Workers' Claims For Layoff Period Dues Under Industrial Disputes Act Cannot Be Decided 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 non-computation of salary after lay off by the Resolution Professional cannot be faulted with since the Resolution Professional has no adjudicatory jurisdiction and the Adjudicating Authority has rightly observed that whether the Workers are entitled to claim their dues for the layoff period under provisions of Industrial Dispute Act...

Adjudicating Authority While Dismissing Appeal For Non-Prosecution Cannot Add Direction To Dismiss It On Merits As Well: 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 appeal is dismissed on the ground of non-prosecution, it cannot be said to be dismissed on merits as well. In this case, the NCLT while dismissing the appeal for non-prosecution added a direction that the appeal is dismissed on merits as well. Brief Facts The present has been filed against an order passed by the NCLT by...

Period From 15.03.2020 To 28.02.2022 Shall Stand Excluded As Per SC Judgment In 'Re:Cognizance For Extension Of Limitation': NCLAT

The NCLAT New Delhi bench of Justice Yogesh Khanna (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member) has held that period from 15.03.2020 to 28.02.2022 shall stand excluded in light of the Supreme Court judgment in In Re: Cognizance for Extension of Limitation for the purpose of calculating the limitation period while filing an application under section 9 of the code. Brief Facts This appeal has been filed against an order passed by an Adjudicating Authority by which...

Eviction Of Tenant From Corporate Debtor's Property Can Be Sought Under Tenancy Law, Not U/S 60(5) Of IBC: NCLAT

The NCLAT New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member) has held that eviction of tenant from the property of corporate debtor can only be sought under the Act in which tenancy was created and such power of eviction cannot be exercised by the Adjudicating Authority under Section 60(5) of the Code. Brief Facts The insolvency proceedings were initiated against the CD on March 17, 2023 and the RP was appointed. Thereafter, the RP...

Initiation Of Arbitration Proceedings Before Issuance Of Demand Notice Is Sufficient To Reject Application U/S 9 Of IBC: NCLAT

The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that initiation of arbitration proceedings before the issuance of demand notice under section 8 of the code evidences a pre-existing dispute which can be a ground to reject application under section 9 of the code. Brief Facts The appellant filed this appeal against an order passed by the NCLT by which an application under section 9 of the code was dismissed. ...

No Title To Immovable Property Can Be Transferred On Basis Of Unregistered Instrument: NCLAT

The NCLAT New Delhi Bench of Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that the fact that the property is shown in the records in the name of the Corporate Debtor, Liquidator has every right to take possession of the shop on which the Appellant could not prove any title. The Appellant on the basis of the unregistered agreement to sell, cannot claim to have acquired any title. Brief Facts The Appellant has filed this appeal against an...

Successful Auction Purchaser Cannot Be Compelled To Pay Pre-CIRP Electricity Dues Before Restoring Electricity Connection: NCLAT

The NCLAT New Delhi Bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that Successful Auction Purchaser cannot be insisted to pay Pre-CIRP electricity dues which dues were payable by the Corporate Debtor, before restoring electricity connections. Dues if any would have to be paid as per waterfall mechanism under section 53 of the code. Brief Facts On an Application filed under Section 7 by the UCO Bank against the Corporate Debtor M/s....

Unilateral Revocation Of Guarantee Does Not Discharge Guarantor From His Obligations When Such Revocation Was Not Accepted By Creditor: NCLAT

The NCLAT New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member ) and Mr. Indevar Pandey (Technical Member) has held that unilateral revocation of guarantee by the Respondent No.1 does not absolve him from his obligations under the guarantee agreement when the Financial Creditor has not agreed to such revocation. The terms of contract agreement also clearly show that the contract was irrevocable. Brief Facts In 1999, the corporate debtor...

Resolution Applicant Whose Plan Was Rejected By CoC Can Participate In Freshly Issued Invitation For Expression Of Interest: NCLAT

The NCLAT New Delhi Bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that once resolution plan including revised plan submitted by the resolution applicant is disapproved by the CoC, a fresh plan can be submitted by the same resolution applicant in a freshly issued invitation to expression of interest. Brief Facts This appeal has been filed challenging an order passed by the NCLT by which the application of the appellant was dismissed....

Last Payment Made By Corporate Debtor Within Period Of Limitation Amounts To Acknowledgment U/S 19 Of Limitation Act: NCLAT

The NCLAT New Delhi Bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that when there is clear acknowledgment by the corporate debtor of last payment made which payment was within the period of three years, the operational creditor was clearly entitled for the benefit of extension of limitation under Section 19 of the Limitation Act and both the conditions which are required to be fulfilled under Section 19 were fulfilled. Brief Facts ...

NCLAT Directs Revival Of Company Petition After Appellant Was Deprived Of Remedies Under Article 21 Of Constitution

The NCLAT Chennai bench of Justice Sharad Kumar Sharma (Judicial Member) and Jatindranath Swain (Technical Member), considering the peculiar situation where the civil suit was dismissed as withdrawn three days after the company petition under section 59 of the Companies Act was dismissed, directed the revival of company petition. The Tribunal observed that Article 21 of the Constitution of India safeguards the right to judicial remedies, which includes the right to pursue legal remedies ...

Rejection Of Belated And Contingent Claims By Resolution Professional Cannot Be Faulted: NCLAT

The NCLAT New Delhi Bench of Justice Ashok Bhushan (Judicial Member), and Mr. Barun Mitra (Technical Member) has held that when the claims have been filed belatedly after 548 days and that too the claims arise from damages and breach of contract which according to the Appellant is admittedly contingent, the RP's action to reject the claim by way of a reasoned reply to the Appellant cannot be put to fault. Brief Facts: The appellant entered into an agreement with the corporate debtor...