IBC News
Weekly Digest Of IBC Cases: 30th October To 5th November 2023
Supreme CourtIBC Resolution Plan Can't Ignore Government Dues: Supreme Court Dismisses Review Petitions Against 'Rainbow Papers' Case title: Sanjay Agarwal v. State Tax Officer Citation: 2023 LiveLaw (SC) 939 The Supreme Court has dismissed a batch of review petitions filed against a 2022 judgment which held that the definition of a secured creditor under the Insolvency and...
Operational Creditor Can’t Object To Approval Of Resolution Plan Before NCLT: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai Bench, comprising of Justice V.G. Bisht (Retd.) (Judicial Member) and Shri Prabhat Kumar (Technical Member), has held that an Operational Creditor whose claim has been admitted by the Resolution Professional, cannot be made a respondent in application for approval of resolution plan pending before the NCLT. Further, the...
NCLT Delhi: Section 9 Application Can’t Be Allowed If Corporate Debtor Is Inactive, Due To Default In Filing Statutory Returns
The National Company Law Tribunal (“NCLT”), Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri Atul Chaturvedi (Technical Member) has dismissed an application and held that any application under section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC”) for initiation of Corporate Insolvency Resolution Process (“CIRP”) cannot be allowed if...
NCLAT Delhi: An Operational Creditor Who Is A Participant In Meetings Of CoC Has No Right To Seek A Copy Of Information Memorandum.
The National Company Law Appellate Tribunal (“NCLAT”), Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Mr Naresh Salecha (Technical Member) has allowed an appeal and set aside an order of National Company Law Tribunal (“NCLT”) observing that the operational creditor who is a participant in meetings of the Committee of Creditors (“CoC”) has no right...
IBBI Proposes Changes To CIRP Regulations, Invites Public Comments Till 22nd November 2023
The Insolvency and Bankruptcy Board of India (“IBBI”) on 01.11.2023 has published a Discussion Paper on amendments to IBBI (Insolvency Resolution Process for Corporate Process) Regulations, 2016 (“CIRP Regulations”). The IBBI has also invited comments from the public/stakeholders regarding proposed changes to the CIRP Regulations. The comments can be submitted online...
IBC | Tax & Customs Dues To Be Paid As Per Waterfall Mechanism Under Section 53 : Supreme Court
The Supreme Court Bench comprising Justice Sanjiv Khanna and Justice S.V.N. Bhatti, has clarified that the dues of the Central Board of Indirect Taxes & Customs, Department of Revenue, will be paid as per the waterfall mechanism given under Section 53 of the Insolvency and Bankruptcy Code, 2016 (“IBC”).Section 53 of IBC provides the order of priority in which proceeds from sale...
Monthly Digest Of IBC Cases: October 2023
Supreme Court Homebuyers Who Secure RERA Decrees Can't Be Treated Differently From Other Financial Creditors Under IBC: Supreme Court The Supreme Court bench comprising Justices S Ravindra Bhat and Aravind Kumar, has held that homebuyers cannot be treated differently from other "financial creditors" under the Insolvency and Bankruptcy Code (IBC) 2016 just because they have...
NCLT Bengaluru & NCLT Kochi Bench Reconstituted W.E.F. 1st November 2023
The National Company Law Tribunal (“NCLT”) has issued a circular dated 31.10.2023, intimating the reconstitution of NCLT Bengaluru and NCLT Kochi Bench with effect from 01.11.2023. Shri Khetrabasi Biswal (Judicial Member) has been newly appointed as a Member of the NCLT. In view of his appointment, the following NCLT Benches have been reconstituted: NCLT Bengaluru...
NCLT Mumbai Approves Liquidation Of TV Products India Private Limited
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising Kuldip Kumar Kareer (Judicial Member) and Anil Raj Chellan (Technical Member) has approved the Liquidation of TV Products India Private Limited. Background Facts TV Products India Private Limited (“Corporate Debtor”) is a Non-govt company, registered at ROC-Mumbai. It was incorporated on 15 September...
NCLT Allahabad Allows SBI’s Application For Withdrawal Of Section 7 Petition Against Bajaj Hindustan Sugar
The National Company Law Tribunal (‘NCLT’) Allahabad Bench comprising of Shri Praveen Gupta (Judicial Member) and Shri Ashish Verma (Technical Member) allowed the State Bank of India’s (‘SBI’) application for withdrawal of the Section 7 petition filed under the Insolvency and Bankruptcy Code, 2016 (‘IBC’) against Bajaj Hindusthan Sugar (Corporate Debtor). The SBI...
NCLT Mumbai: Mere Mention Of SARFAESI Proceeding Is Not “Sufficient Cause” For The Condonation Of Delay Under Section 5 Of Limitation Act, 1963
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Justice Virendrasingh Bisht (Retd.) (Judicial Member) and Mr Prabhat Kumar (Technical Member) has rejected an application filed under Section 5 Limitation Act, 1963 (“Limitation Act”) and disposed of a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”). NCLT observed that...
NCLT Kochi: Moratorium U/S 96 And 101 Of IBC Cannot Be Meant To Prohibit The Right To Action U/S 7, 9 Or 10 Of IBC
The National Company Law Tribunal (“NCLT”), Kochi Bench, comprising of Justice T Krishna Valli (Retd.) (Judicial Member) and Shri. Shyam Babu Gautam (Technical Member) dismissed a stay application and has held that the moratorium under sections 96 and 101 of the Insolvency and Bankruptcy Code “(IBC”) cannot be meant to prohibit the right to action under sections 7, 9 or 10 of IBC...