IBC News
Weekly Digest Of IBC Cases: 29th January To 4th February 2024
Supreme Court IBC | Moratorium Under S 14 No Bar To Execute Decree Against Directors/Officers Of Corporate Debtor: Supreme Court Case Title: Ansal Crown Heights Flat Buyers Association (Regd.) V M/S. Ansal Crown Infrabuild Pvt. Ltd. & Ors. Citation: 2024 LiveLaw (SC) 63 The Supreme Court has held that the imposition of moratorium under Section 14 of the Insolvency...
NCLT President Withdraws Pending Cases From NCLT Bench 2 Post Heated Exchange Between Hon'ble Members Of NCLT Bench
The Registrar of the National Company Law Tribunal (“NCLT”) has issued a circular dated 03.02.2024, intimating that proceedings of all pending cases of NCLT Bench 2, Chandigarh stand transferred to NCLT Bench 1 Chandigarh. NCLT President has directed NCLT Bench 1 Chandigarh to conduct the proceedings in all cases until further order. However, the Hon'ble Members of NCLT Bench...
IBBI Amends Regulations Relating To Insolvency Resolution Process & Bankruptcy Process For Personal Guarantors To Corporate Debtors w.e.f. 31st January 2024
The Insolvency and Bankruptcy Board of India (“IBBI”) has amended the 'Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019' and 'Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019', with effect from...
IBBI Amends Regulations Relating To 'Model ByeLaws & Governing Board of Insolvency Professional Agencies', w.e.f. 31st January 2024
The Insolvency and Bankruptcy Board of India (“IBBI”) has amended the Insolvency and Bankruptcy Board of India (Model ByeLaws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 (“IPA Regulations”), with effect from 31.01.2024. The Regulation 12A of IPA Regulations deals with Authorisation for Assignment. The sub clause 6 of Regulation 12A states...
NCLT Kochi Order “Preposterous” And “Untenable” Exceeding Jurisdiction In Declaring Tax Assessment Order Void: Kerala High Court
While allowing a Writ Petition, the Kerala High Court bench of Justice Dinesh Kumar Singh recently observed that an Order passed by the National Company Law Tribunal ('NCLT') Kochi Bench was 'preposterous' and 'untenable'. NCLT Kochi had held an Assessment Order by Kerala Value Added Tax ('KVAT') Works Contract Authorities against Albana Engineering (India) Pvt. Ltd. (Respondent 2) to...
NCLT Mumbai: Corporate Guarantor's Date Of Default Is Independent Of Principal Borrower's Date Of Default
The National Company Law Tribunal ('NCLT') Mumbai, comprising Justice Mr. Kishore Vemulapalli (Judicial Member) and Ms. Anu Jagmohan Singh (Technical Member) held that the date of default by the Principal Borrower is not relevant to determine the date of default by the Corporate Guarantor. Background Facts: On 29.07.2023, the Central Bank of India (Financial Creditor) filed a...
Private Sale Conducted In Non-Transparent Manner & In Absence of Several SCC Members, NCLT Indore Directs Liquidator To Re-Conduct Bidding
The National Company Law Tribunal (“NCLT”), Indore Bench, comprising of Shri P. Mohan Raj (Judicial Member) and Shri Kaushalendra Kumar Singh (Technical Member), has directed the Liquidator to re-conduct private sale bidding of the Corporate Debtor since the earlier bidding was not conducted in transparent manner. The Bench observed that the Liquidator failed to make genuine...
Monthly Digest Of IBC Cases: January 2024
Supreme Court IBC | Moratorium Under S 14 No Bar To Execute Decree Against Directors/Officers Of Corporate Debtor: Supreme Court Case Title: Ansal Crown Heights Flat Buyers Association (Regd.) V M/S. Ansal Crown Infrabuild Pvt. Ltd. & Ors. Citation: 2024 LiveLaw (SC) 63 The Supreme Court has held that the imposition of moratorium under Section 14 of the Insolvency...
NCLT Hyderabad: 'Provisional Order Of Attachment' Made Under PMLA Would Not Nullify The Protection Granted Under Section 32A IBC
NCLT Hyderabad bench comprising of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and SH. Charan Singh (Technical Member) in its recent order has cleared that, the provisional order of attachment (POA) under Section 5(1) of the Prevention of Money Laundering Act, 2002, in respect of the properties of the corporate debtor covered under the approved resolution plan, would not...
NCLAT Delhi Upholds Dismissal Of Plea To Initiate Proceedings Under Section 340 Of CrPC Against Allottees For Allegedly Filing False Affidavits
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 upheld the rejection of an application seeking initiation of proceedings under Section 340 r/w Section 195 of the Criminal Procedure Code, 1973 (“CrPC”) against...
NCLT Kolkata: Filing Of Default Information With Information Utility Under Rule 20(1A) Of IBBI (UI) Regulations 2017 Is Not Mandatory
The National Company Law Tribunal ('NCLT') Kolkata comprising Smt. Bidisha Banerjee (Judicial Member) and Shri D. Arvind (Technical Member) held that the filing of default information with Information Utility in compliance with Rule 20(1A) of IBBI (Information Utilities) Regulations 2017 ('IBBI Regulations 2017') is not mandatory compliance. Background Facts: Avani...
NCLT Kolkata: Simultaneous CIRP Can Be Initiated Against Principal Borrower And Corporate Guarantor
The National Company Law Tribunal ('NCLT') Kolkata comprising Smt. Bidisha Banerjee (Judicial Member) and Shri D. Arvind (Technical Member) held that a simultaneous Corporate Insolvency Resolution Process ('CIRP') can be initiated against Principal Borrower and Corporate Guarantor under the Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: Avani Projects...