Weekly Digest Of IBC Cases: 29 March To 9 April 2023

Supreme Court IBC | Section 9 Petition Not To Be Dismissed If Few Invoices Are Time Barred But Remaining Invoices Are Not; Supreme Court Case Title: M/S Next Education India Pvt. Ltd. v M/S K12 Techno Services Pvt. Ltd. Citation: 2023 LiveLaw (SC) 270 The Supreme Court Bench comprising of Justice M.R. Shah and Justice C.T. Ravikumar, has held that when a petition under Section...

NCLAT Delhi Upholds Subsequent Reduction Of Claim By The IRP, Based On An Arbitral Award

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 Intec Capital Ltd. v Uday Kumar Bhaskar Bhat, has upheld the decision of the IRP whereby the claim of financial creditor was reduced after having been once admitted, based on an...

No Scope For Condonation Of Delay Beyond 15 Days, Much Less 45 Days: 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 Diwakar Sharma v Anand Sonbhadra, has held that there is no scope for condonation of delay beyond the period of 15 days much less 45 days, as there is no window available...

“IBC Does Not Contemplate Multiplicity Of Applications Against The Same Personal Guarantor”: NCLAT Chennai

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in Union Bank of India v Mr. P.K. Balasubramanian, has held that when the Insolvency Resolution Process commences against a Personal Guarantor, the claims of all Creditors are taken...

IBC | Section 9 Petition Not To Be Dismissed If Few Invoices Are Time Barred But Remaining Invoices Are Not ; Supreme Court

The Supreme Court Bench comprising of Justice M.R. Shah and Justice C.T. Ravikumar while adjudicating an appeal filed in M/S Next Education India Pvt. Ltd. v M/S K12 Techno Services Pvt. Ltd., has held that when a petition under Section 9 of IBC is filed based on several invoices and some of the invoices are time barred, then NCLT must consider the remaining invoices which are...

Allocation Of Meagre Amount Cant Be A Ground To Question The Resolution Plan: 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 Pani Logistics v Vikas G. Jain & Ors., has held that mere allocation of meagre amount cannot be a ground to question the resolution plan. The allocation in the resolution plan to...

In Absence Of A Charge Being Registered For Corporate Guarantee, The Appellant Could Not Be Treated As A Secured Financial Creditor; NCLT Ahemadabad

The National Company Law Tribunal (NCLT), Ahemadabad bench comprising Mr. Kaushalendra Kumar Singh (Technical) and Dr. Madan B. Gosavi (Judicial) dealt with the interpretation of a ‘secured’ financial creditor under the Insolvency and Bankruptcy Code, 2016. The tribunal held that the applicant in the present case, could not be considered as a secured financial creditor of the...

NCLT Urges Petitioners To Comply With Regulation 20(1a) Of Information Utility Regulations

The National Company Law Tribunal (“NCLT”) has released a Circular dated 03.04.2023, requesting the Petitioners in Sections 7 and 9 of IBC proceedings to produce the record of Information Utility (NeSL certificate) for effective hearing of their case and comply with Regulation 20(1A) of Insolvency and Bankruptcy Board of India (Information Utilities) Regulation,...

Section 30(4) Of IBC Directory In Nature, Does Not Compel COC To Distribute Payments Based On Value Of Security : NCLT Hyderabad

The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Shri Dr. N. V. Rama Krishna Badarinath (Judicial Member) and Shri Satya Ranjan Prasad (Technical Member), while adjudicating a petition filed in Stressed Assets Stabilisation Fund, Mumbai vs. M/s. Galada Power and Telecommunications Ltd., has held that Section 30(4) of IBC is directory in nature and does...

Claim For Pre-CIRP Dues Not Been Filed, Electricity Department Not Entitled To Recover Such Dues Or To Disconnect Electricity: 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 Swastik Aqua Ltd. & Anr. v Jharkhand Bijli Vitran Nigam Ltd. & Anr., has held that if the Electricity Department does not file any claim for its pre-CIRP electricity dues, then...

NCLT Bengaluru Initiates Insolvency Proceedings Against Mantri Developers Ltd., A Mantri Group Company

The National Company Law Tribunal (“NCLT”), Bengaluru Bench, comprising of Shri T. Krishnavalli (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), while adjudicating a petition filed in M/s. Indiabulls Housing Finance Limited v M/s. Mantri Developers Pvt. Ltd., has initiated Corporate Insolvency Resolution Process (“CIRP”) against Mantri Developers Pvt. Ltd. Mr....

NCLT Hyderabad Approves Resolution Plan Of Jindal Saw Limited Of Merger With Sathavahanaispat Limited

The National Company Law Tribunal (NCLT), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badrinath (Member Judicial) and Shri. Charan Singh (Member Technical) has approved the Resolution Plan submitted by Jindal Saw Limited (JSL), a flagship company of the P.R. Jindal Group. This decision allows for the merger of Sathavahana Ispat Limited (SIL), the Corporate...