IBC News
Monthly Digest Of IBC Cases: April 2024
Supreme Court When Does Debt Become Financial Debt & Operational Debt Under IBC? Supreme Court Explains Case Title: Global Credit Capital Limited & Anr. Versus Sach Marketing Pvt. Ltd. & Anr. Citation: 2024 LiveLaw (SC) 331 The Supreme Court bench comprising Justice Abhay S. Oka and Justice Pankaj Mithal, has held that debt would be treated as an operational...
NCLAT Delhi: Belated Claims By Creditors Not To Be Considered Given The Time-Bound Nature Of IBC proceedings
The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Arun Baroka (Technical Member) held that the belated claims by creditors cannot be considered given the time-bound nature of Insolvency and Bankruptcy Code, 2016 ('IBC') proceedings. Background Facts: In 2019, Dream Procon Pvt. Ltd. (Corporate Debtor) entered into...
Amount Given As Share Application Money Does Not Qualify As A Financial Debt Under IBC: NCLT Kolkata
The National Company Law Tribunal (“NCLT”), Kolkata Bench, comprising Shri Rohit Kapoor (Judicial Member) and Shri Balraj Joshi (Technical Member) has held that amount given as Share Application Money does not qualify as a financial debt under section 5(8) of the Insolvency and Bankruptcy Code, 2016 (“Code”). Background Facts In September 2019, Mittson...
NCLT Kolkata: NCLT Has No Jurisdiction To Set Aside Arbitral Award Passed During Moratorium Period U/S 14 Of IBC
The National Company Law Tribunal ('NCLT') Kolkata, comprising Smt. Bidisha Banerjee (Judicial Member) and Shri D. Arvind (Technical Member) held that the Adjudicating Authority lacks jurisdiction to set aside an arbitral award even when the award was issued post-initiation of Corporate Insolvency Resolution Process ('CIRP') and during moratorium period under Section 14 of the Insolvency...
Loan Sanction Letter, Loan Agreement, Statement Of Account, And Copy Of Notice U/S 13(2) OF SARFAESI Constitute “Such Other Record” U/S 7(3)(A) Of IBC: NCLT Mumbai
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising Smt. Lakshmi Gurung (Judicial Member) and Shri Charanjeet Singh Gulati (Technical Member) has held that loan sanction letter, statement of account, copy of notice under section 13(2) Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (“SARFAESI”), and...
General Power Of Attorney Holder Can File An Application U/S 7 Of IBC Without A Specific Board Resolution Authorization: NCLT Mumbai
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising Shri K.R. Saji Kumar (Judicial Member) and Shri Sanjiv Dutt (Technical Member) has held that a General Power of Attorney (“GPA”) holder can file an application under section 7 of the Insolvency and Bankruptcy Code, 2016 (“Code”) without having a specific Board Resolution. Background Facts Punjab...
When Does Debt Become Financial Debt & Operational Debt Under IBC? Supreme Court Explains
In a significant development, the Supreme Court on Thursday (April 25) held that debt would be treated as an operational debt only if the claim subject matter of the debt has some connection or co-relation with the 'service' rendered by the creditor to the debtor."Where one party owes a debt to another and when the creditor is claiming under a written agreement/ arrangement providing...
Weekly Digest Of IBC Cases: 8th To 21st April 2024
SUPREME COURT Process For IBC Offences To Be Issued By Sessions Court Despite Companies Act Amendment Vesting Jurisdiction On Judicial Magistrate: Supreme Court Case Title: Insolvency And Bankruptcy Board Of India Versus Satyanarayan Bankatlal Malu & Ors. Citation: 2024 LiveLaw (SC) 317 The Supreme Court bench comprising Justice BR Gavai and Justice Sandeep Mehta,...
Allottee Obligated To Comply With Threshold Under Section 7(1) Of IBC Even After RERA Passes An Order In Its Favour: NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member) and Shri Arun Baroka (Technical Member), has held that the status of an 'allottee' would not convert into a 'decree holder' for the purpose of IBC, merely because RERA Authority has passed an order in its favour...
Delay In Issuance Of Sale Certificate Due To Restraint Order By NCLT, Auction Purchaser Not Entitled To Interest On Sale Consideration: NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has held an Auction Purchaser cannot claim interest on sale consideration from the Liquidator for delayed issuance of Sale Certificate, if the delay has occurred due to a restraint order passed...
Process For IBC Offences To Be Issued By Sessions Court Despite Companies Act Amendment Vesting Jurisdiction On Judicial Magistrate: Supreme Court
Observing that the offences committed under the Insolvency and Bankruptcy Code, 2016 (“IBC”) would be tried by the Special Court established under Section 435 of the Companies Act, 2013 and the sessions judge would have the power to issue process against the accused, the Supreme Court on Friday (April 19) upheld the issuance of process by the sessions judge to the accused.The Court...
Gujarat High Court Quashes Demand Notice And Assessment Order In Absence Of Any Claim Not Forming Part Of Resolution Plan
The Gujarat High Court has quashed the demand notice and assessment order in the absence of any claim not forming part of the resolution plan (RP).The bench of Justice Bhargav D. Karia and Justice Niral R. Mehta has observed that, as per the Insolvency and Bankruptcy Code (IBC), the demand that was raised pursuant to the order dated March 13, 2023, by issuing the demand notice dated March...