IBC News
No Bar On Operational Creditor To Recover Claims If Claims Were Not Entertained In The Resolution Process: NCLAT
The NCLAT Bench comprising of Justice Ashok Bhushan, Chairperson and Dr. Ashok Kumar Mishra, Technical Member in Go Airlines (India) Ltd. v. Sovika Aviation Services Pvt. Ltd. &Ors. held that since the Resolution Plan was withdrawn u/s 12A of the Insolvency and Bankruptcy Code, 2016 and the claims of the Operational Creditor were not entertained, the operational Creditor is at liberty...
Applications By Financial And Operational Creditors On The Basis Of Decrees Or Awards - Tracing The Evolution Of The Judicial Position
There cannot be any doubt about the fact that the Insolvency and Bankruptcy Code, 2016 ('the Code') has been a truly ground-breaking piece of legislation in the Indian judicial perspective. A rich body of precedents have already been laid down, in the short span of five years or so from the time the Code came into existence, by the judicial authorities, touching upon various issues that have emanated with regard to the interpretation of various provisions of the Code. However, certain...
Sessions Judge Or Additional Sessions Judge Not Empowered To Try Offences Under IBC: Bombay High Court
The Bombay High Court in a Bench consisting of Justice Sandeep K. Shinde in the case of Satyanarayan Bankatlal Malu v. Insolvency and Bankruptcy Board of India, while setting aside the order passed by the Additional Sessions Judge u/s 73(a) and Section 235A of the Insolvency and Bankruptcy Code, 2016, held that the Sessions Judge or Additional Sessions Judge is not competent to try...
Commercial Wisdom of the CoC To Prevail, Unless The Same Is In Contravention Of Any Law, Reiterates NCLAT
The NCLAT, Principal Bench consisting of Justice Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member) in Noida Special Economic Zone Authority v. Mr. Manish Agarwal refused to set aside the order passed by the Adjudicating Authority, which approved the Resolution Plan, reiterating that the commercial wisdom of the CoC with respect to viability and financial...
Pre-requisite Of Notice To The Personal Guarantor Is Satisfied On A Service Of Notice As Per Form B: NCLT, Mumbai
The NCLT, Mumbai Bench consisting of Smt. Suchitra Kanuparthi (Judicial Member) and Smt. Anuradha Sanjay Bhatia (Technical Member) in the case of Union Bank of India v. Mr. Dheeraj Wadhawan admitted the application filed by the Union Bank of India/Financial Creditor u/s 95 of the Insolvency and Bankruptcy Code, 2016 on the ground that the IBC does not prescribe personal service and...
Mediation Order And Dishonoured Cheque Does Not Imply Extension Of Limitation U/S 9, IBC: NCLAT, Delhi
The NCLAT, Delhi in a Bench comprising of Justice Ashok Bhushan (Chairperson), Dr. Ashok Kumar Mishra and Dr. Alok Srivastava (Technical Members) in the case of Ravi Iron Ltd. v. Jia Lal Kishori Lal & Ors. held that an order of mediation along with dishonoured cheques does not imply an extension of limitation for the purposes of Section 9 of the Insolvency and Bankruptcy...
'Co-Operative Society' Is Not A 'Corporate Person' Under IBC To Which The Code Applies: NCLT Mumbai
NCLT, Mumbai in a Bench comprising of Mr. Rajesh Sharma (Technical Member) and Mr. H.V. Subba Rao (Judicial Member) in the case of The Solapur Dist. Central Co – Operative Bank Limited v. Sangola Taluka Sahakari Sakhar Karkhana Limited dismissed an application filed u/s 7 of the Insolvency and Bankruptcy Code, 2016 against Sangola Taluka Sahakari Sakhar Karkhana Limited/Corporate Debtor...
Insufficiency Of Stamp Duty Irrelevant In S. 7 Proceedings Under IBC: NCLT Mumbai Bench
The NCLT Mumbai Bench comprising of H.V. Subba Rao (Judicial Member) in Vistra ITCL India Ltd. v. Satra Properties (India) Ltd. held that insufficiency of stamp duty is not to be looked at in a Section 7 application, more so when 'debt' and 'default' are proved otherwise than by looking into these documents. The application was referred to H.V Subba Rao by the then Acting President...
Not Adding Interest To The Principal To Arrive At Threshold Of Rs.1 Crore ; A Critique On CBRE V. United Concepts Decision
In CBRE V. South Asia Private Ltd v. M/s. United Concepts and Solutions Private Limited ("CBRE"), the Principal Bench of the National Company Law Tribunal ("NCLT") recently took a view that "the Interest amount cannot be clubbed with the Principal amount of debt to arrive at the minimum threshold of Rs.1 Crore for complying with the provision of Section 4 of IBC, 2016." In the said case,...
NCLT Chennai Admits Application Initiating CIRP Against Coastal Energen Pvt. Ltd.
The NCLT, Chennai Bench comprising of R. Sucharitha (Judicial Member) and Sameer Kakar (Technical Member) in State Bank of India v. Coastal Energen Private Limited, admitted the application of State Bank of India/ Financial Creditor for initiation of CIRP against Coastal Energen Pvt. Ltd./ Corporate Debtor filed u/s 7 of the Insolvency and Bankruptcy Code, 2016. The Applicant in...
Confusion Regarding The Jurisdiction Of NCLT Qua Personal Guarantor's Insolvency
The National Company Law Tribunals (NCLT) gained huge prominence after the enactment of the Insolvency and Bankruptcy Code, 2016 (Code/IBC), and became an epicenter ajudications of commercial laws across the country. As per Section 63 of the Code, it is the only judicial forum that has the jurisdiction to deal with the insolvency resolution process of a company and even the High...
Section 9 IBC- Limitation Does Not Commence When The Debt Becomes Due But Only When A Default Occurs: Supreme Court
The Supreme Court has held that limitation does not commence when the debt becomes due but only when a default occurs.The bench comprising Justices DY Chandrachud, Surya Kant and Vikram Nath that the debt is defined in Insolvency and Bankruptcy Code as the non-payment of the debt by the corporate debtor when it has become due. In this case, the appellant placed orders with the...