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...

IBC| Statutory Authority Can't Raise Fresh Claim Against Corporate Debtor After Approval Of Resolution Plan: Bombay High Court

The Bombay High Court has ruled that no statutory authority, including the Income Tax authorities, can raise a fresh claim against a Corporate Debtor after the Resolution Plan was finalized and approved. A division bench of Justices Sunil Shukre and Anil Pansare of the Nagpur Bench of High Court observed that entertaining undecided claims after the Resolution Plan was submitted, would lead to uncertainty about the amount payable by the prospective Resolution Applicant who would've...

Application Intentionally Withdrawn By Applicant And Subsequently Filed On The Same Transaction Will Be Barred By Res Judicata. NCLT Kochi

The Kochi Bench of NCLT in a Bench comprising of Justice Ashok Kumar Borah and Mr. Shyam Baby Gautam in Jose Samuel v. M/s Royal International Trade and Allied Products Pvt. Ltd. has dismissed the application seeking initiation of Corporate Insolvency Resolution Process against the Respondent/ Corporate Debtor, i.e. Royal International Trade and Allied Products Private Limited on the ground that the same is barred by the principle of Res Judicata. A similar application was filed by Power of...

Guarantor Whose Guarantee Stands Invoked By Any Creditor Barred From Giving Resolution Plan, Though Insolvency Initiated By Another Creditor: SC On Sec 29A(h) IBC

The Supreme Court has delivered an important judgment interpreting the scope of Section 29A(h) of the Insolvency and Bankruptcy Code. Section 29A IBC specifies the categories of persons who are not eligible to be resolution applicants.Sub-section (h) of Section 29A refers to persons whose guarantees stand invoked by the creditors of the corporate debtor. The exact wordings of the provision are as follows :"has executed a guarantee in favour of a creditor in respect of a corporate debtor against...

A Successful Bidder Cannot Be Permitted To Wriggle Out Of Its Bid Claiming His Bid To Be A 'Conditional Offer'; NCLAT

The NCLAT, Principal Bench consisting of Justice Anant Bijay Singh and Ms. Shreesha Merla in the case of M/s. Visisth Services Limited v. S.V. Ramani held that a Successful Bidder cannot wriggle out of the contractual obligations and withdraw the bid after payment of Earnest Money Deposit (EMD) and seek refund of the amount on the ground that the offer made by the Bidder was a 'conditional offer'. Factual Background The Corporate Debtor filed an application under Section 10 of the...

Refusing To Grant Interim Relief, NCLAT Admits The Amazon's Appeal Against CCI's Order

The NCLAT Bench comprising of Justice M. Venugopal and Mr. V.P. Singh in Amazon.com NV Holdings LLC v. Competition Commission of India & Ors. refused to grant interim relief to Amazon against its plea challenging the order of the Competition Commission of India which suspended its deal with Future Coupons Pvt. Ltd. The order was passed by the Competition Commission on 17th December, against which the Amazon-Group filed an appeal before the NCLAT and also approached the Supreme Court...

Since SC Extended Limitation, No Need To File Application For Condonation Of Delay; NCLAT Delhi

The Principal Bench of the NCLAT comprising of Justice Ashok Bhushan, Justice Jarat Kumar Jain and Dr. Alok Srivastava, in M/s. Essjay Ericsson Private Limited v. M/s. Frontline (NCR) Business Solutions Pvt. Ltd., has held that in order to seek the benefit of the judgment of the Hon'ble Supreme Court passed in Suo Motu Writ Petition No. 3 of 2020, extending the period of limitation due to COVID 19, an Applicant is not required to file an application under Section 5 of the Limitation Act,...

FICCI & IBBI: Virtual Conference On 5 Years Of Insolvency And Bankruptcy Code

FICCI in association with IBBI is organizing a Virtual Conference on '5 Years of Insolvency and Bankruptcy Code- Looking Forward and Beyond' on Thursday, 20th January, 2022. The Conference has been organized to mark 5 years of the implementation of the IBC with the objective to ensure the success of IBC and chart the way forward. The target group for the Conference is Bankers, CEO's, CFO's, Resolution Applicants, Private Equity Investors, Institutional Investors, ARC's, Insolvency...

Amazon-Group Files Appeal At The NCLAT Against CCI Order And Also Appeal In The Supreme Court Against Delhi High Court Order

The Amazon-Group has challenged the Competition Commission of India's order dated 17.12.2021 at the NCLAT, which suspended its deal to acquire 49% stake in FCPL, on the ground that Amazon failed to disclose the true and complete details for the purpose of the Combination. It was held by the Commission that Amazon had misrepresented that its decision to pursue the Combination was based on the unique business model of FCPL. Amazon had also misrepresented that RFL, which is a company with...

NCLT Must Pass Reasonable Order For Fees & Expenses Of Resolution Professional : Supreme Court

The Supreme Court has held that the NCLT/NCLAT must make a reasonable assessment of the fees and expenses payable to the Interim Resolution Profession and cannot pass an order in an ad-hoc manner.The Court held that an order assigning reasons must be passed in respect of fees of resolution professional; otherwise, it will amount to abdication.A judgement delivered by a Bench of Justices D.Y.Chandrachud and A.S.Bopanna, while considering a dispute relating to the payment of costs and expense...

The Progressive Decline Of An Equitable Jurisdiction

Shareholder Disputes Are Often 'Family' Disputes Family run companies continue to dominate the corporate landscape in India. Ownership and governance of such companies are often dictated by pre-existing family arrangements /settlements which reflect the wishes and vision of the founders of such companies. Shareholding in such companies is acquired by way of inheritance or by way of gratuitous share transfers. The articles of association of such companies ensure that shareholding and...

Appointment Of Resolution Professional: Rajasthan HC Issues Notice On Plea Challenging Constitutionality Of Sections 95, 97 & 99 Of IBC

The Rajasthan High Court has issued notice on a plea challenging the constitutionality of Sections 95, 97 and 99 of the Insolvency Bankruptcy Code, 2016. The division bench of Chief Justice Akil Kureshi and Justice Rameshwar Vyas observed, "Since the provisions of the law framed by the Parliament are under challenge, we therefore issue notice to the learned Additional Solicitor General".The matter is fixed for hearing on February 7, 2022. The petition is filed by one Hemant Bohra,...