Weekly Digest Of IBC Cases: 29 May To 4 June 2023

NCLATNCLAT Reprimands RP For Seeking Police Help For Security Of Assets Of Corporate Debtor Instead Of Private SecurityCase Title: RP Modern Syntex (India) Ltd. v Supdt. of Police Anandpura, Vadodra Gujarat & Ors.Case No.: Company Appeal (AT) Insolvency No. 682 of 2023The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan...

NCLT Rejects Insolvency Plea Against Eicher Motors: NCLT Delhi

The National Company Law Tribunal (NCLT), Special Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri L. N. Gupta (Technical Member), while adjudicating an application in DHL Supply Chain Pvt. Ltd. v Eicher Motors Ltd., has declined to admit Eicher Motors Ltd. into insolvency since there are pre-existing disputes between the parties. Brief background DHL Supply...

Avoidance Of Undervalued Transactions Under Section 45 Of The IBC, 2016

The transactions that can be avoided or those referred to as avoidable transactions are covered under Sections 43 to 51 of the Insolvency and Bankruptcy Code, 2016, respectively. There are three types of transactions that fall within this category, preferential (Section 43), undervalued (Section 45), and fraudulent (Section 66) transactions. In the landmark case of Anuj Jain Interim Resolution Professional for Jaypee Infratech Limited Vs. Axis Bank Limited etc, the Supreme Court discussed the...

Monthly Digest Of IBC Cases [May 2023]

SUPREME COURTIBC| Principle Of Commercial Wisdom Not Validate A Decision Taken By CoC In Contravention Of Law: Supreme CourtCase Title: M.K. Rajagopalan v Dr. Periasamy Palani GounderCitation: 2023 LiveLaw (SC) 403The Supreme Court Bench comprising of Justice Dinesh Maheshwari and Justice Vikram Nath, has held that the principle of ‘Commercial Wisdom’ of the Committee of Creditors...

NCLAT Reprimands RP For Seeking Police Help For Security Of Assets Of Corporate Debtor Instead Of Private Security

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Naresh Salecha (Technical Member), while adjudicating an appeal filed in RP Modern Syntex (India) Ltd. v Supdt. of Police Anandpura, Vadodra Gujarat & Ors., has held for security of private property of the Corporate Debtor, the Resolution Professional...

Third Party Not For Copy Of Resolution Plan Pending Approval By AA: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Dr. Alok Srivastava (Technical Member), while adjudicating an appeal filed in Rupinder Singh Gill v Three C Universal Developers Pvt., has held that a party who is not a Claimant, Creditor or a participant in the CIRP of the Corporate Debtor, is not entitled...

NCLAT Notifies Summer Vacations For NCLAT Principal Bench W.E.F. 05.06.2023 To 02.07.2023, Registry To Remain Functional

The National Company Law Appellate Tribunal (“NCLAT”) has issued a notice dated 30.05.2023, notifying Annual Summer Vacation from 05.06.2023 to 02.07.2023 for NCLAT, Principal Bench (New Delhi). The Registry of NCLAT Principal Bench and the facility of E-filing of cases shall be operational during the said vacation period.Urgent matters would be taken up as per the decision of the...

Improving The Functioning Of The National Company Law Tribunal – A Perspective

The National Company Law Tribunal (NCLT), established on 01 June 2016 under the Companies Act, 2013, is a premier tribunal in the commercial and economic field. Its primary litigants are financial sector entities and bodies corporate. The enactment of the Insolvency & Bankruptcy Code, 2016 (IBC) is often cited as one of the main drivers for India’s quantum jump from rank 142 in 2014 to 62 in 2019 in the Ease of Doing Business Rankings, the most recent year for which data is...

Weekly Digest Of IBC Cases [22nd To 28th May 2023]

SUPREME COURTRemedies Against Third-Parties Not Available Under Section 66 Of IBC: Supreme CourtCase Title: Glukrich Capital Pvt Ltd vs The State of West BengalCitation: 2023 LiveLaw (SC) 464The Supreme Court Bench comprising of Justice Krishna Murari and Justice Sanjay Kumar, affirmed that the remedy against third party is not available under Section 66 of IBC. The Bench further held, “We...

NCLT Notifies Vacation Benches; Matters To Be Heard Through VC And Registry To Remain Functional

The National Company Law Tribunal (“NCLT”) has issued a circular dated 18.05.2023 notifying the Vacation Bench for NCLT benches having vacation in the month of June 2023. Further, only urgent matters would be heard during the vacation period, subject to the availability of the Hon’ble Member(s) and as per the convenience of the concerned Hon’ble Member(s). Matters are to be heard...

Home Buyers Have No Right To File Intervention Application Prior To Admission Of Section 7 Petition: 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), while adjudicating an appeal filed in Vikash Kumar Mishra & Ors. v Orbis Trusteeship Service Pvt. Ltd. & Anr., has held that an intervention application filed by the homebuyers in petition under Section 7 of...

Delay In Filing Of Appeal Under Section 42 Of IBC Is Condonable Under Section 5 Of Limitation Act: 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 Canara Bank v Commercial Tax Department Circle 09, Indore, Madhya Pradesh & Anr., has held that delay in filing the Appeal under Section 42 of IBC is condonable in exercise of power...