Monthly Digest Of IBC Cases: June 2024

Update: 2024-07-03 16:00 GMT
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HIGH COURTS Official Liquidator Must Adhere To Ethical Principles And Fairness To Discharge Their Duties Under IBC: Delhi High Court Case Title: Sundaresh Bhat vs Insolvency And Bankruptcy Board of India Case No.: W.P.(C) 14389/2022 The Delhi High Court bench of Justice Subramonium Prasad held that official liquidators must adhere to ethical principles and...

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HIGH COURTS

Official Liquidator Must Adhere To Ethical Principles And Fairness To Discharge Their Duties Under IBC: Delhi High Court

Case Title: Sundaresh Bhat vs Insolvency And Bankruptcy Board of India

Case No.: W.P.(C) 14389/2022

The Delhi High Court bench of Justice Subramonium Prasad held that official liquidators must adhere to ethical principles and demonstrate an unwavering commitment to fairness to discharge their duties under the Insolvency and Bankruptcy Code.

Once Resolution Plan Is Approved By NCLT, Corporate Entity Starts With Clean Slate : Calcutta High Court

Case Title: Union of India & Anr. vs Ramswarup Lohh Udyog & Ors

Case No: IA No. GA/2/2024

The Calcutta High Court bench of Justice Sugato Majumdar held that after the insolvency proceeding is over and the resolution plan is duly approved by the National Company Law Tribunal, the corporate entity starts with a clean slate on rejuvenation.

No Irreversible Actions In Winding Up, Company Court Can Transfer Proceedings To NCLT: Bombay High Court

Case Title: Omkara Assets Reconstruction in the matter of ICICI Bank Limited vs Classic Diamonds (India) Limited

Case Number: Interim Application (L) No. 25210 of 2022 in Company Petition No. 317 of 2012

The Bombay High Court bench of Justice Abhay Ahuja held that as long as no irreversible actions, such as actual sales of immovable or movable properties, have occurred, the Company Court retains the discretion to transfer proceedings to the NCLT.

Mere Initiation Of Proceedings Under IBC Doesn't Bar Liability Of Signatory Of Cheque Under Negotiable Instruments Act: Madhya Pradesh High Court

Case Title: Anurodh Mittal vs Rehat Trading Company

Case No.: Miscellaneous Criminal Case No. 17782 of 2024

The Madhya Pradesh High Court bench of Justice Gurpal Singh Ahluwalia has held that merely because of the initiation of proceedings under the Insolvency and Bankruptcy Code, 2016 the signatory of the cheque cannot escape from his liability under the Negotiable Instruments Act, 1881.

Madras High Court: Adjudicating Authority Must Exercise Jurisdiction Akin To Revisional Jurisdiction To Assess The Correctness Of COC's Actions

Case Title: National Sewing Thread Co. Ltd. vs Superintending Engineer, TANGEDCO and Anr.

Case No.: W.P. No.29845 of 2022 and WMP.No.29233 of 2022

The Madras High Court bench of Justice N. Seshasayee held that though the Adjudicating Authority may not substitute the commercial wisdom of the Committee of Creditors ('CoC'), however, it must exercise jurisdiction akin to revisional jurisdiction to assess the correctness of the actions taken by the CoC.

Madras High Court: MSME Corporate Debtor Can't Misuse Clean Slate Theory To Withhold Information When Its Management Had A Duty To Disclose

Case Title: National Sewing Thread Co. Ltd. vs Superintending Engineer, TANGEDCO and Anr.

Case No.: W.P. No.29845 of 2022 and WMP.No.29233 of 2022

The Madras High Court bench of Justice N. Seshasayee held that an MSME Corporate Debtor cannot exploit the Clean Slate Theory by withholding information, especially when its management, which remained in control, had a duty to disclose such information.

Resolution Applicant Not Bound To Pay Past Dues When No Claim Is Made, Even If Electricity Dues Are Statutory In Character: Meghalaya High Court

Case Title: M/s Reliance Infratel Limited & Anr. vs. State of Meghalaya & Ors.

Case No.: WP(C) No. 238 of 2023

The Meghalaya High Court has held that a State authority cannot compel a successful resolution applicant under Insolvency and Bankruptcy Code, 2016 (I&B Code) to pay past electricity dues, if the State authority has not made any claim in respect of its dues under approved resolution plan.

Madras High Court: Clean State Theory Only Protects Third-Party Successful Resolution Applicant And Not Suspended Board Of Corporate Debtor From Future Claims

Case Title: National Sewing Thread Co. Ltd. vs Superintending Engineer, TANGEDCO and Anr.

Case No.: W.P. No.29845 of 2022 and WMP.No.29233 of 2022

The Madras High Court bench of Justice N. Seshasayee held that the Clean State Theory only protects the third party – Successful Resolution Applicant ('SRA') and not the suspended board of the Corporate Debtor from uncertainties of future claims.

Madras High Court Urges Parliament To Assess Efficiency Of IBC And Consider Recovery Percentage From Successful Resolution Processes

Case Title: National Sewing Thread Co. Ltd. vs Superintending Engineer, TANGEDCO and Anr.

Case No.: W.P. No.29845 of 2022 and WMP.No.29233 of 2022

The Madras High Court bench of Justice N. Seshasayee urged the Parliament to assess and evaluate the working efficiency of the Insolvency and Bankruptcy Code, 2016 ('IBC') and questioned whether the Parliament has considered the general recovery percentage achieved from a successful corporate debtor resolution process.

Madras High Court: Every Claim Of Operational Creditors Includes Right To Their Property Under Article 300A Of The Constitution

Case Title: National Sewing Thread Co. Ltd. vs Superintending Engineer, TANGEDCO and Anr.

Case No.: W.P. No.29845 of 2022 and WMP.No.29233 of 2022

The Madras High Court comprising of Justice N. Seshasayee held that every claim by operational creditors involves a right to their property under Article 300A of the Constitution of India.

Indian Courts Are Not Bound By Foreign Insolvency Judgments From Non-Reciprocating Countries: Calcutta High Court

Case Title: Uphealth Holdings, INC. vs Dr. Syed Sabahat Azim & Ors.

Case No.: C.O. No. 241 of 2024

The Calcutta High Court single judge bench of Justice Shampa Sarkar held that without a comprehensive cross-border insolvency framework, Indian courts do not recognize or enforce moratorium orders from non-reciprocating countries, such as the U.S., and thus are not obligated to stay ongoing suits due to such foreign proceedings.

Madras High Court: The Successful Working Of IBC Rests On Diligence And Integrity Of IRP And RP

Case Title: National Sewing Thread Co. Ltd. vs Superintending Engineer, TANGEDCO and Anr.

Case No.: W.P. No.29845 of 2022 and WMP.No.29233 of 2022

The Madras High Court stressed and defined the role and responsibilities of the Interim Resolution Professional ('IRP') and Resolution Professional ('RP') to act fairly and transparently to secure the interests of all the stakeholders, particularly operational creditors.

Determination Of Share Title Is Within Civil Court's Domain, Not With NCLT/NCLAT: Telangana High Court

The Telangana High Court bench of Justice Moushumi Bhattacharya and Justice Nagesh Bheemapaka has held that the determination of the title of the shares is within the domain of the Civil Court and not the NCLT/NCLAT. The bench held that Section 430 of the Companies Act comes into play only after the title to the shares is decided.

Case Title: Cherukuri Ramakrishna vs Sandhya Hotels Private Limited

Case No.: C.C.C.A. No.57 OF 2023

Madras High Court: Clean State Theory Not Applicable To Undisclosed Creditors Left Out Due To Negligences Of IRP Or RP

Case Title: National Sewing Thread Co. Ltd. vs Superintending Engineer, TANGEDCO and Anr.

Case No.: W.P. No.29845 of 2022 and WMP.No.29233 of 2022

The Madras High Court bench of Justice N. Seshasayee held that the Clean State Theory shall not apply to undisclosed creditors to protect them from the deliberate non-disclosure or silence of the suspended board of directors or negligence of Interim Resolution Professional ('IRP') or Resolution Professional ('RP') towards disclosing their claims.

NCLAT

NCLAT Refuses Stay On Jaiprakash Associates' Insolvency Proceedings

Case Title: Sunil Kumar Sharma vs ICICI Bank Ltd & Anr

Case No.: Company Appeal (AT)(Insolvency) No.1158-1162 of 2024

The National Company Law Appellate Tribunal (NCLAT) has declined to grant a stay on the National Company Law Tribunal's (NCLT) order admitting Jaiprakash Associates Limited (JAL) into the insolvency resolution process. The Allahabad bench NCLT held that the restructuring proposals and the financial health of JAL were insufficient reasons to delay insolvency proceedings. In 2017, JAL was listed among the 26 major loan defaulters by the Reserve Bank of India, making it a prime candidate for bankruptcy proceedings. Other entities within the Jaypee Group, such as Jaypee Cement Corporation and Jaypee Infratech, are also undergoing insolvency proceedings.

Acceptance Of Partial Payments Doesn't Negate Default Or Legitimacy Of Insolvency Proceedings: NCLAT

Case Title: Mr. Jayesh Dani vs SREI Equipment Finance Ltd. and Anr

Case No.: Company Appeal (AT) (Insolvency) No. 161 of 2024

The National Company Law Appellate Tribunal, Principal Bench of Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member), and Arun Baroka (Technical Member) held that the acceptance of partial payments does not negate the default or the legitimacy of the insolvency proceedings.

Adjudicating Authority Can't Venture Into Appreciation Of Merit Of Pre-Existing Dispute, Not Empowered By Section 9 IBC: NCLAT

Case Title: Mr. Sanjay Kumar vs Gannon Dunkerley & Co Ltd and Anr

Case No.: Company Appeal (AT) (Insolvency) No.1210 of 2023

The National Company Law Appellate Tribunal Principal Bench of Justice Yogesh Khanna and Ajai Das Mehrotra held that the adjudicating authority cannot venture into the appreciation of the merit of pre-existing dispute and embark upon the adjudication of rival contentions of parties.

NCLAT: Assignment Agreement By Corporate Debtor, Malafide Exercise To Prolong CIRP

Case Title: Peanence Commercial Private Limited and Anr vs Mamta Binani

Case Number: Company Appeal (AT) (Insolvency) No. 905 of 2024

The National Company Law Appellate Tribunal, Principal Bench, New Delhi of Justice Ashok Bhushan (Chairperson), Barun Mitra (Technicial Member) and Arun Baroka (Technical Member) has upheld a decision of NCLT, Mumbai and held Assignment Agreement initiated by the Corporate Debtor was a deliberate strategy intended to introduce obstacles and prolong the Corporate Insolvency Resolution Process (CIRP).

NCLAT Dismisses Appeal Raised By Byju's Investors Against Alleged Violation Of NCLT Directives

Case Title: MIH Edtech Investments and Ors. vs Think and Learn Pvt Ltd

Case No.: Company Appeal (AT) (CH) No.24/2024 (IA No.420/2024) (IA No.422/2024) (IA No.421/2024)

The National Company Law Appellate Tribunal Chennai bench comprising Justice Sharad Kumar Sharma and Jatindranath Swain (Technical Member) dismissed the appeals brought by four investors since the Adjudicating Authority has not made any final decision on any significant rights against the investors and instead has merely requested them to file an affidavit to support their claims regarding the alleged violation of its directives.

Once Company Board Finds That Proposed Scheme Is Not Against Public Policy, NCLT Can't Sit In Appeal: NCLAT

Case Title: Oriental Carbon & Chemicals Ltd vs OCCL Ltd

Case No.: Company Appeal (AT) No. 144 of 2024

The National Company Law Appellate Tribunal, Principal Bench of Justice Yogesh Khanna (Judicial Member) and Ajai Das Mehrotra (Technical Member) held that if the Company Court finds no violation of any law and the proposed scheme is not objectionable or against public policy, then the NCLT lacks jurisdiction to question the commercial judgment of those who approved it.

NCLAT Delhi: Claims Of Tax Assessment Orders Passed During Moratorium Under IBC Can Be Considered As Unsecured Operational Debt

Case Title: Commissioner of State Tax Department vs Ramchandra Dallaram Chaudhary (Liquidator)

Case No.: Company Appeal (AT) (Ins) No. 34 of 2024 & I.A. No. 105, 106, 990 of 2024

The National Company Law Appellate Tribunal Delhi, comprising Mr. Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member), and Mr. Indevar Pandey (Technical Member) held that the claims of Tax Assessment Orders passed during the moratorium under Sections 14 & 33(5) of Insolvency and Bankruptcy Code, 2016 can be considered as Unsecured Operational Debt.

NCLAT Delhi: Proceedings U/S 66 Of IBC For Fraudulent Or Wrongful Trading Can Be Initiated Against Third Parties

Case Title: Royal India Corporation Ltd. vs Mr. Nandkishor Vishnupant Deshpande, RP of Royal Refinery Pvt. Ltd. and Ors.

Case No.: Company Appeal (AT) (Ins) No. 137 of 2021

The National Company Law Appellate Tribunal Delhi comprising Justice Rakesh Kumar Jain (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member) held that proceedings under Section 66 of Insolvency and Bankruptcy Code, 2016 (“IBC”) for fraudulent or wrongful trading can be initiated against third parties.

Refundable Security Deposit Carrying Interest In Development Agreement Constitutes Financial Debt U/S 5(8) Of IBC: NCLAT New Delhi

Case Title: Chintan Jhunjhunwala vs Avani Towers Private Limited & Ors

Case No.: Company Appeal (AT) (Insolvency) No. 769 of 2024

The National Company Law Appellate Tribunal, Principal Bench, New Delhi comprising Shri Justice Ashok Bhushan (Judicial Member) and Shri Barun Mitra and Shri Arun Baroka (Technical Members) held that Refundable Security Deposit carrying interest in development agreement constitutes under Section 5(8) of IBC since the development agreement has the effect of a commercial transaction.

No Provision In IBC Mandates Treatment Of Unrelated Party At Par With Related Party: NCLAT New Delhi

Case Title: West Coast Paper Mills Ltd. vs Bijay Murmuria & Ors.

Case No. Company Appeal (AT) (Ins.) No. 1272 of 2019

The National Company Law Appellate Tribunal, Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Judicial Member), Shri Naresh Salecha and Shri Indevar Pandey (Technical Members), held that there is no provision of IBC, which mandates that the related party should be paid in parity with unrelated party. It was held that the Committee of Creditors and Adjudicating Authority were well within their rights not to treat a related party unsecured creditor on par with secured financial creditors.

NCLAT Delhi: Pending Scheme Under Section 230 Of Companies Act, Against CD, Can't Be A Ground To Deny Admission Of CIRP

Case Title: Grand Developers Pvt. Ltd. vs. Nitin Batra & Ors.

Case Number: Company Appeal (AT) (Insolvency) No. 899 of 2024 & I.A. No. 3250 of 2024

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Mr. Justice Ashok Kumar Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that the pendency of a scheme involving the corporate debtor under Section 230 of the Companies Act, 2013 cannot be a ground to deny the admission of a Corporate Insolvency Resolution Process ('CIRP') application under Section 7 of Insolvency and Bankruptcy Code, 2016 ('IBC') against such corporate debtor.

NCLAT Delhi: Section 95(1) Of IBC Permits Creditors To Initiate Insolvency Proceedings Against Personal Guarantors Via A Resolution Professional

Case Title: Shrenik Ashokbhai Morakhia vs. Reliance Asset Reconstruction Company Ltd. and Anr.

Case Number: Company Appeal (AT) (Insolvency) No. 719 of 2024

The National Company Law Appellate Tribunal ('NCLAT') Delhi bench, comprising Mr. Justice Ashok Bhushan (Chairperson) and Mr. Arun Baroka (Technical Member) held that Section 95(1) of Insolvency and Bankruptcy, Code, 2016 ('IBC') allows creditors to initiate insolvency process against a Personal Guarantor through a Resolution Professional ('RP'). It held that such an application cannot be questioned to be defective on the ground that the application was signed by the Resolution Professional rather than an authorized officer.

NCLAT Delhi: Claims Cannot Be Automatically Treated As CIRP Costs Unless Directly Related To CIRP And Approved By CoC

Case Title: Avil Menezes Liquidator of Sunil Hitech and Engineers Ltd. vs. Abdul Qudduskhan and Anr.

Case Number: Company Appeal (AT) (Insolvency) No. 263 of 2024

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Mr. Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) laid down the criteria to determine whether a cost incurred by a Resolution Professional ('RP') during the Corporate Insolvency Resolution Process ('CIRP') qualifies as CIRP cost under Section 5(13)(c) of Insolvency and Bankruptcy Code, 2016 ('IBC') read with IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ('CIRP Regulations') Regulation 31.

NCLT

NCLT Mumbai Approves Demerger Scheme For Raymond And Raymond Lifestyle

Case Title: In the Matter of Section 230-232 of the Companies Act, 2013 and other applicable provisions of the Companies Act, 2013 read with the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016; AND In the matter of Arrangement Between Raymond Limited (“Demerged Company”) And Raymond Lifestyle Limited (“Resulting Company or Transferee Company”) And Ray Global Consumer Trading Limited (“Transferor Company”) And their respective Shareholders

Case Number: CP (CAA)/38/MB-IV/2024 IN CA (CAA)/281/MB/2023

The National Company Law Tribunal (NCLT), Mumbai bench of Kishore Vemulapalli (Judicial Member) and Anu Jagmohan Singh (Technical Member) has granted approval on for a composite scheme of arrangement involving Raymond Limited (RL), Raymond Lifestyle (RLL), and Ray Global Consumer Trading (RG).

Speculative Investor Is Not A Financial Creditor: NCLT Chandigarh

Case Title: Nikhil Khanna & Ors vs. Spaze Towers Pvt Limited

Case No.: CP (IB) No. 70/Chd/Hry/2022 & IA No. 81/2024

The National Company Law Tribunal, Chandigarh Bench, comprising Shri Harnam Singh Thakur (Judicial Member) and Shri L.N Gupta (Technical Member), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) has held that speculative investor cannot claim the status and benefits as a Financial Creditor by virtue of being an allottee under Section 5(8)(f) of the Code.

NCLT Kolkata: MSME Promoters Can Be Relaxed From Net Worth Criteria For Resolution Plan Submission, But Are Required To Deposit Security Deposit And EMD

Case Title: Mr. Manish Kumar, suspended director of Wearit Global Ltd. vs. Rachna Jhunjunwala, RP and Anr.

Case Number: I.A. (IB) No. 53/KB/2024 in Company Petition (IB) No. 100/KB/2019

The National Company Law Tribunal ('NCLT') Kolkata bench of Justice Bidisha Banerjee (Judicial Member) and Shri Arvind Devanathan (Technical Member) held that MSME promoters can be relaxed from the net worth eligibility criteria to submit a Resolution Plan but not be waived off from depositing Security Deposit and EMD.

Adjudicating Authority Rejects Application For Initiating Personal Insolvency Resolution Process Due To Forum Shopping: NCLT Delhi

Case Title: Intec Capital Limited vs. Mr. Parul Upadhyay

Case Number: CP(IB) 315(ND)/2022 & IA No. 913/2024

The National Company Law Tribunal, Delhi Bench, comprising Shri Bachu Venkat Balram Das (Judicial Member) and Shri Atul Chaturvedi (Technical Member), while adjudicating an application under Section 95 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) held that the applicant has approached all possible forums for remedies, constituting forum shopping. It was stated that this conduct indicates the applicant did not approach the Adjudicating Authority with clean hands.

NCLT Mumbai Admits Personal Insolvency Application Against Videocon's Promoter Rajkumar Dhoot

Case Title: State Bank of India through Asish Narayan vs Mr. Rajkumar Nandlal Dhoot

Case No.: C.P. (IB) NO. 1195/MB/2020

The National Company Law Tribunal Mumbai bench, comprising Justice V.G. Bisht (Judicial Member) and Mr. Prabhat Kumar (Technical Member) has admitted personal insolvency application against Mr. Rajkumar Nandlal Dhoot, Promoter and Co-owner, of Videocon Industries Limited.

NCLT Allahabad Initiates Insolvency Proceedings Against Jaiprakash Associates Limited, Accepts ICICI Bank's Petition

Case Title: ICICI Bank Limited vs Jaiprakash Associates Limited

Case No.: CP (IB) No. 330/ALD/2018 with IA No.263 of 2024 and IA No. 406 of 2023

The Allahabad bench of the National Company Law Tribunal has directed the initiation of insolvency proceedings against Jaiprakash Associates Limited (JAL), a prominent firm within the Jaypee Group. This decision follows insolvency petitions filed by ICICI Bank in 2018 and State Bank of India (SBI) in 2022, aiming to recover debts amounting to several thousand crores.

NCLT Delhi Bench Appoints Resolution Professional In Self-Initiated Insolvency Application Under Section 94(1) IBC

Case Title: In the matter of Mr. Siri Kishan Aggarwal

Case No.: CP IB NO. 403/ND/2023

The National Company Law Tribunal Court-V, New Delhi bench of Mahendra Khandelwal (Judicial Member) and Dr. Sanjeev Ranjan (Technical Member) has appointed a Resolution Professional in an application filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016. The Personal Guarantor approached the bench for insolvency proceedings to be initiated against himself.

Preferential Transaction Under Section 43 Of IBC, Fraudulent Intent Need Not To Be Proved : NCLT Mumbai

Case Title: Mr. Ankur Kumar vs Mr Jitendra Kikavat & others and connected matters

Case No.: I.A. 2020 OF 2020 and connected matters

The National Company Law Tribunal Mumbai Bench-I of Justice Shri V.G. Bisht (Judicial Member) and Prabhat Kumar (Technical Member) held that there is no need for any fraudulent intent for a preferential transaction under Section 43 of the Insolvency and Bankruptcy Code, 2016.

Financial Creditor Can Initiate Simultaneous Or Independent Proceedings Against Principle Borrower And Personal Guarantor: NCLT Mumbai

Case Title: Omkara Assets Reconstruction Private Limited vs Gigeo Construction Company Private Limited

Case No.: CP (IB) No.1180/MB/2022

The National Company Law Tribunal, Mumbai Bench-VI bench of K. R. Saji Kumar (Judicial Member) and Sanjiv Dutt (Technical Member) has held that the principal debtor and the surety are jointly and severally liable to the creditor which has the right to recover its dues from either or both of them simultaneously.

Allotment Of Shares At Lesser Price, An Oppressive Act Against Existing Members : NCLT Mumbai

Case Title: Mr. Ajay Tajpuriya & Anr. vs Goel Ganga Infrastructure & Real Estate Pvt. Ltd. & Ors.

Case No.: T.C.P. No. 08 of 2014

The National Company Law Tribunal Mumbai Bench-I of Justice V.G. Bisht (Retd.) (Judicial Member) and Prabhat Kumar (Technical Member) held that allotment of the shares at a concessional price is an oppressive act qua existing members to whom no such allotment has been made. It held that the allotment of the share value at a face value, which is less than its book value is not in accordance with the provision of Section 42 of the Companies Act.

CoC Is Empowered To Liquidate Corporate Debtor Any Time After It's Constitution Or Before Resolution Plan Is Confirmed: NCLT Delhi

Case Title: M/s Tri-Wall Pak Private Limited vs M/S 5 Core Acoustics Private Limited

Case No.: I.A. 2892/2023 In Company Petition No. (IB) – 468/ND/2020

The National Company Law Tribunal Court V, New Delhi bench of Mahendra Khandelwal (Judicial Member) and Dr Sanjeev Ranjan (Technical Member) has held that CoC in the legislative scheme of the Insolvency and Bankruptcy Code, 2016 is empowered to take the decision to liquidate the Corporate Debtor, any time after its constitution and before confirmation of the resolution plan.

NCLT Orders Byju's To Halt Second Rights Issue Amid Allegations Of Mismanagement

Case Title: M/s. MIH Edtech Investments B.V. & Ors. vs M/s. Think & Learn Pvt. Ltd. & Ors.

Case No.: C.A. Nos.71, 72 & 76/2024 in C.P. No.18/BB/2024

The National Company Law Tribunal (NCLT) has directed Byju's to maintain the status quo regarding its shareholding structure. This directive effectively halts the company's controversial second rights issue. The interim order was issued by a special bench consisting of M.S.S. Sundaram (Judicial Member) and Manoj Kumar Dubey (Technical Member) in response to a petition filed by a group of investors alleging oppression and mismanagement.

NCLT Chandigarh: Indemnity Obligation Can't Be Treated As Operational Debt For Lack Of Privity

Case Title: M/s Agarwal Foundries Private Limited vs POSCO E&C India Private Limited

Case No.: CP (IB) No. 109/Chd/Hry/2019

The National Company Law Tribunal Chandigarh bench of Harnam Singh Thakur (Judicial Member) and LN Gupta (Technical Member) held that indemnity obligation pertaining to a guarantee is not applicable in cases involving operational debt.

NCLT New Delhi Initiates Insolvency Proceedings Against Revital Reality Private Limited For Financial Debt And Default

Case Title: Manish Aneja & Ors. vs M/S Revital Reality Private Limited

Case No.: Company Petition IB (IBC) NO. 657/ND/2021

The National Company Law Tribunal Court V, New Delhi bench of Mahendra Khandelwal (Judicial Member) and Dr Sanjeev Ranjan (Technical Member) has initiated insolvency proceedings against Revital Reality Private Limited noting that it failed to deliver possession of the residential units within the stipulated time frame.

NCLT Orders Insolvency Proceedings Against Himalayan Mineral Waters Following Rs 50 Crore Default

Case Title: Jammu And Kashmir Bank vs Himalayan Mineral Waters Private Limited

Case No.: CP (IB) NO.37/ALD/2022

The National Company Law Tribunal (NCLT) recently ordered the initiation of insolvency proceedings against Himalayan Mineral Waters, following a plea by Jammu and Kashmir Bank. The decision came after Himalayan Mineral Waters, acting as the corporate guarantor for Leel Electricals, failed to repay a debt amounting to Rs 50 crore. This debt was owed to Jammu and Kashmir Bank which arose from credit facilities obtained by Leel Electricals.

NCLT Chandigarh Bench Approves Air India-Vistara Merger

Case Title: In the matter of Composite Scheme of Arrangement amongst Talace Pvt. Limited and Tata Sia Airlines Ltd. and Air India Ltd. and their respective shareholders.

Case No.: Company Petition No. (CAA)-41/CHD/HRY/2023 connected with Company Application No. CA (CAA)-28/CHD/HRY/2023

The National Company Law Tribunal (NCLT) Chandigarh bench of Harnam Singh Thakur (Judicial Member) and L. N. Gupta (Technical Member) has given its approval for the merger of Air India and Vistara. The merger, which was initially announced in November 2022, has received the green light from various stakeholders and regulatory bodies.

Breach Of Settlement Agreement Not 'Operational Debt' Under Section 5(21) Of IBC: NCLT Kolkata

Case Title: M/s. Amrik Cranes and Infrastructure vs Simplex Infrastructures Limited

Case No.: Company Petition (IB) No. 202 (KB) of 2022

The National Company Law Tribunal Kolkata bench of Justice Bidisha Banerjee (Judicial Member) and D. Arvind (Technical Member) has held that the breach of settlement agreement between the operational creditor and corporate debtor does not fall within the ambit of “Operational Debt” as per Section 5 (21) of the IBC. Further, the bench held that NCLT was not the forum where parties could seek implementation of the Settlement Agreement.

Section 9 Application Is Not Maintainable In Absence Of Strict Proof Of Debt And Default: NCLT Mumbai

Case Title: Mittal Polymers vs Suvarna Additives Private Limited

Case No.: CP (IB) No. 95/MB/2022

The National Company Law Tribunal, Mumbai bench, comprising Shri K. R. Saji Kumar (Judicial Member) and Shri Sanjiv Dutt (Technical Member), while adjudicating an application under Section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) has held that Section 9 Application is not maintainable in the absence of strict proof of debt and default.

NCLT Hyderabad: Tribunals Have Jurisdiction Under S. 59 Of Companies Act To Refer Seriously Disputed Questions To Civil Court For Detailed Investigation

Case Title: Mr. Gireesh Sanghi vs. Sanghi Cements Limited and Anr.

Case No.: CP NO. 5/59/HDB/2020

The National Company Law Tribunal Hyderabad bench comprising Justice Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Charan Singh (Technical Member) dismissed a petition filed under Section 59 of the Companies Act, 2013 and referred the matter to Civil Court for a detailed investigation.

NCLT Recalls Order Following Karnataka High Court Decision To Maintain Status Quo On IBBI Recommendation

Case Title: Mr. Ravindra Beleyur Resolution Professional Reliable Cashew Company Pvt Ltd

Case Number: IA(IBC)/2308(CHE)/2023

The National Company Law Tribunal Chennai Bench of Jyoti Kumar Tripathi (Judicial Member) and Ravichandran Ramasamy (Technical Member) has recalled its order. This order follows a directive from the Karnataka High Court, which ordered maintaining the status quo on the Insolvency and Bankruptcy Board of India's (IBBI) recommendations for appointment of liquidator other than Insolvency Resolution Professional (IRP)/Resolution Professional (RP).

NCLT Asks IBBI To Incorporate Provisions In CIRP Regulations For Treating Transferred Winding-Up Cases

Case Title: Grant Thornton Bharat LLP vs. Resolution Capital Global Pvt Ltd

Case Number: TP (Co. Act.)-11(PB)/2024

The National Company Law Tribunal Principal Bench, New Delhi, of Justice Ramalingam Sudhakar (President) and Mr. Avinash K. Srivastava (Technical Member) has asked the Insolvency and Bankruptcy Board of India (IBBI) to amend the Corporate Insolvency Resolution Process (CIRP) regulations.

NCLT Kochi: Creditors Can't Initiate Insolvency Proceedings Against Personal Guarantor Without Establishing Independent Default By CD

Case Title: In re: M/s.Piramal Trusteeship Services Pvt Ltd. vs. Mr. Kakkanattil Ibrahimkutty Mohammed Rafi Mather

Case Number: CP(IBC)/36/KOB/2023 & IA(IBC)/96/KOB/2024 IN CP(IBC)/36/KOB/2023

The National Company Law Tribunal Kochi, comprising Justice T Krishna Valli (Judicial Member) and Mr. Shyam Babu Gautam (Technical Member) dismissed the application to initiate insolvency proceedings against the Personal guarantors under Section 95 of Insolvency and Bankruptcy Code, 2016 ('IBC').

ZEE-Sony Failed Merger: NCLT Grants Zee Entertainment Permission To Withdraw Merger Implementation

Case Title: Zee Entertainment Enterprises Limited Vs Bangla Entertainment Private Limited And Anr

Case Number: C.A. 32/MB/C-III/2024, C.A. 54/MB/C-III/2024, C.A. 55/MB/C-III/2024, C.A. 114/MB/C-III/2024 In. C.P.(CAA)/209/MB/C-III/2022

The National Company Law Tribunal Mumbai bench has granted Zee Entertainment Enterprises Limited (ZEEL) permission to withdraw its application seeking the implementation of a merger arrangement with Sony Group Corp-owned Culver Max Entertainment and Bangla Entertainment. This decision follows the termination of the merger agreement by Culver Max and Bangla Entertainment on January 22, 2024 for an alleged breach of the merger cooperation agreement (MCA).

NCLT Mumbai: Assets Of CD Held By Third Parties Must Be Released To RP For Revival And Resolution Of CD

Case Title: Mr. Ashish Chhawchharia, Resolution Professional of Jet Airways (India) Limited vs. TWC Aviation Capital Limited and Ors.

Case No.: IA No. 342/MB/C-I/2021 in C.P (IB) No.2205/MB/C-I/2019

The National Company Law Tribunal Mumbai bench comprising Justice V.G. Bisht (Retd.) (Judicial Member) and Mr. Prabhat Kumar (Technical Member) held that assets of the Corporate Debtor held by third parties must be released to the Resolution Professional ('RP') for the resolution and revival Corporate Debtor. It also ruled that charge holders may file their claims in the appropriate class if they believe to hold a charge over such assets.

Essel Group's Shirpur Gold Refinery, NCLT Initiates Insolvency Proceedings Following ₹92 Crore Default

Case Title: Prudent Arc Limited vs Shirpur Gold Refinery Limited

Case Number: CP (IB) No. 250/MB/2022

Subhash Chandra-promoted Essel Group's Shirpur Gold Refinery Limited (SGRL) has been admitted for corporate insolvency resolution following an application filed by Prudent ARC at the Mumbai bench of the National Company Law Tribunal.

IBBI

IBBI Issues Guidelines For Appointment Of Insolvency Professionals

The Insolvency and Bankruptcy Board of India (IBBI) issued guidelines for the process for appointing insolvency professionals (IPs) to roles such as interim resolution professionals (IRPs), liquidators, and bankruptcy trustees.


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