IBC News
Arcelormittal’s Resolution Plan For Essar Steel, A Creditor Files Recall Application ; NCLT Ahmedabad Issues Notice
The National Company Law Tribunal (“NCLT”), Ahmedabad Bench, comprising of Shri Shammi Khan (Judicial Member) and Dr. Velamur G Venkata Chalapathy (Technical Member), has issued notice in an application seeking recall of the order dated 08.03.2019 whereby the resolution plan of ArcelorMittal India Pvt. Ltd. was approved for Essar Steels India Ltd. by the NCLT.The Applicants are creditors...
NCLAT Issues Instructions For Joining Video Conferencing Proceedings, Prescribes Dress Code
The National Company Law Appellate Tribunal (“NCLAT”) has issued a circular intimating the instructions for joining virtual hearing before the NCLAT New Delhi and NCLAT Chennai benches. Platform for conducting Virtual Hearing The matters shall be heard by the NCLAT Benches through web-based video-conferencing system on the ‘CISCO Webex Meeting’ platform. Any party joining...
Weekly Digest Of IBC Cases: 6th - 12th November 2023
SUPREME COURTSupreme Court Upholds Constitutionality Of IBC Provisions Relating To Personal Guarantors; Says Adjudicatory Role Can't Be Read Into Sec 97Case Title: Surendra B. Jiwrajika and Anr. vs. Omkara Assets Reconstruction Private Limited Case No.: SLP(C) No. 016464/2021 The Supreme Court Bench comprising Chief Justice DY Chandrachud, Justices JB Pardiwala and Justice Manoj Misra, has...
Insolvency & Bankruptcy Code : Section 14 Does Not Bar Finalisation Of Assessment, Adjudication Proceedings: Kerala High Court
The Kerala High Court recently laid down that assessment orders could not be set aside on the ground of the Official Liquidator not having been heard while finalizing the assessment, since Section 14 of IBC does not bar finalisation of the assessment and adjudication proceedings in respect of the taxes. "On the resolution once the reference has been admitted, there is moratorium for recovery...
NCLAT Delhi: Appellants Who Filed Their Claims As Real Estate Allottees Are A Part Of Home Buyers And Cannot Ask Refund Separately
The National Company Law Appellate Tribunal (“NCLAT”), Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Mr Naresh Salecha (Technical Member) has dismissed an appeal and held that the Appellants, who have filed their claims as Real Estate Allottees, are considered part of the home buyers. Therefore, if the home buyers have already been represented...
Supreme Court Upholds Constitutionality Of IBC Provisions Relating To Personal Guarantors; Says Adjudicatory Role Can't Be Read Into Sec 97
In a significant judgment, the Supreme Court on Thursday (November 9) upheld the constitutionality of the provisions of the Insolvency and Bankruptcy Code (IBC) relating to Personal Guarantors' Insolvency Resolution, which were introduced through the amendments made in 2019.The Court held that these provisions (Section 95 to 100 IBC) cannot be held as unconstitutional for not affording...
NCLAT Delhi: Benefit Under Section 17 Of Limitation Act Is Not Available When Fraud Was Played In Creditor Company And Not In Company Of Corporate Debtor
The National Company Law Appellate Tribunal (“NCLAT”), Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson), Mr Barun Mitra and Mr Arun Baroka (Technical Members) has rejected an appeal and held that benefits under Section 17 of the Limitation Act, 1963 (“Limitation Act”) for filing a belated claim is not available when the fraud was played in the Creditor Company and not in...
Time Spent In Obtaining Legal Opinion And Engaging Counsel Is Not ‘Sufficient Cause’ For Condonation Of Delay In Filing Of Appeal: NCLAT Chennai
The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Ms. Shreesha Merla (Technical Member), has held that the time spent in obtaining legal opinion and engagement of counsel is not a ‘sufficient cause’ to condone the delay in filing of appeal under proviso to Section 61(2) of IBC.The Bench was adjudicating...
NCLT Delhi: Criteria For Determination Of Limitation Period And Date Of Default With Respect To Debt Are Distinct Questions Of Law And Fact And Cannot Be Evaluated Similarly
The National Company Law Tribunal (“NCLT”), Delhi Bench, comprising of Mr. Manni Sankariah Shanmuga Sundaram (Judicial Member) and Dr. Binod Kumar Sinha (Technical Member) has rejected an application and held that as per Sec 10A of Insolvency and Bankruptcy Code, 2016 (“IBC”), no IBC proceedings can be initiated against the Corporate Debtor for the default which has occurred between...
NCLAT Delhi: Claims Cannot Be Entertained After Approval Of Resolution Plan By CoC Even If Resolution Plan Is Still Pending For Approval By NCLT
The National Company Law Appellate Tribunal (“NCLAT”), Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson), Mr Barun Mitra and Mr. Arun Baroka (Technical Members) has rejected an appeal and held that claims cannot be entertained after approval of the Resolution Plan by Committee of Creditors (“CoC”) even if the Resolution Plan is still pending for approval of the...
NCLT Mumbai: 10-Day Demand Notice Period Cannot Be Excluded When Calculating The Limitation Period For Filing A Petition U/S 9 IBC.
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Mr Kuldip Kumar Kareer (Judicial Member) and Mr Anil Raj Chellan (Technical Member) has dismissed a petition and held that Insolvency and Bankruptcy Code, 2016 (“IBC”) has no provision that a 10-day period of Demand Notice is liable to be excluded while reckoning the period of limitation for filing the petition...
IBBI Proposes Real Estate Related Changes In CIRP & Liquidation Regulations, Invites Public Comments Till 28th November 2023
The Insolvency and Bankruptcy Board of India (“IBBI”) on 06.11.2023 has published a Discussion Paper on Real-Estate related proposals to be introduced in Corporate Insolvency Resolution Process (CIRP) & Liquidation process under the Insolvency and Bankruptcy Code, 2016 (“IBC”). Accordingly, amendments have been proposed to IBBI (Insolvency Resolution Process for Corporate...