NCLT Principal Bench To Hear Matters Through Video Conferencing From 8th To 18th August 2022

The National Company Law Tribunal ("NCLT") has issued a Circular dated 05.08.2022, intimating that the matters before the Principal Bench (Court Room No. 1) of the NCLT, New Delhi, would be heard through video conferencing from 08.08.2022 to 18.08.2022. The hearings are being conducted through video conferencing to meet the shortage of Members in NCLT after 15 Members retired...

Fraudulent Initiation Of CIRP, NCLAT Upholds Issuance Of Show Cause Notice To Related Parties

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 Zoom Communications Pvt. Ltd. v M/s. Par Excellence Real Estate Pvt. Ltd., has upheld the Adjudicating Authority's order declining...

Homebuyers Can't Be Defrauded ; NCLT Delhi Initiates CIRP Against Som Resorts

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 a petition filed in Yadubir Singh Sajwan & Ors. v Som Resorts Private Limited, has held that under the guise of 'separate legal entity' doctrine, a developer company cannot be permitted to defraud...

NCLAT Declines To Entertain Revised Resolution Plan As CIRP Had Already Crossed 559 Days, Timely Completion Of Resolution Necessary

The National Company Law Appellate Tribunal ("NCLAT"), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member), Mr. Kanthi Narahari (Technical Member), Dr. Alok Srivastava (Technical Member), while adjudicating an appeal in Shrinathji Trading Company v Sanwaria Consumer Ltd., has dismissed an application filed by resolution applicant seeking consideration of...

Term Of Future NCLT Members Should Be 5 Years, Supreme Court Tells Centre While Refusing To Extend 3 Yr Term Of Those Appointed In 2019

The Supreme Court, on Monday, turned down a plea seeking modification of the tenure of members of National Company Law Tribunal (NCLT) appointed pursuant to the notification dated 20.09.2019 issued by the Ministry of Corporate Affairs, from 3 years to 5 years. It refused to extend tenure for the concerned 23 members, but clarified that while making appointments in future the...

Entries In Book Of Accounts/Balance Sheet Of Corporate Debtor Can Be Treated As Acknowledgment Of Liability Of Debt Payable To Financial Creditor: Supreme Court

The Supreme Court observed the entries in Books of Account/Balance sheet of a company can be treated as acknowledgement of liability in respect of debt payable to a financial creditor.An application under Section 7 of the IBC would not be barred by limitation, on the ground that it had been filed beyond a period of three years from the date of declaration of the loan account of the...

Threshold Limit Under Insolvency And Bankruptcy Code Will Also Include Interest: NCLAT

The National Company Law Appellate Tribunal, Principal Bench, New Delhi comprising of Justice Ashok Bhushan, Justice M Satyanarayana Murthy and Mr. Naresh Salecha held that minimum threshold mentioned under Section 4 of the Insolvency & Bankruptcy Code, 2016 (IBC/Code) can include both the principal amount and the interest. Brief Facts The Operational Creditor supplied various...

Liability Of Personal Guarantor Survives Even On Becoming Citizen Of A Foreign Country: NCLAT Delhi

The National Company Law Appellate Tribunal ("NCLAT"), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson), Justice M. Satyanarayana Murthy (Judicial Member) and Shri Barun Mitra (Technical Member), while adjudicating an appeal in Sudip Dutta v State Bank of India, has held that the liability of a Personal Guarantor does not get extinguished upon subsequent acquisition...

Monthly Digest Of IBC Cases: July 2022

Supreme Court NCLT Not A Debt Collection Forum ; Operational Creditor's Application To Initiate CIRPMust Be Dismissed If The Debt Is Disputed: Supreme Court Case Title: SS Engineers vs Hindustan Petroleum Corporation Ltd Case No.: 2022 LiveLaw (SC) 617, CA 4583 OF 2022 The Supreme Court Bench comprising of Justices Indira Banerjee and V. Ramasubramanian observed that...

IBC Cases Weekly Round-Up: 25 July To 31 July, 2022

NCLAT Payment Of Earnest Money Towards Purchase Of Land Is Not A Financial Debt: NCLAT Delhi Case Title: S. Chandriah v Sunil Kumar Agarwal & Ors. Case No.: Company Appeal (AT) Insolvency No. 22 of 2022 The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Naresh Salecha (Technical Member), has...

NCLT Mumbai Terminates The CIRP Of Sahara Hospitality, As Parties Enter Settlement

The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Justice P.N. Deshmukh (Judicial Member) and Shri Shyam Babu Gautam (Technical Member), while adjudicating a petition filed in Delta Electro Mechanical Pvt. Ltd. v Sahara Hospitality Ltd., has permitted withdrawal of insolvency proceedings and termination of Corporate Insolvency Resolution Process...

Gujarat High Court Stays IBBI's Order Requiring Resolution Professional To Undergo Pre-Registration Educational Course From IPA

The Gujarat High Court, Ahmedabad Bench, comprising of Justice A.S. Supehia, while adjudicating a writ petition in Sunil Kumar Agarwal v Insolvency and Bankruptcy Board of India (IBBI), has stayed the order passed by the Disciplinary Committee of IBBI against the Resolution Professional, requiring the latter to undergo pre-registration educational course from the IPA of which he is...