NCLT
NCLT Can Invoke Inherent Powers To Permit Withdrawal Of Voluntary Liquidation Despite Absence Of Specific Provision In IBC: NCLT Chandigarh
The National Company Law Tribunal, Chandigarh Bench, comprising Harnam Singh Thakur (Member-Judicial) and Shishir Agarwal (Member-Technical), has disposed of an application seeking withdrawal of voluntary liquidation. The adjudicating authority held that even in the absence of specific provision under the IBC, it can allow the withdrawal of voluntary liquidation by invoking its inherent power under Rule 11 of the NCLT Rules, 2016. Background of the Case The management of the...
Prior Approval Of Adjudicating Authority Before Initiating Legal Proceedings Against Any Party U/S 33(5) Of IBC Is Mandatory: NCLT Guwahati
The National Company Law Tribunal (NCLT) Guwahati bench of Rammurti Kushawaha (Judicial Member) and Yogendra Kumar Singh (Technical Member) has held that prior approval of the Adjudicating Authority under section 33(5) is mandatory before initiating any legal proceedings against a party and such party is not required to be heard at the approval stage. The present application has been filed by the Liquidator of the Corporate Debtor under section 33(5) of the Insolvency and Bankruptcy...
Allottee Does Not Cease To Be Financial Creditor On Ground Of Being Speculative Investor: NCLT Chandigarh
The National Company Law Tribunal (NCLT), Chandigarh Bench of Justice Harnam Singh Thakur, (Judicial Member) and Sh. Shishir Agarwal (Technical Member) has held that the claim of an allottee cannot be rejected solely on the ground of being a speculative investor. An allottee does not cease to be a financial creditor merely because they qualify as a speculative investor. The present application has been filed under section 60(5) read with section 21 of the Insolvency and Bankruptcy Code,...
Liquidator Entitled To Fee Under Regulation 4(2) Of Liquidation Regulations, If Not Fixed By CoC: NCLT Guwahati
The National Company Law Tribunal (NCLT), Guwahati Bench of Mr. Rammurti Kushawaha (Judicial Member) and Mr. Yogendra Kumar Singh (Technical Member) has held that in the absence of the Liquidator's fees being fixed by the Committee of Creditors (CoC) at the time of recommending liquidation under Section 33 of the IBC, and subsequently by the Stakeholders Consultation Committee (SCC) under Regulation 4(1A) of the Liquidation Regulations, 2016, the Liquidator is entitled to fees as per...
Liquidator Can't Direct Claimant To Approach NCLT Without Accepting Or Rejecting Claim, Amounts To Serious Procedural Lapse: NCLT Kochi
The National Company Law Tribunal (NCLT), Kochi Bench of Shri Vinay Goel (Judicial Member) and Smt. Madhu Sinha (Technical Member) has held that once claims are filed before the Liquidator, the Liquidator is obligated under Section 40 of the IBC to either accept or reject them. The Liquidator cannot direct the claimant to approach the Adjudicating Authority without first applying his mind, as such conduct amounts to a serious procedural lapse. The present application has been filed ...
Paying “Advance” Against Property Is A Commercial Transaction, Qualifies As Financial Debt U/S 5(8)(f) IBC: NCLT New Delhi
The National Company Law Tribunal, New Delhi Bench-IV, comprising Manni Sankariah Shanmuga Sundaram (Member-Judicial) and Atul Chaturvedi (Member-Technical), has admitted an application u/s 7 of the IBC seeking initiation of the CIRP against the corporate debtor. The tribunal held that the amount advanced against property can be treated as a “financial debt” u/s 5(8) of the IBC, 2016. Background of the Case The applicant, Kaliber Associates Pvt. Ltd., was undergoing liquidation and...
Petition U/S 7 Of IBC Not Maintainable For Non-Return Of Expired, Uninvoked Bank Guarantee Under Settlement Agreement: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai Bench of Shri Sushil Mahadeorao Kochey (Judicial Member) and Shri Charanjeet Singh Gulati (Technical Member) has held that failure to return one of the bank guarantees, as per the settlement terms agreed upon between the parties, cannot form the basis for filing a petition under Section 7 of the IBC when such guarantee was neither renewed nor invoked before its expiry. In the present, the Respondent had paid the full payment as per the...
Pledged Shares Held By Corporate Debtor In Subsidiary Are Its Assets, Can't Be Invoked During CIRP Due To Moratorium: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai Bench of Lakshmi Gurung (Judicial Member) and Hariharan Neelakanta Iyer (Technical Member) has held that pledged shares held by the Corporate Debtor in its subsidiary company are assets of the Corporate Debtor and, therefore, cannot be invoked by the pledgee during the Corporate Insolvency Resolution Process due to the bar under Section 14 of the IBC. The Interlocutory Application has been filed by Asset Reconstruction Company (India)...
Amounts Reflected In Corporate Debtor's Records Can't Be Rejected Even If No Formal Claims Are Filed Before Resolution Professional: NCLT Mumbai
The National Company Law Tribunal (NCLT) Mumbai bench of Justice Shri V.G. Bisht and Shri Prabhat Kumar (Member Technical) has held that amounts reflected in the books of the Corporate Debtor cannot be rejected even if no formal claims are filed by the Creditors. This Application has been filed on 03.04.2024 by Union of India Through its Secretary, Department of Telecommunication (DOT/Applicant) under Section 60(5) of Insolvency and Bankruptcy Code, 2016 in the Corporate Insolvency...
Adjudicating Authority Must Pass Liquidation Order U/S 33(4) Of IBC Upon Breach Of Resolution Plan By Successful Applicant: NCLT Mumbai
The National Company Law Tribunal (NCLT) Mumbai bench of Lakshmi Gurung (Member Judicial) and Hariharan Neelakanta Iyer (Member Technical) has held that once the Successful Resolution Applicant fails to comply with the terms of the Resolution Plan despite several reminders being given, the Adjudicating Authority is mandated to pass an order of liquidation under section 33(4) of the IBC. The present application has been filed under section 33(3) of the Insolvency and Bankruptcy Code,...
Set-Off Of Fixed Deposit Against Overdraft Based On Pre-CIRP Contract Does Not Violate Section 14 Of IBC: NCLT Bengaluru
The National Company Law Tribunal (NCLT), Bengaluru Bench, has held that the set-off of a fixed deposit against an overdraft, based on an untainted contract entered into before the commencement of the CIRP, does not breach Section 14 of the IBC, nor do such deposits form part of the Corporate Debtor's asset pool. This Application has been filed on 05.11.2024 under section 14 and section 60(5) of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of the National Company Law...
Related Party Status Must Be Determined On When Insolvency Proceedings Commence, Not By Historical Facts: NCLT Ahmedabad
The National Company Law Tribunal, Ahmedabad bench of Mr. Shammi Khan (Judicial Member) and Mr. Sanjeev Kumar Sharma (Technical Member), held that related party status as per the Insolvency & Bankruptcy Code must be determined on the date of commencement of Insolvency Proceedings and not based on historical roles. Background Facts: The Corporate Debtor, Sebacic India Limited, was incorporated on 10.09.2007. Between 2011 and 2018, venture Capital Funds, Wayzata III India Ocean...