Look Back Period Under Section 46 Not Applicable To Section 66 Under Insolvency And Bankruptcy Code, 2016: NCLAT

National Company Law Appellate Tribunal (NCLAT) principal bench comprising of Justice Ashok Bhushan, Dr. Alok Srivastava, Ms. Shreesha Merla in the case of Aditya Kumar Tibrewal v. Om Prakash Pandey held that the look back period prescribed under Section 46 of Insolvency & Bankruptcy Code, 2016 (IBC/Code) does not apply to transactions under Section 66 of the...

NCLAT Delhi Uphelds That Corporate Debtor Cannot Be Sent Into Liquidation Just Because Liquidation Value Is More Than The Value Of The Resolution Plan

The National Company Law Appellate Tribnal ("NCLAT"), Principal Bench, comprising of comprising of Justice Ashok Bhushan (Chairperson), Dr. Alok Srivastava (Technical Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in CFM Asset Reconstruction Pvt. Ltd. v SS Natural Resources Pvt. Ltd., has upheld the order dated 06.04.2022 passed by NCLT Kolkata...

MSMEs, Insolvency Resolution Processes & The Avoidance Applications

Prior to the amendment inserting Chapter III-A to the Insolvency and Bankruptcy Code, 2016 ('Code'), the corporate insolvency resolution process ('CIRP') for Micro, Small and Medium Enterprises ('MSME') was covered by Chapters II and III of the Code with no regard for the peculiarities in operations and compliances of corporate entities classified as micro, small, medium or otherwise. Prompted perhaps by the global pandemic and the ensuing stresses on corporate balance sheets the nodal...

Time Period Under Regulation 35A Is Directory And Not Mandatory: NCLAT, Delhi

National Company Law Appellate Tribunal (NCLAT) principal bench comprising of Justice Ashok Bhushan, Dr. Alok Srivastava, Ms. Shreesha Merla in the case of Aditya Kumar Tibrewal v. Om Prakash Pandey held that time period prescribed under Regulation 35A of the IBBI (CIRP) Regulations (CIRP Regulations) is directory in nature and not mandatory. Resolution Professional of M/s...

Weekly Digest Of IBC Cases: April 18th To April 24th, 2022

Supreme CourtWages/Salaries Of Only Those Workmen/Employees Who Actually Worked During CIRP Are To Be Included In CIRP Costs Case title: Sunil Kumar Jain v Sundaresh Bhatt 2022 LiveLaw (SC) 382 Case No.: Civil Appeal No. 5910 of 2019 Supreme Court division bench comprising of Justice M.R. Shah and Justice Aniruddha Bose has held that the dues towards the wages/salaries of...

'Having NCLT Benches At Different Locations Causes Administrative Difficulties': Delhi High Court Orders Status Quo On Space Vacated By MNRE

The Delhi High Court has recently directed the maintenance of status quo with regards to the occupation, renovation or construction of the space vacated by the Ministry of New and Renewable Energy in the building, where the National Company Law Tribunal (NCLT) is located, till May 4, 2022.A division bench comprising of Acting Chief Justice Vipin Sanghi and Justice Navin Chawla was of the...

CIRP Cannot Be Initiated Over Undecided Claims Or Unstamped And Unregistered Agreements: NCLT Cuttack

The National Company Law Tribunal ("NCLT"), Cuttack Bench comprising of Shri P. Mohan Raj (Judicial Member) Shri Satya Ranjan Prasad (Technical Member), while adjudicating a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 ("IBC") filed in the matter of Smarkworks Coworking Spaces Pvt. Ltd. v Turbot HQ India Pvt. Ltd., has held that Corporate Insolvency...

Reliance Cancels Rs. 24,713 Crores Worth Of Deal With Future Group

In a regulatory filing on 23.04.2022, Reliance Industries Limited has intimated to the BSE Ltd. and National Stock Exchange of India Ltd. that their scheme of arrangement with Future Group of companies 'cannot be implemented', as secured creditors of Future Retail Limited ("FRL") have voted against the scheme in the Shareholder's meeting held from 20th April to 23rd...

Amount Given As 'Share Application Money' Is Not Covered Under Financial Debt: NCLAT, Delhi

The National Company Law Appellate Tribunal ("NCLAT") Principal Bench comprising of Justice Ashok Bhushan (Chairperson), Dr. Alok Srivastava (Technical Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in Pramod Sharma v Karanaya HeartCare Pvt. Ltd., has held that money given as 'Share Application Money' cannot be treated as a financial debt in order...

Fresh Resolution Plan Cannot Be Considered By Committee Of Creditors: NCLAT New Delhi

National Company Law Appellate Tribunal (NCLAT) Principal Bench comprising of Justice Ashok Bhushan, Dr Alok Srivastava & Ms. Shreesha Merla in the matter of Steel Strips Ltd versus Avil Menezes held that a fresh resolution plan cannot be considered by a Committee of Creditors (COC) once it has already approved a resolution plan. Successful Resolution Applicant Steel Strips...

Amount Invested In A Joint Venture Project In Capacity Of A Promoter And Investor Not A Financial Debt: NCLAT

The National Company Law Appellate Tribunal ("NCLAT") Principal Bench comprising of Justice Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed under Section 61(3) of the Insolvency and Bankruptcy Code, 2016 ("IBC") in the matter of M/s Jagbasera Infratech Pvt. Ltd. v Rawal Variety Construction Ltd., has held that the...

Nil Payment To Operational Creditors Is Permissible Under The Resolution Plan: NCLAT Chennai

The NCLAT Chennai Bench comprising of Justice M Venugopal and Mr. Kanti Narahari in the case of Genus Security and Allied Service versus Mr. Shivadutt Bannanje & Anr. held Nil payment to operational creditors is permissible under the resolution plan if the liquidation value is less than the admitted claims of the corporate debtor. Two operational creditors M/s Genus Security...