IBC News
No NCLT Bench To Deny Hearing Through Hybrid Mode Or Video Conferencing; NCLT Issues Circular
The National Company Law Tribunal (“NCLT”) has issued a Circular dated 31.10.2023, directing that no NCLT Bench will deny access to video conferencing facility or hearing through hybrid mode to any Bar Member or Litigant, who is desirous of availing such facility. Brief Background The Supreme Court of India vide its order dated 15.09.2023 passed in Sarvesh Mathur v...
NCLT Ahmedabad: Application U/S 9 Is Not Maintainable If Operational Creditors Return Principal Amount Paid During The Pendency Of The CIRP Application.
The National Company Law Tribunal (“NCLT”), Ahmedabad Bench, comprising of Mr Shammi Khan (Judicial Member) and Mr Kaushalendra Kumar Singh (Technical Member) has allowed an application and held that any application filed under Section 9 of Insolvency and Bankruptcy Code (“IBC”) is not maintainable if Operational Creditors return the principal amount which was paid during...
NCLAT New Delhi : Dispute To Be ‘Truly In Existence’ At Time Of Reply Or Section 9 Application For Nullifying CIRP U/S 9 Of IBC
The National Company Law Appellate Tribunal (‘NCLAT’) Principal Bench, New Delhi comprising Mr. Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that the dispute raised must truly exist at the time of filing a reply to the Demand Notice under Section 8(2) of Insolvency Bankruptcy Code, 2016 (‘IBC’) or at the time of filing the Section 9 application...
NCLT Bengaluru: Issue Of Fixing EMD And Its Reasonableness In EOI, Is A Matter Which Comes Within The Scope Of CoC And Not NCLT.
The National Company Law Tribunal (“NCLT”), Bengaluru Bench, comprising of T. Krishnavalli (Judicial Member) and Mr Manoj Kumar (Technical Member) has dismissed an application and held that the issue of fixing Earnest Money Deposit (“EMD”) and its reasonableness in Expression of Interest (“EOI”), is a matter that comes within the scope of the "Commercial Wisdom" of...
IBC Resolution Plan Can't Ignore Government Dues : Supreme Court Dismisses Review Petitions Against 'Rainbow Papers'
The Supreme Court on Tuesday (October 31) dismissed a batch of review petitions filed against a 2022 judgment which held that the definition of a secured creditor under the Insolvency and Bankruptcy Code (IBC) 2016 included any government or governmental authority and that a resolution plan which ignored dues to the government was liable to be rejected.A bench comprising Justices AS Bopanna...
NCLAT New Delhi: Jurisdiction Of NCLT Under IBC Is Summary In Nature, Not Extensive As A Civil Court To Enquire Into Disputes
The National Company Law Appellate Tribunal (‘NCLAT’), Principal Bench, New Delhi comprising of Mr. Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) dismissed an appeal filed by Vistra ITCL (India) Ltd. (Respondent). It held that the scope and jurisdiction of National Company Law Tribunal (‘NCLT’) under the Insolvency and Bankruptcy Code, 2016...
NCLT Bengaluru Condones Delay Of 1191 Days In Submission Of Proof Of Claim By SEBI Before Liquidator
The National Company Law Tribunal (NCLT), Bengaluru Bench, comprising of Shri P. Mohan Raj (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), has condoned the delay of 1191 days in submission of proof of claim by Securities and Exchange Board of India (“SEBI”) before the Liquidator of Corporate Debtor. The Liquidator has been directed to consider the belated claim...
NCLT Kolkata: Registration Of Assignment Of Debt Is Not Mandatory For CIRP U/S 7 Of IBC
The National Company Law Tribunal (‘NCLT’) Kolkata Bench comprising Smt. Bidisha Banerjee (Judicial Member) and Shri Arvind Devanathan (Technical Member) held that the registration of the assignment of debt is not mandatory for the Corporate Insolvency Resolution Process (‘CIRP’) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (‘IBC’). Further, the Corporate...
Mittal Corp Ltd. To Merge With Subsidiary Of Shyam Metalics & Energy, NCLT Mumbai Approves Resolution Plan
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri Kuldip Kumar Kareer (Judicial Member) and Shri Anil Raj Chellan (Technical Member), has approved the Resolution Plan submitted by Shyam Sel and Power Limited (Subsidiary of Shyam Metalics & Energy Ltd.) for Mittal Corp Ltd. The resolution plan is valued at Rs. 351 Crores and provides for merger of the...
NCLAT New Delhi: Haircut In Resolution Plan Cannot Be Construed As Being Violative Of Section 30(2)(E) Of IBC
The National Company Law Appellate Tribunal (‘NCLAT’) Principal Bench, New Delhi comprising Mr. Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that a haircut in Resolution Plan cannot be construed as being violative of Section 30(2)(e) of the Insolvency and Bankruptcy Code, 2016 (‘IBC’) and the minority...
NCLAT Delhi: Fine For Non-Cooperation By Ex-Management Under IBC Is A “Penalty” Not “Cost” And Outside NCLT’s Jurisdiction
The National Company Law Appellate Tribunal (“NCLAT”), Delhi Bench, comprising of Justice Anant Bijay Singh (Judicial Member) and Mr Naresh Salecha (Technical Member) has held that the fine imposed on non-cooperation by ex-management u/s 19(2) or 34(3) of Insolvency & Bankruptcy Code, 2016 (“IBC”) is covered under the term “penalty” and not “cost” under Rule 149 of...
NCLT Delhi Approves Resolution Plan For ENN TEE International Limited
The National Company Law Tribunal (“NCLT”), Delhi Bench, comprising of Justice Ramalingam Sudhakar (Retd.) (Judicial Member) and Avinash Kumar Srivastava (Technical Member) has approved the Resolution Plan submitted by ENN TEE International Limited through its Promotor. Background Facts ENN TEE International Limited (“Corporate Debtor”) is a registered MSME engaged in...