Initiation of CIRP Not Mandatory For Maintainability Of An Application Against Personal Guarantors U/S 95, IBC: NCLT, Kochi

The NCLT, Kochi Bench comprising of Shyam Babu Gautam, Technical Member and Ashok Kumar Borah, Judicial Member in the case of E. Iqbal v. State Bank of India held that when an application for initiation of CIRP is pending before the NCLT, initiation of CIRP against the Corporate Debtor is not a prerequisite for maintainability of an application u/s 95, IBC filed for initiating IRP against the Personal Guarantor of the Corporate Debtor. The application was filed by the Personal...

IBBI Has Jurisdiction To Regulate Payment Of IRP And RP: NCLAT

The NCLAT, Principal Bench consisting of Justice Ashok Bhushan, Chairperson and V.P. Singh, Technical Member in the case of Sumit Bansal, Insolvency Professional v. Committee of Creditors of JP Engineers held that the IBBI is clothed with the jurisdiction to regulate payment of remuneration of the RP and IRP both by framing regulations or by issuing executive instructions till regulations are not framed to regulate the subject. The Appellant was appointed as the Interim Resolution...

Entry In Balance Sheet Amounts To Acknowledgment Of Liability: NCLT Kochi

The NCLT, Kochi Bench consisting of Mr. Ashok Kumar Borah, Judicial Member and Mr. Anil Kumar, Technical Member in M/s Pheonix ARC Private Ltd. v. Kerala Chamber of Commerce and Industries reiterated that acknowledgement of debt in the balance sheet of the Corporate Debtor comes within the meaning of acknowledgment u/s 18 of the Limitation Act, 1963 and has the effect of extending limitation. The Applicant sought to initiate CIRP against the Corporate Debtor/ Pheonix ARC Pvt. Ltd. by...

In IBC Proceedings, Penalty Can Be Imposed Only Under The Code And Not Under The Companies Act: NCLAT

The NCLAT in Bench comprising of Justice Ashok Bhushan, Chairperson and Dr. Alok Srivastava, Technical Member in Mr. Ashish Chaturvedi v. Inox Leisure Limited held that when proceedings before the Adjudicating Authority are being carried out under the Insolvency and Bankruptcy Code, 2016, penalty can only be imposed under the Code and not under the Companies Act, 2013. The Appeal was filed before the Principal Bench of the NCLAT by two ex-Directors of the Corporate Debtor, E-Z Barter...

90 Days Period Under Regulation 32A Of IBBI (Liquidation Process) Regulations Directory, Not Mandatory: NCLT Hyderabad

The NCLT Hyderabad Bench consisting of Dr. N. Venkata Ramakrishna Badarinath, Judicial Member and Veera Brahma Rao Arekapudi, Technical Member in Ekambareswara Rao Manne v. Mr. Gonugunta Madhusudhan Rao, dismissed the application filed by the Applicant, who was a Member of the Stakeholders Consultation Committee, filed u/s 60(5) of IBC r/w Rule 11, 13 & 32 of the NCLT Rules wherein he challenged the sale of the Corporate Debtor by the Liquidator on the ground that the same was done at...

If Excluding Time From CIRP Helps The Corporate Debtor To Revive Its Operations, Such Exclusion Must Be Allowed: NCLAT

The NCLAT Single Bench consisting of Justice M. Venugopal, Judicial Member in the case of Vinod Tarachand Agarwal held that if exclusion of time of CIRP helps to revive the operations of the Corporate Debtor and thus achieve the objective of the Insolvency and Bankruptcy Code, such exclusion must be allowed. The Appellant filed an appeal against the order of the NCLT, Ahmedabad Bench which refused to exclude a certain period of CIRP despite the Resolution being passed by 100% voting ...

No Bar On Operational Creditor To Recover Claims If Claims Were Not Entertained In The Resolution Process: NCLAT

The NCLAT Bench comprising of Justice Ashok Bhushan, Chairperson and Dr. Ashok Kumar Mishra, Technical Member in Go Airlines (India) Ltd. v. Sovika Aviation Services Pvt. Ltd. &Ors. held that since the Resolution Plan was withdrawn u/s 12A of the Insolvency and Bankruptcy Code, 2016 and the claims of the Operational Creditor were not entertained, the operational Creditor is at liberty to file appropriate legal proceedings to recover his claims. The Appellant filed an appeal against...

Applications By Financial And Operational Creditors On The Basis Of Decrees Or Awards - Tracing The Evolution Of The Judicial Position

There cannot be any doubt about the fact that the Insolvency and Bankruptcy Code, 2016 ('the Code') has been a truly ground-breaking piece of legislation in the Indian judicial perspective. A rich body of precedents have already been laid down, in the short span of five years or so from the time the Code came into existence, by the judicial authorities, touching upon various issues that have emanated with regard to the interpretation of various provisions of the Code. However, certain...

Sessions Judge Or Additional Sessions Judge Not Empowered To Try Offences Under IBC: Bombay High Court

The Bombay High Court in a Bench consisting of Justice Sandeep K. Shinde in the case of Satyanarayan Bankatlal Malu v. Insolvency and Bankruptcy Board of India, while setting aside the order passed by the Additional Sessions Judge u/s 73(a) and Section 235A of the Insolvency and Bankruptcy Code, 2016, held that the Sessions Judge or Additional Sessions Judge is not competent to try offences under the IBC. The same can only be done by a Metropolitan Magistrate or Judicial Magistrate First...

Commercial Wisdom of the CoC To Prevail, Unless The Same Is In Contravention Of Any Law, Reiterates NCLAT

The NCLAT, Principal Bench consisting of Justice Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member) in Noida Special Economic Zone Authority v. Mr. Manish Agarwal refused to set aside the order passed by the Adjudicating Authority, which approved the Resolution Plan, reiterating that the commercial wisdom of the CoC with respect to viability and financial decision taken while evaluating the Resolution Plan has to prevail, unless the same is in contravention of...

Pre-requisite Of Notice To The Personal Guarantor Is Satisfied On A Service Of Notice As Per Form B: NCLT, Mumbai

The NCLT, Mumbai Bench consisting of Smt. Suchitra Kanuparthi (Judicial Member) and Smt. Anuradha Sanjay Bhatia (Technical Member) in the case of Union Bank of India v. Mr. Dheeraj Wadhawan admitted the application filed by the Union Bank of India/Financial Creditor u/s 95 of the Insolvency and Bankruptcy Code, 2016 on the ground that the IBC does not prescribe personal service and service as per Form B is valid for the purposes of a petition under Section 95 of the Code. A petition...

Mediation Order And Dishonoured Cheque Does Not Imply Extension Of Limitation U/S 9, IBC: NCLAT, Delhi

The NCLAT, Delhi in a Bench comprising of Justice Ashok Bhushan (Chairperson), Dr. Ashok Kumar Mishra and Dr. Alok Srivastava (Technical Members) in the case of Ravi Iron Ltd. v. Jia Lal Kishori Lal & Ors. held that an order of mediation along with dishonoured cheques does not imply an extension of limitation for the purposes of Section 9 of the Insolvency and Bankruptcy Code, 2016. The Appellants/Operational Creditors filed an appeal against the order of the NCLT, New Delhi Bench...