IBC
NCLAT Says Dispute Over Title To Cotton Bales In Galaxy Cotton Liquidation Lies Before DRAT
The National Company Law Appellate Tribunal (NCLAT) has dismissed appeals filed by two cotton traders seeking exclusion of cotton bales claimed by them from the liquidation estate of Galaxy Cotton & Textiles Pvt. Ltd., after noting that the liquidator had already excluded the disputed stock from the liquidation process and that disputes over title and security interest in the goods were pending before the Debt Recovery Appellate Tribunal (DRAT). The bench of Judicial Member Justice N...
Successful Resolution Applicant Cannot Renegotiate After CoC Approves Resolution Plan: Supreme Court
The Supreme Court on Wednesday held that a Successful Resolution Applicant cannot seek to renegotiate or stall implementation of a resolution plan after it has been approved by the Committee of Creditors (CoC). A Bench of Justices K. V. Viswanathan and Vipul M. Pancholi passed the ruling while dismissing appeals filed by Sanjay Dave, former promoter-director and Successful Resolution Applicant (SRA) of Oracle Home Textiles Ltd. The Court held that once the CoC approves a resolution plan...
Complex Disputed Commercial Arrangements Cannot Be Decided In Summary Insolvency Proceedings: NCLT Jaipur
The Jaipur Bench of the National Company Law Tribunal (NCLT) has refused to admit Empire Housing Projects Pvt. Ltd.'s insolvency plea against Ninaniya Estates Ltd. It held that the dispute arose from a complex and seriously contested commercial arrangement linked to a real estate transaction, which could not be resolved in summary insolvency proceedings. The matter was heard by a bench of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar. “In the considered opinion of this...
Auction Purchaser Of CoC Member Company Cannot Represent It Until Sale Completion: NCLT Kolkata
The National Company Law Tribunal (NCLT), Kolkata Bench, has recently held that a successful auction purchaser of a company that is a committee of creditors (CoC) member in another insolvency process cannot participate in that other company's CoC meetings until the acquisition is legally completed. It held that mere purchase through auction does not by itself confer that right. The bench of Judicial Member Bidisha Banerjee, and Technical Member Siddharth Mishra held that the liquidator would...
Supreme Court Declines Ex-NCLAT Member's Plea Challenging Post-Retirement Practice Restriction Before NCLT, NCLAT
The Supreme Court on Wednesday declined to entertain a writ petition filed by former National Company Law Appellate Tribunal (NCLAT) Technical Member Vijai Pratap Singh challenging the statutory restriction prohibiting former tribunal members from appearing before the National Company Law Tribunal (NCLT) and NCLAT after retirement.Appearing in person, Singh argued that an absolute prohibition was excessive and suggested that a cooling-off period could instead be introduced. A Bench comprising...
Look-Out Circular Cannot Bar Bankrupt Guarantor's Travel For Official Duties: Karnataka High Court
The Karnataka High Court on 30 April held that a Look-Out Circular (LOC) cannot operate as an absolute bar on a bankrupt guarantor's overseas travel where such travel is required to discharge professional obligations, and that authorities must balance such restrictions against constitutional protections and employment needs. Justice Sachin Shankar Magadum passed the order while disposing of a writ petition filed by Aditya Arora challenging an LOC issued at the instance of Bank of Baroda. He...
NCLT Chennai Reiterates Unauthorised Communications Cannot Trigger CIRP, Dismisses ₹1.24 Crore Plea
The Chennai Bench of the National Company Law Tribunal (NCLT) on 5 May dismissed an insolvency application filed by Daedong Shipping Company Limited, a South Korean shipping company, holding that communications from an unauthorised person cannot be used to establish an operational debt or initiate proceedings under the Insolvency and Bankruptcy Code, 2016. Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy reiterated that corporate liability must rest on valid...
Regulation 30A Permits CIRP Withdrawal Without Creditor Notice Prior To CoC Constitution: NCLAT New Delhi
The New Delhi National Company Law Appellate Tribunal (NCLAT) on 25 May held that an application for withdrawal of insolvency proceedings under Regulation 30A of the CIRP Regulations, 2016, filed before constitution of the Committee of Creditors (CoC), does not require issuance of notice to other creditors and remains valid if authorities comply with the prescribed procedure. Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey dismissed two appeals filed by Chandra Prakash...
Singapore Court Sentences Byju Raveendran To Six Months In Jail For Contempt
A Singapore court has sentenced Byju Raveendran, founder of insolvent edtech firm Byju's, to six months' imprisonment for contempt of court over alleged non-compliance with directions concerning disclosure and handling of assets linked to Beeaar Investco and other group entities, Bloomberg reported.The court also directed Raveendran to surrender to the authorities, pay costs of S$90,000 (about US$70,500), and produce documents establishing his legal ownership of Beeaar Investco, an entity said...
'Wafer-Thin Majority' Alone No Ground To Reject Insolvency Resolution Plan: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a resolution plan cannot be rejected merely because it was approved by a “wafer-thin majority,” setting aside the NCLT's rejection of Express Resorts and Hotels Ltd's plan for Neesa Leisure Ltd. A bench of Judicial Member Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra said the Ahmedabad bench of the NCLT had rejected the plan on legally unsustainable grounds despite it securing the requisite creditor...
Highest Score In Evaluation Matrix Doesn't Guarantee Resolution Plan Approval: NCLT Kochi
Securing the highest score under the evaluation matrix does not give a resolution applicant any vested right to have its plan approved by the Committee of Creditors (CoC), the National Company Law Tribunal at Kochi has reiterated. A coram of Judicial Member Vinay Goel said: “It is now well settled that the Evaluation Matrix is only a guiding tool intended to facilitate comparative assessment of Resolution Plans and does not confer any vested or enforceable right upon the highest-scoring...