IBC News
Special Bench At NCLT Mumbai (Court No. V) For 15th And 16th July 2024
The National Company Law Tribunal ('NCLT') has issued a circular dated 02.07.2024 intimating the constitution of the Special Bench at NCLT Mumbai (Court No.V) for 15.07.2024 and 16.07.2024 since Ms. Reeta Kohli (Judicial Member) is on leave during the said duration. The Special Bench shall attend to the matters listed before Ms. Reeta Kohli (Judicial Member) and Smt. Madhu...
NCLT Mumbai: Notice To CD Recalling Loan Facility Doesn't Constitute Demand On Corporate Guarantor
The National Company Law Tribunal ('NCLT') Mumbai bench comprising Justice K. R. Saji Kumar (Judicial Member) and Mr. Sanjiv Dutt (Technical Member) held that notice to Corporate Debtor recalling loan facility doesn't constitute Demand on Corporate Guarantor. Background Facts: State Bank of India (“SBI'), the financial creditor, extended various creditor facilities...
Monthly Digest Of IBC Cases: June 2024
HIGH COURTS Official Liquidator Must Adhere To Ethical Principles And Fairness To Discharge Their Duties Under IBC: Delhi High Court Case Title: Sundaresh Bhat vs Insolvency And Bankruptcy Board of India Case No.: W.P.(C) 14389/2022 The Delhi High Court bench of Justice Subramonium Prasad held that official liquidators must adhere to ethical principles and...
IBBI Issues Circular Directing Insolvency Professionals To File Forms To Monitor Voluntary Liquidation Processes On Electronic Platform Only
The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 28.06.2024 directing the Insolvency Professionals to file the forms to monitor the Voluntary Liquidation processes under IBC on the electronic platform hosted on IBBI's website at https://www.ibbi.gov.in. only. The circular provides that the Insolvency Professionals shall access the platform with...
IBBI Issues Circular Directing IPs To File Liquidation Process Forms On Electronic Platform Only
The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 28.06.2024 directing the Insolvency Professionals to file the forms to monitor the liquidation process under IBC on the electronic platform hosted on IBBI's website at https://www.ibbi.gov.in. only. The circular provides that the Insolvency Professionals handling the liquidation assignment shall...
Weekly Digest Of IBC Cases: 24th June 2024 To 30th June 2024
HIGH COURTS Indian Courts Are Not Bound By Foreign Insolvency Judgments From Non-Reciprocating Countries: Calcutta High Court Case Title: Uphealth Holdings, INC. vs Dr. Syed Sabahat Azim & Ors. Case No.: C.O. No. 241 of 2024 The Calcutta High Court single judge bench of Justice Shampa Sarkar held that without a comprehensive cross-border insolvency framework, Indian...
Indian Courts Are Not Bound By Foreign Insolvency Judgments From Non-Reciprocating Countries: Calcutta High Court
The Calcutta High Court single judge bench of Justice Shampa Sarkar held that without a comprehensive cross-border insolvency framework, Indian courts do not recognize or enforce moratorium orders from non-reciprocating countries, such as the U.S., and thus are not obligated to stay ongoing suits due to such foreign proceedings. It was held that the Trial Court could consider the...
ZEE-Sony Failed Merger: NCLT Grants Zee Entertainment Permission To Withdraw Merger Implementation
The National Company Law Tribunal (NCLT) Mumbai bench has granted Zee Entertainment Enterprises Limited (ZEEL) permission to withdraw its application seeking the implementation of a merger arrangement with Sony Group Corp-owned Culver Max Entertainment and Bangla Entertainment. This decision follows the termination of the merger agreement by Culver Max and Bangla Entertainment on...
NCLAT: Assignment Agreement By Corporate Debtor, Malafide Exercise To Prolong CIRP.
The National Company Law Appellate Tribunal, Principal Bench, New Delhi of Justice Ashok Bhushan (Chairperson), Barun Mitra (Technicial Member) and Arun Baroka (Technical Member) has upheld a decision of NCLT, Mumbai and held Assignment Agreement initiated by the Corporate Debtor was a deliberate strategy intended to introduce obstacles and prolong the Corporate Insolvency...
NCLT Recalls Order Following Karnataka High Court Decision To Maintain Status Quo On IBBI Recommendation
The National Company Law Tribunal (NCLT), Chennai Bench of Ravichandran Ramasamy (Technical Member) and Jyoti Kumar Tripathi (Judicial Member) has recalled its order. This order follows a directive from the Karnataka High Court, which ordered maintaining the status quo on the Insolvency and Bankruptcy Board of India's (IBBI) recommendations for appointment of liquidator other...
Essel Group's Shirpur Gold Refinery, NCLT Initiates Insolvency Proceedings Following ₹92 Crore Default
Subhash Chandra-promoted Essel Group's Shirpur Gold Refinery Limited (SGRL) has been admitted for corporate insolvency resolution following an application filed by Prudent ARC at the Mumbai bench of the National Company Law Tribunal (NCLT). The application arose after SGRL defaulted on dues of approximately ₹92 crore, which included a ₹65-crore loan and...
NCLT Hyderabad: Tribunals Have Jurisdiction Under S. 59 Of Companies Act To Refer Seriously Disputed Questions To Civil Court For Detailed Investigation
The National Company Law Tribunal ('NCLT') Hyderabad bench comprising Justice Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Charan Singh (Technical Member) dismissed a petition filed under Section 59 of the Companies Act, 2013 and referred the matter to Civil Court for a detailed investigation. It held that: “The only embargo on the Jurisdiction of...