IBC News
NCLAT: Joint Development Agreement Between Lessee And Corporate Debtor Valid; NOIDA's Appeal Dismissed, Right To Submit Claim Closed To Protect CIRP Timelines
The National Company Law Appellate Tribunal, New Delhi has dismissed the Appeal preferred by New Okhla Industrial Development Authority (NOIDA) against the NCLT, New Delhi's order directing NOIDA to "lodge its due claim with Resolution Professional as per law and participate in the CIRP process through duly Authorised person and attend all future CoC meetings participate in...
Majority Homebuyers Accept Builder's Settlement During CIRP; Supreme Court Allows Withdrawal Of Insolvency Application
The Supreme Court has allowed withdrawal of Corporate Insolvency Resolution Process against a builder in an application filed by three homebuyers in view of a settlement plan agreed upon by the majority of them. In the larger interest of the homebuyers, the Apex Court exercised power under Article 142 to permit withdrawal of the CIRP proceedings and set aside all matters pending between...
Decree Holders As Creditors Under The IBC - Need For Clarity
The Insolvency and Bankruptcy Code, 2016 ("Code"), right from its enactment has been the subject of legal debate. While various issues that have cropped up from time to time, have been ironed out, by amendments and by judgements, there still exist a plentitude of legal questions, waiting to be raised in the right case. One such question is the status of a "decree-holder" as a creditor....
Suspended Board of Directors Has No Power To Replace RP Under IBC: NCLAT, Chennai
The NCLAT, Chennai in a Bench consisting of Justice M. Venugopal, Judicial Member and Kanthi Narahari, Technical Member in the case of Anil Kumar Ojha v. Chandramouli Ramasubramaniam Resolution Professional of SLO Industrial Ltd. & Anr. held that the suspended Board of Directors has no power under the IBC to appoint a Resolution Professional. The power to do so has only been vested...
Retired Partner Cannot Initiate Proceedings Under IBC Against Other Partners Or Firm For Retirement Dues: NCLT, Mumbai
The NCLT, Mumbai Bench consisting of Kishore Vemulapalli, Judicial Member and Rajesh Sharma, Technical Member in the case of Anil Vora HUF v. Kavya Build-Con Private Limited rejected the Section 9 application filed by the Operational Creditor on the ground that a retired partner cannot initiate proceedings u/s 9 of the Insolvency and Bankruptcy Code, 2016 to claim retirement dues...
Personal Guarantors Of NBFC/FSC Cannot Be Proceeded Against Unless Threshold Of Rs. 500 Cr Is Satisfied: NCLT, Jaipur
The Jaipur Bench of the NCLT consisting of Deep Chandra Joshi, Judicial Member and Raghu Nayyar, Technical Member in the case of Shapoorji Pallonji Finance Private Limited v. Rekha Singh held that Personal Guarantors of Non-Banking Finance Company/ Financial Services Provider cannot be proceeded against unless the NBFC/ FSP satisfies the Rs. 500 crore threshold limit under...
Initiation of CIRP Not Mandatory For Maintainability Of An Application Against Personal Guarantors U/S 95, IBC: NCLT, Kochi
The NCLT, Kochi Bench comprising of Shyam Babu Gautam, Technical Member and Ashok Kumar Borah, Judicial Member in the case of E. Iqbal v. State Bank of India held that when an application for initiation of CIRP is pending before the NCLT, initiation of CIRP against the Corporate Debtor is not a prerequisite for maintainability of an application u/s 95, IBC filed for initiating IRP...
IBBI Has Jurisdiction To Regulate Payment Of IRP And RP: NCLAT
The NCLAT, Principal Bench consisting of Justice Ashok Bhushan, Chairperson and V.P. Singh, Technical Member in the case of Sumit Bansal, Insolvency Professional v. Committee of Creditors of JP Engineers held that the IBBI is clothed with the jurisdiction to regulate payment of remuneration of the RP and IRP both by framing regulations or by issuing executive instructions till...
Entry In Balance Sheet Amounts To Acknowledgment Of Liability: NCLT Kochi
The NCLT, Kochi Bench consisting of Mr. Ashok Kumar Borah, Judicial Member and Mr. Anil Kumar, Technical Member in M/s Pheonix ARC Private Ltd. v. Kerala Chamber of Commerce and Industries reiterated that acknowledgement of debt in the balance sheet of the Corporate Debtor comes within the meaning of acknowledgment u/s 18 of the Limitation Act, 1963 and has the effect of...
In IBC Proceedings, Penalty Can Be Imposed Only Under The Code And Not Under The Companies Act: NCLAT
The NCLAT in Bench comprising of Justice Ashok Bhushan, Chairperson and Dr. Alok Srivastava, Technical Member in Mr. Ashish Chaturvedi v. Inox Leisure Limited held that when proceedings before the Adjudicating Authority are being carried out under the Insolvency and Bankruptcy Code, 2016, penalty can only be imposed under the Code and not under the Companies Act, 2013. The Appeal...
90 Days Period Under Regulation 32A Of IBBI (Liquidation Process) Regulations Directory, Not Mandatory: NCLT Hyderabad
The NCLT Hyderabad Bench consisting of Dr. N. Venkata Ramakrishna Badarinath, Judicial Member and Veera Brahma Rao Arekapudi, Technical Member in Ekambareswara Rao Manne v. Mr. Gonugunta Madhusudhan Rao, dismissed the application filed by the Applicant, who was a Member of the Stakeholders Consultation Committee, filed u/s 60(5) of IBC r/w Rule 11, 13 & 32 of the NCLT Rules...
If Excluding Time From CIRP Helps The Corporate Debtor To Revive Its Operations, Such Exclusion Must Be Allowed: NCLAT
The NCLAT Single Bench consisting of Justice M. Venugopal, Judicial Member in the case of Vinod Tarachand Agarwal held that if exclusion of time of CIRP helps to revive the operations of the Corporate Debtor and thus achieve the objective of the Insolvency and Bankruptcy Code, such exclusion must be allowed. The Appellant filed an appeal against the order of the NCLT, Ahmedabad...