NCLT New Delhi: NCLT Rejects Insolvency Petition Filed By Wilmington Trust Against Spicejet Ltd.

The National Company Law Tribunal ('NCLT') New Delhi, comprising Justice Shri Mahendra Khandelwal (Judicial Member) and Shri Rahul Bhatnagar (Technical Member) has declined Wilmington Trust's application to initiate the Corporate Insolvency Resolution Process ('CIRP') against SpiceJet Limited. The CIRP application has been rejected on the premise that for the Insolvency and Bankruptcy...

NCLT Delhi: 'Homebuyers' Seeking Redressal Through 'RERA' Or 'NCDRC' Prior To Approaching 'NCLT' Retain Their Status As Financial Creditors

National Company Law Tribunal (“NCLT” or “Tribunal”) New Delhi, in its recent order while hearing a CIRP (Corporate Insolvency Resolution Process) petition filed by the homebuyers under Section 7 of the Insolvency and Bankruptcy Code (IBC), held that regardless of whether homebuyer-allottees have sought recourse through RERA (Real Estate Regulatory Authority) or NCDRC...

Notification Of Appointment Of Judicial Members And Technical Members At NCLAT

The Ministry of Personnel, Public Grievances & Pensions on 30.01.2024 has notified the approval of the appointment of candidates for 02 posts of Judicial Members and 02 posts of Technical Members in the National Company Law Appellate Tribunal ('NCLAT') by the Appointment Committee of Cabinet. The approval has been granted in reference to the Ministry of Corporate Affairs'...

NCLT Delhi: Debt Assignment Deed Cannot Be Challenged In CIRP U/s 7 Of IBC

The National Company Law Tribunal ('NCLT') New Delhi Bench, comprising Justice Mahendra Khandelwal (Judicial Member) and Dr. Sanjeev Ranjan (Technical Member) held that the Debt Assignment Deed cannot be challenged in a Corporate Insolvency Resolution Process ('CIRP') under Section 7 of Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: CFM Asset...

Bank Files Claim After 738 Days Of Delay And Post Approval Of Resolution Plan, NCLAT Delhi Upholds Rejection Of Claim

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 a claim submitted by Kotak Mahindra Bank Ltd., which was submitted to the Resolution Professional after delay of 738 days and post approval of resolution...

IBC | Moratorium Under S 14 No Bar To Execute Decree Against Directors/Officers Of Corporate Debtor: Supreme Court

The Supreme Court has held that the imposition of moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) has no effect on the execution of a decree against the Directors or Officers of the Company (Corporate Debtor), which is undergoing Corporate Insolvency Resolution Process (“CIRP”) under IBC.When the Company was admitted into CIRP, the National...

NCLAT Delhi: Security Of Refund Of Advance Amount Can't Change Nature Of Transaction Into Financial Debt

The National Company Law Appellate Tribunal ('NCLAT') New Delhi Bench, comprising Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that the Security of refund of the advance amount cannot change the nature of transaction into financial debt. Background Facts: An Agreement was entered between Sainik Industries...

Resolution Applicant Who Participated In The Process Has Locus To Object The Application For Approval Of Resolution Plan: 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 a resolution applicant who has participated in the process, has locus to object the application filed by Resolution Professional under Section 30(6) of IBC for...

Passing Of Decree Or Award Does Not Alter The Nature Of Operational Debt To Financial Debt: NCLT Mumbai

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Mr. Kuldip Kumar Kareer (Judicial Member) and Mr. Anil Raj Chellan (Technical Member), has held that the nature of an operational debt would not change to financial debt with the passing of a decree or arbitral award in respect of the same. “Undisputedly, the claim on the basis of which arbitral...

Weekly Digest Of IBC Cases: 22nd To 28th January 2024

NCLAT When Number Of Allottees Disputed, NCLT To Decide S.7(1) Compliance Prior To Admission: NCLAT Delhi Case title: Parikshit Madanmohan Sharma v M.S. Gopikrishnan & Ors. Case No.: Company Appeal (AT) (Insolvency) No. 206 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member)...

When Number Of Allottees Disputed, NCLT To Decide S.7(1) Compliance Prior To Admission : NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Shri Naresh Salecha (Technical Member), has held that when the total number of allottees in a real estate project is disputed, then the NCLT should first decide whether the Section 7 petition has been filed by minimum number of allottees prescribed...

NCLT Kolkata: Revival Of Corporate Debtor Is Primary Goal Of Resolution Plan And Going Concern Sale

The National Company Law Tribunal ('NCLT') Kolkata, comprising Justice Rohit Kapoor (Judicial Member) and Mr. Balraj Joshi (Technical Member) held that the primary goal of Resolution Plan as well as the sale of a Corporate Debtor as a going concern remains the same i.e revival of the Corporate Debtor's business. Background Facts: On 21.08.2018, Kohinoor Pulp & Paper Pvt....