IBC | Sec. 9 Petition Not Maintainable Against Claim For Compensation Penalty Under A Contract: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in Chandrashekhar Exports Pvt. Ltd. v Babanraoji Shinde Sugar & Allied Industries Ltd., has upheld the dismissal of a petition under Section 9 of IBC which was filed based on claim...

Extent Of NCLT’s Jurisdiction Over Contractual Disputes During CIRP

A moratorium (stay) is imposed on all the legal proceedings (pending or future) by virtue of Section 14 of Insolvency and Bankruptcy Code 2016 ( IBC), when Corporate Insolvency Resolution Process ( CIRP) is initiated against a Corporate Debtor ( CD). In case a third party initiates any action against the CD (in terms of any penalty) the Resolution Professional ( RP) on behalf of the CD can file an Application under Section 60 of IBC against such third party, before the National...

Stock Broker Company Is A Financial Service Provider Under IBC: NCLT Delhi

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Ashok Kumar Bhardwaj (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition in M/s Bezel Stockbrokers Private Limited v Security Exchange Board of India & Anr., has held that a stock broker company is a financial service provider under IBC. “Since Corporate...

NCLT Urges Parties To Take Follow Up Action On Pending Applications/Petition In E-Filing System Within 21 Days

The National Company Law Tribunal (“NCLT”) has issued a Circular dated 04.08.2023, intimating that the petitions/applications filed through E-Filing prior to 30.06.2023 are pending in the system without any follow up. The NCLT has urged the concerned parties/advocates to take a follow up action and prosecute the same within a period of 21 days (till 25.08.2023). Failing...

Go Airlines | NCLT Issues Notice On Application Filed By RP Seeking Refund Of Cancelled Ticket Amount To Passengers

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Mahendra Khandelwal (President) and Shri Rahul Bhatnagar (Technical Member), while adjudicating a petition filed by Go Airlines (India) Limited, has issued notice in an application field by the Resolution Professional of Go Airlines, seeking permission to make refund to the passengers whose...

Monthly Digest Of IBC Cases: July 2023

Supreme Court IBC Overrides Electricity Act; Dues To Secured Creditors At Higher Footing Than Electricity Dues : Supreme Court Case Title: Paschimanchal Vidyut Vitran Nigam Ltd vs Raman Ispat Private Limited Citation: 2023 LiveLaw (SC) 534 | 2023 INSC 625 The Supreme Court Bench comprising of Justices S. Ravindra Bhat and Dipankar Datta, has observed that Section 238...

No Inconsistency Between IBC And Sec. 13 & 13A Of U.P. Industrial Area Development Act: NCLT Delhi

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Ashok Kumar Bhardwaj (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in VMS Equipment v Primrose Infratech Private Limited, has held that there is no inconsistency between IBC and Sections 13 and 13A of the UP Industrial Area Development Act, 1976. If...

Greater Noida Industrial Development Authority Is A Secured Creditor Under Sec. 3(30) Of IBC: NCLT Delhi

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Ashok Kumar Bhardwaj (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in VMS Equipment v Primrose Infratech Private Limited, has held that the Greater Noida Industrial Development Authority (GNIDA) is a secured operational creditor under Section 3(30)...

NCLT Bengaluru Admits Café Coffee Day’s Parent Company Into Insolvency

The National Company Law Tribunal (“NCLT”), Bengaluru Bench, comprising of Justice (Retd.) T Krishnavalli (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), while adjudicating a petition filed in Indus Ind Bank Limited v M/s Coffee Day Global Limited, has initiated Corporate Insolvency Resolution Process against M/s Coffee Day Global Ltd., which is the parent company...

NCLT New Delhi Admits ‘Brij Gopal Construction Co.’ Into Insolvency

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri Atul Chaturvedi (Technical Member), while adjudicating a petition filed in M/s Geocon Infra Pvt. Ltd. v M/S. Brij Gopal Construction Company Pvt. Ltd., has initiated Corporate Insolvency Resolution Process (CIRP) against Brij Gopal Construction...

Weekly Digest Of IBC Cases: 24 To 30 July 2023

NCLATThere Can’t Be Discrimination Between One Class Of Creditors’; NCLAT Delhi Directs Modification Of Resolution Plan Case Title: Akashganga Processors Pvt. Ltd. v Shri Ravindra Kumar Goyal & Ors. Case No.: Company Appeal (AT) (Insolvency) No.1148 of 2022 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok...

NCLT Kochi Imposes Rs. 50,000/- Cost On GST Department For Raiding Corporate Debtor During Moratorium

The National Company Law Tribunal (“NCLT”), Kochi Bench, comprising of Shri P. Mohan Raj (Judicial Member) and Shri Satya Ranjan Prasad (Technical Member), while adjudicating a petition filed in Kosamattam Finance Ltd. v Mangomeadows Agriculture Pleasure Land Pvt. Ltd. has imposed a cost of Rs. 50,000/- on the Goods and Services Tax Department (GST) for raiding the...