NCLT Kochi Allows Initiation Of Insolvency Resolution Process Against The Personal Guarantor

The Kochi Bench of NCLT in a bench consisting of Justice Mr.Ashok Kumar Borah (Judicial Member) and Mr. Shyam Babu Gautam (Technical Member) in State Bank of India v. Sahadulla M.I. allows initiation of Insolvency Resolution Process (IRP) against the Personal Guarantor, Mr. Shahdulla M.I. (Respondent) of the Corporate Debtor, M/s. Green Gateway Leisure Limited The Applicant/ State...

Principal And Interest Amount Cannot Be Clubbed To Reach The Minimum Threshold Of Rs. 1 Crore U/S 4, IBC; NCLT Delhi

The NCLT Delhi Bench consisting of Justice Abni Ranjan Kumar Sinha (Judicial Member) and L.N. Gupta (Technical Member) in CBRE South Asia Pvt. Ltd. v. M/s United Concepts and Solutions Pvt. Ltd. held that principal amount and interest cannot be clubbed to reach the threshold of Rs. 1 crore under the Insolvency and Bankruptcy Code 2016, if the debt is an Operational Debt. The...

Liability Of Personal Guarantor Of Corporate Debtor Vis A Vis The Insolvency And Bankruptcy Code

As per Section 128 ofthe Indian Contract Act, 1872, the liability of a guarantor is co-extensive with that of the principal debtor. Further, it is settled law that upon conclusion of insolvency proceedings against a principal debtor, the same amounts to extinction of all claims against the principal debtor, except to the extent admitted in the insolvency resolution process itself via the approval of resolution plan by the National Company Law Tribunal ("NCLT"). This is clear from Section 31 of...

Advanced License Fee Is An Operational Debt And Notice U/s 138 NIA Is Not A Dispute Under IBC: NCLT, Delhi

The NCLT, Delhi Bench comprising of Justice Abni Ranjan Kumar Sinha (Judicial Member) and Mr. Avinash K. Srivastava (Technical Member) in Ashimara Housing Private Limited v. Vibrus Homes Private Limited has held that advanced deposit towards license fee would be considered as an Operational Debt and issuance of notice under Section 138 of the Negotiable Instruments Act is not a...

Holding The Resolution Plan To Be Discriminatory, The NCLAT Sets Aside The Plan For Piyush Shelters India Pvt. Ltd

The NCLAT in a Bench comprising of Justice Ashok Bhushan (Chairperson), Justice Jarat Kumar Jain (Judicial Member) and Dr. Alok Srivastava (Technical Member) in Amit Goel v. Piyush Shelters India Pvt. Ltd. set aside the Resolution Plan proposed by Maya Group on the ground that there was discriminatory treatment of the 'non-claimant' financial creditors, as compared to the...

After Approval By The Adjudicating Authority, The Resolution Plan Is No More A Confidential Document: NCLAT

The NCLAT in a Bench comprising of Justice Ashok Bhushan (Chairperson) and Dr. Ashok Kumar Mishra (Technical Member) in Association of Aggrieved Workmen of Jet Airways (India) Limited v. Jet Airways (India) Ltd held that after approval of the Resolution Plan, the Plan does not remain a confidential document, so as to deny its perusal to a claimant, who is aggrieved by the...

An Asset Can Be Kept Out Of Liquidation Estate If The Said Asset Is Sub-Judice Before The High Court:NCLAT

The NCLAT in a Bench consisting of Justice Jarat Kumar Jain (Judicial Member) and Dr. Ashok Kumar Mishra (Technical Member) in Sun Pharmaceutical Industries Ltd. v. Sumit Binani held that an asset can be kept out of liquidation estate if the said asset is sub-judice before the High Court. Factual Backgroun: The Gujarat NRE Coke Ltd./Corporate Debtor was classified as an...

Approval Of COC Is Not Mandatory When Seeking Exclusion Of Time Under Regulation 40C. NCLAT

The NCLAT in a Bench comprising of Justice Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member) in the case of Indiabulls Housing Finance Limited v. Sandeep Chandna, differentiating between 'exclusion' and 'extension' of time under IBC held that the approval of the Committee of Creditors is not mandatory when seeking exclusion of time in view of Regulation 40C...

IBC| Statutory Authority Can't Raise Fresh Claim Against Corporate Debtor After Approval Of Resolution Plan: Bombay High Court

The Bombay High Court has ruled that no statutory authority, including the Income Tax authorities, can raise a fresh claim against a Corporate Debtor after the Resolution Plan was finalized and approved. A division bench of Justices Sunil Shukre and Anil Pansare of the Nagpur Bench of High Court observed that entertaining undecided claims after the Resolution Plan was submitted, would...

Application Intentionally Withdrawn By Applicant And Subsequently Filed On The Same Transaction Will Be Barred By Res Judicata. NCLT Kochi

The Kochi Bench of NCLT in a Bench comprising of Justice Ashok Kumar Borah and Mr. Shyam Baby Gautam in Jose Samuel v. M/s Royal International Trade and Allied Products Pvt. Ltd. has dismissed the application seeking initiation of Corporate Insolvency Resolution Process against the Respondent/ Corporate Debtor, i.e. Royal International Trade and Allied Products Private Limited on the ground...

Guarantor Whose Guarantee Stands Invoked By Any Creditor Barred From Giving Resolution Plan, Though Insolvency Initiated By Another Creditor: SC On Sec 29A(h) IBC

The Supreme Court has delivered an important judgment interpreting the scope of Section 29A(h) of the Insolvency and Bankruptcy Code. Section 29A IBC specifies the categories of persons who are not eligible to be resolution applicants.Sub-section (h) of Section 29A refers to persons whose guarantees stand invoked by the creditors of the corporate debtor. The exact wordings of the provision are...

A Successful Bidder Cannot Be Permitted To Wriggle Out Of Its Bid Claiming His Bid To Be A 'Conditional Offer'; NCLAT

The NCLAT, Principal Bench consisting of Justice Anant Bijay Singh and Ms. Shreesha Merla in the case of M/s. Visisth Services Limited v. S.V. Ramani held that a Successful Bidder cannot wriggle out of the contractual obligations and withdraw the bid after payment of Earnest Money Deposit (EMD) and seek refund of the amount on the ground that the offer made by the Bidder was a...