IBC News
Claim Cannot Be Admitted After The Approval Of Resolution Plan By The CoC Even If Approval By The Adjudicating Authority U/S 31 Of IBC Is Pending: NCLT Mumbai
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising Mr. Kuldip Kumar Kareer (Judicial Member) and Mr. Anil Raj Chellan (Technical Member) has held that claims cannot be admitted after the approval of the resolution plan by the Committee of Creditors (“CoC”) even if approval by the Adjudicating Authority under section 31 of the Insolvency and Bankruptcy Code, 2016 (“Code”) is pending. Background Facts Corporate Insolvency Resolution Process (“CIRP”) was initiated...
NCLT Notifies Holidays And Upcoming Vacation In Benches Of NCLT
The Registrar of the National Company Law Tribunal (“NCLT”) has issued a circular dated 02.05.2024, intimating the holidays and upcoming vacation benches at NCLT. 1. The following benches of the National Company Law Tribunal are having vacation in the month of May 2024 and the Competent Authority has approved the Vacation Benches as mentioned below: S.No. Period Bench Vacation Bench 1. 03.05.2024 to 17.05.2024 ...
NCLT Issues Circular For Free Wi-Fi Facility For Advocates, Litigants, And Other Stakeholders Of NCLT Benches Dated 29.04.2024
The Registrar of the National Company Law Tribunal (“NCLT”) has issued a circular dated 29.04.2024, intimating a free Wi-Fi facility for Advocates, litigants, and other stakeholders of NCLT Benches. The said circular has been issued in compliance with the Hon'ble Supreme Court's Order in Writ Petition(s)(Criminal) No(s). 351/2023, titled “Sarvesh Mathur vs. The Registrar General High Court of Punjab and Haryana”. 1. The free Wi-Fi facility for Advocates, litigants, and other...
Lender Bank Registered With CERSAI Has 1st Priority Over DCST Against Proceeds Of Enforcement Under SARFAESI Act: Bombay High Court
The Bombay High Court has held that lender bank registration with the Central Registry of Securitisation and Security Interest of India (CERSAI) has first priority over Deputy Commissioner of Sales Tax (GST) (DCST) against proceeds of enforcement under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).The bench of Justice...
NCLAT Delhi: Ex-Director Is Ineligible To Submit Resolution Plan For MSME CD Being Wilful Defaulter
The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member), and Mr. Indevar Pandey (Technical Member) held that an ex-director is ineligible to submit a resolution plan for the resolution of Micro, Small, and Medium Enterprises ('MSME') Corporate Debtor based on his declaration as...
Monthly Digest Of IBC Cases: April 2024
Supreme Court When Does Debt Become Financial Debt & Operational Debt Under IBC? Supreme Court Explains Case Title: Global Credit Capital Limited & Anr. Versus Sach Marketing Pvt. Ltd. & Anr. Citation: 2024 LiveLaw (SC) 331 The Supreme Court bench comprising Justice Abhay S. Oka and Justice Pankaj Mithal, has held that debt would be treated as an operational...
NCLAT Delhi: Belated Claims By Creditors Not To Be Considered Given The Time-Bound Nature Of IBC proceedings
The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Arun Baroka (Technical Member) held that the belated claims by creditors cannot be considered given the time-bound nature of Insolvency and Bankruptcy Code, 2016 ('IBC') proceedings. Background Facts: In 2019, Dream Procon Pvt. Ltd. (Corporate Debtor) entered into...
Amount Given As Share Application Money Does Not Qualify As A Financial Debt Under IBC: NCLT Kolkata
The National Company Law Tribunal (“NCLT”), Kolkata Bench, comprising Shri Rohit Kapoor (Judicial Member) and Shri Balraj Joshi (Technical Member) has held that amount given as Share Application Money does not qualify as a financial debt under section 5(8) of the Insolvency and Bankruptcy Code, 2016 (“Code”). Background Facts In September 2019, Mittson...
NCLT Kolkata: NCLT Has No Jurisdiction To Set Aside Arbitral Award Passed During Moratorium Period U/S 14 Of IBC
The National Company Law Tribunal ('NCLT') Kolkata, comprising Smt. Bidisha Banerjee (Judicial Member) and Shri D. Arvind (Technical Member) held that the Adjudicating Authority lacks jurisdiction to set aside an arbitral award even when the award was issued post-initiation of Corporate Insolvency Resolution Process ('CIRP') and during moratorium period under Section 14 of the Insolvency...
Loan Sanction Letter, Loan Agreement, Statement Of Account, And Copy Of Notice U/S 13(2) OF SARFAESI Constitute “Such Other Record” U/S 7(3)(A) Of IBC: NCLT Mumbai
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising Smt. Lakshmi Gurung (Judicial Member) and Shri Charanjeet Singh Gulati (Technical Member) has held that loan sanction letter, statement of account, copy of notice under section 13(2) Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (“SARFAESI”), and...
General Power Of Attorney Holder Can File An Application U/S 7 Of IBC Without A Specific Board Resolution Authorization: NCLT Mumbai
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising Shri K.R. Saji Kumar (Judicial Member) and Shri Sanjiv Dutt (Technical Member) has held that a General Power of Attorney (“GPA”) holder can file an application under section 7 of the Insolvency and Bankruptcy Code, 2016 (“Code”) without having a specific Board Resolution. Background Facts Punjab...
When Does Debt Become Financial Debt & Operational Debt Under IBC? Supreme Court Explains
In a significant development, the Supreme Court on Thursday (April 25) held that debt would be treated as an operational debt only if the claim subject matter of the debt has some connection or co-relation with the 'service' rendered by the creditor to the debtor."Where one party owes a debt to another and when the creditor is claiming under a written agreement/ arrangement providing...