Decree Holders As Creditors Under The IBC - Need For Clarity

The Insolvency and Bankruptcy Code, 2016 ("Code"), right from its enactment has been the subject of legal debate. While various issues that have cropped up from time to time, have been ironed out, by amendments and by judgements, there still exist a plentitude of legal questions, waiting to be raised in the right case. One such question is the status of a "decree-holder" as a creditor. Section 3 (10) of the Code, defines a "creditor" as "any person to whom a debt is owed and includes...

Suspended Board of Directors Has No Power To Replace RP Under IBC: NCLAT, Chennai

The NCLAT, Chennai in a Bench consisting of Justice M. Venugopal, Judicial Member and Kanthi Narahari, Technical Member in the case of Anil Kumar Ojha v. Chandramouli Ramasubramaniam Resolution Professional of SLO Industrial Ltd. & Anr. held that the suspended Board of Directors has no power under the IBC to appoint a Resolution Professional. The power to do so has only been vested...

Retired Partner Cannot Initiate Proceedings Under IBC Against Other Partners Or Firm For Retirement Dues: NCLT, Mumbai

The NCLT, Mumbai Bench consisting of Kishore Vemulapalli, Judicial Member and Rajesh Sharma, Technical Member in the case of Anil Vora HUF v. Kavya Build-Con Private Limited rejected the Section 9 application filed by the Operational Creditor on the ground that a retired partner cannot initiate proceedings u/s 9 of the Insolvency and Bankruptcy Code, 2016 to claim retirement dues...

Personal Guarantors Of NBFC/FSC Cannot Be Proceeded Against Unless Threshold Of Rs. 500 Cr Is Satisfied: NCLT, Jaipur

The Jaipur Bench of the NCLT consisting of Deep Chandra Joshi, Judicial Member and Raghu Nayyar, Technical Member in the case of Shapoorji Pallonji Finance Private Limited v. Rekha Singh held that Personal Guarantors of Non-Banking Finance Company/ Financial Services Provider cannot be proceeded against unless the NBFC/ FSP satisfies the Rs. 500 crore threshold limit under...

Initiation of CIRP Not Mandatory For Maintainability Of An Application Against Personal Guarantors U/S 95, IBC: NCLT, Kochi

The NCLT, Kochi Bench comprising of Shyam Babu Gautam, Technical Member and Ashok Kumar Borah, Judicial Member in the case of E. Iqbal v. State Bank of India held that when an application for initiation of CIRP is pending before the NCLT, initiation of CIRP against the Corporate Debtor is not a prerequisite for maintainability of an application u/s 95, IBC filed for initiating IRP...

IBBI Has Jurisdiction To Regulate Payment Of IRP And RP: NCLAT

The NCLAT, Principal Bench consisting of Justice Ashok Bhushan, Chairperson and V.P. Singh, Technical Member in the case of Sumit Bansal, Insolvency Professional v. Committee of Creditors of JP Engineers held that the IBBI is clothed with the jurisdiction to regulate payment of remuneration of the RP and IRP both by framing regulations or by issuing executive instructions till...

Entry In Balance Sheet Amounts To Acknowledgment Of Liability: NCLT Kochi

The NCLT, Kochi Bench consisting of Mr. Ashok Kumar Borah, Judicial Member and Mr. Anil Kumar, Technical Member in M/s Pheonix ARC Private Ltd. v. Kerala Chamber of Commerce and Industries reiterated that acknowledgement of debt in the balance sheet of the Corporate Debtor comes within the meaning of acknowledgment u/s 18 of the Limitation Act, 1963 and has the effect of...

In IBC Proceedings, Penalty Can Be Imposed Only Under The Code And Not Under The Companies Act: NCLAT

The NCLAT in Bench comprising of Justice Ashok Bhushan, Chairperson and Dr. Alok Srivastava, Technical Member in Mr. Ashish Chaturvedi v. Inox Leisure Limited held that when proceedings before the Adjudicating Authority are being carried out under the Insolvency and Bankruptcy Code, 2016, penalty can only be imposed under the Code and not under the Companies Act, 2013. The Appeal...

90 Days Period Under Regulation 32A Of IBBI (Liquidation Process) Regulations Directory, Not Mandatory: NCLT Hyderabad

The NCLT Hyderabad Bench consisting of Dr. N. Venkata Ramakrishna Badarinath, Judicial Member and Veera Brahma Rao Arekapudi, Technical Member in Ekambareswara Rao Manne v. Mr. Gonugunta Madhusudhan Rao, dismissed the application filed by the Applicant, who was a Member of the Stakeholders Consultation Committee, filed u/s 60(5) of IBC r/w Rule 11, 13 & 32 of the NCLT Rules...

If Excluding Time From CIRP Helps The Corporate Debtor To Revive Its Operations, Such Exclusion Must Be Allowed: NCLAT

The NCLAT Single Bench consisting of Justice M. Venugopal, Judicial Member in the case of Vinod Tarachand Agarwal held that if exclusion of time of CIRP helps to revive the operations of the Corporate Debtor and thus achieve the objective of the Insolvency and Bankruptcy Code, such exclusion must be allowed. The Appellant filed an appeal against the order of the NCLT, Ahmedabad...

No Bar On Operational Creditor To Recover Claims If Claims Were Not Entertained In The Resolution Process: NCLAT

The NCLAT Bench comprising of Justice Ashok Bhushan, Chairperson and Dr. Ashok Kumar Mishra, Technical Member in Go Airlines (India) Ltd. v. Sovika Aviation Services Pvt. Ltd. &Ors. held that since the Resolution Plan was withdrawn u/s 12A of the Insolvency and Bankruptcy Code, 2016 and the claims of the Operational Creditor were not entertained, the operational Creditor is at liberty...

Applications By Financial And Operational Creditors On The Basis Of Decrees Or Awards - Tracing The Evolution Of The Judicial Position

There cannot be any doubt about the fact that the Insolvency and Bankruptcy Code, 2016 ('the Code') has been a truly ground-breaking piece of legislation in the Indian judicial perspective. A rich body of precedents have already been laid down, in the short span of five years or so from the time the Code came into existence, by the judicial authorities, touching upon various issues that have emanated with regard to the interpretation of various provisions of the Code. However, certain...