Directing Corporate Debtor To Civil Courts Or Arbitration For Admitted Dues Undermines IBC Objectives: NCLT Mumbai

The National Company Law Tribunal, Mumbai bench of Kuldip Kumar Kareer (Judicial Member) and Anil Raj Chellan (Technical Member) had held that directing Corporate Debtor to seek resolution through civil courts or arbitration for even admitted dues would undermine the objectives of the Insolvency and Bankruptcy Code. Brief Facts: NTPC Limited (Respondent) issued two work orders...

No Provision To Waive Eligibility Requirements Under Section 43(3) Of the LLP Act For Investigation: NCLT New Delhi

The National Company Law Tribunal New Delhi bench of Dr. Sanjeev Ranjan (Technical Member) and Manni Sankariah Shanmuga Sundaram (Judicial Member) has held that there is no provision empowering it to relax / waive the eligibility requirements prescribed under Section 43(3) of LLP Act. Section 43(3) outlines the conditions under which the Central Government may appoint inspectors...

Stakeholders Can't Impose Penalties, Claim Dues From Corporate Debtor After Approval Of Resolution Plan: Delhi High Court

The Delhi High Court single bench of Justice Sanjeev Narula held once a resolution plan is accepted, the stakeholders cannot impose penalties or claim dues from the Corporate Debtor based on past liabilities. Brief Facts: OCL Iron and Steel Limited (“Petitioner”), established in 2006 as a 'coal-based direct reduced iron production' unit in Orissa, executed a Coal Mine...

NCLT Orders Liquidation Of Future Retail

The National Company Law Tribunal (NCLT) Mumbai bench ordered the liquidation of Future Retail Limited (FRL) marking the end of the company's long-standing presence in India's retail market. The decision was made by a bench comprising Judicial Member Kuldip Kumar Kareer and Technical Member Anil Raj Chellan who held that the corporate insolvency resolution process (CIRP) exceeded...

No Provision In IBC To Send Resolution Plan Back To CoC For Reconsideration: NCLT New Delhi

The National Company Law Tribunal New Delhi bench of Mahendra Khandelwal (Judicial Member) and Rahul Bhatnagar (Technical Member) has held that there is no provision in IBC allowing the Adjudicating Authority to send the resolution plan back to the Committee of Creditors (CoC) for reconsideration at the CoC's request. Further, the bench held that once a resolution plan...

Computation Of Limitation Must Be From Date Of E-Filing Of Appeal: NCLAT Principle Bench

The National Company Law Appellate Tribunal, Principal Bench, New Delhi of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) has held that the computation of limitation for NCLAT purposes must be from the date of e-filing the appeal. Brief Facts: The matter pertained to an appeal filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC)...

Section 10 Shouldn't Be Exploited And Abused By Corporate Debtor, Application After SARFAESI Proceedings Invalid: NCLAT Principle Bench

The National Company Law Appellate Tribunal Principal Bench New Delhi of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) held that the protective provisions of Section 10 of the IBC should not be exploited or abused by the Corporate Debtor to gain an unfair advantage. The bench noted that the SARFAESI proceedings initiated by the bank begun well...

Mere Recording Of Transaction As 'Inter-Corporate Deposit' In Balance Sheets Insufficient To Prove Financial Debt : NCLT Principal Bench

The National Company Law Tribunal Principal Bench, New Delhi of Chief Justice (Retd.) Ramalingam Sudhakar (President) and Avinash K. Srivastava (Technical Member) has held that mere recording of the transaction as “Inter-Corporate Deposit” in balance sheets is insufficient to establish it as financial debt without supporting documentation. The bench noted that the an...

Applications Under Sections 7, 9, Or 10 Of IBC Filed Before 2021 Amendment Act Retain Priority: NCLAT Principal Bench

The National Company Law Appellate Tribunal, Principal Bench, New Delhi of Justice Rakesh Kumar Jain (Judicial Member), Naresh Salecha (Technical Member) and Indevar Pandey (Technical Member) has held that if an application under Sections 7, 9, or 10 of the Insolvency and Bankruptcy Code was already in process before 2021 Amendment Act came into force, then the amendments in Section...

Justice Sharad Kumar Sharma Recuses Himself From Byju Raveendran's Insolvency Appeal Due To Conflict Of Interest

Justice Sharad Kumar Sharma, a Judicial Member of the National Company Law Appellate Tribunal (NCLAT) Chennai, has recused himself from hearing Byju Raveendran's appeal against the insolvency proceedings initiated against Think & Learn Private Limited, which operates Byju's. Justice Sharma stated his prior role as senior counsel for the Board of Control for Cricket in India...

Consolidated Insolvency Resolution Process Could Be Initiated Against Joint-Developers Of Project: NCLT Delhi

The National Company Law Tribunal VI, New Delhi bench of Shri Mahendra Khandelwal (Judicial Member) and Shri Rahul Bhatnagar (Technical Member) held that a joint insolvency resolution process against multiple entities who were involved in the development of the same construction project is recognized and could be initiated under the Insolvency and Bankruptcy Code,...

Resolution Applicant Whose Name Was Not Included In 'Prospective Resolution Applicants' List Cannot Be Substituted At Later Stage: NCLAT, Delhi

The National Company Law Appellate Tribunal (NCLAT), Delhi bench of Justice Ashok Bhushan (Chairperson) and Mr Barun Mitra (Technical Member) held that a resolution applicant, who did not take part in the CIRP process from the beginning and was not included in the list of prospective resolution applicants, cannot be suddenly substituted as a resolution applicant to implement the plan of...