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...

Sec.12A IBC : Propriety Of Allowing Withdrawal Of CIRP At The Instance Of Defaulting Promoters

The National Company Law Appellate Tribunal ("NCLAT") reversed the order of NCLT while adjudicating upon the matter concerning insolvency of Sterling Biotech. The NCLAT allowed the creditors to withdraw the insolvency petition as per section 12A of the Insolvency and Bankruptcy Code ("IBC"), 2016 and to settle with the promoters of the Corporate Debtor. Thereby, allowing the promoters of the Corporate Debtor to take the control after making full payment to the lenders. An application...

NCLAT Allows Dutch Administrator To Participate In Insolvency Proceedings Of Jet Airways

The NCLAT has given its nod to offshore proceedings in the Jet Airways insolvency case by allowing the Administrator, Rocco Mulder, appointed by Dutch Insolvency Court (Trustee) to participate in the meetings of the Committee of Creditors (CoC). The Appellate Tribunal was dealing with cross border insolvency in the matter, as insolvency proceedings were initiated against the...

Renewed Hope For Amtek Auto Resolution As SC Allows RP To Issue Invitation For Fresh Bids

Supreme Court has allowed the plea of the Committee of Creditors (CoC) of Amtek Auto for granting extension to the extent that, fresh bids may be invited by the Resolution Professional from potential resolution applicants. Solicitor General Tushar Mehta appearing for the CoC of Amtek, asked for an extension of 90 days for completing resolution process. He contended that the...

SFIO Challenges NCLT's Order Directing Investigation Into Fraud By Companies

The Government through Serious Fraud Investigation Office (SFIO) has moved NCLAT against NCLT Principal Bench's order directing SFIO to investigate alleged siphoning of funds by two companies undergoing insolvency proceedings, Luxury Train Pvt. Ltd. and Zynke Exports Pvt. Ltd. The Principal Bench headed by Judicial Member M M Kumar in both the cases observed that funds were...

Insolvency & Bankruptcy Code Prevails Over Prevention Of Money Laundering Act : PMLA Appellate Authority

In a decision with a possibility of having a far-reaching effect, the Appellate Authority of the Prevention of Money Laundering Act, 2002 (PMLA) has upheld the prevalence of the IBC over the provisions of PMLA. The Appellate Bench has ordered the release of specific properties of PMT Machines Ltd., which were attached by the ED (Directorate of Enforcement), in view of allegations...