Interest Accrued Before MSME Registration Cannot Be Included In Operational Debt For Plea U/S 9 Of IBC: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of K. R. Saji Kumar (Judicial Member) and Sanjiv Dutt (Technical Member) has held that the provisions of the Micro, Small and Medium Enterprises Development Act (MSMED Act) cannot override the threshold limit prescribed under Section 4 of the Insolvency and Bankruptcy Code, 2016 (the Code). Therefore, interest accrued on the delayed payment to an MSME prior to its registration under the MSMED Act cannot be included as part of the...

Delhi High Court Reduces Suspension Period Imposed By IBBI Disciplinary Committee On Insolvency Professional, Finds Penalty Disproportionate

The Delhi High Court bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela have reduced the suspension period imposed on the Appellant/Resolution Professional, noting that the Disciplinary Committee of IBBI overlooked material aspects and relied on incorrect data while imposing the penalty. It reduced the suspension to the period already...

IBC Weekly Round-Up [7th April-13th April 2025]

Nominal Index: Blossom Zest Flat Buyers Welfare Association v. Greater Noida Industrial Development Authority and Ors. State Bank of India v. S R Timber Products Private, CP (IB) No. 27/KB/2024 Horizon Commtrade Limited v. Jasmine Commodities Private Limited, Company Petition (IB) No. 271/KB/2024 M/s Embassy Services Private Limited v. Redwoods Infrastructure Private...

Absence Of Creditor's Name In Balance Sheet Does Not Negate Acknowledgment Of Debt: NCLT Kolkata

The National Company Law Tribunal (NCLT), Kolkata, special bench, consisting of Smt. Bidisha Banerjee (Member - Judicial) and Shri Sameer Kakar (Member - Technical), has allowed an application filed by the State Bank of India under Section 7 of the IBC seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The bench observed that the absence...

Disbursal Against Time Value Of Money Constitutes Financial Debt: NCLT Kolkata

The National Company Law Tribunal, Kolkata bench, consisting of Smt. Bidisha Banerjee (Member - Judicial) and Cmde Siddharth Mishra (Member - Technical), has allowed an application filed under Section 7 of the IBC seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The bench held that the financial debt exists where money is...

Insufficiently Stamped Agreements Do Not Present A Bar To Application U/S 7 Of IBC: NCLT Bengaluru

The National Company Law Tribunal (NCLT), Bengaluru Bench, consisting of Shri. Sunil Kumar Aggarwal, Member (Judicial), and Shri. Radhakrishna Sreepada, Member (Technical), admitted a petition filed under Section 7 of the IBC, 2016, read with Rule 4 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate the Corporate Insolvency...

Mortgagee Bank Cannot Seek Exclusion Of Property From Resolution Plan Approved By Unit Holders Having Conveyance Deeds: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that the bank in whose favor mortgage rights were created over the property of the Corporate Debtor cannot seek exclusion of the property from the Resolution Plan, especially when the unit...

Written Acknowledgment Of Debt Extends Limitation Period For Insolvency Application: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, consisting of Justice Yogesh Khanna (Member-Judicial) and Mr. Ajai Das Mehrotra (Member - Technical), disposed of an appeal arising from an order passed by the NCLT New Delhi. The bench held that by virtue of Section 18 of the Limitation Act, the written acknowledgment of debt extends the limitation...

Limitation Period For Filing Appeal Begins From Date Of Pronouncement If Substantive Order Is Passed: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that it is only when no substantive order is passed on the date of pronouncement that the date of uploading the order shall be considered for calculating the limitation period, and not the date...

Conversion Of Partner's Dues Into Loan Does Not Qualify As Financial Debt U/S 5(8) Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that conversion of partners' dues against the partnership firm into a loan cannot become a financial debt merely because the dues were assigned at the time the partnership firm was converted...

Provident Fund Claims Filed After Approval Of Resolution Plan By Committee Of Creditors Cannot Be Admitted By Resolution Professional: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that statutory obligations must be fulfilled during insolvency proceedings; however, this does not mean that statutory dues including provident fund claims can be submitted even after...

NCLT May Waive Eligibility Criteria U/S 244(1)(b) Of Companies Act When Allegations Of Oppression & Mismanagement Are Not Previously Adjudicated: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Yogesh Khanna (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member) has held that when there are internal differences among the members of a company and repeated allegations of oppression and mismanagement have been raised by some members, which have not been previously adjudicated,...