IBC News
Corporate Debtor Cannot Be Sent Into Liquidation Just Because Liquidation Value Is More Than The Value Of The Resolution Plan: NCLT Kolkata
NCLT Kolkata Bench comprising Shri Rajasekhar V.K. (Judicial Member) and Shri Balraj Joshi (Technical Member), while deciding interim applications in the matter of Ramsarup Industries Ltd., has held that just because the liquidation value is being projected higher than the value of the resolution plan, the Corporate Debtor cannot be sent into liquidation for this reason alone. The object...
Resolution Professional Cannot Decide The Eligibility Under Section 29A Of The Insolvency And Bankruptcy Code, 2016: NCLAT Delhi
A three-judge bench of the National Company Law Appellate Tribunal (NCLAT) comprising of Justice Ashok Bhushan, Dr. Alok Srivastava and Ms. Shreesha Merla held that the Resolution Professional is not required to take a decision regarding the ineligibility of the Resolution Applicant under Section 29A of the Insolvency & Bankruptcy Code, 2016. NCLAT was hearing the appeal...
NCLT Bengaluru Dismisses Insolvency Petition Against Café Coffee Day
The National Company Law Tribunal (NCLT) Bengaluru bench comprising of Ajay Kumar Vatsavayi ( Judicial Member) and Manoj Kumar Dubey ( Technical Member) has dismissed the insolvency petition filed against the parent company of Cafe Coffee Day namely Coffee Day Global Limited ("Coffee Day") by Cooperative Rabobank U.A. ("Rabobank"). Brief Factual Background Rabobank which is...
Pendency Of Execution Proceedings No Bar To Section 9 Petition: NCLAT
The NCLAT Principal bench comprising of Justice Ashok Bhushan and Dr Alok Srivastava held that the pendency of an execution petition does not bar the operational creditor from filing a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 Brief Factual Background The Operational Creditor Royal Resinex Pvt Ltd. ("Resinex") supplied poly propylene to the Corporate...
Supreme Court Issues Notice On NCLT Bar Association's Petition Challenging MCA Notification Fixing NCLT Members' Term As 3 Years
The Supreme Court on Tuesday issued notice in a writ petition seeking to modify the term of 3 years fixed by a notification issued by the Ministry for the members of the National Company Law Tribunal as 5 years.The Notification was issued on 20.09.2019 by the Ministry of Corporate Affairs in exercise of the powers conferred by section 408 of the Companies Act, 2013. The term was fixed as...
NCLT Delhi Declares Logix City Developers Insolvent And Appoints IRP
After the initiation of Corporate Insolvency resolution process of Supertech, Jaypee, Mascot Soho another Noida based real estate developer Logix city developers private limited ("Logix") is declared insolvent by the NCLT New Delhi vide its order dated and appointed the interim resolution professional. Colliers international (India) property services Pvt. Ltd. ("Operational...
National Company Law Tribunals; Reeling Under Poor Infrastructure
The National Company Law Tribunals (NCLT) were constituted in 2016 for adjudication of matters arising out of the Companies Act, 2013, and exclusive jurisdiction under the Companies Act was vested with the NCLTs. After the enactment of the Insolvency and Bankruptcy Code, 2016 in December 2016, NCLT has been vested with exclusive jurisdiction to deal with cases arising out...
NCLT Permits Centre To Take Over Delhi Gymkhana Club
The Bench comprising of Justice R Sudhakar and Narendra Kumar Bhola of Principal Bench, NCLT New Delhi allowed the petition filed under Section 241-242 of the Companies Act, 2013 by Union of India against the Delhi Gymkhana Club and allowed the Govt. to take over the control of the Delhi Gymkhana Club by nominating Fifteen (15) persons to be appointed as the directors of the Delhi...
Creditors Filing False Claims Liable To Be Punished Under S.235A IBC: Centre Tells Delhi High Court
The Central Government has informed the Delhi High Court that creditors filing false or misleading claims during the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 can be prosecuted and punished under Section 235A of the Code.Section 235A provides that if any person contravenes any of the provisions of the Code or the rules or regulations made...
Insolvency Law In Review – January 2022
The enactment of the Insolvency and Bankruptcy Code 2016 (Code) has had significant ramifications on the corporate insolvency landscape. Over time, the Code has witnessed a manifold increase in litigation, and consequently in the number of decisions. This has made it difficult for insolvency practitioners to stay updated with developments in the field. This column fills this...
NCLAT Order Vitiated If It Fails To Look Into A Vital Aspect On Which NCLT Had Recorded A Specific Finding : Supreme Court
The Supreme Court, on Tuesday, held that the failure of NCLAT as the first appellate authority to look into a vital aspect of the matter regarding which NCLT had already recorded a specific finding of fact, would vitiate its order. A Bench comprising Justices Hemant Gupta and V. Ramasubramanian allowed an appeal challenging the order of the NCLAT which reversed the order of the...
IBBI First Appellate Authority Allows RTI Application By A Company Seeking Information Regarding Complaint Against IRP
The Executive Director and First Appellate Authority, Santosh Kumar Shukla, IBBI in Utility Premises Private Limited v. Central Public Information officer allowed the RTI application filed by Utility Premises Private Limited seeking information regarding the complaint filed by it against the IRP, Mr. X. The Central Public Information Officer (CPIO) had rejected the RTI...