IBC News
When Does Debt Become Financial Debt & Operational Debt Under IBC? Supreme Court Explains
In a significant development, the Supreme Court on Thursday (April 25) held that debt would be treated as an operational debt only if the claim subject matter of the debt has some connection or co-relation with the 'service' rendered by the creditor to the debtor."Where one party owes a debt to another and when the creditor is claiming under a written agreement/ arrangement providing...
Weekly Digest Of IBC Cases: 8th To 21st April 2024
SUPREME COURT Process For IBC Offences To Be Issued By Sessions Court Despite Companies Act Amendment Vesting Jurisdiction On Judicial Magistrate: Supreme Court Case Title: Insolvency And Bankruptcy Board Of India Versus Satyanarayan Bankatlal Malu & Ors. Citation: 2024 LiveLaw (SC) 317 The Supreme Court bench comprising Justice BR Gavai and Justice Sandeep Mehta,...
Allottee Obligated To Comply With Threshold Under Section 7(1) Of IBC Even After RERA Passes An Order In Its Favour: NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member) and Shri Arun Baroka (Technical Member), has held that the status of an 'allottee' would not convert into a 'decree holder' for the purpose of IBC, merely because RERA Authority has passed an order in its favour...
Delay In Issuance Of Sale Certificate Due To Restraint Order By NCLT, Auction Purchaser Not Entitled To Interest On Sale Consideration: NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has held an Auction Purchaser cannot claim interest on sale consideration from the Liquidator for delayed issuance of Sale Certificate, if the delay has occurred due to a restraint order passed...
Process For IBC Offences To Be Issued By Sessions Court Despite Companies Act Amendment Vesting Jurisdiction On Judicial Magistrate: Supreme Court
Observing that the offences committed under the Insolvency and Bankruptcy Code, 2016 (“IBC”) would be tried by the Special Court established under Section 435 of the Companies Act, 2013 and the sessions judge would have the power to issue process against the accused, the Supreme Court on Friday (April 19) upheld the issuance of process by the sessions judge to the accused.The Court...
Gujarat High Court Quashes Demand Notice And Assessment Order In Absence Of Any Claim Not Forming Part Of Resolution Plan
The Gujarat High Court has quashed the demand notice and assessment order in the absence of any claim not forming part of the resolution plan (RP).The bench of Justice Bhargav D. Karia and Justice Niral R. Mehta has observed that, as per the Insolvency and Bankruptcy Code (IBC), the demand that was raised pursuant to the order dated March 13, 2023, by issuing the demand notice dated March...
'Free Of Cost' Copy Of Order Sent By NCLT Registry Is Not A 'Certified Copy' For The Purpose Of Filing Appeal: NCLAT Chennai
The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member), Justice Sharad Kumar Sharma (Judicial Member) and Shri Jatindranath Swain (Technical Member), has held that the 'free of cost' certified copy of final order sent by NCLT registry in compliance of NCLT Rules is not a 'certified copy' of the order for the purpose...
NCLT Chennai - Resolution Professional Should Not Rely Solely On Corporate Debtor's Records For Verifying Claims
The National Company Law Tribunal (NCLT) Chennai bench, comprising Justice Jyoti Kumar Tripathi (Judicial Member) and Ravichandran Ramasamy (Technical Member), has held that The Resolution Professional (RP) should not rely solely on the Corporate Debtor's records for verifying claims as the improper maintenance of the records can unfairly burden the creditors. Background...
Special Bench At NCLT Principal Bench on 15th and 16th April 2024
The National Company Law Tribunal (“NCLT”) has issued a circular dated 12.04.2024, intimating the constitution of Special Bench in NCLT Principal Bench (New Delhi) on 15.04.2024 and 16.04.2024. The Special Bench shall attend to the matters listed before Justice Ramalingam Sudhakar (President) and Shri Avinash Kumar Srivastava (Technical Member). The Special Bench shall...
Special Bench At NCLT Kolkata From 15th to 19th April 2024
The National Company Law Tribunal (“NCLT”) has issued a circular dated 10.04.2024, intimating the constitution of Special Bench in NCLT Kolkata for the period of 15.04.2024 to 19.04.2024, since Shri Balraj Joshi (Technical Member) is on leave in that duration. The Special Bench shall attend to the matters listed before Shri Rohit Kapoor (Judicial Member) and Shri Balraj...
NCLAT Chennai Stays Insolvency proceedings Against Charter Aircraft Service Provider 'Deccan Charters'
The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member), Justice Sharad Kumar Sharma (Judicial Member) and Jatindranath Swain (Technical Member), has stayed the insolvency proceedings initiated against Deccan Charters Pvt. Ltd. by the NCLT, till the next date of hearing i.e. 26.04.2024. Deccan Charters is a...
NCLT Bengaluru Admits Charter Aircraft Service Provider 'Deccan Charters' Into Insolvency
The National Company Law Tribunal (“NCLT”), Bengaluru Bench, comprising of Shri K. Biswal (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), has admitted Deccan Charters Pvt. Ltd. into Corporate Insolvency Resolution Process (“CIRP”) under IBC, over a default of Rs. 9,82,24,077/-. Mr. Manish Kumar has been appointed as the Interim...