V.K. (Judicial Member) and Shri Balraj Joshi (Technical Member) while deciding a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 ("IBC"), titled Viom Infra Ventures Ltd. v Bahula Infotech Pvt. Ltd., has held that Corporate Insolvency Resolution Process ("CIRP") can be initiated based on an Arbitral Award if the said Award has not been challenged. The order was passed on 18.04.2022. Facts Of The Case The ...

NCLT Mumbai Issues Notice To SITI Networks Ltd. In Section 7 IBC Petition Filed By HDFC LTD.

The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Smt. Suchitra Kanuparthi (Judicial Member) and Smt. Anuradha Sanjay Bhatia (Technical Member), has issued notice to SITI Networks Ltd. in the matter of Housing Development Finance Corporation Limited v SITI Networks Limited., vide an order dated 30.03.2022. Housing Development Finance Corporation Ltd. ("Financial Creditor") had filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC"),...

IBC - Wages/Salaries Of Only Those Workmen/Employees Who Actually Worked During CIRP Are To Be Included In CIRP Costs: Supreme Court

The Supreme Court held that the dues towards the wages/salaries of only those workmen/employees who actually worked during the Corporate Insolvency Resolution Process(CIRP) are to be included in the CIRP costs.The court clarified that the wages and salaries of all other workmen/employees of the Corporate Debtor during the CIRP who actually have not worked and/or performed their duties when the Corporate Debtor was a going concern, shall not be included automatically in the CIRP costs. Such dues...

NCLT, Mumbai Declares National Steel And Agro Industries Ltd. As Insolvent And Initiates CIRP

The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Justice P.N. Deshmukh (Judicial Member) and Shri K.K. Vohra (Technical Member), has admitted a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC") against National Steel & Agro Industries Ltd. and initiated Corporate Insolvency Resolution Process ("CIRP"), vide an order dated 11.04.2022 passed in the matter of JM Financial Asset Reconstruction Co. Ltd. v National Steel & Agro ...

Quantum Of Debt Not To Be Decided At The Stage Of Admission Of A Section 7 Petition Under IBC: NCLAT,Delhi

The National Company Law Appellate Tribunal ("NCLAT") Bench comprising of Justice Ashok Bhushan (Chairperson), Dr. Alok Srivastava (Technical Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in the matter of Rajesh Kedia v Phoenix ARC Pvt. Ltd., has held that the quantum of debt is not be considered at the stage of admission of a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC"). The only requirement for admitting a petition...

Amount Disbursed By NBFC Upon Oral Agreement Not Covered In Financial Debt: NCLT Kolkata

The NCLT Kolkata Bench comprising of Shri Rajasekhar V.K. (Judicial Member) and Shri Balraj Joshi (Technical Member) while deciding a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC"), titled Narendra Promoters & Fincon Pvt. Ltd. v Vinline Engineering Pvt. Ltd., has held that a disbursement made by a Non Banking Financial Institution ("NBFC") over an oral agreement cannot be construed as the existence of a financial debt, when there is nothing on record to...

Resolution Professional Cannot Prosecute Preferential Transactions After Approval Of Resolution Plan: NCLT Kolkata

The National Company Law Tribunal (NCLT) Kolkata bench comprising of Mr. V K Rajasekhar ( Member, Judicial)and Balraj Joshi (Member Technical)held that an application for preferential transactions cannot be pursued either by the erstwhile Resolution Professional (RP) or the new Management of the Corporate Debtor after the approval of the Resolution Plan by NCLT. NCLT was hearing the application filed under Section 43 of the Insolvency and Bankruptcy Code by the Resolution...

'Decree Holders' Can't Be Treated At Par With 'Financial Creditors' Under IBC : Supreme Court Upholds HC Verdict

The Supreme Court on Monday upheld a Tripura High Court judgment which had held that "decree-holders" cannot be treated at par with "financial creditors" under the Insolvency and Bankruptcy Code. The bench of Justices SK Kaul and MM Sundresh, while dismissing a Special Leave Petition filed against the High Court judgment, observed : "We are not inclined to interfere with the impugned judgment. The special leave petition is dismissed. Pending applications stand disposed of." In...

NCLAT Stays The Constitution Of Committee Of Creditors Of Supertech Limited

The National Company Law Appellate Tribunal ( NCLAT) Principal Bench comprising of Justice Ashok Bhushan, Dr. Alok Srivastava(Member Technical) and Ms.Shreesha Meerla (Member Technical) stays the constitution of committee of creditors and adjourned the appeal preferred by suspended director of Supertech Limited against the order dated 25.03.2022 of NCLT New Delhi which initiated the CIRP against Supertech Limited to 19.04.2022.Senior Advocate Arun Kathpalia appeared for the...

IBBI Disciplinary Committee Restrains Insolvency Professional From Rendering Services For Two Years

In a recent matter before the Disciplinary Committee of the Insolvency and Bankruptcy Board of India (IBBI), bearing No. IBBI/DC/91/2021, an Insolvency Professional, namely Mr. Manoj Kumar Singh, has been found to be dispensing his duties as an Interim Resolution Professional in contravention of the Insolvency and Bankruptcy Code, 2016 ("IBC") and its regulations. The Disciplinary Committee, vide an order dated 08.04.2022, has directed Mr. Singh to not seek or accept any process or ...