Amazon Vs Future: Supreme Court Issues Notice, Allows To Continue Proceedings Before NCLT, Bars Sanction Of Scheme

The Supreme Court on Monday issued notice in the plea by Amazon challenging Delhi High Court's stay on the implementation of its own order passed by the Single Judge bench of Justice Midha, which had directed status quo order on the Future - Reliance retail stake sale deal of nearly Rs. 25000 crore. The Supreme Court allowed the National Company Law Tribunal(NCLT) proceedings related to the approval of amalgamation of Future Retail and Reliance to go on but said that the NCLT proceedings should...

Supreme Court Expunges Adverse Remarks Of NCLAT 5 Member Bench Against 3-Member Bench

The Supreme Court on Friday expunged the adverse remarks made by a 5-member bench of the National Company Law Appellate Tribunal(NCLAT) against a 3-member bench of the NCLAT comprising Justices (Retd) Jarat Kumar Jain, Bavinder Singh and Vijai Pratap Singh.A Supreme Court bench comprising Justices RF Nariman and BR Gavai passed the order on a petition filed by the three serving NCLAT members."We are with you, shall we expunge straight away?", Justice Nariman asked Senior Advocate VK Garg, who...

Centre Can't Use Power To Notify IBC Sections Only As Regards Personal Guarantors, Salve Argues For Anil Ambani In SC

The Supreme Court on Thursday heard the arguments of Senior Advocate Harish Salve on behalf of Reliance Communications head Anil Ambani on a plea challenging the Central Government notification extending provisions of the insolvency law to personal guarantors."You cannot specify the subject matter as regards which the section comes into force, you can only specify the section" , Salve submitted challenging the Centre's November 15, 2019 notification bringing into effect certain provisions of...

NCLAT Refuses To Entertain Devas Shareholder's Appeal Against NCLT Order Appointing Provisional Liquidator On Antrix's Plea

The National Company Law Appellate Tribunal(NCLAT), Chennai Bench, has refused to entertain an appeal filed by Devas Mauritius Employees Private Ltd - a shareholder of Devas Multimedia Private Ltd - challenging the order passed by the National Company Law Tribunal (NCLT), Bengaluru bench, which appointed a Provisional Liquidator for Devas while admitting a winding up petition filed by ISRO-arm Antrix Corporation Ltd.The NCLAT however granted liberty to the appellant, a 3.48% shareholder of Devas...

Delhi High Court Stays Attachment Of Deccan Chronicles' Properties In ED Proceedings, On Plea By Union Bank Of India

A bench of Justice Prathiba Singh in the Delhi High Court has stayed proceedings arising out of the attachment of properties of Deccan Chronicles Holding Ltd by the Enforcement Directorate (ED), on a plea by Union Bank of India (UBI) stating that corporate insolvency resolution process (CIRP) was already initiated against Deccan Chronicles and that the attachment by ED has been done after such initiation.The court has, however, imposed the condition that the stay shall be subject to the Bank...

Creditor Will Not Become 'Financial Creditor' Under IBC If A Corporate Debtor Has Only Given Security By Pledging Shares, Without Undertaking To Discharge Borrower's Liability: Supreme Court

The Supreme Court has held that if a corporate debtor has only offered security by pledging shares, without undertaking to discharge the borrower's liability, then the creditor in such a case will not become 'financial creditor' as defined under the Insolvency and Bankruptcy Code(IBC).The Court held that such a creditor could be a secured creditor but will not be a financial creditor under the IBC entitled to take part in the insolvency resolution process.Referring to precedents, a bench headed...

Can Defaulting Promoter, Disqualified From Submitting Resolution Plan, Propose Scheme For Compromise? Supreme Court To Examine

'Whether the Promoter is eligible to file an application for Compromise and Arrangement under section 230 of the Companies Act, while he is ineligible under Section 29A of the I&B Code to submit a 'Resolution Plan'?, the Supreme Court on Wednesday agreed to examine.Section 230 of the Companies Act, 2013 provides for a scheme of compromise or arrangement (including a reorganisation of the company's share capital by the consolidation of shares of different classes or by the division of shares...

Delhi High Court Seeks RBI, Centre, DHFL Response On Plea Against Rules Allowing NBFCs Resolution Under IBC

The Delhi High Court has sought responses of inter alia, the Centre, the Reserve Bank of India and Dewan Housing Finance Corporation Ltd (DHFL) on a writ petition challenging the constitutional validity of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019, and a notification by the Union of India which had made non-banking financial corporations (NBFCs) eligible for insolvency resolution...

IBC-Writ Jurisdiction Can Be Invoked Despite Availability Of Alternative Remedy If Allegation Pertains To Lack Of Jurisdiction Of NCLT: Calcutta High Court

The Calcutta High Court has held that a writ petition Article 226 of the Constitution, challenging the jurisdiction of NCLT in a matter, is maintainable despite existence of an alternate remedy in form of appeal before NCLAT. "Although a wrongful exercise of available jurisdiction would not be sufficient to invoke the High Court's jurisdiction under Article 226 of the Constitution, the ground of absence of jurisdiction could trigger such invocation," a Single Bench of Justice Sabyasachi...

Financial Creditor Can Be Excluded From CoC If It Got Rid Of 'Related Party' Label Only With Intention To Circumvent Bar Under Section 21(2) IBC : SC

'The purpose of excluding a related party of a corporate debtor from the CoC is to obviate conflicts of interest which are likely to arise in the event that a related party is allowed to become a part of the CoC'

Insolvency Law In Review - December 2020

The enactment of the Insolvency and Bankruptcy Code 2016 (Code) has had significant ramifications on the corporate insolvency landscape. Over time, the Code has witnessed a manifold increase in litigation, and consequently in the number of decisions. This has made it difficult for insolvency practitioners to stay updated with developments in the field. The purpose of this column is to fill this gap by providing brief summaries of latest decisions, from the various fora dealing with...

Article Writing Competition On Insolvency Law By IDIA, Delhi Chapter: Register By Feb 27

The Delhi Chapter of IDIA, are conducting an Article Writing Competition on the theme of Insolvency Law. About the Judge All the submissions will be judged by Dr. Risham Garg, Associate Professor at NLU Delhi, Director of the Centre for Transnational Commercial Law (CTCL), and Mr. Lakshman R.S, Associate at S&V Partners, New Delhi. Who can Participate? The competition is open to all students currently pursuing an under-graduation course from any recognized university/college...