Improving The Functioning Of The National Company Law Tribunal – A Perspective

The National Company Law Tribunal (NCLT), established on 01 June 2016 under the Companies Act, 2013, is a premier tribunal in the commercial and economic field. Its primary litigants are financial sector entities and bodies corporate. The enactment of the Insolvency & Bankruptcy Code, 2016 (IBC) is often cited as one of the main drivers for India’s quantum jump from rank 142 in 2014 to 62 in 2019 in the Ease of Doing Business Rankings, the most recent year for which data is...

Weekly Digest Of IBC Cases [22nd To 28th May 2023]

SUPREME COURTRemedies Against Third-Parties Not Available Under Section 66 Of IBC: Supreme CourtCase Title: Glukrich Capital Pvt Ltd vs The State of West BengalCitation: 2023 LiveLaw (SC) 464The Supreme Court Bench comprising of Justice Krishna Murari and Justice Sanjay Kumar, affirmed that the remedy against third party is not available under Section 66 of IBC. The Bench further held, “We...

NCLT Notifies Vacation Benches; Matters To Be Heard Through VC And Registry To Remain Functional

The National Company Law Tribunal (“NCLT”) has issued a circular dated 18.05.2023 notifying the Vacation Bench for NCLT benches having vacation in the month of June 2023. Further, only urgent matters would be heard during the vacation period, subject to the availability of the Hon’ble Member(s) and as per the convenience of the concerned Hon’ble Member(s). Matters are to be heard...

Home Buyers Have No Right To File Intervention Application Prior To Admission Of Section 7 Petition: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Shri Naresh Salecha (Technical Member), while adjudicating an appeal filed in Vikash Kumar Mishra & Ors. v Orbis Trusteeship Service Pvt. Ltd. & Anr., has held that an intervention application filed by the homebuyers in petition under Section 7 of...

Delay In Filing Of Appeal Under Section 42 Of IBC Is Condonable Under Section 5 Of Limitation Act: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in Canara Bank v Commercial Tax Department Circle 09, Indore, Madhya Pradesh & Anr., has held that delay in filing the Appeal under Section 42 of IBC is condonable in exercise of power...

NCLT Principal Bench To Have Special Bench Between 1st To 9th June 2023

The National Company Law Tribunal has issued a circular dated 24.05.2023, intimating the constitution of Special Bench for NCLT Principal Bench (New Delhi) for the period of 01.06.2023 to 09.06.2023. The Special Bench shall attend to the matters listed before Justice Ramalingam Sudhakar (President) and Shri Avinash K Srivastava (Technical Member).The matters are to be heard in physical mode....

NCLT Chennai Bench To Have Special Bench Between 31st May To 9th June 2023

The National Company Law Tribunal has issued a circular dated 24.05.2023, intimating the constitution of Special Bench for NCLT Chennai Bench (Court No. 1) for the period of 31.05.2023 to 09.06.2023. The Special Bench shall attend to the matters listed before Justice Ramalingam Sudhakar (President) and Shri Sameer Kakkar (Technical Member). The matters are to be heard in physical mode....

Remedies Against Third-Parties Not Available Under Section 66 Of IBC: Supreme Court

The Supreme Court on Friday affirmed that the remedy against third party is not available under Section 66 of IBC, and in such circumstances, it is for the Resolution Professional or the successful resolution applicant to take such civil remedies against third party for recovery of dues payable to corporate debtor, and the civil remedies which may be available in law are independent of the...

Special Bench At NCLT Allahabad Between 5th To 16th June 2023; Matters To Be Heard Through VC

The National Company Law Tribunal has issued a circular dated 18.05.2023, intimating the constitution of Special Bench for NCLT Allahabad for the period of 05.06.2023 to 16.06.2023. The matters during the said duration are to be heard through Video Conferencing. Shri Praveen Gupta (Judicial Member) is on leave from 12.06.2023 to 16.06.2023 and Shri Ashish Verma (Technical Member) is...

NCLT Notifies Vacation Benches; Matters To Be Heard Through VC And Registry To Remain Functional

The National Company Law Tribunal (“NCLT”) has issued a circular dated 18.05.2023 notifying the Vacation Bench for NCLT benches having vacation in the month of June 2023. Further, only urgent matters would be heard during the vacation period, subject to the availability of the Hon’ble Member(s) and as per the convenience of the concerned Hon’ble Member(s). Matters are to be...

Not Mandatory To Issue Notice To The Creditors At Pre-Admission Stage Of Section 10 Application: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in SMBC Aviation Capital Ltd. Vs. Interim Resolution Professional of Go Airlines (India) Ltd., has held that IBC does not contain any provision which requires that a notice be served upon...

Allegation Of Fraud In Appointment Of IRP As RP Is No Ground For Rejection Of Resolution Plan Under Section 30(2)(e): NCLT Mumbai

The National Company Law Tribunal, Mumbai Bench, comprising Shri Kuldip Kumar Kareer (Judicial Member) and Shri Shyam Babu Gautam (Technical Member), while adjudicating an application under Section 60(5) of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Mr. Amit Sangal vs Prince MFG Industries Private Limited has held that the ground that the IRP had filed false and...