IBC | Appeals Must Be Filed With Certified Copy Of Impugned Order, Mere E-Filing Not Enough: Supreme Court

The Supreme Court on Tuesday (May 12) observed that an e-filing of an appeal before the National Company Law Appellate Tribunal (NCLAT) without a certified copy of the impugned order is not a mere defective filing but a “wholly incompetent appeal” that cannot subsequently be cured. A bench of Justice Sanjay Kumar and Justice K. Vinod Chandran set aside the National Company Law...

Bank Cannot Invoke IBC Against Debtor Over Loan Directly Disbursed To Builder Linked To Construction Progress: Supreme Court

The transaction cannot be viewed in isolation as a simple financial lending arrangement between the Bank and the CD, the Court said.

Corporate Veil Can Be Lifted To Include Assets Of Group Companies In CIRP Of Holding Company : Supreme Court

The Supreme Court on Tuesday (May 5) observed that for protecting the rights of the homebuyers and paving a way for completion of the stalled real estate projects, the corporate veil may be lifted during the Corporate Insolvency Resolution Process initiated against the holding company, by allowing the inclusion of the assets of the subsidiary companies. Setting aside the NCLAT's decision,...

'Perfect Order' : Supreme Court Dismisses Byju Raveendran's Appeal Against NCLT Restoring Original CoC In Think & Learn CIRP

The Supreme Court today(May 4) refused to interfere with an order of the National Company Law Appellate Tribunal, Chennai (NCLAT), which had restored the original Committee of Creditors (CoC), including Aditya Birla and Glas Trust Company LLC as financial creditor, in the insolvency resolution process concerning Think & Learn Pvt Ltd (the company which ran the ed-tech company Byju's).A...

CIRP | Admission Of Claim By Resolution Professional Does Not Amount To Acknowledgment Of Debt: Supreme Court

The Supreme Court today set aside the NCLAT judgment which had held that admission of a creditor's claim by a resolution professional amounts to acknowledgment of debt and gives a fresh limitation period to file a application to initiate Corporate Insolvency Resolution Process under Section 7 of the Insolvency and Bankruptcy Code.A bench of Justices Pamidighantam Sri Narasimha and Alok...

'Situation Is Grim' : Supreme Court Takes Suo Motu Case On NCLT Delays In Approving Resolution Plans

The Supreme Court on Wednesday (April 29) took suo motu cognizance of systemic delays in approval of resolution plans by the National Company Law Tribunals, particularly at its Principal Bench in New Delhi. Also, the Court took note of the shortage of judicial and technical members across all NCLT benches. Taking note of a report submitted by the Registrar of the NCLT Principal Bench,...

IBC | Corporate Guarantee Qualifies As 'Financial Debt' : Supreme Court

The Supreme Court has held that a corporate guarantee furnished by a company to secure another company's borrowing, backed by arrangements such as hypothecation, constitutes a “financial debt” under the Insolvency and Bankruptcy Code, 2016. A Bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe considered a dispute in which an SBI-led consortium sought recognition of...

IBC Mechanism Not Substitute For Decree Execution Or Recovery Proceedings : Supreme Court

IBC is not to be misused as a tool for recovery or as a lever to coerce payment, the court said.

'Very Unfortunate' : Supreme Court Flags NCLT Delay In Approving Resolution Plan, Calls For Nationwide Report

In an important development, the Supreme Court has expressed serious concern over prolonged delays in approval of resolution plans by the National Company Law Tribunal (NCLT), calling out a case where a plan has remained pending for nearly two years. A bench of Justice JB Pardiwala and Justice KV Viswanathan directed both the NCLT Principal Bench, New Delhi and the Insolvency and...

IBC | NCLT Not To Examine If 'Pre-Existing Dispute' Will Succeed While Considering S.9 Application Of Operational Creditor : Supreme Court

The Supreme Court has reiterated that it is impermissible for the adjudicating authority under the Insolvency & Bankruptcy Code to examine the merits of the dispute while considering an application for CIRP under Section 9 by an operational creditor. It added that once the authority is satisfied that there exists a plausible pre-existing dispute, the Section 9 application would...

Multi-State Co-Operative Societies Barred From Investing Outside Their 'Same Line Of Business' : Supreme Court

The Court upheld the rejection of resolution plan submitted by a mult-state cooperative society.

IBC | After Moratorium, Creditor Cannot Appropriate Pre-CIRP Dues From Earlier Security Deposit Made By Corporate Debtor : Supreme Court

The Supreme Court has observed that once a moratorium is imposed, a corporate debtor's pre-CIRP dues cannot be set off against a deposit held by the creditor. The Court held that until such deposit is lawfully adjusted, it continues to remain the property of the corporate debtor, and any appropriation after the moratorium would be impermissible in law. “The deposit made even if treated as...