Weekly Digest Of IBC Cases: 03rd June 2024 To 09th June 2024
Sachika Vij
9 Jun 2024 11:30 AM GMT
HIGH COURTS
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 demonstrate an unwavering commitment to fairness to discharge their duties under the Insolvency and Bankruptcy Code.
Case Title: Union of India & Anr. vs Ramswarup Lohh Udyog & Ors
Case No: IA No. GA/2/2024
The Calcutta High Court bench of Justice Sugato Majumdar held that after the insolvency proceeding is over and the resolution plan is duly approved by the National Company Law Tribunal, the corporate entity starts with a clean slate on rejuvenation.
Case Title: Omkara Assets Reconstruction in the matter of ICICI Bank Limited vs Classic Diamonds (India) Limited
Case Number: Interim Application (L) No. 25210 of 2022 in Company Petition No. 317 of 2012
The Bombay High Court bench of Justice Abhay Ahuja held that as long as no irreversible actions, such as actual sales of immovable or movable properties, have occurred, the Company Court retains the discretion to transfer proceedings to the NCLT.
Case Title: Anurodh Mittal vs Rehat Trading Company
Case No.: Miscellaneous Criminal Case No. 17782 of 2024
The Madhya Pradesh High Court bench of Justice Gurpal Singh Ahluwalia has held that merely because of the initiation of proceedings under the Insolvency and Bankruptcy Code, 2016 the signatory of the cheque cannot escape from his liability under the Negotiable Instruments Act, 1881.
NCLAT
NCLAT Dismisses Appeal Raised By Byju's Investors Against Alleged Violation Of NCLT Directives
Case Title: MIH Edtech Investments and Ors. vs Think and Learn Pvt Ltd
Case No.: Company Appeal (AT) (CH) No.24/2024 (IA No.420/2024) (IA No.422/2024) (IA No.421/2024)
The National Company Law Appellate Tribunal Chennai bench comprising Justice Sharad Kumar Sharma and Jatindranath Swain (Technical Member) dismissed the appeals brought by four investors since the Adjudicating Authority has not made any final decision on any significant rights against the investors and instead has merely requested them to file an affidavit to support their claims regarding the alleged violation of its directives.
Case Title: Oriental Carbon & Chemicals Ltd vs OCCL Ltd
Case No.: Company Appeal (AT) No. 144 of 2024
The National Company Law Appellate Tribunal, Principal Bench of Justice Yogesh Khanna (Judicial Member) and Ajai Das Mehrotra (Technical Member) held that if the Company Court finds no violation of any law and the proposed scheme is not objectionable or against public policy, then the NCLT lacks jurisdiction to question the commercial judgment of those who approved it.
Case Title: Commissioner of State Tax Department vs Ramchandra Dallaram Chaudhary (Liquidator)
Case No.: Company Appeal (AT) (Ins) No. 34 of 2024 & I.A. No. 105, 106, 990 of 2024
The National Company Law Appellate Tribunal Delhi, comprising Mr. Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member), and Mr. Indevar Pandey (Technical Member) held that the claims of Tax Assessment Orders passed during the moratorium under Sections 14 & 33(5) of Insolvency and Bankruptcy Code, 2016 can be considered as Unsecured Operational Debt.
Case Title: Royal India Corporation Ltd. vs Mr. Nandkishor Vishnupant Deshpande, RP of Royal Refinery Pvt. Ltd. and Ors.
Case No.: Company Appeal (AT) (Ins) No. 137 of 2021
The National Company Law Appellate Tribunal Delhi comprising Justice Rakesh Kumar Jain (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member) held that proceedings under Section 66 of Insolvency and Bankruptcy Code, 2016 (“IBC”) for fraudulent or wrongful trading can be initiated against third parties.
Case Title: Chintan Jhunjhunwala vs Avani Towers Private Limited & Ors
Case No.: Company Appeal (AT) (Insolvency) No. 769 of 2024
The National Company Law Appellate Tribunal, Principal Bench, New Delhi comprising Shri Justice Ashok Bhushan (Judicial Member) and Shri Barun Mitra and Shri Arun Baroka (Technical Members) held that Refundable Security Deposit carrying interest in development agreement constitutes under Section 5(8) of IBC since the development agreement has the effect of a commercial transaction.
No Provision In IBC Mandates Treatment Of Unrelated Party At Par With Related Party: NCLAT New Delhi
Case Title: West Coast Paper Mills Ltd. vs Bijay Murmuria & Ors.
Case No. Company Appeal (AT) (Ins.) No. 1272 of 2019
The National Company Law Appellate Tribunal, Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Judicial Member), Shri Naresh Salecha and Shri Indevar Pandey (Technical Members), held that there is no provision of IBC, which mandates that the related party should be paid in parity with unrelated party. It was held that the Committee of Creditors and Adjudicating Authority were well within their rights not to treat a related party unsecured creditor on par with secured financial creditors.
NCLT
NCLT Mumbai Admits Personal Insolvency Application Against Videocon's Promoter Rajkumar Dhoot
Case Title: State Bank of India through Asish Narayan vs Mr. Rajkumar Nandlal Dhoot
Case No.: C.P. (IB) NO. 1195/MB/2020
The National Company Law Tribunal Mumbai bench, comprising Justice V.G. Bisht (Judicial Member) and Mr. Prabhat Kumar (Technical Member) has admitted personal insolvency application against Mr. Rajkumar Nandlal Dhoot, Promoter and Co-owner, of Videocon Industries Limited.
Case Title: ICICI Bank Limited vs Jaiprakash Associates Limited
Case No.: CP (IB) No. 330/ALD/2018 with IA No.263 of 2024 and IA No. 406 of 2023
The Allahabad bench of the National Company Law Tribunal has directed the initiation of insolvency proceedings against Jaiprakash Associates Limited (JAL), a prominent firm within the Jaypee Group. This decision follows insolvency petitions filed by ICICI Bank in 2018 and State Bank of India (SBI) in 2022, aiming to recover debts amounting to several thousand crores.
Case Title: In the matter of Mr. Siri Kishan Aggarwal
Case No.: CP IB NO. 403/ND/2023
The National Company Law Tribunal Court-V, New Delhi bench of Mahendra Khandelwal (Judicial Member) and Dr. Sanjeev Ranjan (Technical Member) has appointed a Resolution Professional in an application filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016. The Personal Guarantor approached the bench for insolvency proceedings to be initiated against himself.
Case Title: Mr. Ankur Kumar vs Mr Jitendra Kikavat & others and connected matters
Case No.: I.A. 2020 OF 2020 and connected matters
The National Company Law Tribunal Mumbai Bench-I of Justice Shri V.G. Bisht (Judicial Member) and Prabhat Kumar (Technical Member) held that there is no need for any fraudulent intent for a preferential transaction under Section 43 of the Insolvency and Bankruptcy Code, 2016.
Case Title: Omkara Assets Reconstruction Private Limited vs Gigeo Construction Company Private Limited
Case No.: CP (IB) No.1180/MB/2022
The National Company Law Tribunal, Mumbai Bench-VI bench of K. R. Saji Kumar (Judicial Member) and Sanjiv Dutt (Technical Member) has held that the principal debtor and the surety are jointly and severally liable to the creditor which has the right to recover its dues from either or both of them simultaneously.
Allotment Of Shares At Lesser Price, An Oppressive Act Against Existing Members : NCLT Mumbai
Case Title: Mr. Ajay Tajpuriya & Anr. vs Goel Ganga Infrastructure & Real Estate Pvt. Ltd. & Ors.
Case No.: T.C.P. No. 08 of 2014
The National Company Law Tribunal Mumbai Bench-I of Justice V.G. Bisht (Retd.) (Judicial Member) and Prabhat Kumar (Technical Member) held that allotment of the shares at a concessional price is an oppressive act qua existing members to whom no such allotment has been made. It held that the allotment of the share value at a face value, which is less than its book value is not in accordance with the provision of Section 42 of the Companies Act.
IBBI
IBBI Issues Guidelines For Appointment Of Insolvency Professionals
The Insolvency and Bankruptcy Board of India (IBBI) issued guidelines for the process for appointing insolvency professionals (IPs) to roles such as interim resolution professionals (IRPs), liquidators, and bankruptcy trustees.
