Crown Debt Vs Other Debts – The Legislative Intent

When the Insolvency and Bankruptcy Code,2016 was passed by the Indian Parliament, it created a new precedent by lowering the priority of payment of the Crown Debt or the Statutory Dues to the dues of the Banks/Financial Institutions and other creditors, both secured and unsecured. It was a departure from the long-standing practice set in place by the Britishers from pre-independence times, where the Crown Debts i.e. dues of Income Tax, Excise, Customs, GST etc., enjoyed pre-eminance over...

NCLAT Rejects Reliance Capital’s Creditor Plea To Vacate Status Quo Order

National Company Law Appellate Tribunal (NCLAT) bench comprising of Justice Ashok Bhushan and Mr. Barun Mitra disposed off the appeal filed by the Reliance Capital Creditor namely Vistra ITCL against the NCLT Mumbai order dated 23.01.2023. Torrent Investment which emerged as the successful bidder for Reliance Capital with a bid of Rs. 8640 Crores filed an application before NCLT...

Withdrawal Application U/S 12a Can’t Be Entertained After Approval Of Resolution Plan By COC: 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 Hem Singh Bharana v M/s Pawan Doot Estate Pvt. Ltd. & Ors., has held that once the Committee of Creditors approve a resolution plan, no withdrawal application under Section 12A...

After Adoption Of Swiss Challenge Method, RA Not Allowed To Submit Revised Plan: 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 Jindal Stainless Ltd. v Mr. Shailendra Ajmera & Anr., has held that after adoption of Swiss Challenge Method to find out the best plan, one Resolution Applicant cannot be...

No Condonation Beyond 45 Days, IBC Overrides Limitation Act : 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 M/s. Platinum Rent A Car (India) Pvt. Ltd. v M/s. Quest Offices Limited, has held that Section 238 of IBC overrides Section 12 of the Limitation Act, 1963. The Bench declined...

IBC Cases Weekly Round-Up: 16 January To 22 January 2023

NCLAT NCLAT Delhi Upholds Dismissal Of Application Seeking Restraint On Oyo From Proceeding With IPO Case Title: Jagadish v Oyo Hotels & Homes Pvt. Ltd. Case No.: Company Appeal (AT) (Insolvency) No. 1408 of 2022 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun...

Operational Creditors Only Entitled To Minimum Of The Liquidation Value: 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 Dharmindra Constructions Pvt. Ltd. & Anr. v Rajendra Kumar Jain, has held that Operational Creditors are only entitled for minimum of the liquidation...

Landowner In A Development Agreement Not A Financial Creditor: 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 Ashoka Hi-Tech Builders Pvt. Ltd. v Sanjay Kundra & Anr., has held that a landowner in a development agreement is not a financial creditor within the meaning of Section 5(8) of...

Section 17 Of Limitation Act Inapplicable Where Limitation Is Prescribed For Appeal: 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 Maharashtra State Electricity Distribution Company Ltd. v NRC Ltd. & Anr., has held that Section 17(1) of Limitation Act, 1963 deals with period of limitation in the case of any...

‘Filed Only For Recovery Of Balance Interest Amount’: NCLAT Delhi Upholds Dismissal Of Section 9 Petition

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 Permali Wallace Pvt. Ltd. v Narbada Forest Industries Pvt. Ltd., has held upheld the Adjudicating Authority’s dismissal of a Section 9 petition, which was filed merely for...

NCLT Hyderabad Grants A Series Of Concessions/Waivers To The Successful Bidder

The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Sri Satya Ranjan Prasad (Technical Member), while adjudicating a petition filed in State Bank of India v K.R.R Infraprojects Pvt. Ltd., has granted several waivers/concessions to the Successful Bidder including waiver from penalties imposed...

Ministry Of Corporate Affairs Invites Public Comments On Proposed Changes In IBC

The Ministry of Corporate Affairs, Government of India, has issued a circular inviting comments from the public on the changes proposed to be made in the Insolvency and Bankruptcy Code, 2016 (“IBC”). The proposed changes relate to the admission of corporate insolvency resolution process (“CIRP”) applications, streamlining the insolvency resolution process, recasting the...