IBC News
Provident Fund Dues Are Not Assets Of Corporate Debtor, They Have To Be Paid In Full: 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 Assam Tea Employees Provident Fund Organization v Mr. Madhur Agarwal & Anr., has held that provident fund dues are not the assets of the Corporate Debtor and they have to be paid...
Definition Of Dispute Under Section 8 IBC: Whether The Plausible Contention Test Is Sufficient?
Under the incumbent Insolvency and Bankruptcy regime of India, it is prerequisite to send a demand notice to the Corporate Debtor before initiation of Corporate Insolvency Resolution Process. The very intent of this section is to terminate potential CIRP proceeding at its inception where the same is not called for. One such method to quash a potential CIRP at the inception is raising a dispute by Corporate Debtor upon very existence of operational debt under Section 8(2)(a) of the IBC,...
Rights Of Homebuyers Under The Insolvency And Bankruptcy Code
Home Buyers Are Financial Creditors: Homebuyers are financial creditors under the Insolvency and Bankruptcy Code, 2016 ('IBC'). IBC defines two categories of creditors: financial creditors and operational creditors (section 5 (8) and 5 (20), IBC) Originally, homebuyers were not treated as financial creditors. Their status as operational creditors was also doubted. Homebuyers' plight came into focus before the Supreme Court in litigation following the collapse of the housing projects of...
Can Provisional Attachment Under PMLA Be Passed After Initiation Of CIRP Under IBC? Supreme Court To Consider
The Supreme Court Bench comprising of Chief Justice U.U. Lalit and Justice Bela M. Trivedi, while adjudicating a Special Leave Petition filed in Ashok Kumar Sarawagi v Enforcement Directorate & Anr., has issued notice in a petition where it is to be decided whether an order of provisional attachment passed under Prevention of Money Laundering Act, 2002 ("PMLA") would prevail...
IBBI Rescinds Circulars Pertaining To Insolvency Professionals
The Insolvency and Bankruptcy Board of India ("IBBI") vide its circular dated 09.11.2022 has rescinded its certain circulars pertaining to Insolvency Professionals, as these circulars now form a part of the IBBI (Insolvency Professionals) Regulations, 2016; IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016; and the IBBI (Information...
IBC Cases Weekly Round-Up: 31st October To 6th November 2022
NCLAT Change In Composition Of COC Will Not Affect Its Prior Decisions: NCLAT New Delhi Case Title: DBS Bank v. Rakesh Kumar Jain Case No.: CA (AT) (Ins) No. 540/2021 The National Company Law Appellate Tribunal bench comprising of Justice Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member) has held that the change in composition of the Committee...
Union Govt. Appoints Judicial & Technical Members For NCLT
The Government of India vide its notification dated 05.11.2022 approved the appointment of 9 judicial members and 6 technical members in the National Company Law Tribunal (NCLT). Judicial Members 1.T Krishna Valli, Retd. Judge, Madras High Court 2.Vikas Kumar Srivastav, Retd. Judge, Allahabad High Court 3.Kuldeep Kumar Kareer, Retd. District Judge 4.Vishesh Sharma, Retd....
Default During Section 10A Period Cannot Be Clubbed To Meet Threshold Requirement Under Insolvency And Bankruptcy Code, 2016: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT) recently while deciding an appeal filed by the Operational Creditor against the order dated 17.08.2022 passed by NCLT, New Delhi held that amount of default occurred during the Section 10A period (24.03.2020-23.03.2021) of the Insolvency & Bankruptcy Code, 2016 (IBC/Code) cannot be clubbed by the Operational Creditor to meet...
Interim Moratorium Under Section 96 Of Insolvency & Bankruptcy Code, 2016 Is Limited To Particular Guarantor And Will Not Protect The Other Personal Co-Guarantors Of Same Debt: Delhi High Court
The Delhi High Court recently while dealing with two summary suits filed by creditors of Bhushan Steel limited against the ex-promoters of Bhushan Steel namely Brij Bhushan Singhal and Neeraj Singhal for recovery of money held that the interim moratorium under section 96 of the Insolvency & Bankruptcy Code, 2016 (IBC/Code) is specific to all debts of a particular debtor and will not...
When Corporate Debtor Does Not Create A Gratuity Fund, No Gratuity Is Payable: NCLT Chandigarh
The National Company Law Tribunal ("NCLT"), Chandigarh Bench, comprising of Shri Harnam Singh Thakur (Judicial Member) and Shri Subrata Kumar Dash (Technical Member), while adjudicating an application filed in Small Industries Development Bank of India (SIDBI)v International Mega Food Park Limited, has held that if the Corporate Debtor had not created a Gratuity Fund, then...
NCLAT Delhi Upholds Dismissal Of Section 9 Petition In Absence Of Cogent Evidence To Prove Supply Of Goods
The National Company Law Appellate Tribunal ("NCLAT"), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Kanthi Narahari (Technical Member), while adjudicating an appeal filed in M/s Mahadev Trading Company v M/s Supreet Chemicals Pvt. Ltd., has held that in absence of cogent evidence to prove that goods were supplied to the Corporate Debtor, a...
IBBI Amends Model Bye-Laws Regulations For Insolvency Professional Agencies
The Insolvency and Bankruptcy Board of India ("IBBI") has amended the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 ("Model Bye laws Regulations") for a second time vide Gazette notification dated 31.10.2022. The Model Bye Laws Regulations lay down the governance structure and provides for model bye laws of the Insolvency...