IBC News
[ArcelorMittal Vs Numetal] Lender Banks Cannot Be Left Hanging For Forever: SC
"Lenders cannot be left hanging for forever", the Supreme Court today observed and made it clear that the Insolvency and Bankruptcy Code (IBC) was brought to ensure that the dues of the companies, declared non-performing assets (NPAs), are recovered by the banks.A bench of Justices R F Nariman and Indu Malhotra also asked the counsel for ArcelorMittal and NuMetal, involved in legal fight...
ArcelorMittal Vs Numetal :Opinion Of CoC On Disqualification Of A Resolution Applicant Under S.29A Of IBC Is Only Prima facie One, NCLT Is The Statutory Authority To Decide It: Nariman.J
As the war between ArcelorMittal and NuMetal over Essar Steels spills into its third day before the Supreme Court, Justice Rohinton Nariman on Tuesday remarked that the opinion of the Committee of Creditors (COC) as to the disqualification of a resolution applicant under section 29A of the Insolvency and Bankruptcy Code of 2017 was only a prima facie one and that NCLT is the statutory...
Recruitment Notification: Law Research Associates in NCLT
The National Company Law Tribunal (NCLT) has invited applications from Indian nationals to work as Law Research Associate in NCLT, purely on a contractual assignment.Essential Qualifications: Law Graduates (fresh or experienced) who have passed final year L.L.B examination with a minimum aggregate of 50% marks from a recognized university. The candidate should be enrolled with any Bar Council. The age of the candidate shall not be above 30 years as on last date of receipt of applications. The...
Challenge Against RBI Circular On Stressed Assets By Power Companies: SC Transfers All Pending Matters Before HCs To Itself, Orders Status quo [Read Order]
The Supreme Court Bench comprising Justice RF Nariman and Justice Indu Malhotra on Tuesday directed that twelve cases pertaining to the Insolvency Proceedings under the new RBI circular pending before High Courts of Madras, Gujarat, Allahabad, and Delhi be transferred to the Apex Court. Directing status quo to be maintained, the Court directed the listing of the petitions for final disposal on...
Allahabad HC Refuses Interim Relief To Power Projects From RBI Circular On Revised Framework For Resolution Of Stressed Assets [Read Judgment]
The Allahabad High Court on Monday refused to grant interim relief to private power companies from the circular issued by the Reserve Bank of India (RBI) which gives borrowers 180 days' time to clear their dues— a deadline that ended on Monday.The Bench comprising Chief Justice DB Bhosale and Justice Yashwant Varma ruled, "In the ultimate analysis, I have been unable to persuade myself to...
Insolvency Process Can't Be Admitted During Pendency Of Proceedings Challenging Arbitral Award: SC [Read Judgment]
'We repeat that the object of the Code, at least insofar as operational creditors are concerned, is to put the insolvency process against a corporate debtor only in clear cases where a real dispute between the parties as to the debt owed does not exist.'The Supreme Court has held that an insolvency process cannot be put into operation when there is a pending proceeding challenging against...
Insolvency And Bankruptcy Code (IBC) Will Override Provisions Of Other Enactments Inconsistent With It : SC [Read Order]
"Given Section 238 of the Insolvency and Bankruptcy Code, 2016, it is obvious that the Code will override anything inconsistent contained in any other enactment, including the Income Tax Act."Upholding a Delhi High Court judgment which held that moratorium under the Insolvency and Bankruptcy Code (IBC) will apply to the order of Income Tax Appellate Tribunal, the Supreme Court has observed...
Insolvency And Bankruptcy Code: Section 14 Moratorium Would Not Apply To A Personal Guarantor Of A Corporate Debtor: SC [Read Judgment]
'Section 14 refers only to debts due by corporate debtors, who are limited liability companies, and it is clear that in the vast majority of cases, personal guarantees are given by Directors who are in management of the companies. The object of the Code is not to allow such guarantors to escape from an independent and coextensive liability to pay off the entire outstanding debt, which is...
Monsoon Session Of Parliament: Highlights
The Monsoon Session of the Parliament from July 18 to August 10 witnessed a lot of action, with several bills getting passed. The highlights of key legislative actions during the Monsoon session are given below:Specific performance of contract to be the norm : Amendment to Specific Relief ActThe Parliament passed the Specific Relief (Amendment) Bill 2018, proposing to bring significant...
IBC: Application For Initiating Corporate Insolvency Resolution Process Filed By Advocate Of Financial Creditor Maintainable: SC [Read Order]
We also think that the petition filed by an advocate would be maintainable, as has been held in Macquarie Bank supra.The Supreme court observed that an application filed by an advocate would be maintainable under Section 7(3)(a) of the Insolvency And Bankruptcy Code, 2016.This observation was made by the bench of Justice Rohinton Fali Nariman and Justice Indu Malhotra in SUNRISE 14 A/S...
Suspended Director Of Corporate Debtor Not Entitled To Confidential Info In Possession Of CoC Or RP: NCLT [Read Order]
It says if the information is confidential, the CoC could keep it to itself to maximise the valuation of assets.Is a suspended director of a corporate debtor entitled to confidential information in possession of the Resolution Professional (RP) and the Committee of Creditors (CoC)?The Mumbai bench of National Company Law Tribunal (NCLT) has answered the question in negative while concluding...
Homebuyer Who Subrogated All Rights In Favour Of Bank Cannot Be Treated As Financial Creditor Under IBC, Says NCLT Allahabad [Read Order]
The Allahabad bench of National Company Law Tribunal has held that a homebuyer who subrogated all his rights in favour of the bank at the time of taking loan cannot be treated as a financial creditor under the Insolvency and Bankruptcy Code, 2016. A bench of Saroj Rajware and V P Singh said the petition filed by the homebuyer for initiating Corporate Insolvency Resolution Process is...