Centre Notifies Rules For Corporate Insolvency Resolution Process Of Guarantors To Corporate Debtors

The Centre, through the Ministry of Corporate Affairs (MCA) has notified rules for corporate insolvency resolution process in respect of guarantors of corporate debtors, called the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. With the rules set to be enforced from...

Arcelor Mittal Bid For Essar Steel: Key Aspects In SC Judgment

In what will have a long-standing impact on the IBC regime, the SC has decided the Essar Steel Insolvency matter in favour of the Committee of Creditors (CoC) of Essar Steel, and has set aside the NCLAT'sjudgment. The constitutional validity of the Insolvency and Bankruptcy Code (Amendment) Act, 2019 (Amendment Act, 2019), has been upheld however, the word 'mandatorily' in...

SC Sets Aside NCLAT Order Which Held That Dissenting Financial Creditor Should Not Be Discriminated [Read Judgment]

The Supreme Court on Friday set aside an order passed by the National Company Law Appellate Tribunal which held that a dissenting financial creditor cannot be discriminated.A bench comprising Justices Arun Mishra and Ravindra Bhat allowed the appeal filed by Rahul Jain, the resolution applicant in the insolvency of Rave Scans Private Ltd.The appellant was aggrieved with the NCLAT's direction...

Karnataka HC Stays Insolvency Proceedings Against Flipkart

[Update] : The High Court of Karnataka has stayed the NCLT proceedings against Flipkart. The Stay Order dated 25th October 2019 was passed by Justice B Veerappa on the strength of submissions advanced by Senior Advocate Dhyan Chinnappa. The Senior Advocate, who appeared for Flipkart, contended that NCLT has travelled beyond its jurisdiction in admitting the company into CIRP. The counsel...

NCLAT Sets Aside IBC Order Passed By Judicial Member Alone In A Case Heard By DB

The NCLAT has set aside insolvency proceedings initiated against Ambience Pvt. Ltd by 'Vistra ITCL(India) Ltd.' on the ground that the matter was heard by a Division Bench of the NCLT Delhi, comprising of R. Vardharajan (Member Judicial) and Ms. Deepa Krishan (Member Technical) but the order was passed by a single bench comprising of only the judicial member. The application...

Jet Airways CIRP : Need To Adopt UNCITRAL Model Law On Cross Border Insolvency

Jet Airways Case: Background The need for the implementation of proper legal framework for Cross Border Insolvency proceedings is triggered in Jet Airways Scenario. District Court in North Holland declared Jet Airways bankrupt on May 22 in response to a complaint filed by two European creditors. A letter was issued by the Dutch trustee (equivalent to insolvency professional in India) appointed by the Dutch Government addressing Ministry of Corporate Affairs and other secured creditors...

NCLAT Upholds Maintainability Of Application For Compromise And Arrangement During Liquidation Proceeding [Read Order]

The NCLAT in an appeal filed by Jindal Steel and Power Ltd., has upheld the maintainability of the petition for Scheme of Compromise and Arrangement (under Section 230 to 232 of the Companies Act), in a Liquidation proceeding under Insolvency and Bankruptcy Code, 2016 (IBC)The appeal was filed by Jindal Steel against the NCLT, Kolkata's order which allowed the application made...

Abuse of Dominant Position: NCLT Imposes Rs 1 Lakh Costs On Insolvency Resolution Professional For Stalling Claim

Censuring an Insolvency Resolution Professional for not taking a decision with respect to the claim of the Applicant against a Corporate Debtor, the Mumbai Bench of the National Company Law Tribunal imposed on him costs of Rs. 1,00,000/- for "abuse of dominant position". The bench comprising Judicial Member Bhaskara Pantula Mohan and Technical Member Shyam Babu...

Essar Insolvency: SC Starts Hearing Appeal Against NCLAT's Decision To Treat All Creditors Equally [Read Written Submissions]

The Supreme Court bench comprising of Justices R F Nariman, Surya Kant and Ramasubramanian started hearing on Wednesday the batch of appeals challenging the NCLAT's decision in Essar Steel insolvency resolution, one of the most crucial insolvency matters of the country. While approving ArcelorMittal's Rs 42,000 crore bid for the acquisition of Essar Steel, the NCLAT had held that...

NCLAT Allows Extension Of Time To Complete CIRP As Per 2019 IBC Amendment

The NCLAT has allowed the plea of a resolution applicant M/s. Alpha Corp Development Pvt. Ltd for extension of time to complete Corporate Insolvency Resolution Process (CIRP) of M/s. Earth Infrastructure Ltd.', and granted 90 days time from the date of commencement of Insolvency & Bankruptcy Code (Amendment Act, 2019) i.e., from 16th August, 2019. Alpha Corp moved an...

Pendency Of Suit Against Financial Creditor No Bar For Initiating Insolvency Proceedings Under Sec 7 IBC, Holds NCLAT

The NCLAT has held that the pendency of a suit filed by the corporate debtor against a financial creditor, cannot bar it from initiating insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Appellate Tribunal headed by Justice S J Mukhopadhyay also reiterated that pre-existing dispute cannot be a subject matter of Section 7, although it may...

Sole Proprietary Concern Cannot Initiate Insolvency Proceedings : NCLT [Read Judgment]

The NCLT Delhi has held that since a 'Sole Proprietary' concern is not a person under section 3(23) of the Insolvency and Bankruptcy Code, 2016 ('Code'), it cannot initiate insolvency proceedings. The petitioner RG Steels approached the Tribunal as an Operational Creditor (OC) seeking for the initiation of corporate insolvency resolution process (CIRP) against Corporate...