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...

Bank Of India Files Petition Under Section 7 Of IBC Against Future Retail Limited

The Bank of India has filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC") before the National Company Law Tribunal ("NCLT"), Mumbai Bench, seeking initiation of Corporate Insolvency Resolution Process ("CIRP") against Future Retail Limited ("FRL"). The matter has not been listed yet for its first hearing. A Framework Agreement was entered into between...

Weekly Digest Of IBC Cases: April 10th To April 17th, 2022

1. NCLT KOLKATA INSOLVENCY RESOLUTION PROCESS AGAINST LEGAL HEIRS OF PERSONAL GUARANTOR BY FINANCIAL CREDITOR NOT PERMISSIBLE Case title: Bank of Baroda v Ms. Divya Jalan Case No: C.P. (IB) - 363/2021 The National Company Law Tribunal ("NCLT"), Kolkata Bench Consisting of Shri Rajasekhar V.K. (Judicial Member) and Shri Balraj Joshi (Technical Member) while dismissing...

CIRP Can Be Initiated Based On An Unchallenged Arbitral Award: NCLT Kolkata

The NCLT Kolkata Bench comprising of Shri Rajasekhar V.K. (Judicial Member) and Shri Balraj Joshi (Technical Member) while deciding a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 ("IBC"), titled Viom Infra Ventures Ltd. v Bahula Infotech Pvt. Ltd., has held that Corporate Insolvency Resolution Process ("CIRP") can be initiated based on an Arbitral Award if the...

NCLT Mumbai Issues Notice To SITI Networks Ltd. In Section 7 IBC Petition Filed By HDFC LTD.

The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Smt. Suchitra Kanuparthi (Judicial Member) and Smt. Anuradha Sanjay Bhatia (Technical Member), has issued notice to SITI Networks Ltd. in the matter of Housing Development Finance Corporation Limited v SITI Networks Limited., vide an order dated 30.03.2022. Housing Development Finance Corporation Ltd....

IBC - Wages/Salaries Of Only Those Workmen/Employees Who Actually Worked During CIRP Are To Be Included In CIRP Costs: Supreme Court

The Supreme Court held that the dues towards the wages/salaries of only those workmen/employees who actually worked during the Corporate Insolvency Resolution Process(CIRP) are to be included in the CIRP costs.The court clarified that the wages and salaries of all other workmen/employees of the Corporate Debtor during the CIRP who actually have not worked and/or performed their duties when...

NCLT, Mumbai Declares National Steel And Agro Industries Ltd. As Insolvent And Initiates CIRP

The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Justice P.N. Deshmukh (Judicial Member) and Shri K.K. Vohra (Technical Member), has admitted a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC") against National Steel & Agro Industries Ltd. and initiated Corporate Insolvency Resolution Process ("CIRP"), vide an order dated...