IBC | Supreme Court Cautions Against Excessive Judicial Review, Criticises Trend Of Unsuccessful Bidders Seeking To Reopen CoC Decision

The Supreme Court today criticised growing trend of unsuccessful resolution applicants converting challenging almost every commercial decision of the Committee of Creditors under the guise of procedural impropriety and turning the insolvency process into a protracted adversarial contest.“The appeals before us typify the growing strategic use of the judicial system by unsuccessful...

IBC Permits Parallel CIRP Against Debtor & Guarantor For Same Debt : Supreme Court

The Supreme Court on Thursday (February 26) observed that there's no bar under the Insolvency and Bankruptcy Code to initiate simultaneous CIRP against the corporate debtor and guarantor for the same debt. The bench of Justices Dipankar Datta and Augustine George Masih endorsed the findings of BRS Ventures Investments Ltd. v. SREI Infrastructure Finance Ltd. & Anr that "consistent with...

IBC | Mere Pendency Of Restructuring Arrangements Cannot Stall CIRP : Supreme Court

The Supreme Court on Tuesday (February 24) has observed that merely because an arrangement of restructuring a debt-laden corporate debtor is in place, would not bar initiation of a CIRP under the Insolvency and Bankruptcy Code. A bench of Justices Sanjay Kumar and K Vinod Chandran set aside the NCLAT's decision, which had rejected a Section 7 IBC application on the premise that a...

IBC | Defunct Scheme Of Arrangement Under Companies Act Cannot Stall Corporate Insolvency Resolution Process : Supreme Court

The Supreme Court on Tuesday (February 24) held that a defunct Scheme of Arrangement under the Companies Act cannot stall the Corporate Insolvency Resolution Process proceedings under the Insolvency & Bankruptcy Code, 2016. A bench of Justices Sanjay Kumar and K Vinod Chandran set aside the NCLAT's decision, which had kept in abeyance the CIRP initiated under Section 7 of IBC against...

S.7 IBC | Corporate Debtor's Ability To Pay Debt Not To Be Considered Before Admitting Insolvency Petition : Supreme Court

If debt and default are established, then Section 7 application must be admitted.

Bank's Internal Classification Of Debt As NPA Won't Determine Limitation Under IBC: Supreme Court

The Supreme Court on Thursday clarified that a bank's internal classification of a loan as a non-performing asset for accounting or provisioning purposes does not by itself determine the commencement of limitation under the Insolvency and Bankruptcy Code, especially where the debt has subsequently been restructured and acknowledged through fresh agreements.The Court observed that the manner...

Telecom Spectrum Community Resource, IBC Can't Determine Its Ownership & Control : Supreme Court

The Supreme Court today held that the ownership and control of telecom spectrum cannot be determined by the Insolvency and Bankruptcy Code (IBC), since it is a common good. A bench of Justice PS Narasimha and Justice Atul Chandurkar held that the spectrum is a material resource of the community in the Constitutional sense. Hence, the spectrum must benefit the common good, so its control...

IBC | Single Insolvency Petition Maintainable Against Corporate Entities Which Are Intricately Linked : Supreme Court

No need to file a separate insolvency application against multiple corporate entities if they are intrinsically linked in the development of the project, the Court said.

S. 60(5)(c) IBC | NCLT Cannot Decide Trademark Ownership Dispute Which Isn't Related To Insolvency Proceedings: Supreme Court

The Supreme Court has held that the National Company Law Tribunal (NCLT), while exercising jurisdiction under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), cannot adjudicate disputed questions of title to intellectual property if such determination goes beyond the scope of the approved resolution plan.The Court held that NCLT cannot decide title disputes over assets,...

Is An Insolvency Professional A 'Public Servant' Under The Prevention Of Corruption Act, 1988?

India's Insolvency and Bankruptcy Code, 2016 (IBC), relies on Insolvency Professionals (IPs) or Resolution Professionals (RPs) as neutral persons for distressed entities and creditors to maximise the output value of stressed assets. IPs' discretion over billions in assets is fuelled with multiple corruption allegations. Hence, to invoke the stringent Prevention of Corruption Act, 1988 (PC...

Residents Welfare Association Or Homebuyers' Society Can't Intervene In Insolvency Petition Against Builder : Supreme Court

The Supreme Court on Thursday (January 15) held that Resident Welfare Associations (RWAs) representing homebuyers cannot intervene in the Corporate Insolvency Resolution Process unless the RWA itself has disbursed funds or is directly a party to the financial transaction, as only then can it claim the status of a financial creditor. “A society or Resident Welfare Association, not being...

'To Safeguard Homebuyers' Interests' : Supreme Court Issues Directions For CoC In Insolvency Cases Against Builders

The Supreme Court on Thursday (January 15) issued a set of directions regarding the functioning of the Committee of Creditors (CoC) under the Insolvency & Bankruptcy Code, noting that while the commercial wisdom of the CoC is paramount, such power must be exercised with responsibility, transparency and proper application of mind, particularly in real estate insolvencies where...