IBC News
IBC | PF Dues Protected, But Uncrystallised Interest & Damages Can Be Excluded From Resolution Plan : Supreme Court
The Supreme Court has held that unadjudicated claims for interest and damages under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, which had not been determined before the commencement of the Corporate Insolvency Resolution Process (CIRP), need not be provided for in a resolution plan approved under the Insolvency and Bankruptcy Code, 2016 (IBC).A bench of Justice...
IBC Moratorium Against Company Doesn't Bar Consumer Complaints Against Promoters, Directors : Supreme Court
The Supreme Court on Monday (July 27) observed that an operation of a moratorium under the Insolvency & Bankruptcy Code, 2016, against a residential project development company would not be a ground to reject the consumer complaints against its promoters/directors. “In the present case, Respondent No.1 alone is the corporate debtor against whom the CIRP has been initiated. No...
Supreme Court Recommends IBC Amendment To Protect MSMEs, Says Small Operational Creditors Need Fairer Repayment Mechanism
While reaffirming the "clean slate" principle under the Insolvency and Bankruptcy Code (IBC), the Supreme Court has called upon the Law Commission and the Legislature to examine amendments to the insolvency framework to better protect Micro, Small and Medium Enterprises (MSMEs) and other small operational creditors, observing that they are significantly disadvantaged under the existing...
Supreme Court Takes Suo Motu Case Over NCLT Appointment Delays & Infrastructure Issues
The Supreme Court has registered a suo motu case over the delays in the appointment of members in National Company Law Tribunals and infrastructure issues.The suo motu case, titled "In Re : Appointment of Judicial and Technical Members and Inadequate Infrastructure in National Company Law Tribunal (NCLT) and Ancillary Issues" was registered on May 19, following the April 29 judgment in...
Pre-2016 DRT Recovery Certificates Cannot Form Basis For Insolvency Notice Under Presidency Towns Insolvency Act: Supreme Court
The Supreme Court on Monday (July 13) held that a recovery certificate issued by a Debts Recovery Tribunal (DRT) before the 2016 amendment to the Recovery of Debts and Bankruptcy Act (RDB Act) could not be treated as a "decree or order" for initiating insolvency proceedings under Section 9(2) of the Presidency Towns Insolvency Act, 1909. “A claim which was untenable on the date the...
IBC| 'Mere Settlement Talks Can't Defer CIRP Admission Once Debt & Default Is Established', Supreme Court Affirms Revival Of CIRP
The Supreme Court on Thursday (July 9) dismissed the appeals filed by the suspended director of Parsvnath Developers Ltd., upholding the revival of Corporate Insolvency Resolution Process proceedings against the real estate group in a default case involving approximately ₹452 crore.A partial court working days bench of Justice KV Viswanathan and Justice Alok Aradhe refused to interfere with...
Supreme Court Upholds Rejection Of Operational Creditor's Insolvency Plea Against Essar Power Gujarat
The Supreme Court on Wednesday (July 8) refused to interfere with the National Company Law Appellate Tribunal (NCLAT) order rejecting an ₹85-crore insolvency petition against Essar Power Gujarat Ltd. on the ground that a pre-existing dispute exists between the parties. A partial court working days bench of Justice Nongmeikapam Kotiswar Singh and Justice K. Vinod Chandran dismissed the...
Justice Ashok Bhushan Says Public Confidence Is The True Foundation Of Judicial Institutions, Calls NCLAT Bar Equal Partner In Administration Of Justice
Delivering his farewell address as Chairperson of the National Company Law Appellate Tribunal (NCLAT), Justice Ashok Bhushan said that public confidence is the true foundation of every judicial institution and emphasised that courts and tribunals derive their authority not merely from statutes but from the trust reposed in them by the people. He also described the Bar as an equal partner in...
IBC | Once CoC Approves Resolution Plan, Successful Resolution Applicant Can't Negotiate Further : Supreme Court
The Supreme Court has reaffirmed the binding nature of Committee of Creditors (CoC)-approved resolution plans under the Insolvency and Bankruptcy Code, 2016 (IBC), holding that a Successful Resolution Applicant (SRA) cannot indirectly back out of a plan by later objecting to conditions that were discussed and accepted during CoC meetings. A bench comprising Justice K.V. Viswanathan and...
