Upon 'Supersession' Of Directors Under RBI Act, They Are Not Entitled To Notice Of CoC Meeting: NCLAT

The NCLAT in a Bench comprising of Justice M. Venugopal (Judicial Member), Mr. V.P. Singh and Dr. Ashok Kumar Mishra (Technical Members) in Dheeraj Wadhawan v. The Administrator, Dewan Housing Finance Corporation Ltd. held that there exists a difference between 'supersession of Directors' under the RBI Act and 'suspension of Directors' under the IBC and that a 'Superseded director' who vacated office on supersession of Board under the RBI Act is not entitled to the notice of CoC meeting...

No Scope For Negotiation Once The CoC Has Approved The Resolution Plan: NCLAT In DHFL Case

The NCLAT in a Bench comprising of Justice M. Venugopal (Judicial Member), V.P. Singh (Technical Member) and Dr. Ashok Kumar Mishra (Technical Member) in the case of Union Bank of India on behalf of the Committee of Creditors of Dewan Housing Finance Corporation Limited. VS Mr. Kapil Wadhawan & Ors. set aside the order passed by the Adjudicating Authority which directed the Administrator of DHFL to place its Second Settlement Proposal sent by Mr. Kapil Wadhawan before the Committee...

Initiation Of CIRP Not A Pre-Requisite To Initiate IRP Against The Personal Guarantor: NCLAT

The NCLAT in a Bench comprising of Justice Ashok Bhushan (Judicial Member) and Dr. Alok Srivastava (Technical Member) in State Bank of India v. Mahendra Kumar Jajodia held that initiation of Corporate Insolvency Resolution Process is not a pre-requisite to initiate Insolvency Resolution Process (IRP) against the Personal Guarantor of the Corporate Debtor. The Appellant, State Bank of India, who is the Financial Creditor of the Corporate Debtor filed an appeal against the order of the...

Scrutiny By Income Tax Department Barred For The Period Covered By The Resolution Plan: Telangana High Court

The High Court of Telangana in a Bench consisting of Justice Ujjal Bhuyan and Justice Chillakur Sumalatha in Sirpur Paper Mills Limited & Another. V. Union of India & Two Others held that for the period covered by the Resolution Plan, Income Tax Department cannot carry out any scrutiny or assessment in respect of the Corporate Debtor regarding carry forward of losses and set off against future profits under Income Tax Act, 1961. Factual Background The Petitioner/ Corporate ...

NCLT Kochi Allows Initiation Of Insolvency Resolution Process Against The Personal Guarantor

The Kochi Bench of NCLT in a bench consisting of Justice Mr.Ashok Kumar Borah (Judicial Member) and Mr. Shyam Babu Gautam (Technical Member) in State Bank of India v. Sahadulla M.I. allows initiation of Insolvency Resolution Process (IRP) against the Personal Guarantor, Mr. Shahdulla M.I. (Respondent) of the Corporate Debtor, M/s. Green Gateway Leisure Limited The Applicant/ State Bank of India is the Financial Creditor of the Corporate Debtor, who initiated IRP against the Personal...

Principal And Interest Amount Cannot Be Clubbed To Reach The Minimum Threshold Of Rs. 1 Crore U/S 4, IBC; NCLT Delhi

The NCLT Delhi Bench consisting of Justice Abni Ranjan Kumar Sinha (Judicial Member) and L.N. Gupta (Technical Member) in CBRE South Asia Pvt. Ltd. v. M/s United Concepts and Solutions Pvt. Ltd. held that principal amount and interest cannot be clubbed to reach the threshold of Rs. 1 crore under the Insolvency and Bankruptcy Code 2016, if the debt is an Operational Debt. The Bench dismissed the Application filed by the Applicant, M/s. CBRE South Asia Pvt. Ltd. who is the Operational...

Liability Of Personal Guarantor Of Corporate Debtor Vis A Vis The Insolvency And Bankruptcy Code

As per Section 128 ofthe Indian Contract Act, 1872, the liability of a guarantor is co-extensive with that of the principal debtor. Further, it is settled law that upon conclusion of insolvency proceedings against a principal debtor, the same amounts to extinction of all claims against the principal debtor, except to the extent admitted in the insolvency resolution process itself via the approval of resolution plan by the National Company Law Tribunal ("NCLT"). This is clear from Section 31 of...

Advanced License Fee Is An Operational Debt And Notice U/s 138 NIA Is Not A Dispute Under IBC: NCLT, Delhi

The NCLT, Delhi Bench comprising of Justice Abni Ranjan Kumar Sinha (Judicial Member) and Mr. Avinash K. Srivastava (Technical Member) in Ashimara Housing Private Limited v. Vibrus Homes Private Limited has held that advanced deposit towards license fee would be considered as an Operational Debt and issuance of notice under Section 138 of the Negotiable Instruments Act is not a dispute under the IBC. Factual Background The Applicant/ Operational Creditor,i.e. Ashimara Housing Pvt....

Holding The Resolution Plan To Be Discriminatory, The NCLAT Sets Aside The Plan For Piyush Shelters India Pvt. Ltd

The NCLAT in a Bench comprising of Justice Ashok Bhushan (Chairperson), Justice Jarat Kumar Jain (Judicial Member) and Dr. Alok Srivastava (Technical Member) in Amit Goel v. Piyush Shelters India Pvt. Ltd. set aside the Resolution Plan proposed by Maya Group on the ground that there was discriminatory treatment of the 'non-claimant' financial creditors, as compared to the 'claimant' ones. Facts The Appellants, who are homebuyers/ allotees, preferred appeals against the judgment...

After Approval By The Adjudicating Authority, The Resolution Plan Is No More A Confidential Document: NCLAT

The NCLAT in a Bench comprising of Justice Ashok Bhushan (Chairperson) and Dr. Ashok Kumar Mishra (Technical Member) in Association of Aggrieved Workmen of Jet Airways (India) Limited v. Jet Airways (India) Ltd held that after approval of the Resolution Plan, the Plan does not remain a confidential document, so as to deny its perusal to a claimant, who is aggrieved by the Plan The Appellants herein are the Operational Creditors, an association of aggrieved workmen of Jet Airways ...

An Asset Can Be Kept Out Of Liquidation Estate If The Said Asset Is Sub-Judice Before The High Court:NCLAT

The NCLAT in a Bench consisting of Justice Jarat Kumar Jain (Judicial Member) and Dr. Ashok Kumar Mishra (Technical Member) in Sun Pharmaceutical Industries Ltd. v. Sumit Binani held that an asset can be kept out of liquidation estate if the said asset is sub-judice before the High Court. Factual Backgroun: The Gujarat NRE Coke Ltd./Corporate Debtor was classified as an Non-Performing Asset (NPA) by the State Bank of India (Respondent no. 2 herein). A proposal was made for the sale...

Approval Of COC Is Not Mandatory When Seeking Exclusion Of Time Under Regulation 40C. NCLAT

The NCLAT in a Bench comprising of Justice Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member) in the case of Indiabulls Housing Finance Limited v. Sandeep Chandna, differentiating between 'exclusion' and 'extension' of time under IBC held that the approval of the Committee of Creditors is not mandatory when seeking exclusion of time in view of Regulation 40C of the IBBI (CIRP) Regulations, 2016. The appeal was filed by the Appellant, who is a member of...