IBC News
'We Will Suo Motu Stay Tribunals Reforms Act' : Supreme Court Tells Centre In NCLAT Member Justice Cheema's Plea
Extremely upset with the manner in which the Central Government terminated the services of Justice Ashok Iqbal Singh Cheema as the Acting Chairperson of the National Company Law Appellate Tribunal, the Supreme Court on Wednesday orally said that it will suo motu stay the Tribunals Reforms Act 2021.The Tribunals Reforms Act 2021 has become a point of friction between the Supreme Court and...
Liability Of Personal Guarantors Under IBC: A Legal Quandary
Talking of the stature of a personal guarantor, the build might vary in the n number of cases, yet what would resonate to each of the descriptions and would make them stand in unison, with no second thoughts would be their 'plight'. Don't let those lines of worry rest on your forehead after reading this since we won't let you stay puzzled for too long. We promise! Wondering what made our beliefs so firm regarding this concern? You'll get to know all of it within six to seven minutes of...
IBC- Every Attempt Has To Be First Made To Revive The Concern And Make It A Going Concern, Liquidation Being The Last Resort: Supreme Court
Every attempt has to be first made to revive the concern and make it a going concern, liquidation being the last resort, the Supreme Court observed while upholding NCLT order permitting withdrawal of Corporate Insolvency Resolution Process.The bench of Justices L Nageswara Rao, BR Gavai and BV Nagarathna observed that an adjudicating authority under Insolvency and Bankruptcy Code can...
Supreme Court Closes Doors For Withdrawal Or Modification Of Resolution Plans After Acceptance By Committee Of Creditors
The Supreme Court of India, on 13.09.2021, delivered a landmark judgment which has settled the issue of whether withdrawal or modification of the Resolution Plan by the Resolution Applicant, after acceptance by the Committee of Creditors ("CoC") but before approval of the Adjudicating Authority/NCLT, is permissible or not. The bench of Justices D.Y. Chandrachud and M.R. Shah while deciding three Appeals filed by Ebix Singapore PTE Limited, Kundan Care Products Limited and Seroco...
"We Are In A Democratic Country Following Rule Of Law, You Can't Say It": Supreme Court To AG In Tribunal Matter- Full Courtroom Exchange
The Supreme Court on Wednesday took objection to how the Central government has affected appointments to tribunals.At the outset, CJ N . V . Ramana raised the issue of the premature retirement of Justice A. I. S. Cheema as NCLAT chairman- "The department has hurriedly on 11th of September made arrangements and he has been replaced by another gentleman, Justice M. Venugopal. I don't know how...
'We Are Very Unhappy' : Supreme Court Says Centre Made NCLT/ITAT Appointments From Wait-List Ignoring Select-List
The Supreme Court on Wednesday continued its criticism of the Union Government in the matter relating to filling up of vacancies in Tribunals.A special bench comprising Chief Justice of India NV Ramana, Justice DY Chandrachud and Justice L Nageswara Rao expressed unhappiness with the Government for the manner in which the recent appointments were made to the National Company Law Tribunal...
NCLAT Has No Jurisdiction To Condone Delay Exceeding 15 Days From Period Of 30 Days, Contemplated U/s 61(2) IBC: Supreme Court
The Supreme Court observed that the National Company Law Appellate Tribunal (NCLAT) has no jurisdiction to condone the delay exceeding 15 days from the period of 30 days, as contemplated under Section 61(2) of the Insolvency and Bankruptcy Code.In this case, referring to sub-section (2) of Section 61 of the IBC which provides for powers to the Appellate Tribunal to condone the delay of only...
NCLT/NCLAT Should Strictly Adhere To IBC Timelines; Delays Cause Commercial Uncertainty : Supreme Court
The Supreme Court has urged NCLT/NCLAT, the adjudicating and appellate authorities under Insolvency and Bankruptcy Code, to strictly adhere to the timelines stipulated under the IBC and clear pending resolution plans forthwithThe court said that inordinate delays cause commercial uncertainty, degradation in the value of the Corporate Debtor and makes the insolvency process inefficient...
NCLT Cannot Permit Modification Or Withdrawal Of Submitted Resolution Plan At The Behest Of Successful Resolution Applicant : Supreme Court
The Supreme Court held that adjudicating authority cannot permit modifications or withdrawals of CoC-approved Resolution Plans, at the behest of the successful Resolution Applicant, once the plan has been submitted to it.The bench of Justices DY Chandrachud and MR Shah observed that Resolution Plans cannot be considered as cannot be considered as a simple contractual negotiation between...
Personal Property of Guarantors Cannot Be Transferred During CIRP of Corporate Debtor: NCLAT
The National Company Law Appellate Tribunal has held that the personal property of the Guarantors could not be transferred in the Corporate Insolvency Resolution Process of the Corporate Debtor, even though, their properties were mortgaged with the Financial Creditors.Officiating Chairperson AIS Cheema and Technical Member Alok Srivastava held under Section 61(3) of IBC that the Resolution...
Centre Clears Appointments To National Company Law Tribunal (NCLT) & Income Tax Appellate Tribunal (ITAT)
Days after the Supreme Court pulled up the Central Government over posts lying vacant in the tribunals, the Central government today cleared the appointment of judicial and technical members to the National Company Law Tribunal (NCLT) and the Income Tax Appellate Tribunal (ITAT) Issuing a notification, the Centre has approved the proposal for the appointment of a total of 18 members to the...