Insufficiently Stamped Agreement Between Parties , Not A Ground To Dismiss CIRP Applications :NCLT Mumbai

The National Company Law Tribunal, Mumbai bench of Prabhat Kumar (Technical Member) and Justice V.G Bisht (Judicial Member) has held that deficiencies in document stamping, as per the Stamp Act, cannot be used as a reason to dismiss an application under Section 7 of the Insolvency and Bankruptcy Code. Brief Facts: Q West Infrastructure Private Limited (Applicant/ Financial...

Exchange Of Debit Notes And Pending MSME Reference Indicate Plausible Pre-Existing Dispute: NCLT New Delhi

The National Company Law Tribunal, New Delhi bench of Mahendra Khandelwal (Judicial Member) and Dr. Sanjeev Ranjan (Technical Member) has held that the exchange of debit notes and the pending MSME reference indicate a plausible pre-existing dispute. Therefore, the bench held that if the Corporate Debtor raises a plausible contention about a pre-existing dispute, which is not just...

Liquidation Is Last Resort, Broader Public Interest In Resolving Corporate Insolvency Should Be Taken Into Account: NCLT Kolkata

The National Company Law Tribunal Kolkata bench of Bidisha Banerjee (Judicial Member) and Balraj Joshi (Technical Member) has held that the liquidation of a corporate debtor should be a measure of last resort. It held that the Insolvency and Bankruptcy Code (IBC) acknowledges a broader public interest in resolving corporate insolvencies with its primary objective extending beyond...

Interest Not Mentioned In Invoices Or Civil Court Decree, Can't Add To Reach Threshold Limit: NCLT

The National Company Law Tribunal New Delhi bench of Bachu Venkat Balaram Das (Judicial Member) and Atul Chaturvedi (Technical Member) has held that claim for interest is not arising out of supplies of goods or services and do not form part of the Operational Debt in terms of Section 5(21) of the Insolvency and Bankruptcy Code, 2016. Therefore, the bench held that the interest awarded...

NCLT Kolkata Imposes ₹1 Lakh Penalty On Indian Bank For Misguided Insolvency Petition Against Personal Guarantor Already Undergoing Insolvency Proceedings

The National Company Law Tribunal Kolkata bench of Bidisha Banerjee (Judicial Member) and D. Arvind (Technical Member) has imposed a ₹1 lakh penalty on Indian Bank for filing insolvency proceedings against a Personal Guarantor who was already undergoing insolvency proceedings initiated by the same bank. Brief Facts: The Indian Bank (Financial Creditor) initiated...

Third Parties And Multiple Representations Excluded From Hearing In Section 7 Or 9 IBC Petitions: NCLT Kochi

The National Company Law Tribunal Kochi bench of Ravichandran Ramasamy (Technical Member) and T Krishna Valli (Judicial Member) has held that at the admission stage of a petition under Section 7 or 9 of IBC, only the Corporate Debtor and the Financial Creditor are considered necessary parties for hearing. Third parties, including intervenors, do not have the right to be heard...

MOU And Loan Agreement For Land Acquisition As Investment, Not Financial Debt Under IBC: NCLT Mumbai

The National Company Law Tribunal, Mumbai bench of Justice V.G. Bisht (Judicial Member) and Prabhat Kumar (Technical Member) has held that the Memorandum of Understanding (MOU) and Loan Agreement intended for the acquisition and development of land constitute an investment rather than financial debt under the Insolvency and Bankruptcy Code (IBC). Brief Facts: RT...

Damages Under Section 14B Of EPF Act Are Government Dues, Subject To Section 53 Of IBC, Not Section 36(4)(a)(iii): NCLT Mumbai

The National Company Law Tribunal, Mumbai bench of Lakshmi Gurung (Judicial Member) and Charanjeet Singh Gulati (Technical Member) has held that damages under Section 14B of the EPF Act are classified as government dues. Consequently, these damages must be paid according to Section 53 of the Insolvency and Bankruptcy Code, 2016 and are not covered under Section 36(4)(a)(iii) of...

Interest Not Essential For Debt To Qualify As Financial Debt Under IBC: NCLT Mumbai

The National Company Law Tribunal Mumbai bench of Anil Raj Chellan (Technical Member) and Kuldip Kumar Kareer (Judicial Member) has held that the inclusion of interest is not essential for a debt to qualify as financial debt. The bench held that the definition of financial debt under Section 5(8) of the Insolvency and Bankruptcy Code, 2016, does not explicitly exclude...

Arbitration Clause Does Not Bar Operational Creditors From Filing Section 9 Applications Under IBC: NCLT Mumbai

The National Company Law Tribunal Mumbai bench of K. R. Saji Kumar (Judicial Member) and Sanjiv Dutt (Technical Member) has held that an arbitration clause in an agreement does not prevent an operational creditor from filing an application under Section 9 of the Insolvency and Bankruptcy Code (IBC). The bench held that the presence of such a clause does not impose any restriction...

Resolution Professional Must Confirm Proper Service Of Demand Notice Before Admitting It To Adjudicating Authority: NCLT Amravati

The National Company Law Tribunal (NCLT), Armravati Special Bench of Dr Venkata Ramakrishna Badarinath Nandula (Judicial Member) held that proof of due service of the demand notice presented to the corporate debtor or its guarantor must first be verified by the resolution professional. The creditor cannot present the same directly to the...

No Liability On Successful Resolution Applicant Post Plan Approval If Not Identified In Corporate Debtor's Financial Records: NCLT Mumbai

The National Company Law Tribunal Mumbai bench of Prabhat Kumar (Technical Member) and Justice Virendrasingh Bisht (Judicial Member) has held that no liability can be imposed on the Successful Resolution Applicant after the approval of the plan by the Committee of Creditors if such liability is not identifiable from the financial records of the Corporate...