IBC News
Dissenting Secured Creditor Can't Be Treated Higher Than Other Creditors U/S 53 Just Because They Enjoy Security Interest: NCLT Kolkata
The National Company Law Tribunal, Kolkata Bench, comprising of Shri Rohit Kapoor (Judicial Member) and Shri. Balraj Joshi (Technical Member), while adjudicating an Application under Section 60(5) of Insolvency and Bankruptcy Code, 2016 (“IBC”) in ICICI Bank Limited Vs Mr. Pratim Bayal (Resolution Professional)& Anr has reiterated that just because a creditor...
Claims Not Part Of The Resolution Plan Shall Extinguish Only After Resolution Plan Approval: NCLT Mumbai Reiterates
The National Company Law Tribunal, Mumbai Bench, comprising of Shri Kuldip Kumar Kareer (Judicial Member) and Shri. Shyam Babu Gautam (Technical Member), while adjudicating a Company Appeal under Section 42 of Insolvency and Bankruptcy Code, 2016 (“IBC”) in Dr. Shankar Sawant & Anr Vs Mr. Arun Kapoor (Resolution Professional) has reiterated that all claims not forming part of...
Insufficiency Of Stamp On Loan Documents Not Relevant For Admissibility Of Section 7 Petition: NCLT Mumbai Reiterates
The National Company Law Tribunal, Mumbai Bench, comprising of Shri Kuldip Kumar Kareer (Judicial Member) and Smt. Anuradha Sanjay Bhatia (Technical Member), while adjudicating a petition filed in Kotak Mahindra Bank Ltd. Vs M/s Hybro Foods Private Limited has reiterated that the insufficiency in the stamping of the loan documents is not a relevant ground for dismissing a...
Petition U/S 9 IBC Can Only Be Filed After Expiry Of 10 Day Period Under Section 8(2) IBC: NCLT Mumbai
The National Company Law Tribunal, Mumbai Bench, comprising of Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member), while adjudicating a petition filed in Aypols Polymers Private Limited Vs Suvarna Fibrotech Pvt Ltd has held that Petition under Section 9 of Insolvency and Bankruptcy Code, 2016 can only be filed after expiry of the 10 day...
NCLT Cannot Decide Controversies Relating To Attachment Of Property Under Benami Prohibition Act: NCLAT Chennai
The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Shri Naresh Salecha (Technical Member), while adjudicating an appeal filed in Mr. P. Eswaramoorthy v The Deputy Commissioner of Income Tax (Benami Prohibition), has held that NCLT is not the proper Fora to determine the controversies revolving...
Lease Premium & Lease Rent Not Included In Explanation To Section 14(1)(D) Of IBC: NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member), while adjudicating an appeal filed in Sunil Kumar Agarwal v New Okhla Industrial Development Authority, has held that Explanation to Section 14(1)(d) of IBC does not include lease premium or lease...
When Financial Creditors Have Not Been Paid In Full, Operational Creditors Cannot Claim A Higher Amount: NCLT Ahmedabad
The National Company Law Tribunal (“NCLT”), Ahmedabad Bench, comprising of Dr. Deepti Mukesh (Judicial Member) and Shri Ajai Das Mehrotra (Technical Member), while adjudicating a petition filed in Noble Resource International Pvt. Ltd. v Sona Alloys Pvt. Ltd., has held that when Financial Creditors have not been paid in full in the Resolution Plan, the Operational...
Group Entity Insolvency In India
Group Entity insolvency is a need for the hour to increase the recovery where the subsidiary is highly profitable company and the parent or other company of the group which is under financial distress and faces insolvency. The cost incurred on the brand value, advertisement and other mutual expenses which has been encashed by the group companies should also be made liable for the...
Weekly Digest Of IBC Cases: 7 March To 12 March 2023
NCLAT NCLAT Delhi Upholds Remitting Of Resolution Plan Back To COC For Compliance Of Sec 30(2) IBC Case Title: Noble Marine Metals Co Wll V Kotak Mahindra Bank Limited & Ors. Case No.: Company Appeal (AT) (Insolvency) No. 653 of 2022. The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Ms....
Dispute In The Quantum Of Debt Cannot Be A Ground For Rejection Of Insolvency Petition: NCLT Delhi Reiterates
The National Company Law Tribunal, New Delhi Bench, comprising of Shri P.S.N. Prasad (Judicial member) and Shri Rahul Bhatnagar (Technical Member), while adjudicating a petition filed in M/s Intec Capital Limited Vs M/s SRD Management Company Private Limited has reiterated that dispute over quantum of debt cannot be a ground for rejection of insolvency petition. The tribunal admitted...
'Assets',Have Proved To Be `Fictitious’/`Fraudulent’, Created In The`Books Of Accounts’,With An Intent To `Defraud’ The‘Creditors’;NCLAT Chennai
The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Shri Naresh Salecha (Technical Member), while adjudicating an appeal filed in Mr. Shibu Job Cheeran & Ors. v Mr. Ashok Velamur Seshadri, has held that for an application under Section 66 of IBC to succeed, it must be proved that (i) Directors participated...
IBBI Revises Format For Serving Copy Of Application To Board
The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a Circular dated 04.03.2023, revising the format in which a copy of petition under IBC is to be served to IBBI by the Applicant, before filing of such application for initiation of CIRP. Brief background The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 obligates an applicant...