IBC News
Discharge Of Liability Of The Principal Burrower Or Guarantor Does Not Automatically Discharge The Other In A Contract Of Guarantee: NCLT Chandigarh
The National Company Law Tribunal, Chandigarh Bench, comprising of Shri Harnam Singh Thakur (Judicial Member) and Shri Subrata Kumar Dash (Technical Member), while adjudicating a petition under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC”) in Jammu Kashmir Bank Limited vs Ace Engineering (India) Pvt Ltd. has held that even if, either the principal borrower or guarantor...
NCLT Ahmedabad Approves GAIL India’s Resolution Plan For JBF Petrochemicals
NCLT Ahmedabad has approved a 2079 crore resolution plan of GAIL (India) Limited (“GAIL”) for JBF Petrochemicals under section 31 (1) of the Insolvency and Bankruptcy Code, 2016 (“IBC”). This is the second instance of a state-owned company acquiring a private sector bankrupt company , with the first being Indian Oil Corporation acquiring Mercator under IBC. JBF Petrochemicals...
Corporate Debtor Not Being A Going Concern, Termination Of Essential Raw Material Supply Doesn’t Erode Value Of Assets: NCLT Ahmedabad
The National Company Law Tribunal (“NCLT”), Ahmedabad Bench, comprising of Dr. Madan B. Gosavi (Judicial Member) and Shri Ajai Das Mehrotra (Technical Member), while adjudicating a petition filed in Sundaresh Bhat v Mangalore Refinery and Petrochemicals Limited, has held that Section 14 of IBC seeks to preserve the ‘going concern’ status ‘if’ the Corporate Debtor is...
Length Of Delay Immaterial, Reason Stated For Condonation Matter: NCLT Hyderabad Reiterates
The National Company Law Tribunal, Hyderabad Bench, comprising Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Charan Singh (Technical Member), while adjudicating an application under Section 60(5) of Insolvency and Bankruptcy Code, 2016 (“IBC”) by the Deputy Director, Employees State Insurance Corporation in Asset Reconstruction Company (India) Limited...
Section 9 Petition Not Maintainable If Principal Amount Repaid During Pendency Of Petition: NCLT Bengaluru Reiterates
The National Company Law Tribunal, Bengaluru Bench, comprising of Justice (Retd) T. Krishnavalli (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), while adjudicating a petition under Section 9 of Insolvency and Bankruptcy Code, 2016 (“IBC”) in Ramesh Kumar Garg vs M/s Buildmet Pvt Ltd. has reiterated that a Section 9 petition is not maintainable if the principal...
Power To Award Interest As Per S. 31 Of Arbitration Act, Applies Only In Absence Of An Agreement: Delhi High Court
The Delhi High Court has ruled that Section 31 (7) (a) of the Arbitration and Conciliation Act, 1996 (A&C Act), which deals with the Arbitrator’s discretion while awarding interest in respect of the pre-reference period, applies only where there is no agreement between the parties with respect to the rate of interest to be awarded. The bench of Justice Chandra Dhari Singh...
NCLT Ahmedabad & Indore Benches Re-Constituted W.E.F 20th March 2023, Matters To Be Heard Through VC
The National Company Law Tribunal, Ahmedabad and Indore Benches, have been re-constituted vide a Circular dated 15.03.2023 issued by NCLT. Shri M.B. Gosavi (Judicial Member) is demitting office on 18.03.2023 on completion of his tenure. Therefore, the NCLT Ahmedabad and NCLT Indore Bench are being re-constituted. The re-constituted Benches shall comprise of: NCLT...
Insolvency Resolution Of Company Will Not Extinguish Director's Liability Under Section 138 NI Act : Supreme Court
The approval of resolution plan of a corporate debtor under the Insolvency and Bankruptcy Code 2016 will not extinguish the criminal liability of its erstwhile director under Section 138 of the Negotiable Instruments Act 1881, held the Supreme Court.A bench comprising Justices Sanjay Kishan Kaul, Abhay S Oka and JB Pardiwala held that the company's director cannot seek discharge from N.I....
IBC- Resolution Professional Entitled To Take Control Of Corporate Debtor's Rights In Assets Licensed To Third Parties : Supreme Court
The Supreme Court has held that a resolution professional is entitled to take control of the rights of a corporate debtor in assets which are licensed to third parties. Such an action of the RP will come within the ambit of Section 25 of the Insolvency and Bankruptcy Code 2016.A Bench comprising of Justice V. Ramasubramanian and Justice Pankaj Mithal held that the assets owned by a...
Dissenting Secured Creditor Can't Be Treated Higher Than Other Creditors U/S 53 Just Because They Enjoy Security Interest: NCLT Kolkata
The National Company Law Tribunal, Kolkata Bench, comprising of Shri Rohit Kapoor (Judicial Member) and Shri. Balraj Joshi (Technical Member), while adjudicating an Application under Section 60(5) of Insolvency and Bankruptcy Code, 2016 (“IBC”) in ICICI Bank Limited Vs Mr. Pratim Bayal (Resolution Professional)& Anr has reiterated that just because a creditor...
Claims Not Part Of The Resolution Plan Shall Extinguish Only After Resolution Plan Approval: NCLT Mumbai Reiterates
The National Company Law Tribunal, Mumbai Bench, comprising of Shri Kuldip Kumar Kareer (Judicial Member) and Shri. Shyam Babu Gautam (Technical Member), while adjudicating a Company Appeal under Section 42 of Insolvency and Bankruptcy Code, 2016 (“IBC”) in Dr. Shankar Sawant & Anr Vs Mr. Arun Kapoor (Resolution Professional) has reiterated that all claims not forming part of...
Insufficiency Of Stamp On Loan Documents Not Relevant For Admissibility Of Section 7 Petition: NCLT Mumbai Reiterates
The National Company Law Tribunal, Mumbai Bench, comprising of Shri Kuldip Kumar Kareer (Judicial Member) and Smt. Anuradha Sanjay Bhatia (Technical Member), while adjudicating a petition filed in Kotak Mahindra Bank Ltd. Vs M/s Hybro Foods Private Limited has reiterated that the insufficiency in the stamping of the loan documents is not a relevant ground for dismissing a...