Split Verdict Of NCLT, Hyderabad Bench On The Question Of Related Party, Issue Referred To President Of The Principal Bench

In a split verdict, a 2-judge Bench of NCLT, Hyderabad in the matter of Trimex Industries Pvt. Ltd. v. M/s. Sathavahana Ispat Ltd. has referred to the President of the Principal Bench the question of – whether in an application filed by an Operational Creditor u/s 60(5) of the Code, the CoC can be barred from considering the resolution plan of a Prospective Resolution...

NCLT Delhi Dismisses Insolvency Petition Against NBCC India Ltd., A Navratna Enterprise

The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Mr. Dharminder Singh (Judicial Member) and Ms. Sumita Purkaysatha (Technical Member), while adjudicating the matter of Biosafe Lab India Pvt. Ltd. v NBCC India Ltd., has dismissed an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 ("IBC") seeking initiation of Corporate...

Why So Much Confusion Around The Jurisdictional Issue Under Personal Insolvency

This article analysis the issues and confusion revolving around the issue of 'Adjudicating Authority' for personal guarantor to corporate debtors and whether the Debt Recovery Tribunals have jurisdiction to entertain applications for insolvency of personal guarantors to Corporate Debtors. IBBI January-March 2022 issue of "Insolvency and Bankruptcy News" for the first time show the tentative figures relating to applications filed under section 94 and 95 of the Insolvency and Bankruptcy...

NCLT Delhi Initiates Insolvency Process Against National Textile Corporation Ltd., A Public Sector Enterprise

The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Mr. Dharminder Singh (Judicial Member) and Ms. Sumita Purkaysatha (Technical Member), while adjudicating a petition filed in Hero Solar Energy Pvt. Ltd. v National Textile Corporation Ltd., has initiated Corporate Insolvency Resolution Process ("CIRP") against National Textile Corporation Ltd. and has appointed...

CBIC Issues SOP for NCLT Cases In Respect Of The IBC

The Central Board of Indirect Taxes and Customs (CBIC) has issued the Standard Operating Procedure (SOP) for National Company Law Tribunal (NCLT) cases in respect of the Insolvency and Bankruptcy Code (IBC).The Board has instructed that the Insolvency and Bankruptcy Board of India establish the role of the GST and Customs authorities in certain crucial matters under the Insolvency...

NCLAT Urges Central Government And IBBI To Consider Legislative Change For Payment To Operational Creditor Under Resolution Plan

The National Company law Appellate Tribunal (NCLAT)bench comprising of Justice Ashok Bhushan and Ms. Shreesha Merla in the case of Damodar Valley Corporation versus Dimension Steel and Alloys urges the Central Government and the Insolvency and Bankruptcy Board of India (IBBI) to consider legislative change regarding the payment to operational creditors under the resolution plan. The...

CIRP Cannot Be Initiated Solely For Interest Amount, If The Principal Amount Is Discharged: NCLT Delhi

The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri Abni Ranjan Kumar Sinha (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in Saraf Chits Private Limited & Anr. v KAD Housing Private Limited, has held that Corporate Insolvency Resolution Process ("CIRP") cannot be initiated against a Corporate Debtor solely...

Article 1 Of Limitation Act,1963 Will Not Apply To Proceedings Under Insolvency And Bankruptcy Code, 2016: NCLAT

National Company Law Appellate Tribunal (NCLAT) Principal Bench comprising of Justice Ashok Bhushan and Dr. Alok Srivastava in the case of S M Ghogbhai versus Schedulers Logistics India Pvt. Ltd. held that the Article 1 of Limitation Act, 1963 is not applicable to the Petition filed by the Operational Creditor under Section 9 of the Insolvency and...

Salary During Notice Period Does Not Fall Within The Definition Of 'Operational Debt' Under IBC: NCLT, Mumbai

The NCLT, Mumbai Bench comprising of Justice H.V. Subba Rao, Judicial Member and Chandra Bhan Singh, Technical Member in the case of Sandesh Naik v. MT Educare Limited held that salary for purported notice period amounts to specific performance of the appointment letter and does not fall within the definition of 'Operational Debt' as the same was not salary for the actual work done by...

Minimum Threshold Of Rs. 1 Crore Must Be Met, Even If Default Had Occurred Or Demand Notice Was Sent Prior To 24th March, 2020: NCLT Delhi

The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri Dharminder Singh (Judicial Member) and Ms. Sumita Purkayastha (Technical Member), while adjudicating the matter of Mr. Daxesh D. Desai v Shopzo Brand Pvt. Ltd., has held that for determining maintainability of an application in terms of Section 4 of the Insolvency and Bankruptcy Code, 2016 ("IBC"), the date...

IBBI Rescinds Its Previous Circulars

The Insolvency and Bankruptcy Board of India (IBBI) vide its circular dated 23.05.2022 has rescinded various earlier circulars issued by IBBI by exercising its power under Section 196 of the Insolvency and Bankruptcy Code, 2016. As per circular dated 23.05.2022, IBBI conducted an exercise of review of its circulars and withdrew its earlier circulars as these circulars are...

Personal Hearing By Way Of Exchange Of Chat Messages Not An Effective Opportunity Of Personal Hearing: Calcutta High Court

The Calcutta High Court has ruled that personal hearing conducted by way of exchange of chat messages cannot be said to be an effective opportunity of personal hearing to the assessee and that it does not satisfy the test of fairness or the principles of fair play. The Bench, consisting of Justices T.S. Sivagnanam and Hiranmay Bhattacharyya, reiterated that the moment...