NCLAT
Authorised Representative Can Be Replaced By Following Procedure Provided Under Regulation 16(3A) Of CIRP Regulations: NCLAT
The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mita (Technical Member) and Mr. Arun Baroka (Technical Member) has held that the Authorised Representative can be replaced by following the procedure engrafted under Regulation 16(3A) of the CIRP Regulations therefore the application of an individual homebuyer seeking replacement of the Authorised Representative before the Adjudicating Authority cannot be entertained.Brief FactsThe present appeal has been filed by a...
Admission Order Of Application U/S 7 Of IBC Can Be Recalled If Fraud Or Malicious Intent Is Proved U/S 65 Of Code: NCLAT
The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mita (Technical Member) and Mr. Arun Baroka (Technical Member) has held that when CIRP proceedings are initiated fraudulently or maliciously, the Adjudicating Authority has jurisdiction under the IBC to consider the allegations of fraudulent and malicious initiation of CIRP proceedings in terms of Section 65 and recall the CIRP admission order.Brief FactsThe appellants filed an application under section 7 of the code...
Initiation Of Recovery Proceedings Before DRT Does Not Preclude Financial Creditor From Filing Application U/S 7 Of IBC: NCLAT
The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that initiation of recovery proceedings before the DRT does not prohibit financial creditors from filing an application under section 7 of the code. Brief Facts: The present appeal has been filed by suspended director of the corporate debtor against an order passed by the Adjudicating Authority by which an application under section 7...
When Entire Liability Is Not Discharged After Selling Pledged Shares, Application U/S 7 IBC Can Be Filed To Claim Remaining Amount: NCLAT
The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that when the entire liability of the corporate debtor after selling the pledged shares is not discharged, an application under section 7 of the IBC can be filed for claiming the remaining amount. Brief Facts: The present appeal has been filed by the suspended director of the corporate debtor against an order passed by the NCLT by...
166 Days Delay In Re-Filing Appeal Cannot Be Condoned In Absence Of Genuine And Plausible Explanation: NCLAT
The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that a delay of 166 in re-filing an appeal cannot be condoned in the absence of a plausible and genuine explanation offered for the same. Brief Facts The present application I.A. No.6903 of 2024 is an application praying for condonation of 166 days delay in refiling an appeal. When the Appeal came up for hearing on 04.11.2024, the Counsel for the Appellant sought ...
Interest On Operational Debt Cannot Be Claimed Unless There Is An Express Agreement: NCLAT
The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that as per section 5(21) of the Insolvency and Bankruptcy Code, interest on invoices cannot be claimed by the operational creditor in the absence of any stipulations in the agreement to this effect. Brief Facts This appeal has been filed under section 61 of the code against an order passed by the Adjudicating Authority by which...
Appeal U/S 61 Of IBC Is Not Maintainable After Dissolution Of Corporate Debtor U/S 54: NCLAT
The NCLAT New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member) has held that an appeal under section 61 of the IBC cannot be entertained after the dissolution of the corporate debtor under section 54 of the code. Brief Facts This appeal is directed against the order dated 14.09.2022 passed by National Company Law Tribunal ('Tribunal') by which an Interlocutory Application bearing IA No. 2144/2022 filed in Company Petition No. (IB) –...
Commercial Wisdom Of CoC In Opting For Liquidation And Rejecting Resolution Plan Of Ineligible Applicant Is “Non-Justiciable”: NCLAT
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi has held that the commercial wisdom of the Committee of Creditors (CoC) in rejecting a resolution plan and opting for liquidation is “non-justiciable”. The Appellant-Director was disqualified under Section 164(2) of the Companies Act, thereby rendering the him ineligible to be a Resolution Applicant under Sections 29A(e) and 29A(j) of Insolvency & Bankruptcy Code, 2016 (IBC). The Tribunal held that the...
Appeal U/S 421 Of Companies Act Not Maintainable Against Interlocutory Order Permitting AGM, No Substantive Rights Affected: NCLAT
The National Company Law Appellate Tribunal has recently held that an appeal under Section 421 of the Companies Act, 2013, against an interlocutory order permitting holding of an Annual General Meeting (AGM) without affecting the substantive rights of the appellants is not maintainable. The Tribunal emphasized that procedural orders which do not determine substantive rights cannot be appealed under Section 421.The NCLAT bench presided over by Justice Sharad Kumar Sharma [Member (Judicial)] and...
NCLAT Upholds Status Of Canara Bank As Financial Creditor For Providing Loans To Homebuyers Of CD, Distinguishes Value Infracon Judgment
The NCLAT New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member) upholds the claims of the Canara Bank for the loans advanced to the corporate debtor on behalf of the Homebuyers on the ground that a specific clause was mentioned in the tripartite agreement executed between the parties that in case of default made by the borrower, the builder was obligated the refund the entire amount to the bank. The tribunal distinguished the Value...
Claims Filed Subsequent To Cut-Off Date Shall Be Dealt With As Per Resolution Plan Approved By Adjudicating Authority: NCLAT
The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that claims filed subsequent to cut off date shall be dealt with as per Resolution Plan approved by the Adjudicating Authority. Brief Facts The Appellant booked an Apartment and a Plot with M/s. Puma Realtors Pvt. Ltd. in the year 2010 in its Project IREO Rise (Gardenia), Mohali, Punjab and the IREO Hamlet Project respectively. The...
Eurolife Healthcare Pvt Ltd As Corporate Debtor Retains Absolute Rights Over Disputed Cephalosporin Facility As Part Of Liquidation Estate: NCLAT
The National Company Law Appellate Tribunal bench of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) has held that the Corporate Debtor, Eurolife Healthcare Pvt. Ltd., retained absolute rights over the disputed 13,000 sq. ft. Cephalosporin Facility as part of the liquidation estate. Brief Facts Maharashtra Industrial Development Corporation (MIDC) executed a 95-year lease deed on 08.09.1998 for Plot No. B-15/2 in Waluj Industrial Area, Aurangabad, in favour of...