IBC | Tax & Customs Dues To Be Paid As Per Waterfall Mechanism Under Section 53 : Supreme Court

The Supreme Court Bench comprising Justice Sanjiv Khanna and Justice S.V.N. Bhatti, has clarified that the dues of the Central Board of Indirect Taxes & Customs, Department of Revenue, will be paid as per the waterfall mechanism given under Section 53 of the Insolvency and Bankruptcy Code, 2016 (“IBC”).Section 53 of IBC provides the order of priority in which proceeds from sale...

Monthly Digest Of IBC Cases: October 2023

Supreme Court Homebuyers Who Secure RERA Decrees Can't Be Treated Differently From Other Financial Creditors Under IBC: Supreme Court The Supreme Court bench comprising Justices S Ravindra Bhat and Aravind Kumar, has held that homebuyers cannot be treated differently from other "financial creditors" under the Insolvency and Bankruptcy Code (IBC) 2016 just because they have...

NCLT Bengaluru & NCLT Kochi Bench Reconstituted W.E.F. 1st November 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 31.10.2023, intimating the reconstitution of NCLT Bengaluru and NCLT Kochi Bench with effect from 01.11.2023. Shri Khetrabasi Biswal (Judicial Member) has been newly appointed as a Member of the NCLT. In view of his appointment, the following NCLT Benches have been reconstituted: NCLT Bengaluru...

NCLT Mumbai Approves Liquidation Of TV Products India Private Limited

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising Kuldip Kumar Kareer (Judicial Member) and Anil Raj Chellan (Technical Member) has approved the Liquidation of TV Products India Private Limited. Background Facts TV Products India Private Limited (“Corporate Debtor”) is a Non-govt company, registered at ROC-Mumbai. It was incorporated on 15 September...

NCLT Allahabad Allows SBI’s Application For Withdrawal Of Section 7 Petition Against Bajaj Hindustan Sugar

The National Company Law Tribunal (‘NCLT’) Allahabad Bench comprising of Shri Praveen Gupta (Judicial Member) and Shri Ashish Verma (Technical Member) allowed the State Bank of India’s (‘SBI’) application for withdrawal of the Section 7 petition filed under the Insolvency and Bankruptcy Code, 2016 (‘IBC’) against Bajaj Hindusthan Sugar (Corporate Debtor). The SBI...

NCLT Mumbai: Mere Mention Of SARFAESI Proceeding Is Not “Sufficient Cause” For The Condonation Of Delay Under Section 5 Of Limitation Act, 1963

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Justice Virendrasingh Bisht (Retd.) (Judicial Member) and Mr Prabhat Kumar (Technical Member) has rejected an application filed under Section 5 Limitation Act, 1963 (“Limitation Act”) and disposed of a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”). NCLT observed that...

NCLT Kochi: Moratorium U/S 96 And 101 Of IBC Cannot Be Meant To Prohibit The Right To Action U/S 7, 9 Or 10 Of IBC

The National Company Law Tribunal (“NCLT”), Kochi Bench, comprising of Justice T Krishna Valli (Retd.) (Judicial Member) and Shri. Shyam Babu Gautam (Technical Member) dismissed a stay application and has held that the moratorium under sections 96 and 101 of the Insolvency and Bankruptcy Code “(IBC”) cannot be meant to prohibit the right to action under sections 7, 9 or 10 of IBC...

No NCLT Bench To Deny Hearing Through Hybrid Mode Or Video Conferencing; NCLT Issues Circular

The National Company Law Tribunal (“NCLT”) has issued a Circular dated 31.10.2023, directing that no NCLT Bench will deny access to video conferencing facility or hearing through hybrid mode to any Bar Member or Litigant, who is desirous of availing such facility. Brief Background The Supreme Court of India vide its order dated 15.09.2023 passed in Sarvesh Mathur v...

NCLT Ahmedabad: Application U/S 9 Is Not Maintainable If Operational Creditors Return Principal Amount Paid During The Pendency Of The CIRP Application.

The National Company Law Tribunal (“NCLT”), Ahmedabad Bench, comprising of Mr Shammi Khan (Judicial Member) and Mr Kaushalendra Kumar Singh (Technical Member) has allowed an application and held that any application filed under Section 9 of Insolvency and Bankruptcy Code (“IBC”) is not maintainable if Operational Creditors return the principal amount which was paid during...

NCLAT New Delhi : Dispute To Be ‘Truly In Existence’ At Time Of Reply Or Section 9 Application For Nullifying CIRP U/S 9 Of IBC

The National Company Law Appellate Tribunal (‘NCLAT’) Principal Bench, New Delhi comprising Mr. Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that the dispute raised must truly exist at the time of filing a reply to the Demand Notice under Section 8(2) of Insolvency Bankruptcy Code, 2016 (‘IBC’) or at the time of filing the Section 9 application...

NCLT Bengaluru: Issue Of Fixing EMD And Its Reasonableness In EOI, Is A Matter Which Comes Within The Scope Of CoC And Not NCLT.

The National Company Law Tribunal (“NCLT”), Bengaluru Bench, comprising of T. Krishnavalli (Judicial Member) and Mr Manoj Kumar (Technical Member) has dismissed an application and held that the issue of fixing Earnest Money Deposit (“EMD”) and its reasonableness in Expression of Interest (“EOI”), is a matter that comes within the scope of the "Commercial Wisdom" of...

IBC Resolution Plan Can't Ignore Government Dues : Supreme Court Dismisses Review Petitions Against 'Rainbow Papers'

The Supreme Court on Tuesday (October 31) dismissed a batch of review petitions filed against a 2022 judgment which held that the definition of a secured creditor under the Insolvency and Bankruptcy Code (IBC) 2016 included any government or governmental authority and that a resolution plan which ignored dues to the government was liable to be rejected.A bench comprising Justices AS Bopanna...