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...

Weekly Digest Of IBC Cases: 29th July To 4th August 2024

High Court Stakeholders Can't Impose Penalties, Claim Dues From Corporate Debtor After Approval Of Resolution Plan: Delhi High Court Case Title: OCL Iron and Steel Limited vs Union of India Citation: 2024 LiveLaw (Del) 862 Case No.: W.P.(C) 8316/2024 & CM APPLS. 34076/2024, 38159/2024 The Delhi High Court single bench of Justice Sanjeev Narula held once a resolution...

Senior Advocate's Application For CIRP Over Non Payment Of Legal Fees: NCLT Delhi Rejects Application

The National Company Law Tribunal New Delhi bench of Manni Sankariah Shanmuga Sundaram (Judicial Member) and Dr. Sanjeev Ranjan (Technical Member) has rejected an application for the initiation of the Corporate Insolvency Resolution Process (CIRP) by a Senior Advocate for non-payment of Rs. 6.26 Crore legal fees. The bench noted that there exists a pre-existing dispute regarding...

Order Under S. 73 GST Can't Be Passed Against Company In Corporate Insolvency Resolution Process: Allahabad High Court

The Allahabad High Court has held that order Section 73 of the Goods and Service Tax Act, 2017 cannot be passed a company which is under the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. Section 73 of the Goods and Service Tax Act, 2017 empowers a proper officer to initiate proceedings if he is satisfied that any tax has not been...

NCLT Mumbai Bench Rejects Claim Of Insufficiency Of Stamp Duty, Proceedings Under IBC Not To Enforce Guarantee

The National Company Law Tribunal Mumbai bench of Justice V. G. Bisht (Judicial Member) and Prabhat Kumar (Technical Member) has rejected contention regarding the insufficiency of stamp duty on the guarantee agreement. The bench held that the proceedings under the Insolvency and Bankruptcy Code (IBC) are intended to address insolvency issues rather than to enforce...

IBC Provisions Prevail Over Kolkata Municipal Corporation Act: NCLT Mumbai

The National Company Law Tribunal Mumbai bench of Anu Jagmohan Singh (Technical Member) and Kishore Vemulapalli (Judicial Member) has held that the provisions of the Kolkata Municipal Corporation Act do not take precedence over those of the IBC. The bench held that claims by the KMC, being in the nature of crown debt, should be classified as government dues and accordingly...

Judge Recusals On Frivolous Grounds Enable Litigant Manipulation And Bench Selection: NCLT Mumbai

The National Company Law Tribunal, Mumbai bench of Justice (Retd.) Sh. Virendrasingh Bisht (Judicial Member) and Prabhat Kumar (Technical Member) has held that judges recusing themselves based on frivolous and baseless allegations would enable litigants to manipulate proceedings to select their preferred benches. The bench held that recusal cannot be dictated by litigants; it...

Insufficiently Stamped Agreement Between Parties , Not A Ground To Dismiss CIRP Applications :NCLT Mumbai

The National Company Law Tribunal, Mumbai bench of Prabhat Kumar (Technical Member) and Justice V.G Bisht (Judicial Member) has held that deficiencies in document stamping, as per the Stamp Act, cannot be used as a reason to dismiss an application under Section 7 of the Insolvency and Bankruptcy Code. Brief Facts: Q West Infrastructure Private Limited (Applicant/ Financial...

Exchange Of Debit Notes And Pending MSME Reference Indicate Plausible Pre-Existing Dispute: NCLT New Delhi

The National Company Law Tribunal, New Delhi bench of Mahendra Khandelwal (Judicial Member) and Dr. Sanjeev Ranjan (Technical Member) has held that the exchange of debit notes and the pending MSME reference indicate a plausible pre-existing dispute. Therefore, the bench held that if the Corporate Debtor raises a plausible contention about a pre-existing dispute, which is not just...

Liquidation Is Last Resort, Broader Public Interest In Resolving Corporate Insolvency Should Be Taken Into Account: NCLT Kolkata

The National Company Law Tribunal Kolkata bench of Bidisha Banerjee (Judicial Member) and Balraj Joshi (Technical Member) has held that the liquidation of a corporate debtor should be a measure of last resort. It held that the Insolvency and Bankruptcy Code (IBC) acknowledges a broader public interest in resolving corporate insolvencies with its primary objective extending beyond...