IBC News
Weekly Digest Of IBC Cases: 12th To 18th February 2024
Supreme Court IBC | Resolution Plan Requires Closer Examination If Plan Envisages Use Of Asset Owned By Statutory Authority: Supreme Court Case Title: Greater Noida Industrial Development Authority Versus Prabhjit Singh Soni & Anr. Case No.: CIVIL APPEAL NOS.7590-7591 OF 2023 The Supreme Court bench comprising Chief Justice of India Dr. DY Chandrachud, Justice...
NCLAT Delhi Sets Aside NCLT Order Permitting Suspended Director To Enter Settlement During Pendency Of Plan Approval Application
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 set aside a direction given by the NCLT, whereby the Suspended Director was given opportunity to enter settlement during the pendency of application filed by Resolution Professional...
IBBI Committee Proposes Framework For Voluntary Mediation Under IBC
The Insolvency and Bankruptcy Board of India (“IBBI”) has published a report dated 31.01.2024 on “Framework for Use of Mediation under the Insolvency and Bankruptcy Code, 2016”. The Report has been prepared by an Expert Committee constituted by the IBBI and the Report contains recommendations on framework for introduction of voluntary mediation, as a complementary...
NCLT Mumbai Orders Dream 11's Sports Platform Owner Sporta Technologies Pvt. Ltd. Into CIRP Under IBC
The National Company Law Tribunal ('NCLT') Mumbai, comprising Justice Reeta Kohli (Judicial Member) and Shri. Anil Raj Chellan (Technical Member) allowed the petition and ordered Sporta Technologies Pvt. Ltd. (Corporate Debtor) into the Corporate Insolvency Resolution Process ('CIRP') under Section 9 of the Insolvency and Bankruptcy Code, 2016 ('IBC'). The Corporate Debtor is Dream...
NCLT Imposes Rs. 2.5 Lakh Cost On Personal Guarantor For Delayed Filing Of Reply, NCLAT Delhi Reduces Cost To Rs. 25,000
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 reduced the cost imposed by NCLT on Personal Guarantor for 6 days delay in filing of Reply from Rs. 2.5 Lakhs to Rs. 25,000. The Bench opined that the imposition of Rs. 2.5 Lakh cost...
NCLT Mumbai: CIRP Can't Be Initiated U/S 7 Of IBC Based On Transfer Agreement For Purchase Of Debentures From Financial Creditors
The National Company Law Tribunal ('NCLT') Mumbai, comprising Justice V.G. Bisht, (Retd.) (Judicial Member) and Mr. Prabhat Kumar (Technical Member) held that the Corporate Insolvency Resolution Process ('CIRP') under Section 7 of Insolvency and Bankruptcy Code, 2016 ('IBC') cannot be initiated based on Transfer Agreement/promise for purchase of Debentures from...
Lender Banks Must Furnish Copy Of Audit Reports Before Classifying Loan Account As Fraud: Gujarat High Court
Recently, the Gujarat High Court bench of Justice Sangeeta K. Vishen observed that the Lender Banks must provide a reasonable opportunity to the Borrower by furnishing a copy of Audit Reports and allowing him to submit a representation before classifying the account as fraud. Background Facts: Amit Dineshchandra Patel (Petitioner) are the promoters, suspended directors,...
Weekly Digest Of IBC Cases: 5th To 11th February 2024
NCLAT NCLAT Delhi: Adjudicating Authority Should Grant Extension Of Time To Consider Resolution Plan Crucial To Fulfill Object Of IBC Case Title: Nimai Gautam Shah, Resolution Professional of Sintex Plastics Technology Ltd. vs. RBL Bank Ltd. Case No.: Company Appeal (AT) (Insolvency) No.82 of 2024 The National Company Law Appellate Tribunal ('NCLAT') New Delhi, comprising...
IBC | Claim Submitted With Proof Cannot Be Overlooked Merely Because It Was Submitted In Wrong Form: Supreme Court
The Supreme Court on Monday (February 12) observed that the claim submitted by the Resolution Applicant (“RA”) under the Corporate Insolvency Resolution Process (“CIRP”) cannot be rejected/overlooked merely on the fact that the claim submitted appears to be in a different form other than the form in which the claim needs to be submitted. In the instant case, the resolution...
NCLT Orders Liquidation Of Mehul Choksi-Promoted Gitanjali Gems
Recently, the National Company Law Tribunal (NCLAT) Mumbai Bench has ruled for the liquidation of Gitanjali Gems, a jewelry retailing company headed by fugitive Mehul Choksi, under Section 33 of the Insolvency and Bankruptcy Code, 2016.The bench, comprising Kuldip Kumar Kareer as the judicial member and Anil Raj Chellan as the Technical member, stated, “On perusal of records, it is evident...
NCLAT Delhi: Definition Of Financial Debt U/S 5(8) Does Not Provide Disbursal To Be Made To Corporate Debtor Only
The National Company Law Appellate Tribunal ('NCLAT') New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Naresh Salecha (Technical Member) held that the definition of Financial Debt under Section 5(8) of Insolvency and Bankruptcy Code, 2016 ('IBC') does not use the expression that disbursal should be made to the Corporate Debtor only. Background Facts: Unicast...