Creditors Filing False Claims Liable To Be Punished Under S.235A IBC: Centre Tells Delhi High Court

The Central Government has informed the Delhi High Court that creditors filing false or misleading claims during the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 can be prosecuted and punished under Section 235A of the Code.Section 235A provides that if any person contravenes any of the provisions of the Code or the rules or regulations made...

Insolvency Law In Review – January 2022

The enactment of the Insolvency and Bankruptcy Code 2016 (Code) has had significant ramifications on the corporate insolvency landscape. Over time, the Code has witnessed a manifold increase in litigation, and consequently in the number of decisions. This has made it difficult for insolvency practitioners to stay updated with developments in the field. This column fills this...

NCLAT Order Vitiated If It Fails To Look Into A Vital Aspect On Which NCLT Had Recorded A Specific Finding : Supreme Court

The Supreme Court, on Tuesday, held that the failure of NCLAT as the first appellate authority to look into a vital aspect of the matter regarding which NCLT had already recorded a specific finding of fact, would vitiate its order. A Bench comprising Justices Hemant Gupta and V. Ramasubramanian allowed an appeal challenging the order of the NCLAT which reversed the order of the...

IBBI First Appellate Authority Allows RTI Application By A Company Seeking Information Regarding Complaint Against IRP

The Executive Director and First Appellate Authority, Santosh Kumar Shukla, IBBI in Utility Premises Private Limited v. Central Public Information officer allowed the RTI application filed by Utility Premises Private Limited seeking information regarding the complaint filed by it against the IRP, Mr. X. The Central Public Information Officer (CPIO) had rejected the RTI...

Effect Of Increase In Threshold Limit Under Section 4 Of IBC, 2016- Conflicting Judgements Of NCLT

Ever since the central government has issued the notification dated 24.03.2020 for increasing the threshold limit of default from Rs. 1 Lac to Rs. 1 Crore under Section 4 of the Insolvency and Bankruptcy Code, 2016 "Code" different benches of NCLT are giving contradictory judgements as to whether this notification has prospective or retrospective effect. The National Company Law Tribunal (NCLT), New Delhi Bench-III has recently ruled in the matter of the "Bansal Trading Company V....

Notice Served To The Address Shown In ROC Records Is Valid : NCLT, Delhi

The Principal Bench, consisting of Justice Ramalingam Sudhakar (President) and Narender Kumar Bhola (Member Technical) of the National Company Law Tribunal, New Delhi admitted the plea of M/s. Jones Lang Lasalle Building Operations Pvt. Ltd and declared M/s. Celebration City Projects Pvt. Ltd. as insolvent and appointed IRP. The petition was filed by M/s. Jones Lang Lasalle...

SC Stays Order Of NCLAT Which Allowed IRP Against The Personal Guarantor In Absence Of CIRP Of Corporate Debtor

The Supreme Court in a Bench consisting of Justice S. Abdul Nazeer and Justice Vikram Nath has stayed the order of the NCLAT in the matter of State Bank of India v. Mahendra Kumar Jajodia, wherein the Appellate Tribunal had settled the widely contended position on whether Insolvency Resolution Process (IRP) can be initiated against the Personal Guarantor in the absence of...

National Company Law Tribunal (NCLT) Organizes National Level Colloquium On The Subject 'NCLT- The Road Ahead'

The National Company Law Tribunal (NCLT), Delhi organized a national level Colloquium on the subject "NCLT- The Road Ahead" today. Retd. Chief Justice Ramalingam Sudhakar (President, NCLT), Shri Rajesh Verma( Secretary, Ministry of Corporate Affairs) and Shri Ravi Mital (Chairman, Indian Bankruptcy Board of India (IBBI)) inaugurated the colloquium. Members of the...

NCLT, Delhi Declares Supertech As Insolvent And Appoints IRP

The Delhi bench of National Company Law Tribunal (NCLT) consisting of PSN Prasad (Judicial Member) and Rahul Bhatnagar ( Technical Member) admitted the plea of Union Bank of India over non-payment of dues by Supertech and appointed Hitesh Goel as the Interim Resolution Professional (IRP). The Section 7 application was filed by Union Bank Of India/Financial Creditor to...

Resolution Plan Can't Be Rejected On A Perceived Grievance By A Suspended Director Who Failed To Take Steps- NCLT Kolkata

The NCLT, Kolkata Bench comprising of Shri Rajasekhar V.K. and Shri Balraj Joshi in the case of Anand Kariwala Vs. Mr. Partha Pratim Ghosh, Resolution Professional held that initiation of CIRP against the Corporate Debtor does not bar the suspended Board of Directors (BOD) from objecting to the acts of the Resolution Professional (RP), if the same are prejudicial to the interests of...

State Authorities, Regulatory Bodies Including Direct & Indirect Tax Departments Cannot Question Resolution Plan: ITAT Dismisses Revenue Department's Appeal

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has dismissed the appeal filed by the revenue department on the grounds that the state authorities and regulatory bodies, including direct and indirect tax departments, cannot question the resolution plan.The two member bench of Sandeep Singh Karhail (Judicial Member) and Prashant Maharishi (Accountant Member) observed that as...

NCLT Chennai Explains The Difference Between Sale Of 'Corporate Debtor As A Going Concern' U/R 32(E) And Sale Of 'Business Of The Corporate Debtor As A Going Concern' In IBC

The Division Bench of NCLT, Chennai consisting of R. Sucharitha, Judicial Member and Sameer Kakar, Technical Member in the case of M.S. Viswanathan v. Pixtronic Global Technologies Pvt. Ltd. allowed the Liquidator to sell the Corporate Debtor as a going concern, while clarifying that 'sale as a going concern' means sale of both assets and liabilities, if it is stated on 'as is where...