IBC News
IBC | 'Auction-Purchaser Entitled To Benefit Of COVID Limitation Extension' : Supreme Court Refuses To Cancel Sale Over Delayed Deposit
The Supreme Court recently refused to cancel an e-auction despite the Auction Purchaser making a glaring default in making a deposit of the balance sale consideration on grounds that the subject matter of the auction has been utilised and the appellant failed to approach the court on time.A bench of Justices Hima Kohli and Ahsanuddin Amanullah noted: "Much water has flown under the bridge by...
Interest Claims Must Be Based On Contractual Agreement, Not Just Invoice Terms: NCLT Kolkata
The NCLT Kolkata Divison Bench, comprising Bidisha Banerjee, Member (Judicial) and D. Arvind, Member (Technical) has held that interest cannot be clubbed along with the debt in the absence of an agreement or clause in the purchase order. The Tribunal further observed that TDS deduction on the interest payable is not an acknowledgement of liability. Brief Facts: Sudarshan Paper...
Section 12A Application Not Permitted During Liquidation Period: NCLAT Principal Bench
The National Company Law Appellate Tribunal Principal Bench, New Delhi of Justice Ashok Bhushan (Chairperson), Barun Mitra (Technicial Member) and Arun Baroka (Technicial Member) has held that an application under Section 12A of the IBC is not permitted during the liquidation period. Section 12A allows for the withdrawal of an insolvency application with the approval of ninety percent...
Bank Cannot Proceed Under SARFAESI Act Against Personal Guarantor During Interim Moratorium Under IBC, 2016: NCLAT Principal Bench
The National Company Law Appellate Tribunal Principal Bench, New Delhi of Justice Yogesh Khanna (Judicial Member) and Ajai Das Mehrotra (Technical Member) has held that once the interim moratorium is in effect due to insolvency proceedings against a personal guarantor under the IBC, 2016, the bank is prohibited from continuing any further actions under the SARFAESI Act regarding...
Dispute Regarding GST Dues Not A Bar To Section 9 IBC Proceedings: NCLAT
The NCLAT Bench of Justice Rakesh Kumar Jain, Member (Judicial) and Arun Baroka, Member (Technical) has held that the dispute regarding payment of GST dues is not a “pre-existing dispute” between the parties that would preclude the initiation of Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC). Brief...
Submission Of New Settlement Proposals Not Permissible After CoC Approves Resolution Plan Or Concludes CIRP: NCLAT
The National Company Law Appellate Tribunal, New Delhi division bench of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) held that once a Resolution Plan is approved by the Committee of Creditors (CoC) and the Corporate Insolvency Resolution Process (CIRP) is concluded, the submission of new settlement proposals is not permissible. The CoC's...
No Violation of Section 14(1)(d) IBC in Auction of Subsidiary's Assets Under SARFAESI Act: NCLAT Principal Bench
The National Company Law Appellate Tribunal Principal Bench, New Delhi of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) has held that there is no violation of Section 14(1)(d) of the Insolvency and Bankruptcy Code (IBC) in the auction of assets or facilities of a subsidiary company if the assets were handed over to the Corporate Debtor for operation...
No Inherent Right To Withdraw Section 9 IBC Application And Refile: NCLAT New Delhi
The National Company Law Appellate Tribunal, Principal Bench, New Delhi bench of Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) has held that in proceedings under the Insolvency and Bankruptcy Code (IBC), an Applicant does not have an inherent right to withdraw an application filed under Section 9 at any stage and...
Similar Claims Of OC's In Arbitration And CIRP Application Indicates Pre-Existing Dispute: NCLT Mumbai Rejects Application For Initiation Of CIRP
The National Company Law Tribunal, Mumbai bench of K. R. Saji Kumar (Judicial Member) and Sanjiv Dutt (Technical Member) has held the claims presented by the Operational Creditor (OC) in the arbitration proceedings and those in the CIRP application of similar and pertained to the same subject matter indicates the existence of a pre-existing dispute between the...
NCLT Mumbai Bench Criticizes CoC For Rejecting Resolution Plan Over One-Day Delay Without Evaluating Substantive Efforts
The National Company Law Tribunal Mumbai bench of Reeta Kohli (Judicial Member) and Madhu Sinha (Technical Member) has held that Committee of Creditors' decision to reject the Applicant's plan solely due to a technical delay of one day in submission, without evaluating the substantive efforts made and the potential value of the plan, does not align with the objectives of...
CoC Approval Does Not Empower Resolution Professional To Cancel Existing Leases; Issues Must Be Resolved By Competent Courts: NCLT Kolkata
The National Company Law Tribunal Kolkata division bench of Bidisha Banerjee (Judicial Member) and D. Arvind (Technical Member) has ruled that the approval of a Resolution Plan by the Committee of Creditors (CoC) does not empower the Resolution Professional to cancel an existing lease. The bench stated that such issues must be adjudicated by a competent court with...
Monthly Digest Of IBC Cases: July 2024
Supreme Court IBC | CIRP Of Holding Company Cannot Include Subsidiary's Assets: Supreme Court Case no. – Civil Appeal No. 4565 of 2021 Case Title – BRS Ventures Investments Ltd. v. SREI Infrastructure Finance Ltd. & Anr. The Supreme Court on Monday (July 23) held that a holding company is not the owner of its subsidiary's assets and thus, subsidiary assets cannot...