Group Entity Insolvency In India

Group Entity insolvency is a need for the hour to increase the recovery where the subsidiary is highly profitable company and the parent or other company of the group which is under financial distress and faces insolvency. The cost incurred on the brand value, advertisement and other mutual expenses which has been encashed by the group companies should also be made liable for the...

Weekly Digest Of IBC Cases: 7 March To 12 March 2023

NCLAT NCLAT Delhi Upholds Remitting Of Resolution Plan Back To COC For Compliance Of Sec 30(2) IBC Case Title: Noble Marine Metals Co Wll V Kotak Mahindra Bank Limited & Ors. Case No.: Company Appeal (AT) (Insolvency) No. 653 of 2022. The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Ms....

Dispute In The Quantum Of Debt Cannot Be A Ground For Rejection Of Insolvency Petition: NCLT Delhi Reiterates

The National Company Law Tribunal, New Delhi Bench, comprising of Shri P.S.N. Prasad (Judicial member) and Shri Rahul Bhatnagar (Technical Member), while adjudicating a petition filed in M/s Intec Capital Limited Vs M/s SRD Management Company Private Limited has reiterated that dispute over quantum of debt cannot be a ground for rejection of insolvency petition. The tribunal admitted...

'Assets',Have Proved To Be `Fictitious’/`Fraudulent’, Created In The`Books Of Accounts’,With An Intent To `Defraud’ The‘Creditors’;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. Shibu Job Cheeran & Ors. v Mr. Ashok Velamur Seshadri, has held that for an application under Section 66 of IBC to succeed, it must be proved that (i) Directors participated...

IBBI Revises Format For Serving Copy Of Application To Board

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a Circular dated 04.03.2023, revising the format in which a copy of petition under IBC is to be served to IBBI by the Applicant, before filing of such application for initiation of CIRP. Brief background The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 obligates an applicant...

No Attachment Of Property Under PMLA Once Liquidation Commences: NCLT Jaipur

The National Company Law Tribunal (“NCLT”), Jaipur Bench, comprising of Shri Deep Chandra Joshi (Judicial Member) and Shri Prasanta Kumar Mohanty (Technical Member), while adjudicating a petition filed in M/s Packwell (India) Ltd. v M/s Emgee Cables and Communication Ltd., has held that PMLA would cease to have the power to attach the property of the Corporate Debtor, when the order...

NCLT Mumbai Allows Withdrawal Of CIRP Against Meta Arch Pvt. Ltd.

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri Kuldip Kumar Kareer (Judicial Member) and Shri Shyam Babu Gautam (Technical Member), while adjudicating a petition filed in Ardex Endura (India) Private Limited v Meta Arch Private Limited, has permitted withdrawal of CIRP against Meta Arch Private Limited. Background Facts Meta Arch Private...

NCLAT Delhi Upholds Remitting Of Resolution Plan Back To COC For Compliance Of Sec 30(2) IBC

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in Noble Marine Metals Co WLL v Kotak Mahindra Bank Limited & Ors., has upheld the order of Adjudicating Authority whereby a Resolution Plan was remitted back to the Committee...

No Bar On Sale Of Corporate Debtor As A Going Concern After First Auction, Permission Of AA not required: NCLT Delhi

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Ashok Kumar Bhardwaj (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in Mr. Surinder Manchanda v Nolsar International Limited, has held that there is no bar on the sale of Corporate Debtor as a going concern even after the first auction has taken place and...

Weekly Digest Of IBC Cases: 27 February To 6 March 2023

NCLAT Defences Of ‘Pre-Existing Dispute’ Or ‘No Amount Due’ Can Be Raised Directly In Reply To Section 9 Application: NCLAT Delhi Case Title: Greymatter Entertainment Pvt. Ltd. v Pro Sportify Pvt. Ltd. Case No.: COMPANY APPEAL (AT) (INSOLVENCY) NO. 1043 of 2021 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok...

Debt Arising Out Of Different Work Orders Can Be Clubbed To Meet Minimum Thershold Of Rs. 1 Crore: NCLT Mumbai Reiterates

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member), while adjudicating a petition filed in A J Buildcon Private Limited v Patel Engineering Limited, has reiterated that debts arising from different work order(s) can be clubbed to satisfy the minimum threshold limit of Rs....

Whether Proceedings Under NI Act Become Infructuous If Creditor Opts IBC?: Delhi High Court Issues Notice

The Delhi High Court Bench comprising of Justice Jasmeet Singh, while adjudicating a petition filed in Ashwani Arya & Anr. v Rajat Mitra Proprietor of M/s. Caldron Graphics, has issued notice in the petition filed under Section 482 of CrPC, wherein quashing of summons issued in a proceeding under Section 138 of Negotiable Instruments Act has been sought by the Director...