IBC News
Supreme Court Upholds Constitutionality Of IBC Provisions Relating To Personal Guarantors; Says Adjudicatory Role Can't Be Read Into Sec 97
In a significant judgment, the Supreme Court on Thursday (November 9) upheld the constitutionality of the provisions of the Insolvency and Bankruptcy Code (IBC) relating to Personal Guarantors' Insolvency Resolution, which were introduced through the amendments made in 2019.The Court held that these provisions (Section 95 to 100 IBC) cannot be held as unconstitutional for not affording...
NCLAT Delhi: Benefit Under Section 17 Of Limitation Act Is Not Available When Fraud Was Played In Creditor Company And Not In Company Of Corporate Debtor
The National Company Law Appellate Tribunal (“NCLAT”), Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson), Mr Barun Mitra and Mr Arun Baroka (Technical Members) has rejected an appeal and held that benefits under Section 17 of the Limitation Act, 1963 (“Limitation Act”) for filing a belated claim is not available when the fraud was played in the Creditor Company and not in...
Time Spent In Obtaining Legal Opinion And Engaging Counsel Is Not ‘Sufficient Cause’ For Condonation Of Delay In Filing Of Appeal: NCLAT Chennai
The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Ms. Shreesha Merla (Technical Member), has held that the time spent in obtaining legal opinion and engagement of counsel is not a ‘sufficient cause’ to condone the delay in filing of appeal under proviso to Section 61(2) of IBC.The Bench was adjudicating...
NCLT Delhi: Criteria For Determination Of Limitation Period And Date Of Default With Respect To Debt Are Distinct Questions Of Law And Fact And Cannot Be Evaluated Similarly
The National Company Law Tribunal (“NCLT”), Delhi Bench, comprising of Mr. Manni Sankariah Shanmuga Sundaram (Judicial Member) and Dr. Binod Kumar Sinha (Technical Member) has rejected an application and held that as per Sec 10A of Insolvency and Bankruptcy Code, 2016 (“IBC”), no IBC proceedings can be initiated against the Corporate Debtor for the default which has occurred between...
NCLAT Delhi: Claims Cannot Be Entertained After Approval Of Resolution Plan By CoC Even If Resolution Plan Is Still Pending For Approval By NCLT
The National Company Law Appellate Tribunal (“NCLAT”), Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson), Mr Barun Mitra and Mr. Arun Baroka (Technical Members) has rejected an appeal and held that claims cannot be entertained after approval of the Resolution Plan by Committee of Creditors (“CoC”) even if the Resolution Plan is still pending for approval of the...
NCLT Mumbai: 10-Day Demand Notice Period Cannot Be Excluded When Calculating The Limitation Period For Filing A Petition U/S 9 IBC.
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Mr Kuldip Kumar Kareer (Judicial Member) and Mr Anil Raj Chellan (Technical Member) has dismissed a petition and held that Insolvency and Bankruptcy Code, 2016 (“IBC”) has no provision that a 10-day period of Demand Notice is liable to be excluded while reckoning the period of limitation for filing the petition...
IBBI Proposes Real Estate Related Changes In CIRP & Liquidation Regulations, Invites Public Comments Till 28th November 2023
The Insolvency and Bankruptcy Board of India (“IBBI”) on 06.11.2023 has published a Discussion Paper on Real-Estate related proposals to be introduced in Corporate Insolvency Resolution Process (CIRP) & Liquidation process under the Insolvency and Bankruptcy Code, 2016 (“IBC”). Accordingly, amendments have been proposed to IBBI (Insolvency Resolution Process for Corporate...
Weekly Digest Of IBC Cases: 30th October To 5th November 2023
Supreme CourtIBC Resolution Plan Can't Ignore Government Dues: Supreme Court Dismisses Review Petitions Against 'Rainbow Papers' Case title: Sanjay Agarwal v. State Tax Officer Citation: 2023 LiveLaw (SC) 939 The Supreme Court has dismissed a batch of review petitions filed against a 2022 judgment which held that the definition of a secured creditor under the Insolvency and...
Operational Creditor Can’t Object To Approval Of Resolution Plan Before NCLT: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai Bench, comprising of Justice V.G. Bisht (Retd.) (Judicial Member) and Shri Prabhat Kumar (Technical Member), has held that an Operational Creditor whose claim has been admitted by the Resolution Professional, cannot be made a respondent in application for approval of resolution plan pending before the NCLT. Further, the...
NCLT Delhi: Section 9 Application Can’t Be Allowed If Corporate Debtor Is Inactive, Due To Default In Filing Statutory Returns
The National Company Law Tribunal (“NCLT”), Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri Atul Chaturvedi (Technical Member) has dismissed an application and held that any application under section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC”) for initiation of Corporate Insolvency Resolution Process (“CIRP”) cannot be allowed if...
NCLAT Delhi: An Operational Creditor Who Is A Participant In Meetings Of CoC Has No Right To Seek A Copy Of Information Memorandum.
The National Company Law Appellate Tribunal (“NCLAT”), Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Mr Naresh Salecha (Technical Member) has allowed an appeal and set aside an order of National Company Law Tribunal (“NCLT”) observing that the operational creditor who is a participant in meetings of the Committee of Creditors (“CoC”) has no right...
IBBI Proposes Changes To CIRP Regulations, Invites Public Comments Till 22nd November 2023
The Insolvency and Bankruptcy Board of India (“IBBI”) on 01.11.2023 has published a Discussion Paper on amendments to IBBI (Insolvency Resolution Process for Corporate Process) Regulations, 2016 (“CIRP Regulations”). The IBBI has also invited comments from the public/stakeholders regarding proposed changes to the CIRP Regulations. The comments can be submitted online...