Weekly Digest Of IBC Cases: 08th July 2024 To 15th July 2024

HIGH COURT Mere Initiation Of Arbitration Proceedings Doesn't Bar Corporate Debtor From Pursing Remedies Under IBC: Delhi High Court Allows Section 11(6) Petition Case Title: Pitambar Solvex Pvt Ltd And Anr. vs. Manju Sharma And Ors. Case No.: ARB.P. 212/2024, I.A. 9821/2024 The Delhi High Court bench of Justice Neena Bansal Krishna held that mere initiation of the arbitration proceedings does not bar the corporate debtor from pursuing his other remedies including those under the Insolvency Bankruptcy Code. NCLAT NCLAT Delhi: Lending Institutions Providing Loans To Homebuyers Don't Qualify As Financial Creditors Under IBC Case Title: IIFL Home Finance Ltd. vs. Shiv Nandan Sharma, Resolution Professional Saha Infratech Pvt. Ltd. Case No.: Company Appeal (AT) (Insolvency) No. 856 of 2024 The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha, and Mr. Indevar Pandey (Technical Members) held that lending institutions providing loans to homebuyers do not qualify as 'Financial Creditors' under Insolvency and Bankruptcy, Code 2016 ('IBC'). NCLAT Delhi: Assured Returns Class Of Creditors Allotted Commercial Space/Unit Constitutes 'Allottee' Under RERA And IBC Case Title: Rita Malhotra & Anr. vs. Orris Infrastructure Pvt. Ltd. Case No.: Company Appeal (AT) (Insolvency) No. 484 of 2024 The National Company Law Appellate Tribunal (“NCLAT”) New Delhi bench comprising Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra, and Mr. Arun Baroka (Technical Members) held that assured returns class of creditors who are allotted commercial space/unit constitutes an 'allottee' under Real Estate (Regulation and Development) Act, 2016 (“RERA”) and Insolvency and Bankruptcy Code, 2016 (“IBC”). Corporate Guarantor Can't Be Absolved From Its Liability Only Due To Non-Invocation Of Guarantee: NCLAT Delhi Case Title: Iskon Infra Engineering Private Limited vs. Central Bank of India Case No.: Company Appeal (AT) (Insolvency) No. 323 of 2024 & I.A. No. 1080 of 2024 The National Company Law Appellate Tribunal ('NCLAT') Delhi bench, comprising Mr. Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that a Corporate Guarantor cannot be absolved from its liability only due to non-invocation of guarantee. 'Voluminous Appeal Records, Citations Of Very Little Value': NCLAT Chennai Raps Practising Company Secretary For Unnecessarily Burdening The Tribunal Case Title: A. Vijayan v. Silver Line Retreat Hotels Private Limited Case No.: CA(AT)(CH) No. 30 of 2024 The National Company Law Appellate Tribunal, Chennai Bench comprising of Justice Sharad Kumar Sharma (Judicial Member) and Jatindranath Swain (Technical Member) came down heavily on a Practising Company Secretary for filing an Appeal with voluminous records running in several volumes. NCLT NCLT Mumbai: Exclusion Of Stay Period Of CIRP Petition Doesn't Postpone Insolvency Commencement Date Under IBC Case Title: Ericsson India Private Limited vs. Reliance Communications Limited Case No.: MA No. 3553 of 2019, MA 133 of 2020 & MA 645 of 2020 in CP No. 1386 of 2017 IA No. 3555 of 2019, IA 126 of 2020 & IA 646 of 2020 in CP No. 1387 of 2017 The National Company Law Tribunal ('NCLT') Mumbai bench comprising Justice V.G. Bisht (Retd.) (Judicial Member) and Mr. Prabhat Kumar (Technical Member) held that exclusion of period of stay of Corporate Insolvency Resolution Process (“CIRP”) petition does not lead to postponement of Insolvency commencement date under Insolvency and Bankruptcy Code, 2016 (“IBC”). NCLT Mumbai: Notice To CD Recalling Loan Facility Doesn't Constitute Demand On Corporate Guarantor Case Title: State Bank of India vs. Navjeevan Tyres Private Limited Case No.: CP (IB) No.1282/MB/2022 The National Company Law Tribunal ('NCLT') Mumbai bench comprising Justice K. R. Saji Kumar (Judicial Member) and Mr. Sanjiv Dutt (Technical Member) held that notice to Corporate Debtor recalling loan facility doesn't constitute Demand on Corporate Guarantor. NCLT Delhi: Adjudicating Authority Can't Consider Settlement Proposal Even With Higher Value After Approval Of Resolution Plan By CoC Case Title: Sanjeev Mahajan vs. Indian Bank (Erstwhile Allahabad Bank) & Anr. Case No.: I.A. No. 2594/2023 in Company Petition No. (IB) – 1913/ND/2019 The National Company Law Tribunal ('NCLT') Court V, New Delhi bench comprising Shri Mahendra Khandelwal (Judicial Member) and Dr. Sanjeev Ranjan (Technical Member) held that the Adjudicating Authority cannot consider a Settlement Proposal, even of a higher value than the Resolution Plan, after the approval of the Resolution Plan by the Committee of Creditors ('CoC'). IBBI IBBI Issues Circular Directing Insolvency Professionals To File Forms To Monitor Voluntary Liquidation Processes On ...

Weekly Digest Of IBC Cases: 08th July 2024 To 15th July 2024

Sachika Vij

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