IBC News
Colossal Delay Of 296 Days By NCLT In Approving Resolution Plan After Approval Of Resolution Plan By Committee Of Creditors In FY 2021-22
"Judicial delay was one of the major reasons for the failure of the insolvency regime that was in effect prior to IBC. We cannot let the present insolvency regime meet the same fate." -Justice DY Chandrachud in Ebix v. Educompp, 2022 The Insolvency & Bankruptcy Code, 2016 (IBC/Code) was enacted by the Government of India to eliminate the delays in resolving insolvency and to...
IBC Cases Weekly Round-Up: 19 September To 25 September, 2022
Supreme Court IBC - Approval Of A Resolution In Respect Of One Borrower Cannot Discharge A Co-Borrower: Supreme Court Case Title: Maitreya Doshi vs Anand Rathi Global Finance Ltd Case No.: 2022 LiveLaw (SC) 789, CA 6613 OF 2021 The Supreme Court Bench comprising of Justices Indira Banerjee and JK Maheshwari has held that approval of a resolution in respect of one borrower...
NCLT Delhi Issues Notice To Spicejet In An Insolvency Plea U/S 9 Of IBC
The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri P.S.N. Prasad Judicial Member) and Shri Rahul Bhatnagar (Technical Member), while adjudicating a petition filed in Acres Buildwell Pvt. Ltd. v Spicejet Ltd. , has issued notice to Spicejet Ltd. to appear and file its Reply in a petition under Section 9 of IBC filed against it. The next date of hearing...
Asian Hotels (West), Owner Of Hyatt Regency (Mumbai), Admitted Into Insolvency: NCLT Delhi
The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri Dharminder Singh (Judicial Member) and Shri Binod Kumar Sinha (Technical Member), while adjudicating an application filed in JM Financial Asset Reconstruction Co. Ltd. v Asian Hotel (West) Ltd., has initiated Corporate Insolvency Resolution Process ("CIRP") against Asian Hotels (West) Ltd. over a default of...
Moratorium Doesn't Apply On Property Unlawfully In Possession Of Corporate Debtor: NCLT Hyderabad
The National Company Law Tribunal ("NCLT"), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Veera Brahma Rao Arekapudi (Technical Member), while adjudicating an application filed in State Bank of India v Meenakshi Energy Ltd., has held that moratorium imposed under Section 14 of IBC is not applicable to properties which are in...
Analyzing The Applicability Of Section 48 Of The GVAT On The Frontier Of Section 53 Of IBC, 2016
Recently, in the case of State Tax Officer v. Rainbow Papers Ltd, 2022 SCC OnLine SC 1162, decided by a bench comprising Indira Banerjee and AS Bopanna, JJ has reversed the earlier order wherein it was held that Section 53 of Insolvency and Bankruptcy Code will prevail over GVAT Act as the first claim over the property of Corporate Debtor cannot be made by the Government. Section 48 of...
IBC - No Bar To Withdraw Admitted CIRP Application Before Constitution Of Committee Of Creditors : Supreme Court
The Supreme Court observed that there is no bar to withdrawal of an admitted CIRP application before constitution of Committee of Creditors.The settlement cannot be stifled before the constitution of the Committee of Creditors in anticipation of claims against the Corporate Debtor from third persons, the bench of Justices Indira Banerjee and JK Maheshwari said.The court observed thus...
DRT Can Impose Cost But Not Other Stringent Conditions While Restoring Application U/S 22(2)(g) RDB Act: Madhya Pradesh HC
The Madhya Pradesh High Court recently set aside an order of the Debt Recovery Tribunal, whereby an application for restoration under Section 22(2)(g) of the Recovery of Debts and Bankruptcy Act was allowed subject to fulfilling certain conditions.The division bench comprising Justice Sujoy Paul and Justice P.C. Gupta observed that there was no enabling provision under the Act which vested...
IBC - Approval Of A Resolution In Respect Of One Borrower Cannot Discharge A Co-Borrower : Supreme Court
The Supreme Court observed that approval of a resolution in respect of one borrower cannot discharge a co-borrower.If there are two borrowers or if two corporate bodies fall within the ambit of corporate debtors, there is no reason why proceedings under Section 7 of the IBC cannot be initiated against both the Corporate Debtors, the bench of Justices Indira Banerjee and JK Maheshwari...
COC To Function As Stakeholder's Consultation Committee For First 60 Days: IBBI Amends Liquidation Process Regulations
The Insolvency and Bankruptcy Board of India ("IBBI") on 16.09.2022 has notified amendments to the IBBI (Voluntary Liquidation Process) Regulations, 2016 ("Voluntary Liquidation Regulations") and IBBI (Liquidation Process) Regulations, 2016 ("Liquidation Regulations") for a second time. These amended Regulations have come into force on 16.09.2022. Detailed Overview In exercise of...
Corporate Debtor Willing To Pay Full Amount, Financial Creditor Opposes , NCLAT Upholds Dismissal Of Section 7 Petition
The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Justice M. Satyanarayana Murthy (Judicial Member) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in Reliance Commercial Finance Limited v Darode Jog Builder Pvt. Ltd., has upheld the Adjudicating Authority's decision to not admit a...
Demystifying The Effect Of Insolvency Proceedings In India On Arbitrations
Globalization has been accompanied by cross-border commercial disputes and arbitration has become the default setting for adjudication both nationally and globally.[1] This swing towards arbitration has prompted India to re-equip laws according to international standards. Concurrently, the government has introduced the Insolvency and Bankruptcy Code in 2016 ["IBC"] that has transformed...