IBC News
IBBI Issues Circular Regarding Withdrawal Of Unclaimed/Undistributed Amounts From Corporate Liquidation Account
The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 22.02.2024, intimating the procedure to be followed by the Liquidator for release of unclaimed dividends/ undistributed proceeds from the Corporate Liquidation Account in favour of entitled stakeholders. Brief background Regulation 46 of the IBBI (Liquidation Process) Regulations,...
IBBI Amends CIRP Regulations W.E.F. 15th February 2024
The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a notification dated 15.02.2024, whereby amendments have been made to the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”). The key amendments are: Operating separate bank accounts for real estate projects: To ensure financial transparency and accountability,...
IBBI Issues Circular Regarding Withdrawal Of Unclaimed/Undistributed Amounts From Corporate Voluntary Liquidation Account
The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 13.02.2024, intimating the procedure to be followed by the Liquidator for release of unclaimed dividends/ undistributed proceeds from the Corporate Voluntary Liquidation Account in favour of entitled stakeholders. Brief background Regulation 39 of IBBI (Voluntary Liquidation Process)...
NCLAT Delhi: Non-Grant Of Reliefs And Concessions By NCLT Does Not Have Any Adverse Effect On The Validity Of The Resolution Plan And Is Not Violative Of The Law
The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that non-grant of any reliefs and concessions by NCLT does not have any adverse effect on the validity of the Resolution Plan and is not a violation of the law. Background Facts: On 07.02.2003, Yamuna Expressway...
NCLAT Delhi: Treatment Of Income Tax Dues In The Resolution Plan As 'Operational Creditor' Doesn't Violate Section 30(2) Of IBC
The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that treatment of the Income Tax Department's dues in the Resolution Plan as 'Operational Creditor' is not violative of Section 30(2) of Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: On 07.02.2003, Yamuna...
NCLAT Delhi: Personal And Corporate Guarantors Have No Right Of Subrogation After Approval Of Resolution Plan
The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that the personal guarantors and corporate guarantors have no right of subrogation after the approval of the Resolution Plan under Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: On 07.02.2003, Yamuna...
NCLAT Delhi: Section 29A(C) Disqualifies Those Managing And Controlling Corporate Debtor Who Failed To Clear Debts
The National Company Law Appellate Tribunal ('NCLAT') New Delhi, comprising Mr. Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that Section 29A(c) of Insolvency and Bankruptcy Code, 2016 ('IBC') disqualifies not only those in management and control of the Corporate Debtor when its account was declared Non-Performing Asset ('NPA') but also those in...
NCLT Can't Direct CoC To Consider Suspended Management's Settlement Proposal, Without Opportunity To SRA: 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 NCLT cannot direct the CoC to consider settlement proposal of Suspended Management of Corporate Debtor, without granting an opportunity to be heard to...
Weekly Digest Of IBC Cases: 19th February To 3rd March 2024
NCLAT Voting For Section 12A Proposal To Be Computed As Per Proviso To Section 25A(3A) R/w Section 25A(3) Of IBC: NCLAT Delhi Case title: Vijay Saini v Shri Devender Singh & Ors Case No.: Comp. App. (AT) (Ins.) No. 1194 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun...
NCLAT Delhi: Resolution Professional Is An Aggrieved Person If NCLT Overturns His Decision
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), held that the Resolution Professional (RP) is an aggrieved when the decision of the National Company Law Tribunal (“NCLT”) directly overturns his decision. Background Facts: The Corporate...
Whether The Vote Of Each Homebuyer Is Required During The Voting On CIRP Withdrawal Resolutions? NCLAT Clarifies S 12A of IBC
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), held that for voting on Corporate Insolvency Resolution Process (CIRP) withdrawals under Section 12A of the Insolvency and Bankruptcy Code (IBC), the vote of each homebuyer must be counted individually, rather than as...
NCLAT Delhi: Trademark Hypothecated For Higher Amount And Assignment For Lower Amount Can't Be Sole Criteria To Treat It As 'Undervalued Transaction'
The National Company Law Appellate Tribunal ('NCLAT') New Delhi, comprising Mr. Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member) held that the mere fact that the trademark was hypothecated for a higher amount and subsequently assigned for a lower amount would not be the sole criteria for deeming it an undervalued transaction. Background...