Creditor Who Don’t Submit Claim Or Raises Issues In CIRP, Has No Right To Challenge Resolution Plan: NCLAT Delhi

Case Title: Madhya Pradesh Paschim Kshetra Vidyut Vitaran Co. Ltd. v Jagdish Kumar & Anr.

Case No.: Company Appeal (AT) (Ins) No. 1113 of 2020

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Shri Naresh Salecha (Technical Member), has held that a creditor who neither submits its claim before the IRP/Resolution Professional, nor raises any issue during the entire CIRP period, cannot be allowed to challenge resolution plan which has already been implemented.

AA Not Required To Assess The Correct Amount Of Debt At Admission Stage: NCLAT Delhi

Case Title: Manmohan Gupta v MDS Digital Media Pvt. Ltd. & Anr.

Case No.: Company Appeal (AT) (Insolvency) No.202 of 2023

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has held that the Adjudicating Authority is not required to express any opinion on the correctness of debt amount at the admission stage of petition. Rather, it is the Resolution Professional who would subsequently assess the correct debt amount at the time of collation of the claims.

NCLT

NCLT New Delhi Orders Liquidation Of M/S. Hema Automotive Pvt. Ltd Under Section 33 Of IBC

Case Name : M/s. Five Ess Precision Components Pvt. Ltd. vs M/s. Hema Automotive Pvt. Ltd

Case No. Company Petition No. (IB) – 822/(ND) /2021

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Bachu Venkat Balram Das (Judicial Member) and Shri Rahul Bhatnagar (Technical Member), has ordered for Liquidation of M/s. Hema Automotive Pvt. Ltd. (“Corporate Debtor”). After initiation of CIRP, the CoC resolved to Liquidate the Corporate Debtor with 100% voting as the Corporate Debtor was not a Going Concern since the last 2 years before the initiation of CIRP. All the assets of the Corporate Debtor had already been realized by Hero Fincorp Ltd under the SARFAESI Act, 2002 before commencement of CIRP.

NCLT Notifies Changed Timings For New Delhi Benches W.E.F. 21 April 2023

File No.: 10/03/2022-NCLT

The National Company Law Tribunal (“NCLT”), has released a Circular dated 20.04.2023 notifying that the timings of certain courts of NCLT New Delhi Bench have been changed. The changes are applicable from 21.04.2023 onwards.

The timing of following courts at NCLT New Delhi Bench has been modified:

NCLT New Delhi, Court Room No. III (Second Half)

1. Shri Bachu Venkat Balaram Das (Judicial Member)
2. Shri Atul Chaturvedi (Technical Member)

NCLT New Delhi, Court Room No. VI (First Half)

1. Shri Bachu Venkat Balaram Das (Judicial Member)
2. Shri Rahul Prasad Bhatnagar (Technical Member)

NCLT New Delhi Orders Liquidation Of Samtex Desinz Private Limited Under Section 33 Of IBC

Case Title: Orator Marketing Private Limited vs Samtex Desinz Private Limited

Case No.: Company Petition No. (IB) – 908/ND/2020

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Bachu Venkat Balram Das (Judicial Member) and Shri Rahul Bhatnagar (Technical Member), has ordered for Liquidation of Samtex Desinz Private Limited (“Corporate Debtor”). The Corporate Debtor is a non-government company involved in dressing and dyeing of fur and manufacture of articles of fur. After being admitted into CIRP, no resolution plan was received for the Corporate Debtor and hence resolution for liquidation was passed by the CoC.

NCLT Mumbai Approves Resolution Plan Of ARCIL Lead Consortium For Unimark Remedies Limited

Case Title: ICICI Bank Limited vs Unimark Remedies Limited

Case No.: CP (IB) No.197/MB/2018

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member), has approved a 127 crore worth resolution plan of ARCIL, Intas Pharmaceuticals Ltd & Shamrock Pharmachemi (P) Ltd as consortium for Unimark Remedies Limited (“Corporate Debtor”). The average Liquidation value and Fair value of the assets of the company amounted to 124.02 crores and 178.23 crores respectively. The resolution plan offered an 11.2% recovery of 1072.65 crores to the Financial Creditors amounting to 121 crores. It further offered a 1.9% recovery of 50.16 crores amounting to 1 crore to Operational Creditors. The resolution plan further offered a 45.24% recovery of 11.05 crores amounting to 5 crores towards workmen and employee dues.

NCLT Mumbai Approves M/S Steel Line’s Resolution Plan For J-Marks Exim (India) Private Limited

Case Title: Punjab National Bank vs J-Marks Exim (India) Private Limited

Case No.: CP No. (IB) 2176/ (MB)/ C-IV/ 2019

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member), has approved a 8.91 crore Resolution Plan of M/s Steel Line (India) Private Limited for J-Marks Exim (India) Private Limited (“Corporate Debtor”). The Resolution Plan offered a 14.9% recovery of 53.48 crores to the Secured Financial Creditor amounting to 7.98 crores. It further offered Rs. 18.71 Lakhs in total for claims of operational creditors, other creditors and payment towards statutory duties including Income Tax and Service Tax.

Poaching Of Employees By The Operational Creditor Does Not Fall Within The Ambit Of Pre-Existing Dispute: NCLT Kolkata

Case Title: India Medtronic Private Limited vs Healthcare Associates Private Limited

Case No. C.P. (IB) No. 41/KB/2021

The National Company Law Tribunal, Kolkata Bench, comprising Shri Rohit Kapoor (Judicial Member) and Shri Balraj Joshi (Technical Member), has refused to term poaching of employees by the Operational Creditor as a pre-existing dispute. Even though the Corporate Debtor had blamed the Operational Creditor for causing business losses due to poaching of its employees, this action cannot be called a pre-existing dispute as it did not fit the definition of genuine dispute given under the Supreme Court judgment of Mobilox Innovations Private Limited v. Kirusa Software Private Limited, the Tribunal held.

Different Work Orders Can Be Clubbed To Satisfy The Minimum Threshold Under IBC: NCLT Mumbai Reiterates

Case Title: S. V. R Enterprises vs Netizen Engineering Private Limited

Case No: CP (IB) No.88/MB-IV/2018

The National Company Law Tribunal, Mumbai Bench, comprising Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member), has reiterated that debts arising from different work orders can be clubbed to satisfy the minimum threshold limit. Reliance was placed on the NCLAT judgment of M/s. A2 Interiors Products Pvt. Ltd. Vs. M/s. Ahluwalia Contracts (India) Ltd. (2021) SCC online NCLT 438 wherein it was held that separate claims can be part of single application.

Financial Creditors As Minority Debenture Holder Entitled To Initiate CIRP Irrespective Of Presence Of Debenture Trustee: NCLT Mumbai

Case Title: Clearwater Capital Partners Singapore Fund IV Private Limited and Anr vs Rajesh Estates and Nirman Private Limited

Case No.: C.P.(IB) 560 OF 2022

The National Company Law Tribunal, Mumbai Bench, comprising Shri H.V. Subba Rao (Judicial Member) and Smt. Madhu Sinha (Technical Member), has held the Debenture Trustee is not the only person empowered to initiate Corporate Insolvency Resolution Process(“CIRP”), even though the Financial Creditors were Minority Debenture Holders. It was further observed that Section 71(6) of the Companies Act, 2013 construes Debenture Trustee as one who shall protect the interests of Debenture Holders. It was observed that even though Financial Creditors are Minority Debenture Holders, the Debenture Trustee is not the only person empowered to initiate an action.