DRT Can Impose Cost But Not Other Stringent Conditions While Restoring Application U/S 22(2)(g) RDB Act: Madhya Pradesh HC

The Madhya Pradesh High Court recently set aside an order of the Debt Recovery Tribunal, whereby an application for restoration under Section 22(2)(g) of the Recovery of Debts and Bankruptcy Act was allowed subject to fulfilling certain conditions.The division bench comprising Justice Sujoy Paul and Justice P.C. Gupta observed that there was no enabling provision under the Act which vested...

IBC - Approval Of A Resolution In Respect Of One Borrower Cannot Discharge A Co-Borrower : Supreme Court

The Supreme Court observed that approval of a resolution in respect of one borrower cannot discharge a co-borrower.If there are two borrowers or if two corporate bodies fall within the ambit of corporate debtors, there is no reason why proceedings under Section 7 of the IBC cannot be initiated against both the Corporate Debtors, the bench of Justices Indira Banerjee and JK Maheshwari...

COC To Function As Stakeholder's Consultation Committee For First 60 Days: IBBI Amends Liquidation Process Regulations

The Insolvency and Bankruptcy Board of India ("IBBI") on 16.09.2022 has notified amendments to the IBBI (Voluntary Liquidation Process) Regulations, 2016 ("Voluntary Liquidation Regulations") and IBBI (Liquidation Process) Regulations, 2016 ("Liquidation Regulations") for a second time. These amended Regulations have come into force on 16.09.2022. Detailed Overview In exercise of...

Corporate Debtor Willing To Pay Full Amount, Financial Creditor Opposes , NCLAT Upholds Dismissal Of Section 7 Petition

The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Justice M. Satyanarayana Murthy (Judicial Member) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in Reliance Commercial Finance Limited v Darode Jog Builder Pvt. Ltd., has upheld the Adjudicating Authority's decision to not admit a...

Demystifying The Effect Of Insolvency Proceedings In India On Arbitrations

Globalization has been accompanied by cross-border commercial disputes and arbitration has become the default setting for adjudication both nationally and globally.[1] This swing towards arbitration has prompted India to re-equip laws according to international standards. Concurrently, the government has introduced the Insolvency and Bankruptcy Code in 2016 ["IBC"] that has transformed the Indian Economy from a debtors' paradise into an economy of fairness and equity between creditors and...

Payment Of TDS Towards Interest Payable Does Not Amount To Acknowledgment Of Debt: NCLAT Directs IBBI To Investigate Into Conduct Of RP

A 3-judge Bench of the NCLAT, Principal Bench comprising of Justice Rakesh Kumar Jain, Judicial Member, Mr. Kanthi Narahari and Dr. Alok Srivastava, Technical Members in the case of P.M. Cold Store Pvt. Ltd. v. Goouksheer Farm Fresh Pvt. Ltd. & Ors. held that payment of TDS towards interest payable does not amount to acknowledgement in writing of the liability of the Corporate...

RP And COC Can Request Resolution Plan For A Second Time; IBBI Notification

The Insolvency and Bankruptcy Board of India ("IBBI") has amended the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("CIRP Regulations") for a fourth time and has notified the amendment on 16.09.2022. The amended CIRP Regulations have been introduced by the IBBI in exercise of the powers conferred by clause (t) of sub-section (1) of Section 196 read...

IBC Cases Weekly Round-Up: 11 September To 17 September 2022

SUPREME COURT NCLT Has Discretion To Not Admit Financial Creditor's CIRP Application? Supreme Court Allows Open Court Hearing For Review Case Title: Axis Bank Ltd versus Vidarbha Industries Power Ltd Case No.: RP (Civil) 1043/2022 The Supreme Court Bench comprising of Justice Indira Banerjee and Justice MM Sundersh allowed open court hearing for the review petition filed...

NCLT Delhi Bench Re-Constituted, Matters To Be Heard Through Video Conferencing

The National Company Law Tribunal, New Delhi Bench, has been re-constituted vide a Circular dated 14.09.2022, issued by NCLT as per Section 419(3) of the Companies Act, 2013. The new NCLT New Delhi Benches shall comprise of: NCLT New Delhi, Court Room No. 2 (First Half) Shri Bachu Venkat Balaram Das (Judicial Member)Shri L.N. Gupta (Technical Member) NCLT New Delhi, Court...

Applicability Of Minimum Threshold Of Rs. 1 Crore Is To Be Seen From Date Of Filing Of Petition, Not The Date Of Sending Demand Notice: NCLT Delhi

The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri Dharminder Singh (Judicial Member) and Dr. Binod Kumar Sinha (Technical Member), while adjudicating an application filed in Udit Jain (Sole Proprietor of M/s U.J. Trading Co.) v Apace Builders and Contractors Pvt. Ltd., has held that the date of filing of petition needs to be considered and not the date...

NCLT Chennai Bench Re-Constituted, Matters To Be Heard Through Video Conferencing

The National Company Law Tribunal, Chennai Bench, has been re-constituted vide a Circular dated 14.09.2022, issued by NCLT as per Section 419(3) of the Companies Act, 2013. The new NCLT Chennai Benches shall comprise of: NCLT Chennai, Court Room No. 1 (Second Half) Justice Ramalingam Sudhakar (President)Shri Sameer Kakar (Technical Member) NCLT Chennai, Court Room No. 2...

IBBI Notifies Second Amendment To Insolvency Professional Regulations

The Insolvency and Bankruptcy Board of India ("IBBI") has amended the IBBI (Insolvency Professionals) Regulations, 2016 ("IP Regulations") for a second time and has notified the amendment on 13.09.2022. The amendment has added Clause 26A to the IP Regulations which states that an Insolvency Professional shall not accept /share any fees or charges from any professional and/or support...