IBC News
NCLAT Allows Group Insolvency Of Group Companies For Adel Landmarks Limited [Read Judgment]
NCLAT recently allowed group insolvency of the 100 percent subsidiaries of Adel Landmarks Limited namely Sachet, Sameeksha, Mehak, Jamvant and Magadh with that of Adel. This was done while admitting the five out of the nine Appeals preferred by Edelweiss Asset Reconstruction Company against the Order passed by NCLT, Principal Bench, declining the Insolvency Petitions filed. NCLAT directed NCLT to admit the aforesaid five companies and appoint the Resolution Professional of Adel as the common...
NCLAT Says Dissenting Financial Creditors Cannot Be Discriminated Against [Read Judgment]
Ringing a bell of caution for all future resolution plans under the IB Code, the Hon'ble NCLAT has reiterated that resolution plans must not discriminate between similarly situated creditors, and must conform to the requirements of the amended Regulation 38 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("IBBI Regulation").In the present case, CIRP had been initiated against M/s Rave Scan Private Limited ("Corporate...
NCLAT Directs Modification Of Resolution Plan On Ground Of Discrimination Between Similarly Situated Financial Creditors
Although the Appellate Tribunal found the resolution plan to be in contravention of provisions of the IBC, it did not set aside the plan. An opportunity was given to the resolution applicant to remove the discrimination by providing similar treatment, as was provided to other similarly situated financial creditors.
IBC Proceedings Maintainable Even If Company's Name Struck Off From The Register Of Companies: NCLAT
The NCLAT has reiterated that an application under Sections 7 and 9 of the Insolvency and Bankruptcy Code, 2016 ('I&B Code') for the initiation of 'Corporate Insolvency Resolution Process' (CIRP) is maintainable even if the name of the Company has been struck-off by the Registrar of Companies. The Appellate Bench was hearing an appeal filed by Elektrans Shipping Pvt....
Non Payment Of Debt After Issuance Of Recovery Certificate Not A 'Continuing Wrong' : SC [Read Order]
The Supreme Court has held that non-payment of debt after the issuance of recovery certificate cannot be regarded as a continuing wrong so as to give rise to a continuing cause of action under the Limitation Act.The bench of Justices R F Nariman and Surya Kant held so while allowing an appeal against an order of NCLAT which allowed the admission of an insolvency petition with respect to...
SC Stays Liquidation Of Amtek Auto Passed By NCLAT
The Supreme Court has issued notice in a civil appeal filed by the 'Committee Of Creditors' (CoC) of 'Amtek Auto Limited' and stayed the liquidation order passed by the NCLAT. Since the liquidation of Amtek was approved by NCLAT, the CoC of Amtek approached SC by way of an appeal. Solicitor General Tushar Mehta appeared on behalf of the CoC, before the SC Bench comprising of Justices...
NCLAT Clears Ambiguity Over NCLT's Power To Dispense With The Meetings Of Shareholders & Creditors In A Scheme Of Arrangement/ Amalgamations [Read Judgment]
Case Title: DLF Phase-IV Commercial Developers Limited & Others, Company Appeal (AT) No. 180 of 2019, Judgement Dated: 19th August 2019.In a landmark Judgement, the National Company Law Appellate Tribunal (NCLAT) set aside the order of National Company Law Tribunal (NCLT), Chandigarh Bench, as being per incuriam. This was because it declined the dispensation of certain meetings of shareholders and creditors of Applicant Companies while holding that such dispensations are not permissible...
NCLAT Approves Resolution Plan Of Shell Company Despite SEBI's Objections
In the absence of any material irregularity in exercising the powers by the RP during the CIRP, or regarding provision for payment of insolvency resolution costs in the resolution plan, the appeal was found to be not maintainable by the NCLAT, and was dismissed.
SC Seeks NBCC Response On Completing Stalled Jaypee Group Projects
The Supreme Court on Tuesday sought response from the NBCC on whether it is willing to give a revised proposal to complete the stalled projects of Jaypee group.A bench of justices A M Khanwilkar and Dinesh Maheshwari issued notice to the National Buildings Construction Corporation Limited (NBCC) and sought its reply by Thursday.Additional Solicitor General Madhavi Divan, appearing for the...
Rs 60,000 Crores Have Been Realized Through Successful Resolution Plans Under IBC : Justice S K Kaul
The central promise of the IBC has been to guarantee a time bound resolution of bad debt, said Justice Sanjay Kishan Kaul, judge of the Supreme Court of India, while giving a talk at the Symposium on 'Recovery and Resolution- Emerging Challenges before Recovery Tribunals & NCLTs' on Saturday at Chennai."The central promise of the IBC has been to guarantee a time bound resolution of bad...
NCLAT Dismisses Government's Plea For Recovery From Videocon Industries During Moratorium
The NCLAT agreed with the view taken by NCLT, Mumbai that during the period of 'Moratorium', the Government could neither recover any amount nor issue demand notice to the Videocon through its Resolution Professional.