A Financial Creditor Cannot Challenge The Insolvency Proceedings Initiated By Another Financial Creditor On The Ground Of Superior Claim: NCLAT

The NCLAT while dismissing an appeal filed by L&T Infrastructure Finance Company Ltd. held that a Financial Creditor cannot challenge the order of admission of Insolvency petition by another financial creditor merely on the ground that it has a superior claim over the claim of the other Financial Creditors. In this case, an Agreement was executed between National Highway Authority of India ('NHAI') and the Gwalior Bypass Project Ltd, (Corporate Debtor). According to the terms...

Symposium on 'Recovery & Resolution – Emerging Challenges before Recovery Tribunals and NCLTs'

'Law 85 Trust' in association with the 'Federation of Indian Hire Purchase Association' (FIHPA) is organising a Symposium on the topic 'Recovery & Resolution – Emerging Challenges before Recovery Tribunals and NCLTs'. Senior judges including Hon'ble Justice Mr. Sanjay Kishan Kaul (Judge, Supreme Court of India), Hon'ble Justice Mr. Senthil Kumar Ramamoorthy (Judge, Madras High Court), Hon'ble Justice Mr. Tarun Kumar Kaushal (Retd.)...

NCLT Has Inherent Power To Impose Moratorium Before Initiation Of Corporate Insolvency Resolution Process : NCLAT [Read Judgment]

The National Company Law Appellate Tribunal (NCLAT) in a matter has recently held that once an application for initiating insolvency proceedings is filed, NCLT does not have to await hearing of the parties to impose moratorium. The NCLAT Bench comprising of Justice S.J. Mukhopadhaya, Chairperson and Kanthi Narahari, Member (Technical), while hearing the matter [NUI Pulp and Paper Industries Pvt. Ltd. vs. M/s. Roxcel Trading GMBH] affirmed that Rule 11 of the NCLT Rules, 2016 gave...

IBC - A Big Game Changer In Banking (Part I)

The introduction of IBC was termed as the most powerful weapon in the hands of the bankers to reduce the frightening level of non-performance assets. It is expected that IBC will change the game plan of NPA Management in Indian banking space. The main objectives of the code were time bound reorganisation, maximisation of value of assets, promotion of entrepreneurship, availability of credit and balance interests of all stakeholders. The euphoria around IBC may prompt many to ask -...

Workmen Dues Of Pension, Gratuity, PF Not Included In Liquidation Assets : NCLAT Affirms NCLT View [Read Judgment]

The Appellate Tribunal confirmed that the dues should be paid to the workers directly, and would not fall under the waterfall mechanism of distribution of assets under section 53 of the IBC.

NCLAT Gives Nod To Insolvency Proceedings Against Sahara Q Shop [Read Order]

National Company Law Appellate Tribunal refused to grant relief to Sahara Q Shop Unique Products Range Limited against an order passed by the National Company Law Tribunal admitting an application filed against the said company under section 9 of the Insolvency and Bankruptcy Code, 2016. The present appeal arose from the order of the National Company Law Tribunal which had admitted an application filed by S. Gurumoorthy under Section 9 of the IBC against Sahara Q Shop Unique Products Range...

A Creditor Can't Be Given Preferential Treatment Towards Satisfaction Of A Compromise Decree, Pending Moratorium In IBC Proceedings: Delhi HC [Read Judgment]

Dismissing a contempt petition, the Delhi HC on Friday held that contempt proceedings could not be used to execute an order of payment, whose execution was otherwise prevented by law on account of ongoing insolvency proceedings. Background The Petitioner, a sole proprietor, had filed a suit for recovery of money against the Respondents, a construction company and its directors, wherein a compromise decree was passed by the court, following settlement between the parties....

Treating Homebuyers As Financial Creditors Not Arbitrary : SC Upholds 2018 IBC Amendment [Read Judgment]

Dismissing a bunch of petitions filed by nearly 200 realtors, the Supreme Court on Friday upheld the amendments made to the Insolvency and Bankruptcy Code in 2018 to treat homebuyers as financial creditors.In the judgment titled Pioneer Urban Land and Infrastructure Ltd and Anr vs Union of India, the bench of Justices R F Nariman, Sanjiv Khanna and Surya Kant held that the amendments do not violate Article 14 and 19(1)(g) of the Constitution and rejected the argument that they are 'arbitrary,...

Names Of Resolution Professionals Facing Disciplinary Proceedings Can't Be Made Public : IBBI Appellate Authority [Read Order]

The First Appellate Authority (FAA) of the Insolvency and Bankruptcy Board of India has held against disclosure of names of insolvency professionals (IPs) facing disciplinary proceedings saying the same would impede the investigation process due to unwarranted public attention and is likely to harm practice of most IPs who are established professionals like Chartered Accountants. The FAA also held that there are sufficient checks and balances in place to ensure that IPs facing disciplinary...

Call For Paper: CARIP NLUJAA Journal On Intellectual Property Rights [Vol 2019-20, Issue 1]

Centre for Advanced Research on Intellectual Property Rights, National Law University and Judicial Academy Assam, hereby invites articles/research papers, case studies, and book reviews on the contemporary topics of Intellectual Property Rights for publication in the 1st Issue of the CARIP- NLUJAA Journal on Intellectual Property Rights for its 2019-2020 volume. The Journal on Intellectual Property Rights is a peer-reviewed ISSN serial journal published by the Centre for Advanced Research on...

Essar Insolvency : SC Orders Status Quo On NCLAT Verdict

The Supreme Court on Monday ordered status quo as of today with respect to the order of National Company Law Appellate Tribunal in the Essar insolvency case.The bench of Justices R F Nariman and Surya Kant was hearing a bunch of appeals filed by the Committee of Creditors and several banks challenging the July 4 order of the NCLAT which had approved ArcelorMittal's Rs 42,000 crore bid for the acquisition of Essar Steel. The bench headed by Justice R F Nariman said the monitoring committee...

Disciplinary Proceedings Initiated By IBBI Can't Be Quashed By NCLT, Rules NCLAT [Read Order]

National Company Law Appellate Tribunal has held in the case of IBBI v. Rishi Prakash Vats & Ors. that once a disciplinary proceeding is initiated by the Insolvency and Bankruptcy Board of India (IBBI) on the basis of evidence on record, it is for the Disciplinary Authority, i.e., IBBI to close the proceeding or pass appropriate orders in accordance with law. Such power having been vested with IBBI and in absence of any power with the Adjudicating Authority/ National Company Law Tribunal,...