Recent Legislative And Case Law Developments In Insolvency And Bankruptcy Law

The Insolvency and Bankruptcy Code, 2016 was implemented to provide a time-bound process to resolve insolvency among companies and individuals. Since its inception, the constitutional validity of many provisions of the IBC has been challenged and the government has carried out amendments from time to time to remove the difficulties in the implementation of the Code. Incidentally,...

Bombay HC Orders Exclusion Of Lockdown Duration From 90-Days Period For NPA Declaration [Read Order]

The Bombay High Court has passed an interim order that the lockdown period must be excluded from computing the 90 day period for declaring a loan account as Non-Performing Asset(NPA).The loan account was already on default on March 1, 2020, the date from which the moratorium advised by the Reserve Bank of India as part of COVID-19 relief package is applicable.The petitioner in the case...

Approved Resolution Plan Binding On Govt Authorities : Rajasthan HC Quashes GST Demand Against UltraTech For Dues Of Binani Cements [Read Order]

The Rajasthan High Court has quashed the notices issued by the Goods and Services Tax Department against Ultra Tech Cement claiming the dues of erstwhile Binani Cements Ltd.The Binani Cements had gone into insolvency and was acquired by Ultra Tech through Corporate Insolvency Resolution Process (CIRP) in 2018 for Rs 7,900 crore. It was later renamed as UltraTech Nathdwara Cement.It approached...

RBI Advisory On Moratorium Applicable Even To Loans On Default As On 1st March : Delhi HC [Read Order]

The intention of RBI is to maintain status quo with regard to the classification of accounts of the borrowers as they existed as on 01.03.2020, observed the Court.

Liquidation Value vis a vis Dissenting Financial Creditors: Aftermath Of Maharashtra Seamless And Orchid Pharma

The Insolvency Bankruptcy Code, 2016 ("Code") has gone through a myriad of changes since its inception and introduction. Although it has been held by the Supreme Court in the case of Embassy Property Developments Pvt. Ltd. vs State of Karnataka, that the IBC is a complete Code by itself and in Innoventive Industries Ltd. vs ICICI Bank that the Code is a single Unified Umbrella, covering the entire gamut of law relating to insolvency resolution of corporate persons and others in a time...

Sec 32A IBC : Delhi HC Sets Aside SFIO Complaint Against Tata Steel BS Ltd Filed In Respect Of Bhushan Steel [Read Judgment]

The Delhi High Court has quashed the summons as well as the complaint filed against Tata Steel BSL Ltd (erstwhile Bhushan Steel) by the Serious Fraud Investigation Office. However while setting aside the complaint, the Single Bench of Justice Vibhu Bakhru clarified that this order will not affect the prosecution of the erstwhile promoters or any of the officers who may be directly...

NCLAT Upholds CCI's Findings On Anti-Competitive Conduct By Malayalam Cinema Actors Body [Read Judgment]

The National Company Law Appellate Tribunal dismissed a bunch of appeals filed by Film Employees Federation of Kerala (FEFKA), Association of Malayalam Movie Artists (AMMA) Shri Mammooty, Shri Mohanlal, Shri Dileep along with other Mollywood unions against the order of the Competition Commission of India (CCI) penalizing them under Section 27 of the Competition Act, 2002 (the...

SARFAESI & DRT Proceedings Will Not Extend Limitation Period Under IBC : NCLAT [Read Order]

The National Company Law Appellate Tribunal reversed the order of the National Company Law Tribunal, Ahemdabad bench, holding that the order of admission of application filed by Bank of India (BOI) as the Financial Creditor, under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) was time barred. Justices Venugopal M, (Judicial), Kanthi Narahari (Technical) and V P...

NCLAT Dismisses Appeals Of IL&FS Auditors Deloitte, KPMG Against Impleadment

The National Company Law Appellate Tribunal (NCLAT) rejected the appeals filed by various Appellants including partners, employees, Directors of 'Deloitte Haskins & Sells LLP' and the KPMG arm of BSR & Associates, where they had contended that they were not related to the case involving the alleged fraud in of IL&FS Financial Services Limited' (IFIN), a subsidiary of...

NCLAT Rejects Centre's Plea To Supersede 63 Moons Technologies Board [Read Order]

The NCLAT dismissed the appeal filed by the directors of 63 Moons Technologies involving a default of Rs. 5600 crores on the platform of its subsidiary, National Spot Exchange Limited (NSEL). The Appellate body however gave a clean chit to some of the directors of the board as they were appointed as 'Directors' much after the date of mismanagement i.e. 31st July, 2013. Upholding...

NCLAT Dismisses Appeal Against CCI Nod For Walmart Acquisition Of Flipkart [Read Order]

The NCLAT dismissed an appeal filed by Confederation of All India Traders (CAIT) against an August 2018 order of the Competition Commission of India (CCI) approving Walmart's acquistion of Flipkart under Section 31 of the Competition Act, 2002 A two-member NCLAT bench headed by Chairperson Justices SJ Mukhopadhyay and Bansi Lal stated that CAIT had failed to establish...

NCLT Chennai approves Cochin Shipyard's Resolution Plan To Acquire TSL [Read Order]

The Chennai Bench of NCLT has accepted the Resolution Plan (RP) filed by public sector company Cochin Shipyard Limited (CSL) to acquire Chennai based shipbuilding firm Tebma Shipyards Limited (TSL) under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code, 2016 (IBC).CSL's RP had proposed a paltry sum of Rs 65 crores which amounts to only 9.74% of pay out...