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...

Petition U/S 9 IBC Can Only Be Filed After Expiry Of 10 Day Period Under Section 8(2) IBC: NCLT Mumbai

The National Company Law Tribunal, Mumbai Bench, comprising of Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member), while adjudicating a petition filed in Aypols Polymers Private Limited Vs Suvarna Fibrotech Pvt Ltd has held that Petition under Section 9 of Insolvency and Bankruptcy Code, 2016 can only be filed after expiry of the 10 day...

NCLT Cannot Decide Controversies Relating To Attachment Of Property Under Benami Prohibition Act: NCLAT Chennai

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Shri Naresh Salecha (Technical Member), while adjudicating an appeal filed in Mr. P. Eswaramoorthy v The Deputy Commissioner of Income Tax (Benami Prohibition), has held that NCLT is not the proper Fora to determine the controversies revolving...

Lease Premium & Lease Rent Not Included In Explanation To Section 14(1)(D) Of IBC: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member), while adjudicating an appeal filed in Sunil Kumar Agarwal v New Okhla Industrial Development Authority, has held that Explanation to Section 14(1)(d) of IBC does not include lease premium or lease...

When Financial Creditors Have Not Been Paid In Full, Operational Creditors Cannot Claim A Higher Amount: NCLT Ahmedabad

The National Company Law Tribunal (“NCLT”), Ahmedabad Bench, comprising of Dr. Deepti Mukesh (Judicial Member) and Shri Ajai Das Mehrotra (Technical Member), while adjudicating a petition filed in Noble Resource International Pvt. Ltd. v Sona Alloys Pvt. Ltd., has held that when Financial Creditors have not been paid in full in the Resolution Plan, the Operational...