When Claims And Counter Claims Are Involved, Liquidator Cannot Decide The Same: NCLAT Chennai

The National Company Law Appellate Tribunal, Chennai Bench, comprising Shri Justice Venugopal M. (Judicial Member) and Shri Jatindranath Swain (Technical Member), while adjudicating an application under Section 61 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in M/s. FLSmidth Private Limited vs Lanco Infratech Ltd. has held that when claim and counter claims are...

Can Homebuyer's Claim For Apartment Be Rejected For Not Filing Claim During Insolvency Process Against Builder? Supreme Court To Decide

The Supreme Court is set to determine whether the non-filing of a claim during the insolvency resolution process of a builder can result in the rejection of a homebuyer's claim for allotment of apartment. The case surrounds the insolvency process of Jaypee Infratech Limited. Its resolution plan was approved by the National Company Law Tribunal and was subsequently challenged in...

Ambiguities In Uploading Of NCLT Orders, Requirement Of Enclosing Certified Copies With Appeal : Supreme Court Seeks IBBI Clarification

The Supreme Court (on May 06) issued notice to the Insolvency and Bankruptcy Board of India, inter-alia, on the requirement to obtain a certified copy of the order and attach the same with the appeal. The Bench of Justices Sanjiv Khanna and Dipankar Datta has issued notice considering that there is “considerable ambiguity” in certain issues concerning the service of the orders...

Claim Cannot Be Admitted After The Approval Of Resolution Plan By The CoC Even If Approval By The Adjudicating Authority U/S 31 Of IBC Is Pending: NCLT Mumbai

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising Mr. Kuldip Kumar Kareer (Judicial Member) and Mr. Anil Raj Chellan (Technical Member) has held that claims cannot be admitted after the approval of the resolution plan by the Committee of Creditors (“CoC”) even if approval by the Adjudicating Authority under section 31 of the Insolvency and Bankruptcy Code,...

NCLT Notifies Holidays And Upcoming Vacation In Benches Of NCLT

The Registrar of the National Company Law Tribunal (“NCLT”) has issued a circular dated 02.05.2024, intimating the holidays and upcoming vacation benches at NCLT. 1. The following benches of the National Company Law Tribunal are having vacation in the month of May 2024 and the Competent Authority has approved the Vacation Benches as mentioned below: S.No. ...

NCLT Issues Circular For Free Wi-Fi Facility For Advocates, Litigants, And Other Stakeholders Of NCLT Benches Dated 29.04.2024

The Registrar of the National Company Law Tribunal (“NCLT”) has issued a circular dated 29.04.2024, intimating a free Wi-Fi facility for Advocates, litigants, and other stakeholders of NCLT Benches. The said circular has been issued in compliance with the Hon'ble Supreme Court's Order in Writ Petition(s)(Criminal) No(s). 351/2023, titled “Sarvesh Mathur vs. The Registrar...

Lender Bank Registered With CERSAI Has 1st Priority Over DCST Against Proceeds Of Enforcement Under SARFAESI Act: Bombay High Court

The Bombay High Court has held that lender bank registration with the Central Registry of Securitisation and Security Interest of India (CERSAI) has first priority over Deputy Commissioner of Sales Tax (GST) (DCST) against proceeds of enforcement under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).The bench of Justice...

NCLAT Delhi: Ex-Director Is Ineligible To Submit Resolution Plan For MSME CD Being Wilful Defaulter

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 an ex-director is ineligible to submit a resolution plan for the resolution of Micro, Small, and Medium Enterprises ('MSME') Corporate Debtor based on his declaration as...

Monthly Digest Of IBC Cases: April 2024

Supreme Court When Does Debt Become Financial Debt & Operational Debt Under IBC? Supreme Court Explains Case Title: Global Credit Capital Limited & Anr. Versus Sach Marketing Pvt. Ltd. & Anr. Citation: 2024 LiveLaw (SC) 331 The Supreme Court bench comprising Justice Abhay S. Oka and Justice Pankaj Mithal, has held that debt would be treated as an operational...

NCLAT Delhi: Belated Claims By Creditors Not To Be Considered Given The Time-Bound Nature Of IBC proceedings

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Arun Baroka (Technical Member) held that the belated claims by creditors cannot be considered given the time-bound nature of Insolvency and Bankruptcy Code, 2016 ('IBC') proceedings. Background Facts: In 2019, Dream Procon Pvt. Ltd. (Corporate Debtor) entered into...

Amount Given As Share Application Money Does Not Qualify As A Financial Debt Under IBC: NCLT Kolkata

The National Company Law Tribunal (“NCLT”), Kolkata Bench, comprising Shri Rohit Kapoor (Judicial Member) and Shri Balraj Joshi (Technical Member) has held that amount given as Share Application Money does not qualify as a financial debt under section 5(8) of the Insolvency and Bankruptcy Code, 2016 (“Code”). Background Facts In September 2019, Mittson...

NCLT Kolkata: NCLT Has No Jurisdiction To Set Aside Arbitral Award Passed During Moratorium Period U/S 14 Of IBC

The National Company Law Tribunal ('NCLT') Kolkata, comprising Smt. Bidisha Banerjee (Judicial Member) and Shri D. Arvind (Technical Member) held that the Adjudicating Authority lacks jurisdiction to set aside an arbitral award even when the award was issued post-initiation of Corporate Insolvency Resolution Process ('CIRP') and during moratorium period under Section 14 of the Insolvency...