NCLAT Delhi: CIRP Against Financial Service Provider Is Not Maintainable Under IBC

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 a Corporate Insolvency Resolution Process ('CIRP') application against the Financial Service Provider is not maintainable under Insolvency and Bankruptcy Code, 2016...

S.204 IBC | Provision Of Twin Tier Control By IBBI And IPA By Itself Doesn't Give Rise To Presumption Of Double Jeopardy: Madras High Court

While dismissing a challenge made to Section 204 of the Insolvency and Bankruptcy Code which gives powers to the Insolvency Professional Agency (IPA) to monitor the conduct of the Insolvency professional, the Madras High Court recently observed that merely because the provision gave powers to both the Insolvency Bankruptcy Board of India (IBBI) and the IPA, it would not become arbitrary...

IBC | Settlement In Section 7 Or Dropping Of Sec. 66 Proceedings Does Not Automatically End Proceedings Under Section 43: NCLT Mumbai

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri Kuldip Kumar Kareer (Judicial Member) and Shri Anil Raj Chellan (Technical Member), has held that the proceedings under Section 43 of IBC would not automatically end against a party, if the parties enter settlement in Section 7 of IBC proceedings or proceedings under Section 66 of...

NCLAT Delhi Terminates Insolvency Proceedings Against Asian Hotels (West) Ltd., Accepts Settlement Proposal By Promoters

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has terminated Corporate Insolvency Resolution Process (“CIRP”) of Asian Hotels (West) Ltd., which was initiated by NCLT in September 2022. The Bench has accepted the Settlement Proposal submitted by Promoters...

NCLAT Chennai: CoC's Commercial Wisdom Includes Approval Of Resolution Plan Below Liquidation Value

The National Company Law Appellate Tribunal ('NCLAT') Chennai Bench, comprising Justice Rakesh Kumar Jain (Judicial Member) and Shreesha Merla (Technical Member) held that the approval of the Resolution Plan below the Liquidation value is within the commercial wisdom of the Committee of Creditors ('CoC') as the Insolvency and Bankruptcy Code, 2016 ('IBC') does not expressly bar that...

Weekly Digest Of IBC Cases: 15th To 21st January 2024

NCLAT NCLAT Delhi Upholds Dismissal Of Insolvency Plea Against Aditya Birla Fashion And Retail Ltd., An Aditya Birla Group Company Case title: In Style Fashion v Aditya Birla Fashion and Retail Limited Case No.: Company Appeal (AT)(Insolvency) No. 1679 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice...

NCLAT Delhi: Ex-Promoter, Who Resigned Before CIRP Commencement, Is Eligible To Submit Resolution Plan

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 an Ex-Promoter/Director who resigned from Corporate Debtor before initiation of Corporate Insolvency Resolution Process ('CIRP') under Section 10 of Insolvency and Bankruptcy Code,...

NCLT Indore: Insolvency Resolution Professional Can Continue To Function Till Appointment Of RP U/S 16(5) Of IBC

The National Company Law Tribunal ('NCLT') Indore, comprising Shri P. Mohan Raj (Judicial Member) and Kaushalendra Kumar Singh (Technical Member) held that the Interim Resolution Professional ('IRP') can continue to function till the date of appointment of the Resolution Professional ('RP') as per the amended provisions of Section 16(5) of Insolvency and Bankruptcy Code,...

NCLAT Delhi Upholds Dismissal Of Insolvency Plea Against Aditya Birla Fashion And Retail Ltd., An Aditya Birla Group Company

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 declined to initiate insolvency proceedings against Aditya Birla Fashion and Retail Limited under Section 9 of IBC, on the premise that there is pre-existing dispute between...

NCLAT Delhi: Optionally Convertible Debentures Constitute 'Financial Debt' U/s 5(8)(c) Of IBC

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 Optionally Convertible Debentures ('OCDs') are Financial Debt within the meaning of Section 5(8)(c) of Insolvency and Bankruptcy Code, 2016...

NCLT Mumbai: Non-Acceptance Of Goods By Corporate Debtor Does Not Equate To Operational Debt U/S 5(21) Of IBC

The National Company Law Tribunal ('NCLT') Mumbai Bench, comprising Justice Kuldip Kumar Kareer (Judicial Member) and Mr. Anil Raj Chellan (Technical Member) held that the non-acceptance of the goods by the Corporate Debtor cannot be equated with the default in respect of an Operational debt under Section 5(21) of Insolvency and Bankruptcy Code, 2016 ('IBC'). Background...

NCLT Hyderabad: IBC Overrides The Provisions Of Andhra Pradesh Revenue Recovery Act, 1864

The National Company Law Tribunal ('NCLT') Hyderabad, comprising Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri. Charan Singh (Technical Member) held that the Insolvency and Bankruptcy Code, 2016 ('IBC') overrides the provisions of the Andhra Pradesh Revenue Recovery Act, 1864. Background Facts: NCS Sugars Ltd. (Corporate Debtor) involved in...