IBC
In Absence Of Claims From Financial Or Operational Creditors, Liquidation Order Must Be Passed U/S 33 Of IBC: NCLT Bengaluru
The National Company Law Tribunal (NCLT), Bengaluru Bench of Shri Sunil Kumar Aggarwal (Judicial Member) and Shri Radhakrishna Sreepada (Technical Member) has held that in the absence of any claims from either financial or operational creditors, due to lack of supporting documents to prove such claims and the inability to constitute the Committee of Creditors (CoC), liquidation of the corporate debtor can be ordered under Section 33 of the IBC. The present application has been filed ...
Limitation For Filing Application Under IBC Is Three Years If No Extension Is Sought, Even If Such Application Is Filed Based On Court's Decree: NCLAT
The National Company Law Appellate Tribunal (NCLAT), New Delhi Bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that the time period for filing an application under the IBC remains three years, even if it is based on a court decree. It is not extended merely because the limitation period for executing the decree is 12 years. The present two appeals have been filed by the IDBI Bank against orders passed by the National Company Law Tribunal (NCLT) Indore by...
Order Passed By NCLT President On Transfer Application Listed In Court Is Judicial Order, Appealable U/S 421 Of Companies Act: NCLAT
The National Company Law Appellate Tribunal (NCLAT), New Delhi Bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that although the President of the NCLT exercises administrative functions such as listing and transferring cases, once a transfer application is listed before the Court, any order passed, even if by the President, becomes a judicial order, appealable under Section 421 of the Companies Act. These two Appeals have been filed against orders passed...
Claims Of Multiple Operational Creditors Arising From Different Work Orders Can't Be Clubbed Into Single Debt To Cross Threshold Limit: NCLT Chennai
The National Company Law Tribunal (NCLT) Chennai bench of Justice Sanjiv Jain (Judicial Member) and Venkataraman Subramaniam (Technical Member) has held that claims arising from different work orders cannot be clubbed to cross the threshold limit for filing an insolvency petition under section 9 of the IBC. Furthermore, claims of multiple Operational Creditors cannot be clubbed into a single debt for the purpose of a petition under section 9 of the IBC. The present petition has been...
'Hard To Believe Corporate Debtor Who Invested ₹5.5 Crore Was Unaware Of CIRP': NCLAT Refuses To Expunge Adverse Remarks Against Suspended Directors
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member), Justice Mohd. Faiz Alam Khan (Judicial Member) and Mr. Naresh Salecha (Technical Member) has held that strong observations made against the suspended directors of the Corporate Debtor, while passing an order of dissolution due to their non-cooperation in providing requisite statutory records to the Resolution Professional or the Liquidator and their continuous...
No Bar On Compounding Offence U/S 441 Of Companies Act If Punishable With Fine Only: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai Bench of Hon'ble Shri Ashish Kalia, (Judicial Member) and Hon'ble Shri Sanjiv Dutt (Technical Member) has held that since the punishment under Section 99 of the Companies Act, 2013 is only a fine, and as per Section 441 of the Act there is no bar on the Tribunal to compound an offence punishable only with a fine, the offence of not holding Annual General Meetings on time can be compounded. The present application has been filed seeking...
Financial Creditor Can File Plea U/S 7 Of IBC If Actionable Rights Under Guarantee Are Preserved In Approved Resolution Plan: NCLT New Delhi
The National Company Law Tribunal (NCLT), New Delhi Bench of Shri Manni Sankariah Shanmuga Sundaram (Hon'ble Member Judicial) and Shri Atul Chaturvedi (Hon'ble Member Technical) has held that Financial Creditors can proceed against Personal Guarantors even after the approval of the Resolution Plan, if actionable rights under the guarantee are preserved. The present petition has been filed under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking initiation of the...
NCLT/NCLAT Under IBC Lacks Jurisdiction To Set Aside Auction Sale Conducted Prior To Initiation Of CIRP: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan, Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that an auction sale conducted before the commencement of the CIRP cannot be set aside by the NCLT while exercising its jurisdiction under the Insolvency and Bankruptcy Code, 2016 (IBC). Such an auction is not hit by section 14 of the IBC. The present appeal has been filed against an order passed by the National...
Electricity Can't Be Disconnected At Corporate Debtor's Plant When Assets Are Put On Auction To Maximise Value: NCLT Kolkata
The National Company Law Tribunal (NCLT), Kolkata Bench of Rekha Kantilal Shah (Technical Member) and Labh Singh (Judicial Member) has held that electricity cannot be disconnected at the Corporate Debtor's plant while machinery and other assets are being auctioned. Electricity is essential to maximise asset value and ensure safety of the assets. The present application has been filed under section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC) against the West Bengal State...
Impleadment Of GST Authorities Not Permissible In Proceedings U/S 9 Of IBC Merely Due To Allegations Of Bogus Invoices: NCLT Allahabad
The National Company Law Tribunal (NCLT), Allahabad Bench of Shri Praveen Gupta, (Hon'ble Member Judicial) and Shri Ashish Verma (Hon'ble Member Technical) has held that impleadment of the GST Authorities in proceedings under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), is not permissible merely on the ground that the invoices on which the petition is based have been disputed by the Corporate Debtor. The GST Authorities are independent bodies conducting investigations in...
Power Of NCLT To Restore Name Of Struck Off Company U/S 252 Of Companies Act Can't Be Exercised Suo Motu: NCLT New Delhi
The National Company Law Tribunal (NCLT), New Delhi Bench of Shri Manni Sankariah Shanmuga Sundaram (Hon'ble Member Judicial) and Shri Atul Chaturvedi (Hon'ble Member Technical) has held that the power to restore a name of the struck company under section 252 of the Companies Act, 2013 cannot be exercised suo moto. A company's name can be restored only on an application filed by the Companies, its members or creditors or workmen aggrieved by the order of striking off under Section 252(3)...
IBC Moratorium Doesn't Bar Voluntary Surrender Of Corporate Debtor's Leased Property To Lessor: Supreme Court
The Supreme Court on Tuesday (August 5) held that the moratorium under the Insolvency and Bankruptcy Code, 2016 (IBC), does not bar the voluntary handover of property leased by the corporate debtor to the lessors if retaining the asset is deemed unviable and the Committee of Creditors (“CoC”) endorses the decision. A bench comprising Justices Sanjay Kumar and S.C. Sharma set aside the NCLAT's ruling, which had barred the recovery of the leased property during the moratorium, observing that the...