Monthly Digest Of IBC Cases: 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...

Official Liquidator Must Adhere To Ethical Principles And Fairness To Discharge Their Duties Under IBC: Delhi High Court

The Delhi High Court bench of Justice Subramonium Prasad held that official liquidators must adhere to ethical principles and demonstrate an unwavering commitment to fairness to discharge their duties under the Insolvency and Bankruptcy Code. The bench held that: “the role of the liquidator in insolvency proceedings is paramount to the entire process. The liquidation...

No Provision In IBC Mandates Treatment Of Unrelated Party At Par With Related Party: NCLAT Principal Bench, New Delhi

The National Company Law Appellate Tribunal, Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Judicial Member), Shri Naresh Salecha and Shri Indevar Pandey (Technical Members), while adjudicating an application under Section 61 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in West Coast Paper Mills Ltd. vs Bijay Murmuria & Ors. has held that there is...

Settlement Agreement During Pendency Of Section 7 Petition Does Not Bar From Filing Second Section 7 Petition: NCLAT Delhi

The National Company Law Appellate Tribunal, Delhi Bench, comprising Justice Rakesh Kumar Jain (Judicial Member), Shri Naresh Salecha and Shri Indevar Pandey (Technical Members), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Desh Bhushan Jain, Erstwhile Director of Angel Promoters Pvt. Ltd. vs Abhay Kumar, IRP of...

Weekly Digest Of IBC Cases: 27th May 2024 To 02nd June 2024

NCLAT NCLAT Upholds Adani Goodhomes Bid With 93% Haircut For Radius Estate Case Title: Beacon Trusteeship Ltd vs. Jayesh Sanghrajka & Ors and connected petitions Case No: Company Appeal (AT) (Insolvency) No. 1494 – 1495 of 2022 The National Company Law Appellate Tribunal ('NCLAT'), New Delhi comprising Justice Ashok Bhushan (Chairperson) and Barun...

NCLAT Upholds Adani Goodhomes Bid With 93% Haircut For Radius Estate

The National Company Law Appellate Tribunal ('NCLAT'), New Delhi comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) upholds the Resolution Plan submitted by Adani Goodhomes for the real estate company Radius Estate as part of its Corporate Insolvency Resolution Process ('CIRP'). Background Facts: The Order was issued in response to an appeal...

Compulsory Convertible Debentures Having No Obligation Of Repayment To Be Treated As Financial Debt: NCLAT Chennai

The National Company Law Appellate Tribunal, Chennai Bench, comprising Justice Rakesh Kumar Jain (Judicial Member) and Shri Ajai Das Mehrotra (Technical Member), while adjudicating an application under Section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Shubham Corporation Private Limited vs Kotoju Vasudeva Rao has held that the Compulsory Convertible Debentures having...

NCLAT Delhi: Refund Of Security Deposit Contingent Upon Executing A Leave And License Agreement Doesn't Constitute An Operational Debt Under IBC

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Mr. Justice Yogesh Khanna (Judicial Member) and Mr. Arun Baroka (Technical Member) held that the claim for refund of a Security Deposit linked to a contractual obligation contingent upon executing a leave and license agreement does not constitute an Operational Debt under the Insolvency and Bankruptcy Code,...

NCLT Replaces Resolution Professional In Subhash Chandra's Personal Insolvency Case

The National Company Law Tribunal (NCLT), New Delhi bench of Justice Ashok Kumar Bhardwaj and Subrata Kumar Dash has replaced Raj Kamal Saraogi as the Resolution Professional (RP) in the insolvency proceedings involving Subhash Chandra, the Chairman Emeritus of Zee Entertainment Enterprises Limited (ZEEL) Chandra, serving as the personal guarantor for certain unresolved...

Once Statutory Requirements Of Amalgamation Scheme Are Met, NCLT Has Supervisory Role, Can't Change Appointment Date: NCLAT

The National Company Law Appellate Tribunal, Principal Bench of Justice Yogesh Khanna (Judicial Member), and Ajai Das Mehrotra (Technical Member) held the appointed date in a scheme of arrangement cannot be changed by the NCLT. The bench held that once the statutory requirements have been met, and there are no violations of the law or any aspects of the proposed scheme that are...

NCLAT Delhi: NCLT Rule 49 Gives Ample Authority To Adjudicating Authority To Proceed “Ex Parte” As “Appearance” Refers To Appearance By CD Or By Authorised Representative

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 Rule 49 of NCLT Rules, 2016 gives ample jurisdiction to the Adjudicating Authority to proceed for ex parte as the corporate debtor does not appear. “Appearance” as contemplated under Rule 49(1)...

NCLAT Issues Notice For Sittings Of NCLAT Principal Bench, New Delhi During Of Annual Summer Vacation

The Registrar of the National Company Law Appellate Tribunal (“NCLAT”) has issued a notice dated 27.05.2024, intimating that NCLAT, Principal Bench, New Delhi, the Registry shall function during the period of Annual Summer Vacation from 03.06.2024 to 30.06.2024. The e-Filing of cases shall be operational and urgent matters may be taken up for hearing as per the decision of...