IBC News
Rejected Claims By Resolution Professional In Insolvency Proceedings, To Be Decided By The Arbitrator: Delhi High Court
The High Court of Delhi held that the claims rejected by Resolution Professional in the insolvency proceedings on the ground that they arose after the Insolvency Commencement Date (ICD), are to be decided by the arbitrator. The Court held that extinguishment of claims that arose after the Insolvency Commencement Date (ICD) is a contentious issue that is to be decided by...
SARFAESI Proceedings Cannot Be Continued Against Corporate Debtor Once CIRP Is Admitted And Moratorium Is Ordered: Supreme Court
The Supreme Court observed that the proceedings under the SARFAESI Act cannot be continued once the CIRP is initiated and the moratorium is ordered.The bench comprising Justices L. Nageswara Rao and B R Gavai noted that, in such a situation, any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property including any action under...
Joint Auction Under IBC And SARFAESI Is Permissible: NCLAT
National Company Law Appellate Tribunal (NCLAT) Principal Bench comprising of Justice Ashok Bhushan and Ms. Shreesha Merla in the case of Ayan Mallick versus Pratime Bayal upheld the Order of NCLT, Kolkata wherein NCLT held that a joint auction under the provision of Insolvency and Bankruptcy Code, 2016 (IBC/Code) and SARFAESI, 2002 is permissible in order to maximise the value of...
Supreme Court Declares Noida As An Operational Creditor Under The Insolvency And Bankruptcy Code, 2016
Supreme Court in the case of New Okhla Industrial Development Authority versus Anand Sonbhadra held that the NOIDA is an operational creditor under the provisions of the Insolvency and Bankruptcy Code, 2016. (IBC/Code) The Bench comprising of Justice KM Joseph and Justice Hrishikesh Roy dismissed the appeal filed by NOIDA against the judgment of the National Company...
All Related Proceedings Stand Discharged, Settled, Abated, & Extinguished On Approval Of Resolution Plan: Gujarat High Court
The Gujarat High Court reiterates the legal position and has allowed the civil application filed by Essar Steel Limited seeking declarations that the claims raised by the original espondent stand abated and extinguished in view of Section 31(1) of the Insolvency and Bankruptcy Code read with the Resolution Plan and the judgement passed by the Supreme Court in Essar Steel India Limited...
IBC Cases Weekly Round Up: May 9 To May 15, 2022
SUPREME COURT 1. Supreme Court Issues Notice On Meru Cab's Plea Alleging Anti-Competitive Practices By Ola Case Title: Meru Travels Solutions Pvt. Ltd. v Competition Commission of India Case No.: Civil Appeal No.2843-2844/2022 The Supreme Court Bench comprising of Justices L. Nageswara Rao and B.R. Gavai has issued notice in the appeal filed by Meru Cab, challenging the...
NCLAT New Members To Take Oath Tomorrow
The swearing in ceremony of the newly appointed members of the National Company Law Appellate Tribunal will be held at 10.30 A M on 17th May , 2022 in the Court of Chairperson , shri. Ashok Bhushan, National Company Law Appellate Tribunal. Following Judges will be taking oath on 17th May , 2022 , as per the Circular dated 16.05.2022 Justice Rakesh Kumar Jain, Retd. judge,...
Pendency Of Proceedings Before DRT, SARFAESI Or Other Fora-Not A Bar For Initiating CIRP: NCLAT Chennai
The National Company Law Appellate Tribunal ("NCLAT"), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Kanthi Narahari (Technical Member), while adjudicating an appeal in Mr. Amar Vora v City Union Bank Ltd, has held that a petition can be moved under Section 7, 9, or 10 of Insolvency and Bankruptcy Code, 2016 ("IBC"), even when proceedings with respect to the...
S. 44 IBC NCLT Doesn't Have The Power To Suo-Moto Classify A Transaction As A 'Preferential Transaction': NCLAT
In a recent decision, the National Company Law Appellate Law Tribunal (NCLAT) has held that NCLT does not have the power to suo-moto classify a transaction as a Preferential Transaction in Section 44 of the Insolvency and Bankruptcy Code, 2016. A Division Bench of Justices M. Venugopal [Member Judicial] and Dr. Ashok Kumar Mishra [Member Technical] allowed the appeal challenging the order of...
Mere Pendency Of An Insolvency Petition Is Not A Bar To The Appointment Of The Arbitrator: Delhi High Court
The High Court of Delhi has held that the mere pendency of an insolvency petition under Section 9 of the IBC is not a bar to the appointment of an arbitrator. The Single Bench of Justice Sanjeev Sachdeva has held that merely because an insolvency petition is pending, it cannot be an embargo on the power of the Court to decide arbitration applications. It is only when...
Failure To Pay Consideration In 90 Days, NCLAT Delhi Cancels The Sale Of Corporate Debtor To The Auction Purchaser In Liquidation Proceedings.
The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, New Delhi, comprising of Justice Ashok Bhushan (Chairperson) and Ms. Shreesha Merla (Technical Member) while adjudicating an appeal in Potens Transmissions & Power Pvt. Ltd v Gian Chand Narang, has upheld the cancellation of sale of Apex Buildsys Ltd. as a going concern to Potens Transmissions & Power Pvt....
Insolvency Cannot Be Initiated On The Basis Of Unpaid LTC And Leave Encashment Dues: NCLAT
National Company Law Appellate Tribunal (NCLAT) bench comprising of Justice Ashok Bhushan and Ms. Shreesha Merla in the case of Kishore K Lonkar versus Hindustan Antibiotics Ltd. held that the welfare claims such as Leave Encashment, superannuation dues are not operational debt for the purpose of initiation of Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor...