IBC News
'Incorporated With Fraudulent Motive, Invoking Arbitration Against Antrix Not Bona Fide' : NCLT Orders Winding Up Of Devas Multimedia
The National Company Law Tribunal, Bengaluru bench, has ordered the forcible liquidation and winding up of Devas Multimedia by allowing a petition filed Indian Space Research Organization's commercial arm Antrix Corporation Limited.The Tribunal held that Devas was incorporated in a "fraudulent manner to carry out unlawful purposes" and its management resorted to "fraudulent activities"...
An Analysis Of The Supreme Court Verdict On Insolvency And Bankruptcy Of Personal Guarantors Of A Corporate Debtor
The Ministry of Corporate Affairs, in the bask of implementing the Insolvency and Bankruptcy Laws in India notified and brought into force the provisions of insolvency of personal guarantors of the corporate debtor[1]vide notification dated 15th November, 2019[2] ("Notification"). After publication of the Notification, many promoters and directors who were also the personal guarantors...
NCLAT Directs Partial Temporary Relaxation On Physical Filing, Modifies SOP For Allowing E Filing In View Of Covid
Taking note of the recent surge in Covid 19 situation, the National Company Law Appellate Tribunal has directed partial temporary relaxation in physical filing as per its earlier Standard Operating Procedure dated January 3, 2021 by allowing e filing of appeals, replies, IAs, rejoinders etc.The notice issued by the Registrar on Monday in this regard reads thus:"It is directed by the...
IBC - Approval Of Resolution Plan Does Not By Itself Discharge Liabilities Of Personal Guarantor Of Corporate Debtor: Supreme Court
The Supreme Court has held that the approval of a resolution plan does not ipso facto discharge a personal guarantor of a corporate debtor.The release or discharge of a principal borrower from the debt owed by it to its creditor, by an involuntary process, i.e. by operation of law, or due to liquidation or insolvency proceeding, does not absolve the surety/guarantor of his or her liability,...
Supreme Court Upholds IBC Provisions Applicable To Personal Guarantors Of Corporate Debtors-Read Judgment
The Supreme Court today upheld the provisions of Insolvency and Bankruptcy Code, 2016 which applies to personal guarantors of corporate debtors.The bench comprising Justices L. Nageswara Rao and S. Ravindra Bhat approval of a resolution plan relating to a corporate debtor does not operate so as to discharge the liabilities of personal guarantors (to corporate debtors). The bench dismissed...
Delhi High Court Issues Notice In Plea Seeking Modification Of NCLAT's SOP By Allowing Only E-Filing In View Of Second Covid Wave
The Delhi High Court on Thursday issued notice in a plea seeking directions on the National Company Law Appellate Tribunal (NCLAT Principal Bench at Delhi) to modify its SOP dated January 3, 2021 by allowing only electronic filing in view of the prevalent situation amid second Covid wave.A single judge bench comprising of Justice Rekha Palli issued notice in the plea filed by Advocate...
A Critical Analysis Of RPFC Telangana Vs. Vandana Garg And Ors. Of NCLAT, Chennai Bench
A recent order dated 12th May 2021 by the NCLAT Chennai Bench in Regional Provident Fund Commissioner Vs. Vandana Garg and Ors. [CA (AT) (Ins.) No.50 of 2021] prompted me to have this write-up about the order. At the outset, I am of the humble view that this order requires reconsideration. The RPF Commissioner, Telangana filed the appeal before NCLAT Chennai Bench under the...
Takeaways For The Indian Cross-Border Insolvency Regime In Light Of COVID-19
The COVID-19 pandemic is a crisis unlike any other. It has wreaked havoc on the economies of many countries around the world. As COVID-19 spreads, several companies have been negatively affected, and others have come to a halt. The vast number of major corporate downturns in the last two years have involved multiple jurisdictions, rendering foreign insolvencies common, rather...
Residuary Jurisdiction Of The National Company Law Tribunal Under Section 60(5) Of The Insolvency And Bankruptcy Code, 2016: A Brief Analysis
Pursuant to Section 60(5) of the Insolvency and Bankruptcy Code, 2016 ("Code") the National Company Law Tribunal ("NCLT") is bestowed with the jurisdiction to decide: (i) 'any' application or proceeding against a corporate debtor; (ii) 'any' claim made by or against a corporate debtor including claims by or against its subsidiaries; and (iii) 'any' questions of priority or 'any' question of law or facts, arising out of or in relation to insolvency resolution or liquidation proceedings of...
Will Arbitral Award-Holder's Claim Be Extinguished On Approval Of Award-Debtor's Resolution Plan Under IBC? Yes, Rules Calcutta High Court
On Friday, the Calcutta High Court settled an important question of arbitration law, viz., whether an arbitral award-holder's claim would stand extinguished upon the approval of a Resolution Plan for the award-debtor's revival, when it was not pressed during the Corporate Insolvency Resolution Process (CIRP). Relying on Supreme Court rulings from 2020, Justice Moushumi Bhattacharya...
NCLT Kochi Allows Promoter Of Corporate Debtor MSME To File Resolution Plan In Individual Capacity
The National Company Law Tribunal at Kochi has held that the promoter of an MSME can submit a Resolution Plan Application in his individual capacity, and that the Plan would be eligible to be considered along with those of other prospective Resolution applicants. Judicial Member Ashok Kumar Borah of the NCLT Bench at Kochi recently made this pronouncement on an application made by...
Insolvency Law In Review – March 2021
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. The purpose of this column is to...