IBC News
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...
NCLT Mumbai: Assets Of CD Held By Third Parties Must Be Released To RP For Revival And Resolution Of CD
The National Company Law Tribunal ('NCLT') Mumbai bench comprising Justice V.G. Bisht (Retd.) (Judicial Member) and Mr. Prabhat Kumar (Technical Member) held that assets of the Corporate Debtor held by third parties must be released to the Resolution Professional ('RP') for the resolution and revival Corporate Debtor. It also ruled that charge holders may file their claims in...
NCLT Kochi: Creditors Can't Initiate Insolvency Proceedings Against Personal Guarantor Without Establishing Independent Default By CD
The National Company Law Tribunal ('NCLT') Kochi, comprising Justice T Krishna Valli (Judicial Member) and Mr. Shyam Babu Gautam (Technical Member) dismissed the application to initiate insolvency proceedings against the Personal guarantors under Section 95 of Insolvency and Bankruptcy Code, 2016 ('IBC'). It held that creditors cannot initiate insolvency proceedings against...
NCLT Asks IBBI To Incorporate Provisions In CIRP Regulations For Treating Transferred Winding-Up Cases
The National Company Law Tribunal (NCLT) Principle Bench of Ramalingam Sudhakar (President) and Avinash K. Srivastava (Technical Member) has asked the Insolvency and Bankruptcy Board of India (IBBI) to amend the Corporate Insolvency Resolution Process (CIRP) regulations. This directive was issued by NCLT to address the handling of cases involving the winding up of...
Weekly Digest Of IBC Cases: 17th June 2024 To 23rd June 2024
NCLAT NCLAT Delhi: Pending Scheme Under Section 230 Of Companies Act, Against CD, Can't Be A Ground To Deny Admission Of CIRP Case Title: Grand Developers Pvt. Ltd. vs. Nitin Batra & Ors. Case Number: Company Appeal (AT) (Insolvency) No. 899 of 2024 & I.A. No. 3250 of 2024 The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Mr. Justice Ashok...
NCLAT Delhi: Pending Scheme Under Section 230 Of Companies Act, Against CD, Can't Be A Ground To Deny Admission Of CIRP
The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Mr. Justice Ashok Kumar Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that the pendency of a scheme involving the corporate debtor under Section 230 of the Companies Act, 2013 cannot be a ground to deny the admission of a Corporate Insolvency Resolution...
NCLT Mumbai Approves Demerger Scheme For Raymond And Raymond Lifestyle
The National Company Law Tribunal (NCLT), Mumbai bench of Kishore Vemulapalli (Judicial Member) and Anu Jagmohan Singh (Technical Member) has granted approval on for a composite scheme of arrangement involving Raymond Limited (RL), Raymond Lifestyle (RLL), and Ray Global Consumer Trading (RG). RL stated that the rationale behind the scheme was the distinct operational...
NCLAT Delhi: Claims Cannot Be Automatically Treated As CIRP Costs Unless Directly Related To CIRP And Approved By CoC
The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Mr. Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) laid down the criteria to determine whether a cost incurred by a Resolution Professional ('RP') during the Corporate Insolvency Resolution Process ('CIRP') qualifies as CIRP cost under Section 5(13)(c) of Insolvency and...
NCLT Kolkata: MSME Promoters Can Be Relaxed From Net Worth Criteria For Resolution Plan Submission, But Are Required To Deposit Security Deposit And EMD
The National Company Law Tribunal ('NCLT') Kolkata bench of Justice Bidisha Banerjee (Judicial Member) and Shri Arvind Devanathan (Technical Member) held that MSME promoters can be relaxed from the net worth eligibility criteria to submit a Resolution Plan but not be waived off from depositing Security Deposit and EMD. Background Facts: On 08.04.2022, Wearit Global Ltd....
NCLAT Delhi: Section 95(1) Of IBC Permits Creditors To Initiate Insolvency Proceedings Against Personal Guarantors Via A Resolution Professional
The National Company Law Appellate Tribunal ('NCLAT') Delhi bench, comprising Mr. Justice Ashok Bhushan (Chairperson) and Mr. Arun Baroka (Technical Member) held that Section 95(1) of Insolvency and Bankruptcy, Code, 2016 ('IBC') allows creditors to initiate insolvency process against a Personal Guarantor through a Resolution Professional ('RP'). It held that such an...
Adjudicating Authority Rejects Application For Initiating Personal Insolvency Resolution Process Due To Forum Shopping: NCLT Delhi
The National Company Law Tribunal, Delhi Bench, comprising Shri Bachu Venkat Balram Das (Judicial Member) and Shri Atul Chaturvedi (Technical Member), while adjudicating an application under Section 95 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) has held that the applicant has approached all possible forums for remedies, constituting forum shopping. It was stated that...
Speculative Investor Is Not A Financial Creditor: NCLT Chandigarh
The National Company Law Tribunal, Chandigarh Bench, comprising Shri Harnam Singh Thakur (Judicial Member) and Shri L.N Gupta (Technical Member), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) has held that speculative investor cannot claim the status and benefits as a Financial Creditor by virtue of being an allottee under...