IBBI Proposes Changes To Process Of Issuance Of Record Of Default By Information Utility, Invites Comments Till 31.05.2024

The Insolvency and Bankruptcy Board of India (“IBBI”) on 10.05.2024 has published a Discussion Paper on “Strengthening the process of issuance of record of default by Information Utility”. The IBBI has also invited comments from public/stakeholders regarding proposed changes to the framework pertaining to the process of issuance of record of default by Information Utility”....

NCLAT Delhi: Loan Recall Notice Date Shall Not Constitute Relevant Date Of Default Under IBC, Partial Payments Cannot Absolve CD From Default Status

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that part payments between the Non-Performing Asset (“NPA”) classification and loan recall notice cannot mean that loan recall notice shall constitute the relevant date of default under the...

NCLAT Delhi: Relevant Date To Determine Ineligibility To Submit Resolution Plan Is Date Of Submission Of Plan By Resolution Applicant

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member), and Mr. Indevar Pandey (Technical Member) held that the relevant date to determine the ineligibility to submit a Resolution Plan is on the date on which the Resolution Plan was first submitted by the Resolution...

Loan Amount Acknowledged As “Long-Term Borrowings” Has Commercial Effect And Covered U/S 5(8) Of IBC: NCLT Mumbai

The National Company Law Tribunal, Mumbai Bench, comprising Ms. Lakshmi Gurung, Member (Judicial) & Sh. Charanjeet Singh Gulati (Technical), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in the case of Metamorphosis Trading LLP vs Membrane Filters (India) Private Limited has held that the loan amount acknowledged in...

MSME Interest Cannot Be Claimed To Trigger Threshold Limit Under IBC If MSME Certificate Obtained Post Appointed Date: NCLT Mumbai

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising Justice Reeta Kohli (Judicial Member) and Madhu Sinha (Technical Member) has held that an Operational Creditor cannot combine interest under the Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED”) to the principal amount to meet the threshold limit under section 4 of the Insolvency and...

Assignee Of A Financial Creditor Also A Financial Creditor U/S 5 (7) Of IBC: NCLT Kolkata

The National Company Law Tribunal, Kolkata Bench, comprising Shri Rohit Kapoor (Judicial Member) Shri Balraj Joshi (Technical Member), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Assets Care & Reconstruction Enterprise Limited vs Ankit Metal & Power Limited has held that the assignee of a Financial Creditor is also...

NCLAT Delhi: Adjudicating Authority Can Extend Payment Timelines Under Resolution Plan Without Express Concurrence Of CoC

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Arun Baroka (Technical Member) held that the Adjudicating Authority can extend payment timelines under the Resolution Plan without the express concurrence of the Committee of Creditors ('CoC'). Background Facts: State Bank of India ('SBI') as the sole member...

NCLAT Delhi: Extension Of Time In Payment Is Not Modification Of Resolution Plan

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Arun Baroka (Technical Member) held that an extension of time in payment is not a modification of the Resolution Plan. Background Facts: State Bank of India ('SBI') as the sole member of the Committee of Creditors ('CoC') having a 100% voting share approved...

Detention Charges Come Within The Purview Of Operational Debt: NCLT Mumbai

The National Company Law Tribunal, Mumbai Bench, comprising Ms. Reeta Kohli, (Judicial Member) and Madhu Sinha (Technical Member), while adjudicating an application under Section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in ABC India Ltd. vs Prabhakar Engineers Pvt. Ltd. has held that Detention Charges are very much a part of the Transportation Charges and hence a part...

NCLT Notifies Advocates, Litigants, Interns And Advocate Clerks/Court Clerks Not To Be Entertained For Administrative Or Registry Work Beyond 05 PM

The Registrar of the National Company Law Tribunal (“NCLT”) has issued an administrative order dated 08.05.2024, intimating that in NCLT Benches, advocates, litigants, interns and advocate clerks/court clerks will not be entertained for any administrative or registry work beyond 05:00 PM. The Registrar notified that working hours of NCLT Benches is provided as per Rule 10 of...

Decision Taken By New Resolution Professional Cannot Be Objected By Erstwhile Resolution Professional: NCLAT Delhi

The National Company Law Appellate Tribunal, Delhi Bench, comprising Shri Justice Ashok Bhushan (Chairperson) Shri Barun Mitra and Shri Arun Baroka (Technical Members), in Partha Sarathy Sarkar vs Union of India & Ors. has held that the decision taken by New Resolution Professional cannot be objected by the Erstwhile Resolution Professional after replacement who is now proceeding...

NCLT Mumbai: Operational Debt Under IBC Does Not Include Penalty Or Liquidated Damages

The National Company Law Tribunal ('NCLT') Mumbai, comprising Shri K.R. Saji Kumar (Judicial Member) and Shri Sanjiv Dutt (Technical Member) held that the operational debt under Insolvency and Bankruptcy Code, 2016 ('IBC') does not include penalty or liquidated damages. Background Facts: Matoshri Laxmi Sugar Co-Generation Industries Ltd. (Corporate Debtor) had failed to supply...