No Bar On Operational Creditor To Recover Claims If Claims Were Not Entertained In The Resolution Process: NCLAT

The NCLAT Bench comprising of Justice Ashok Bhushan, Chairperson and Dr. Ashok Kumar Mishra, Technical Member in Go Airlines (India) Ltd. v. Sovika Aviation Services Pvt. Ltd. &Ors. held that since the Resolution Plan was withdrawn u/s 12A of the Insolvency and Bankruptcy Code, 2016 and the claims of the Operational Creditor were not entertained, the operational Creditor is at liberty...

Commercial Wisdom of the CoC To Prevail, Unless The Same Is In Contravention Of Any Law, Reiterates NCLAT

The NCLAT, Principal Bench consisting of Justice Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member) in Noida Special Economic Zone Authority v. Mr. Manish Agarwal refused to set aside the order passed by the Adjudicating Authority, which approved the Resolution Plan, reiterating that the commercial wisdom of the CoC with respect to viability and financial...

Pre-requisite Of Notice To The Personal Guarantor Is Satisfied On A Service Of Notice As Per Form B: NCLT, Mumbai

The NCLT, Mumbai Bench consisting of Smt. Suchitra Kanuparthi (Judicial Member) and Smt. Anuradha Sanjay Bhatia (Technical Member) in the case of Union Bank of India v. Mr. Dheeraj Wadhawan admitted the application filed by the Union Bank of India/Financial Creditor u/s 95 of the Insolvency and Bankruptcy Code, 2016 on the ground that the IBC does not prescribe personal service and...

Mediation Order And Dishonoured Cheque Does Not Imply Extension Of Limitation U/S 9, IBC: NCLAT, Delhi

The NCLAT, Delhi in a Bench comprising of Justice Ashok Bhushan (Chairperson), Dr. Ashok Kumar Mishra and Dr. Alok Srivastava (Technical Members) in the case of Ravi Iron Ltd. v. Jia Lal Kishori Lal & Ors. held that an order of mediation along with dishonoured cheques does not imply an extension of limitation for the purposes of Section 9 of the Insolvency and Bankruptcy...

'Co-Operative Society' Is Not A 'Corporate Person' Under IBC To Which The Code Applies: NCLT Mumbai

NCLT, Mumbai in a Bench comprising of Mr. Rajesh Sharma (Technical Member) and Mr. H.V. Subba Rao (Judicial Member) in the case of The Solapur Dist. Central Co – Operative Bank Limited v. Sangola Taluka Sahakari Sakhar Karkhana Limited dismissed an application filed u/s 7 of the Insolvency and Bankruptcy Code, 2016 against Sangola Taluka Sahakari Sakhar Karkhana Limited/Corporate Debtor...

Insufficiency Of Stamp Duty Irrelevant In S. 7 Proceedings Under IBC: NCLT Mumbai Bench

The NCLT Mumbai Bench comprising of H.V. Subba Rao (Judicial Member) in Vistra ITCL India Ltd. v. Satra Properties (India) Ltd. held that insufficiency of stamp duty is not to be looked at in a Section 7 application, more so when 'debt' and 'default' are proved otherwise than by looking into these documents. The application was referred to H.V Subba Rao by the then Acting President...

NCLT Chennai Admits Application Initiating CIRP Against Coastal Energen Pvt. Ltd.

The NCLT, Chennai Bench comprising of R. Sucharitha (Judicial Member) and Sameer Kakar (Technical Member) in State Bank of India v. Coastal Energen Private Limited, admitted the application of State Bank of India/ Financial Creditor for initiation of CIRP against Coastal Energen Pvt. Ltd./ Corporate Debtor filed u/s 7 of the Insolvency and Bankruptcy Code, 2016. The Applicant in...

CCI Imposes Hefty Penalty On 6 Tyre Manufacturers For Cartelization

The Competition Commission of India in In Re: Ministry of Corporate Affairs and Appolo Tyres & Ors., in a Bench consisting of Mr. Augustine Peter, Mr. U.C. Nahta and Justice G.P Mittal imposed hefty penalties on Apollo Tyres, MRF, CEAT, JK Tyre, Birla Tyres and Automotive Tyre Manufacturers Association for cartelization. It also passed a "cease and desist" order against...

Insolvency Application Must Meet Threshold As Per Amended S.4 IBC, Though Notice U/S 8 Was Issued Pre-Amendment : Kerala High Court

The High Court of Kerala in a Bench comprising of Justice T.R. Ravi in the case of M/s Tharakan Web Innovations Pvt. Ltd. v.National Company Law Tribunal & Ors. held that the litmus test is whether the default exists as defined in amended Section 4 of the Insolvency and Bankruptcy Code w.e.f. 24.3.2020, increasing the default amount from Rs. 1 Lakh to Rs. 1 Crore, on the date...

Imposition Of Moratorium Under IBC Does Not Bar Complaints Against Natural Persons: Madras High Court

The Madras High Court in a Bench comprising of Justice N. Sathish Kumar in M/s. Nag Leather Pvt. Ltd. v. M/s. Muzain Hides held that as long as a moratorium under Section 14 of the Insolvency and Bankruptcy Code is imposed, proceedings under Section 138/141 of the Negotiable Instruments Act cannot be initiated against the Corporate Debtor. These proceedings, however, can be...

Principle Of Stare Decisis Applies To NCLT As Well As NCLAT. NCLAT

The NCLAT in a Bench comprising of Justice Ashok Bhushan, Justice Jarat Kumar Jain and Dr. Alok Srivastava in the case of Rajeev R. Jain, Director (Suspended) v. AASAN Corporate Solutions Pvt. Ltd. held that the principle of stare decisis is applicable both to NCLT as well as NCLAT. Factual Background- The Appellant challenged the order of the NCLT, Mumbai Bench which admitted...

NCLT Mumbai Dismisses Application U/S 9, IBC On The Ground Of Existence Of A Principal-Agent Relationship Between The Parties

The NCLT Mumbai Bench comprising of Justice H.V. Subba Rao (Judicial Member) and Mr. Chandra Bhan Singh (Technical Member) in THG Publishing Pvt. Ltd. v. Deadline Advertising Pvt. Ltd. dismissed the application filed u/s 9 of the Code to initiate CIRP, which was filed by the Operational Creditor, THG Publishing Pvt. Ltd. on the ground that the debt due to it did not qualify as an...