NCLAT Delhi: Proceedings U/S 66 Of IBC For Fraudulent Or Wrongful Trading Can Be Initiated Against Third Parties

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Rakesh Kumar Jain (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member) held that proceedings under Section 66 of Insolvency and Bankruptcy Code, 2016 (“IBC”) for fraudulent or wrongful trading can be initiated against third parties. Background Facts: Royal Refineries Pvt. Ltd....

No Irreversible Actions In Winding Up, Company Court Can Transfer Proceedings To NCLT: Bombay High Court

The Bombay High Court bench of Justice Abhay Ahuja held that as long as no irreversible actions, such as actual sales of immovable or movable properties, have occurred, the Company Court retains the discretion to transfer proceedings to the NCLT. The bench held that it is only where the winding up proceedings have reached the stage where it would be irreversible, making it impossible...

Once Resolution Plan Is Approved By NCLT, Corporate Entity Starts With Clean Slate : Calcutta High Court

The Calcutta High Court bench of Justice Sugato Majumdar held that after the insolvency proceeding is over and the resolution plan is duly approved by the National Company Law Tribunal, the corporate entity starts with a clean slate on rejuvenation. Brief Facts: Defendant No. 1 merged with Defendant No. 5 in 2008, according to an Order by Court. Consequently, Defendant No. 1 ceased...

Mere Initiation Of Proceedings Under IBC Doesn't Bar Liability Of Signatory Of Cheque Under Negotiable Instruments Act: Madhya Pradesh High Court

The Madhya Pradesh High Court bench of Justice Gurpal Singh Ahluwalia has held that merely because of the initiation of proceedings under the Insolvency and Bankruptcy Code, 2016 the signatory of the cheque cannot escape from his liability under the Negotiable Instruments Act, 1881. Brief Facts: The Applicant approached the Madhya Pradesh High Court (“High Court”) and...

Monthly Digest Of IBC Cases: May 2024

SUPREME COURT Can Homebuyer's Claim For Apartment Be Rejected For Not Filing Claim During Insolvency Process Against Builder? Supreme Court To Decide Case Title: Ayush Agarwal vs Jaypee Infratech Ltd. & Ors. Citation: Civil Appeal No. 5185/2024 The Supreme Court of India is set to determine whether the non-filing of a claim during the insolvency resolution process of...

Official Liquidator Must Adhere To Ethical Principles And Fairness To Discharge Their Duties Under IBC: Delhi High Court

The Delhi High Court bench of Justice Subramonium Prasad held that official liquidators must adhere to ethical principles and demonstrate an unwavering commitment to fairness to discharge their duties under the Insolvency and Bankruptcy Code. The bench held that: “the role of the liquidator in insolvency proceedings is paramount to the entire process. The liquidation...

No Provision In IBC Mandates Treatment Of Unrelated Party At Par With Related Party: NCLAT Principal Bench, New Delhi

The National Company Law Appellate Tribunal, Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Judicial Member), Shri Naresh Salecha and Shri Indevar Pandey (Technical Members), while adjudicating an application under Section 61 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in West Coast Paper Mills Ltd. vs Bijay Murmuria & Ors. has held that there is...

Settlement Agreement During Pendency Of Section 7 Petition Does Not Bar From Filing Second Section 7 Petition: NCLAT Delhi

The National Company Law Appellate Tribunal, Delhi Bench, comprising Justice Rakesh Kumar Jain (Judicial Member), Shri Naresh Salecha and Shri Indevar Pandey (Technical Members), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Desh Bhushan Jain, Erstwhile Director of Angel Promoters Pvt. Ltd. vs Abhay Kumar, IRP of...

Weekly Digest Of IBC Cases: 27th May 2024 To 02nd June 2024

NCLAT NCLAT Upholds Adani Goodhomes Bid With 93% Haircut For Radius Estate Case Title: Beacon Trusteeship Ltd vs. Jayesh Sanghrajka & Ors and connected petitions Case No: Company Appeal (AT) (Insolvency) No. 1494 – 1495 of 2022 The National Company Law Appellate Tribunal ('NCLAT'), New Delhi comprising Justice Ashok Bhushan (Chairperson) and Barun...

NCLAT Upholds Adani Goodhomes Bid With 93% Haircut For Radius Estate

The National Company Law Appellate Tribunal ('NCLAT'), New Delhi comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) upholds the Resolution Plan submitted by Adani Goodhomes for the real estate company Radius Estate as part of its Corporate Insolvency Resolution Process ('CIRP'). Background Facts: The Order was issued in response to an appeal...

Compulsory Convertible Debentures Having No Obligation Of Repayment To Be Treated As Financial Debt: NCLAT Chennai

The National Company Law Appellate Tribunal, Chennai Bench, comprising Justice Rakesh Kumar Jain (Judicial Member) and Shri Ajai Das Mehrotra (Technical Member), while adjudicating an application under Section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Shubham Corporation Private Limited vs Kotoju Vasudeva Rao has held that the Compulsory Convertible Debentures having...

NCLAT Delhi: Refund Of Security Deposit Contingent Upon Executing A Leave And License Agreement Doesn't Constitute An Operational Debt Under IBC

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Mr. Justice Yogesh Khanna (Judicial Member) and Mr. Arun Baroka (Technical Member) held that the claim for refund of a Security Deposit linked to a contractual obligation contingent upon executing a leave and license agreement does not constitute an Operational Debt under the Insolvency and Bankruptcy Code,...