AA Not Required To Assess The Correct Amount Of Debt At Admission Stage: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in Manmohan Gupta v MDS Digital Media Pvt. Ltd. & Anr., has held that the Adjudicating Authority is not required to express any opinion on the correctness of debt amount at the...

NCLT Notifies Changed Timings For New Delhi Benches W.E.F. 21 April 2023

The National Company Law Tribunal (“NCLT”), has released a Circular dated 20.04.2023 notifying that the timings of certain courts of NCLT New Delhi Bench have been changed. The changes are applicable from 21.04.2023 onwards. The timing of following courts at NCLT New Delhi Bench has been modified: NCLT New Delhi, Court Room No. III (Second Half) Shri Bachu Venkat...

Creditor Who Don’t Submit Claim Or Raises Issues In CIRP, Has No Right To Challenge Resolution Plan: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Shri Naresh Salecha (Technical Member), while adjudicating an appeal filed in Madhya Pradesh Paschim Kshetra Vidyut Vitaran Co. Ltd. v Jagdish Kumar & Anr., has held that a creditor who neither submits its claim before the...

Applicability Of Section 10A, IBC To Part Default During Suspension Period ;An Analysis

On 5 June, 2020, the Government of India introduced Section 10A to the Insolvency and Bankruptcy Code, 2016 by the way of an ordinance which barred filing of any application for initiation of CIRP for default occuring during a certain period. The rationale behind the insertion of this section was to prevent the interests of corporate debtors who suffered economic crisis due to the national wide lockdown imposed in view of COVID-19. While introduction of this provision was a necessary...

Weekly Digest Of IBC Cases: 10 April To 16 April 2023

NCLAT Threshold Limit Of Rs. 1 Crore Applicable From The Date Of Filing And Not From Date Of Registration Of Petition: NCLAT Delhi Case Title: Royal Manpower Services v Faridabad Autocomp System Pvt. Ltd. Case No.: Company Appeal (AT) (Insolvency) No. 370 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok...

NCLT New Delhi Orders Liquidation Of M/S. Hema Automotive Pvt. Ltd Under Section 33 Of IBC

The NCLT New Delhi bench has ordered for Liquidation of M/s. Hema Automotive Pvt. Ltd. (“Corporate Debtor”). The Company was admitted into Corporate Insolvency Resolution Process (“CIRP”) on 08.07.2022. Hero Fincorp Ltd (“Financial Creditor”) was the sole member of the Committee of Creditors (“CoC”). The CoC resolved to Liquidate the Corporate Debtor in its 4th meeting...

NCLT Mumbai Approves Mr. Jitendra Bhandari’s Resolution Plan For Trimurti Foodtech Private Limited

NCLT Mumbai has approved a 22 crore resolution plan of Mr. Jitendra Bhandari for Trimurti Foodtech Private Limited (“Corporate Debtor”) under section 31 (1) of the Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”). The Company was admitted into Corporate Insolvency Resolution Process (“CIRP”) vide an order dated 11.08.2021. The Company initially received and...

A Loan Payable On Demand Becomes Due And Payable On Receipt Of Demand Notice: NCLT Mumbai

The National Company Law Tribunal, Mumbai Bench, comprising Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Praful Satra vs MD Development Private Limited has held that a loan payable on demand becomes due and payable on the receipt of...

Unlike Section 9, There Is No Scope Of Raising A Dispute In A Section 7 Petition: NCLT Mumbai Reiterates

The National Company Law Tribunal, Mumbai Bench, comprising Shri H. V. Subba Rao (Judicial Member) and Shri Shyam Babu Gautam (Technical Member), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Idea Lenders & Anr. vs Navdurga Advisory Private Limited has reiterated that there is no scope of raising a dispute under a...

Claim Arising Out Of Partnership Business Which Is Not A Mere Claim Of Supply Of Material Is Not An “Operational Debt”: NCLT Mumbai

The National Company Law Tribunal, Mumbai Bench, comprising Shri H.V. Subba Rao (Judicial Member) and Shri Madhu Sinha (Technical Member), while adjudicating an application under Section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Manoj Stone Infra Private Limited vs Railsys Engineers Private Limited has held that a claim arising out of a mutual business understanding...

Financial Creditor’s Entitlement To Simple Or Compound Interest Not To Be Decided At Admission : NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in Holy Heights Infrastructures Pvt. Ltd v K.V. Foundations India Ltd., has held that the question as to whether the Financial Creditor is entitled to simple interest or compound interest is not...

A Person Who Comes In A Project As A Speculative Investor In Garb Of A Lender Cannot Be Accorded The Status Of A Financial Creditor: NCLT New Delhi

The National Company Law Tribunal, New Delhi Bench, comprising Shri P.S.N Prasad (Judicial Member) and Shri Rahul Bhatnagar (Technical Member), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) in Rohit Prasad vs M/s S and N Lifestyle Infraventures Pvt. Ltd. has held that the status of “Financial Creditor” cannot be accorded...