Quantum Of Debt Not To Be Decided At The Stage Of Admission Of A Section 7 Petition Under IBC: NCLAT,Delhi

The National Company Law Appellate Tribunal ("NCLAT") Bench comprising of Justice Ashok Bhushan (Chairperson), Dr. Alok Srivastava (Technical Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in the matter of Rajesh Kedia v Phoenix ARC Pvt. Ltd., has held that the quantum of debt is not be considered at the stage of admission of a petition under Section...

Amount Disbursed By NBFC Upon Oral Agreement Not Covered In Financial Debt: 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 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC"), titled Narendra Promoters & Fincon Pvt. Ltd. v Vinline Engineering Pvt. Ltd., has held that a disbursement made by a Non Banking Financial Institution ("NBFC") over an...

Resolution Professional Cannot Prosecute Preferential Transactions After Approval Of Resolution Plan: NCLT Kolkata

The National Company Law Tribunal (NCLT) Kolkata bench comprising of Mr. V K Rajasekhar ( Member, Judicial)and Balraj Joshi (Member Technical)held that an application for preferential transactions cannot be pursued either by the erstwhile Resolution Professional (RP) or the new Management of the Corporate Debtor after the approval of the Resolution Plan by NCLT. NCLT was hearing...

'Decree Holders' Can't Be Treated At Par With 'Financial Creditors' Under IBC : Supreme Court Upholds HC Verdict

The Supreme Court on Monday upheld a Tripura High Court judgment which had held that "decree-holders" cannot be treated at par with "financial creditors" under the Insolvency and Bankruptcy Code. The bench of Justices SK Kaul and MM Sundresh, while dismissing a Special Leave Petition filed against the High Court judgment, observed : "We are not inclined to interfere with the...

NCLAT Stays The Constitution Of Committee Of Creditors Of Supertech Limited

The National Company Law Appellate Tribunal ( NCLAT) Principal Bench comprising of Justice Ashok Bhushan, Dr. Alok Srivastava(Member Technical) and Ms.Shreesha Meerla (Member Technical) stays the constitution of committee of creditors and adjourned the appeal preferred by suspended director of Supertech Limited against the order dated 25.03.2022 of NCLT New Delhi which initiated the...

IBBI Disciplinary Committee Restrains Insolvency Professional From Rendering Services For Two Years

In a recent matter before the Disciplinary Committee of the Insolvency and Bankruptcy Board of India (IBBI), bearing No. IBBI/DC/91/2021, an Insolvency Professional, namely Mr. Manoj Kumar Singh, has been found to be dispensing his duties as an Interim Resolution Professional in contravention of the Insolvency and Bankruptcy Code, 2016 ("IBC") and its regulations....

NCLT, Delhi Issues Circular Regarding Defective Applications And Petitions Based On Rule 28 (2) Of NCLT Rules, 2016

A circular has been issued by the National Company Law Tribunal, Delhi, on 07.04.2022, in view of Rule 28 (2) of NCLT Rules, 2016. The circular states on scrutiny, if an Application is found to be defective, after notice to the party, the same shall be returned for compliance. If the defects are not complied within 7 days, the Registrar may pass appropriate orders. This notice was issued...

IBBI Notifies The Amended Insolvency And Bankruptcy Board Of India (Voluntary Liquidation Process) Regulations, 2017

The Insolvency and Bankruptcy Board of India ("IBBI") has issued a Press Release on 08.04.2022 notifying the public that amendments have been made to Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 ("Voluntary Liquidation Regulations"). These amendments were initially notified by the IBBI on its website on 05.04.2022 and it became...

Insolvency Resolution Process Against Legal Heirs Of Personal Guarantor By Financial Creditor not permissible ;NCLT Kolkata

The NCLT, Kolkata Bench Consisting of Shri Rajasekhar V.K(Member Judicial) and Shri Balraj Joshi (Member Technical) while dismissing the application filed by the Financial Creditor/ Bank of Baroda held that the application is not maintainable against legal heirs of the Personal Guarantor under the Code. Kilburn Chemicals Limited/Corporate Debtor had approached...

NCLT Delhi Admits Petition Under Section 7 Of IBC Against M/S Anand Divine Developers Pvt. Ltd. And Initiates CIRP

The Principal Bench of NCLT, Delhi, comprising of Shri Ramalingam Sudhakar (President) and Shri Avinash Kumar Srivastava (Technical Member), has admitted a petition under Section 7 of Insolvency and Bankruptcy Code, 2016 ("IBC") against M/s Anand Divine Developers Pvt. Ltd. and initiated the Corporate Insolvency Resolution Process ("CIRP") vide an order dated 25.03.2022. ATS...

Corporate Debtor Cannot Be Sent Into Liquidation Just Because Liquidation Value Is More Than The Value Of The Resolution Plan: NCLT Kolkata

NCLT Kolkata Bench comprising Shri Rajasekhar V.K. (Judicial Member) and Shri Balraj Joshi (Technical Member), while deciding interim applications in the matter of Ramsarup Industries Ltd., has held that just because the liquidation value is being projected higher than the value of the resolution plan, the Corporate Debtor cannot be sent into liquidation for this reason alone. The object...

Resolution Professional Cannot Decide The Eligibility Under Section 29A Of The Insolvency And Bankruptcy Code, 2016: NCLAT Delhi

A three-judge bench of the National Company Law Appellate Tribunal (NCLAT) comprising of Justice Ashok Bhushan, Dr. Alok Srivastava and Ms. Shreesha Merla held that the Resolution Professional is not required to take a decision regarding the ineligibility of the Resolution Applicant under Section 29A of the Insolvency & Bankruptcy Code, 2016. NCLAT was hearing the appeal...