Secured Creditors Vis-À-Vis Debt Recovery: A Positive Step

The creation of statutory charges and the subsequent recovery process initiated by the tax department has often clashed with the recovery mechanisms used by secured creditors like banks under the Securitization andReconstruction of Financial Assets and Enforcement of Security Interest Act,2002 (“SARFAESI”) and Recovery of Debts Due toBanks and Financial Institutions Act, 1993 (“RDBA”). The question that lies at the heart of these disputes is which one of the two, the statutory dues or the...

NCLT Hyderabad Invokes Rule 153; Permits Filing Of Rejoinder Post Closure Of Opportunity

The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Dr. Binod Kumar Sinha (Technical Member), while adjudicating a petition filed in State Bank of India & Ors. v India Power Corporation Limited, invoked its powers under Rule 153 of the NCLT Rules and permitted the Financial Creditor to file...

“Misconceived, Not Maintainable”: NCLAT Delhi Dismisses Appeal Filed By IBBI

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 Insolvency & Bankruptcy Board of India v GTL Infrastructure Ltd. & Ors., has dismissed an appeal filed by the Insolvency and Bankruptcy Board of India...

NCLT Mumbai Benches Re-Constituted W.E.F 11th February 2023

The National Company Law Tribunal, Mumbai Bench, has been re-constituted vide a Circular dated 09.02.2023 issued by NCLT. Justice Pradeep Narhari Deshmukh (Judicial Member) of NCLT Mumbai Bench is demitting office on 10.02.2023 on completion of his tenure. Therefore, the Bench is being re-constituted to take up the matters listed before Justice Pradeep Narhari Deshmukh...

TDS Payments Do Not Amount To An Acknowledgement Of Debt: NCLT

The Mumbai Bench of the National Company Law Tribunal (NCLT) has ruled that TDS (tax deducted at source) payments do not amount to an acknowledgment of debt.The two-member bench of Justice P.N. Deshmukh (Judicial Member) and Shyam Babu Gautam (Technical Member) has relied on the decision of NCLAT in the case of P.M. Cold Store Pvt. Ltd. v. Goouksheer Farm Fresh Pvt. Ltd. & Anr., in which...

The IBC VS. SEBI: Critical Analysis Of Moratorium Under IBC

Section 28A of the Securities and Exchange Board of India Act, 1992 (“SEBI Act”) mentions about the recovery of proceeds from debtors in the form of attachment of immovable and movable property, attachment of bank accounts, etc. in order to make good the penalty imposed or to ensure the compliance with the regulations and the directions of the SEBI. However, this provision of SEBI cannot be read in isolation and without interpreting it along with section 14 and section 238 of Insolvency ...

Assets Of Subsidiary Company Cannot Be Dealt With In CIRP Of Holding Company: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Dr. Alok Srivastava (Technical Member) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in Greater Noida Industrial Development Authority (GNIDA) v Roma Unicon Designex Consortium, has held that the assets of the Subsidiary Company...

Weekly Digest Of IBC Cases: 30 January To 5 February 2023

Supreme Court Jet Airways Insolvency: Supreme Court Affirms NCLAT Order Directing Successful Bidder To Clear PF, Gratuity Dues Of Employees Case Title: Jalan Fritsch Consortium v Regional Provident Fund Commissioner and Anr. Case No.: C.A. No. 407/2023 The Supreme Court Bench comprising of Justice of India DY Chandrachud, Justice PS Narasimha and Justice JB Pardiwala, refused...

NCLAT Delhi Sets Aside The Order Of Private Sale Of Bhuvee Stenovate Private Limited

In a major Judgement, the National Company Law Appellate Tribunal set aside the order of the National Company Law Tribunal, Kolkata which had permitted a private sale of Bhuvee Stenovate Private Limited for an amount of Rs.61.05 Crores, even though the request for Private Sale had been made by the Intervener purchaser Laser Solar LLP. The order and consequent sale was set aside by...

No Simultaneous CIRP Proceedings Against Same Corporate Debtor: 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 Vrundavan Residency Pvt. Ltd. v Mars Remedies Pvt. Ltd., has held that there cannot be simultaneous CIRP proceedings against the same Corporate Debtor. The Bench declined to initiate...

Nature Of Financial Debt Doesn’t Change Upon Breach Of Consent Terms: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in Priyal Kantilal Patel v IREP Credit Capital Pvt. Ltd. & Anr., has held the nature of financial debt would not change on account of breach of the consent terms. The Bench has...

Monthly Digest Of IBC Cases: January 2023

Supreme Court “Inappropriate, Almost Bordering On Contempt”: SC Deprecates NCLAT Order Impeding Implementation Of SC Order Case Title: Indiabulls Housing Finance Ltd. v Iirf India Realty Xii Ltd. & Ors. Case No.: CIVIL APPEAL NO.9062/2022 The Supreme Court Bench comprising of Justice Sanjay Kishan Kaul and Justice Abhay S. Oka while adjudicating an appeal has set...