NCLT Mumbai: Profits During CIRP Be Allocated To Financial Creditors When RFRP And Resolution Plan Are Silent On Such Allocation

The National Company Law Tribunal ('NCLAT') Mumbai, comprising Mr. Kuldip Kumar Kareer (Judicial Member) and Mr. Anil Raj Chellan (Technical Member) held that the profits accrued during the Corporate Insolvency Resolution Process ('CIRP') be allocated to the Financial Creditors when the Request for Resolution Plan ('RFRP') and the Resolution Plan are silent on the allocation...

RP Best Person To Decide What Part Of Corporate Debtor's Business Is To Be Carried Out: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member) and Shri Arun Baroka (Technical Member), has held that the Resolution Professional who is running the Corporate Debtor's business, is the best person to decide as to what part of the business can be carried out. Further,...

MoU And Ledger Extract Are Insufficient Proof For Admitting Of Financial Debt Claim: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Arun Baroka (Technical Member), has held that Memorandum of Understanding (“MoU”) and extract of Ledger of the Corporate Debtor are insufficient proof for acceptance of a claim as financial debt. One of the creditors of the Corporate Debtor...

NCLT Kolkata: IBC Prevails Over State Financial Corporation Act, 1951

The National Company Law Tribunal ('NCLT') Kolkata, comprising Justice Ms. Bidisha Banerjee (Judicial Member) and Shri Arvind Devanathan (Technical Member) held that the Insolvency and Bankruptcy Code, 2016 ('IBC') prevails over State Financial Corporation Act, 1951 ('SFC Act'). Background Facts: On 21.08.2009, Basukinath Food Processors Limited (Corporate Debtor) entered into a...

NCLT Chennai: Adjudicating Authority Under IBC Is Not The Appropriate Forum To Decide On Revocation Of Attachment Made By ED Under PMLA During CIRP

The National Company Law Tribunal ('NCLT') Chennai, comprising Shri Justice Jyoti Kumar Tripathi (Judicial Member) and Shri Ravichandran Ramasamy (Technical Member) held that the Adjudicating Authority under Insolvency and Bankruptcy Code, 2016 ('IBC') is not the appropriate fora to decide on revocation of attachment made by Enforcement Directorate ('ED') under Prevention of Money...

NCLT Mumbai Approves Rs. 9,661 Crore Resolution Plan By Indusind International Holdings For Reliance Capital

The National Company Law Tribunal ('NCLT') Mumbai, comprising Justice V.G. Bisht (Judicial Member) and Mr. Prabhat Kumar (Technical Member) has approved the Rs. 9,661 crore resolution plan submitted by IndusInd International Holdings Ltd ('IIHL') for Reliance Capital under Section 31 of the Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: On 06.12.2021, NCLT...

Relief To Home Buyers, NCLAT Upholds Resolution Plan Outlining Provisions For Completion Of 96 Residential Towers By Jaypee Infratech Pending Since 2011

The NCLAT recently upheld a Resolution Plan which outlined provisions for the completion of approximately 96 residential towers that had remained under construction since 2011 by Jaypee Infratech Limited. The homebuyers' plea revolved around the delay in the implementation of the Resolution Plan and their earnest desire to acquire possession of their units. Brief...

Weekly Digest Of IBC Cases: 4th To 10th March 2024

NCLAT NCLAT Delhi: Treatment Of Income Tax Dues In The Resolution Plan As 'Operational Creditor' Doesn't Violate Section 30(2) Of IBC Case Title: Jaiprakash Associates Ltd. vs. Jaypee Infratech Ltd. and Ors. Case No.: Company Appeal (AT) (Insolvency) No. 548 of 2023 The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan...

IBBI Issues Circular Regarding Withdrawal Of Unclaimed/Undistributed Amounts From Corporate Liquidation Account

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 22.02.2024, intimating the procedure to be followed by the Liquidator for release of unclaimed dividends/ undistributed proceeds from the Corporate Liquidation Account in favour of entitled stakeholders. Brief background Regulation 46 of the IBBI (Liquidation Process) Regulations,...

IBBI Amends CIRP Regulations W.E.F. 15th February 2024

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a notification dated 15.02.2024, whereby amendments have been made to the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”). The key amendments are: Operating separate bank accounts for real estate projects: To ensure financial transparency and accountability,...

IBBI Issues Circular Regarding Withdrawal Of Unclaimed/Undistributed Amounts From Corporate Voluntary Liquidation Account

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 13.02.2024, intimating the procedure to be followed by the Liquidator for release of unclaimed dividends/ undistributed proceeds from the Corporate Voluntary Liquidation Account in favour of entitled stakeholders. Brief background Regulation 39 of IBBI (Voluntary Liquidation Process)...

NCLAT Delhi: Non-Grant Of Reliefs And Concessions By NCLT Does Not Have Any Adverse Effect On The Validity Of The Resolution Plan And Is Not Violative Of The Law

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that non-grant of any reliefs and concessions by NCLT does not have any adverse effect on the validity of the Resolution Plan and is not a violation of the law. Background Facts: On 07.02.2003, Yamuna Expressway...