IBC News
NCLAT Delhi: Absence Of GST Refund/ITC Claim In Demand Notice Or Form 5 By OC Can't Become Ground Of Default For CIRP U/S 9 Of IBC
The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that if no Goods and Services Tax (“GST”) refund/ Input Tax Credit (“ITC”) claim has been included in the Demand Notice under Section 8 of Insolvency and Bankruptcy Code, 2016 (“IBC”) or in...
When Claims And Counter Claims Are Involved, Liquidator Cannot Decide The Same: NCLAT Chennai
The National Company Law Appellate Tribunal, Chennai Bench, comprising Shri Justice Venugopal M. (Judicial Member) and Shri Jatindranath Swain (Technical Member), while adjudicating an application under Section 61 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in M/s. FLSmidth Private Limited vs Lanco Infratech Ltd. has held that when claim and counter claims are...
CIRP Can Be Initiated Against The Corporate Debtor Despite Principal-Agent Relationship Between CD And Ultimate Client: NCLT Mumbai
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising Mr. Kuldip Kumar Kareer (Judicial Member) and Mr. Anil Raj Chellan (Technical Member) has held that Corporate Insolvency Resolution Process (“CIRP”) can be initiated against a Corporate Debtor under section 9 of the Insolvency and Bankruptcy Code, 2016 (“Code”) even if the Corporate Debtor had been acting as...
Weekly Digest Of IBC Cases: 06th To 12th May 2024
Supreme Court Can Homebuyer's Claim For Apartment Be Rejected For Not Filing Claim During Insolvency Process Against Builder? Supreme Court To Decide Case Title: Ayush Agarwal vs Jaypee Infratech Ltd. & Ors. Citation: Civil Appeal No. 5185/2024 The Supreme Court of India is set to determine whether the non-filing of a claim during the insolvency resolution process of...
IBBI Proposes Changes To Process Of Issuance Of Record Of Default By Information Utility, Invites Comments Till 31.05.2024
The Insolvency and Bankruptcy Board of India (“IBBI”) on 10.05.2024 has published a Discussion Paper on “Strengthening the process of issuance of record of default by Information Utility”. The IBBI has also invited comments from public/stakeholders regarding proposed changes to the framework pertaining to the process of issuance of record of default by Information Utility”....
NCLAT Delhi: Loan Recall Notice Date Shall Not Constitute Relevant Date Of Default Under IBC, Partial Payments Cannot Absolve CD From Default Status
The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that part payments between the Non-Performing Asset (“NPA”) classification and loan recall notice cannot mean that loan recall notice shall constitute the relevant date of default under the...
NCLAT Delhi: Relevant Date To Determine Ineligibility To Submit Resolution Plan Is Date Of Submission Of Plan By Resolution Applicant
The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member), and Mr. Indevar Pandey (Technical Member) held that the relevant date to determine the ineligibility to submit a Resolution Plan is on the date on which the Resolution Plan was first submitted by the Resolution...
Loan Amount Acknowledged As “Long-Term Borrowings” Has Commercial Effect And Covered U/S 5(8) Of IBC: NCLT Mumbai
The National Company Law Tribunal, Mumbai Bench, comprising Ms. Lakshmi Gurung, Member (Judicial) & Sh. Charanjeet Singh Gulati (Technical), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in the case of Metamorphosis Trading LLP vs Membrane Filters (India) Private Limited has held that the loan amount acknowledged in...
MSME Interest Cannot Be Claimed To Trigger Threshold Limit Under IBC If MSME Certificate Obtained Post Appointed Date: NCLT Mumbai
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising Justice Reeta Kohli (Judicial Member) and Madhu Sinha (Technical Member) has held that an Operational Creditor cannot combine interest under the Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED”) to the principal amount to meet the threshold limit under section 4 of the Insolvency and...
Assignee Of A Financial Creditor Also A Financial Creditor U/S 5 (7) Of IBC: NCLT Kolkata
The National Company Law Tribunal, Kolkata Bench, comprising Shri Rohit Kapoor (Judicial Member) Shri Balraj Joshi (Technical Member), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Assets Care & Reconstruction Enterprise Limited vs Ankit Metal & Power Limited has held that the assignee of a Financial Creditor is also...
NCLAT Delhi: Adjudicating Authority Can Extend Payment Timelines Under Resolution Plan Without Express Concurrence Of CoC
The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Arun Baroka (Technical Member) held that the Adjudicating Authority can extend payment timelines under the Resolution Plan without the express concurrence of the Committee of Creditors ('CoC'). Background Facts: State Bank of India ('SBI') as the sole member...
NCLAT Delhi: Extension Of Time In Payment Is Not Modification Of Resolution Plan
The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Arun Baroka (Technical Member) held that an extension of time in payment is not a modification of the Resolution Plan. Background Facts: State Bank of India ('SBI') as the sole member of the Committee of Creditors ('CoC') having a 100% voting share approved...