IBC News
NCLT Must Pass Reasonable Order For Fees & Expenses Of Resolution Professional : Supreme Court
The Supreme Court has held that the NCLT/NCLAT must make a reasonable assessment of the fees and expenses payable to the Interim Resolution Profession and cannot pass an order in an ad-hoc manner.The Court held that an order assigning reasons must be passed in respect of fees of resolution professional; otherwise, it will amount to abdication.A judgement delivered by a Bench of...
The Progressive Decline Of An Equitable Jurisdiction
Shareholder Disputes Are Often 'Family' Disputes Family run companies continue to dominate the corporate landscape in India. Ownership and governance of such companies are often dictated by pre-existing family arrangements /settlements which reflect the wishes and vision of the founders of such companies. Shareholding in such companies is acquired by way of inheritance or by way...
Appointment Of Resolution Professional: Rajasthan HC Issues Notice On Plea Challenging Constitutionality Of Sections 95, 97 & 99 Of IBC
The Rajasthan High Court has issued notice on a plea challenging the constitutionality of Sections 95, 97 and 99 of the Insolvency Bankruptcy Code, 2016. The division bench of Chief Justice Akil Kureshi and Justice Rameshwar Vyas observed, "Since the provisions of the law framed by the Parliament are under challenge, we therefore issue notice to the learned Additional...
IBC & Admiralty Act Interplay - Insolvency Proceedings Against Shipping Company Won't Bar Suit Against Vessel : Bombay High Court
In a significant judgment, the Bombay High Court has held that a Shipping Company slipping into liquidation under the Insolvency and Bankruptcy Code will not impact an ongoing Admiralty Suit against its Vessel as the two are separate entities. The judgement authored by Justice BP Colabawalla explains the interplay between the bar against further suits and proceedings under S.33 (5) of...
NUJS And IBBI: Three Day Certificate Course On "Changing Paradigms Of Insolvency And Bankruptcy Code, 2016"
Centre for Insolvency and Bankruptcy Studies, NLU, Jodhpur in collaboration with the Insolvency and Bankruptcy Board of India is organizing a three-day online certificate course programme on "Changing Paradigms of Insolvency and Bankruptcy Code, 2016" The course is intended to further the primary object of the IBBI to create awareness among various stakeholders- Legal Practitioners, Academicians, Professionals and students about the continually and rapidly evolving legal Insolvency...
The Adjudicating Authority Need Not Record Any Finding Regarding 'Default' At The Time Of Application Under Section 95 Of The I&B Code: NCLAT
The NCLAT, Principal Bench consisting of Justice Ashok Bhushan (Chairperson), Justice Jarat Kumar Jain (Judicial Member) and Dr. Alok Srivastava (Technical Member) held in the case of Kanchan Nanubhai Desai Personal Guarantor (Anoushka Medicare & Diagnostics Pvt. Ltd.) v. Finequest Financial Solutions Pvt. Ltd, that when an application is filed under Section 95, which is...
The 'Adjudicating Authority' Is Not A 'Court Of Law' And 'CIRP' Is Not Synonymous To 'Litigation': NCLAT
NCLAT, Chennai Bench comprising Justice M. Venugopal and Kanthi Narahari in the case of Drip Capital Inc. v. Concord Creations (India) P. Ltd. set aside the order passed by the Adjudicating Authority (NCLT), Bengaluru Bench, holding that the 'Adjudicating Authority' is not a 'Court of Law' and 'CIRP' is not synonymous to litigation. The Appellant/ Financial Creditor granted an...
NCLAT Chennai Stays Corporate Insolvency Resolution Process Initiated Against Tata Projects Ltd
The Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) has stayed the order initiating Corporate Insolvency Resolution Process against Tata Projects Limited upon being informed that the parties have entered into a settlement agreement. The NCLAT comprising Justice M. Venugopal and Kanthi Narahari also directed the IRP to file an application for withdrawal of the...
Real Estate Developer HDIL Lose Case Against Flat Purchasers At NCLAT, One Of The Biggest Win For Flat Purchasers
M/s SOLICIS LEX had filed a consolidated appeal (A1 - Majestic Towers; A2 - Galaxy Apartments) in the NCLAT on behalf of many flat purchasers. The appeal was filed Against the decision of the NCLT Mumbai - whereby the resolution process was closed and the housing projects and other assets of HDIL were ordered to be liquidated - in which case the home buyers get nothing - no flat or refund. All proceeds of Liquidation were to flow to Banks and Financial Institutions. Adv Sunil...
Insolvency & Bankruptcy Code : Important Supreme Court Judgments Of 2021
1. Supreme Court Upholds Sections 3, 4 & 10 Of IBC Amendment Act 2020 [Judgment dated: 19.01.2021] [Citation : LL 2021 SC 25] [Bench: Justices R.F. Nariman, Navin Sinha and K.M. Joseph] [Author: Justice K.M. Joseph] In Manish Kumar v. Union of India And Anr., the Supreme Court upheld the constitutional validity of Section 3, 4 and 10 of the Insolvency...
Attachment Of Bank A/C By Tax Authorities During Pendency Of CIRP Violative Of Section 14 IBC: NCLT Mumbai
The National Company Law Tribunal at Mumbai has ruled that an attachment by the Tax Authorities during the pendency of a Corporate Insolvency Resolution Process (CIRP) is violative of Section 14 (Moratorium) of the Insolvency and Bankruptcy Code."The claim of the Respondent (Dy. Commissioner of State Tax) will be dealt in the manner as provided u/s. 53 of the IBC and therefore, Respondent No....
Jurisdiction Of Authorities Under PMLA To Proceed Against Properties Of Corporate Debtor Ceases Once Liquidation Approved Under IBC: Delhi High Court
The Delhi High Court has adjudicated on the question as to whether the authorities under the Prevention of Money Laundering Act, 2002 would retain the jurisdiction or authority to proceed against properties of a corporate debtor once a liquidation measure has come to be approved in accordance with Insolvency and Bankruptcy Code, 2016. Justice Yashwant Varma in a detailed order held that the...