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Supreme Court Directs Atibir Industries To Pay ₹375 Crore To Settle SBI Loan Dispute

The Supreme Court has directed Atibir Industries Co. Ltd. to pay an additional ₹125 crore to an asset reconstruction company (ARC) to achieve a full and final settlement of its loan dispute with the State Bank of India (SBI), while leaving open the legal questions concerning the classification of its loan account as a non-performing asset (NPA) and the subsequent assignment of the...

IBC | Lender Influencing Corporate Debtor's Policy Decisions Is Related Party, Cannot Join CoC: Supreme Court

The Supreme Court on Tuesday (October 27) held that a lender and debenture holder exercising pervasive influence over a corporate debtor's management and policy decisions can be treated as a related party under the Insolvency and Bankruptcy Code, 2016 (IBC) and excluded from participating in the Committee of Creditors (CoC). “The requirement would not be to the extent of being in the...

IBC | CoC Cannot Withdraw Approved Resolution Plan Citing Improved Financial Position Of Corporate Debtor : Supreme Court

A resolution plan, once submitted before the Adjudicating Authority, cannot be withdrawn, the Court ruled.

S. 62 IBC | Limitation For Filing Appeal Runs From NCLAT Order Pronouncement, Not Receipt Of Certified Copy : Supreme Court

The Supreme Court on Wednesday (October 14) has held that the limitation period for filing an appeal under Section 62 of the Insolvency and Bankruptcy Code, 2016 begins from the date the National Company Law Appellate Tribunal pronounces its order, and not from the date on which the appellant receives the certified copy. A bench of Justice S.V.N. Bhatti and Justice N.V. Anjaria held that...

IBC | CIRP Need Not Be Set Aside Merely Because S 9 Application Was Filed Fraudulenty : Supreme Court

The Court said that while the Adjudicating Authority can recall the admission of a Section 9 application on the ground of fraudulent jurisdictional facts, the CIRP need not automatically be terminated.

IBC | Failure To Pay Balance Sale Consideration Invites EMD Forfeiture If Auction Terms So Provide : Supreme Court

The Supreme Court on Monday (September 28) ruled that where auction terms provide for it, a successful bidder's failure to pay the balance sale consideration in a liquidation proceeding will result in forfeiture of the Earnest Money Deposit, even though the Liquidation Process Regulations do not expressly provide for such forfeiture.The successful auction bidder, Appellant, relying on...

Supreme Court Seeks Centre's Report On NCLT Benches' Infrastructure Facilities

The Supreme Court on Monday called for a status report from the Centre on the infrastructural facilities available to the National Company Law Tribunal (NCLT) benches.The Court also directed the Union Government to identify the basic amenities urgently required by the National Company Law Tribunal (NCLT) after discussing with the NCLT President.Hearing an application filed by the NCLT...

Litigant Mustn't Suffer When Delay Is Due To E-Filing Technical Glitch : Supreme Court Restores NCLAT Appeal

The Supreme Court has recently held that a litigant cannot be shown the door merely because an appeal was e-filed a day beyond the statutorily condonable period, where the delay was caused solely by a technical glitch in the tribunal's own e-filing portal.A bench of Justice Dipankar Datta and Justice Sheel Nagu held so while setting aside an order of the National Company Law Appellate...

Supreme Court Clears Implementation Of Resolution Plan For Stalled 'Sushant Aquapolis' Project In Ghaziabad

In a relief to home buyers of the Ghaziabad-based housing project 'Sushant Aquapolis,' the Supreme Court recently cleared the path for implementation of the resolution plan of the corporate debtor, M/s Ansal Urban Condominium Private Limited, which had promoted the group housing cluster. A bench of Justice JB Pardiwala and Justice K Vinod Chandran accepted the Successful Resolution...

'Homebuyers Can't Be Penalised For Builders' Default' : Supreme Court Rejects NOIDA's Time-Extension Charges In CIRP

The Supreme Court on Thursday set aside directions treating NOIDA's time-extension charges as insolvency process costs in two delayed high-rise projects, holding that homebuyers and the new resolution applicant cannot be made to pay penalties for the original developer's default.The Court held that homebuyers, who constitute a class of financial creditors in the Corporate Insolvency...

S. 9 IBC | Uncrystallized Damages From Breach Of Contract Not Operational Debt : Supreme Court

The Supreme Court on Wednesday (August 12) held that claims for damages arising from breach of contract cannot be treated as "operational debt" under the Insolvency and Bankruptcy Code, 2016, unless previously adjudicated and crystallized by a competent court. “It is a settled position of law that damages, whether liquidated or unliquidated, cannot be treated as operational debt unless...