Part Payment By Third Party Does Not Discharge Corporate Debtor's Liability Under IBC: NCLT Cuttack

The National Company Law Tribunal (NCLT) at Cuttack recently observed that the acceptance of a part payment from a third party cannot be treated as a substitution of the corporate debtor for the entire outstanding liability, particularly when the corporate debtor itself continued to make substantial payments toward the same debt.A coram of Acting President Deep Chandra Joshi and Technical Member Banwari Lal Meena made the observation while allowing an insolvency application filed by Patnaik...

Subscriber Deposits, Prepaid Balances Must Be Treated As Operational Debt In Dishnet CIRP: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has held that security deposits of post-paid subscribers and unspent balances of prepaid subscribers in the insolvency proceedings of Dishnet Wireless Ltd must be treated as operational debt under the Insolvency and Bankruptcy Code. "We have no hesitation in holding that the amount of security deposit balances refundable to post paid subscribers and the amount of un-spent balances in prepaid plans are the money collected in excess of the rates...

NCLT Mumbai Dismisses CIRP Plea Against Shapoorji Pallonji, Says Claim Inflated With Unilateral Interest

The National Company Law Tribunal (NCLT) at Mumbai Bench has dismissed an insolvency petition filed by GKS Associates against Shapoorji Pallonji and Company Pvt Ltd, a leading construction company headquartered in Mumbai, holding that an operational creditor cannot artificially inflate the claim amount through unilateral interest entries to meet the statutory threshold under the Insolvency and Bankruptcy Code.A bench comprising Judicial Member Nilesh Sharma and Technical Member Sameer Kakar...

NCLT Chandigarh Rejects Omkara ARC Plea Over 1267-Day Belated Claim In Vikas WSP CIRP

The National Company Law Tribunal (NCLT) at Chandigarh has dismissed a plea filed by Omkara Assets Reconstruction Pvt. Ltd. seeking admission of its claim in the corporate insolvency resolution process (CIRP) of Vikas WSP Ltd., holding that a claim filed 1267 days after the prescribed deadline and after approval of the resolution plan cannot be entertained under the Insolvency and Bankruptcy Code (IBC). Refusing to condone the delay, the bench of Judicial Member Khetrabasi Biswal and Technical...

NCLT Bengaluru Admits CIRP Against VOI Jeans Retail India Over ₹1.11 Crore Operational Debt Default

The National Company Law Tribunal (NCLT) at Bengaluru has admitted a petition filed by Raymond UCO Denim Pvt Ltd seeking initiation of the corporate insolvency resolution process (CIRP) against VOI Jeans Retail India Pvt. Ltd. for an operational debt of Rs 1.1 crore. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada passed the order. Raymond UCO Denim, the operational creditor engaged in the business of manufacturing and supplying denim fabrics,...

Haryana RERA Late Fee Cannot Be Refunded In IBC Proceedings Without Challenge Before REAT: NCLT, Kolkata

The National Company Law Tribunal's Kolkata bench has recently observed that once the competent Real Estate Regulatory Authority levies and realizes late fee in exercise of its statutory powers, such levy assumes the character of a statutory charge payable to the State authority and cannot be ordered to be refunded in insolvency proceedings unless it is challenged before the appropriate appellate forum under the RERA law. “Once the competent RERA Authority has levied and realized late fee in...

Personal Guarantor Can Face Insolvency Even If Corporate Debtor Is In Liquidation: NCLT Indore

The National Company Law Tribunal (NCLT) at Indore has recently held that insolvency proceedings can be initiated against a personal guarantor even when liquidation proceedings against the corporate debtor are pending. The tribunal observed that the issue before it was, “whether an Insolvency Resolution Process can be initiated against the Personal Guarantor of a Corporate Debtor when the Liquidation Proceedings against the Corporate Debtor are already pending?” and held that “the above issue...

IBC Moratorium Operates Automatically, Not Dependent On Creditor's Knowledge Of CIRP: NCLT Indore

The National Company Law Tribunal (NCLT) at Indore has recently observed that the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, operates automatically from the insolvency commencement date and is binding even if the creditor or statutory authority had no knowledge of the admission of the Corporate Insolvency Resolution Process (CIRP). A bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta observed, “The statutory prohibition under...

NCLT Bengaluru Issues Notice To Flipkart On Insolvency Plea Alleging Rs 4.37 Crore Default

The National Company Law Tribunal (NCLT) at Bengaluru on Wednesday issued notice to Walmart-owned e-commerce company Flipkart Internet Pvt. Ltd. on an insolvency petition alleging a default of Rs 4.37 crore under the Insolvency and Bankruptcy Code, 2016. The petition has been filed by Netambit Value First Services Pvt. Ltd., an operational creditor, under Section 9 of the Code. A bench of Judicial Member Mahendra Khandelwal and Technical Member Ravindra Chaturvedi issued the notice after...

NCLT Mumbai Orders Dissolution Of Dr Lal PathLabs Subsidiary Suburban Diagnostics After Voluntary Liquidation

The National Company Law Tribunal (NCLT) at Mumbai has ordered the dissolution of Suburban Diagnostics (India) Pvt Ltd, a subsidiary of Dr Lal PathLabs, after the successful completion of its voluntary liquidation process under the Insolvency and Bankruptcy Code.A bench comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar passed the order while noting that the process was conducted in “accordance with law”. “This Bench is satisfied that the voluntary liquidation...

NCLT Cuttack Dismisses SREI Trust Plea To Recall OSPIL CIRP Admission, Resolution Plan Orders; Imposes ₹1 Lakh Cost

The National Company Law Tribunal's Cuttack bench on Tuesday dismissed a recall application filed by SREI Multiple Asset Investment Management Trust seeking recall of the orders admitting Odisha Slurry Pipeline Infrastructure Ltd (OSPIL) into insolvency and approving its resolution plan. The tribunal held that the attempt amounted to an abuse of the legal process and reflected a lackadaisical attitude.A bench comprising Acting President Deep Chandra Joshi and Technical Member Banwari Lal Meena...

Income Tax Refunds Determined During CIRP Form Part of Corporate Debtor's Assets: NCLT Ahmedabad

The National Company Law Tribunal (NCLT) at Ahmedabad has recently observed that income tax refunds determined during the Corporate Insolvency Resolution Process (CIRP) form part of the assets of the corporate debtor and must remain available for the insolvency resolution process. A coram of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed that, “Once the refund is determined under Section 143(1) of the Income Tax Act, the said amount constitutes a receivable of the...