Delhi High Court Seeks RBI, Centre, DHFL Response On Plea Against Rules Allowing NBFCs Resolution Under IBC

The Delhi High Court has sought responses of inter alia, the Centre, the Reserve Bank of India and Dewan Housing Finance Corporation Ltd (DHFL) on a writ petition challenging the constitutional validity of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019, and a notification by the Union...

IBC-Writ Jurisdiction Can Be Invoked Despite Availability Of Alternative Remedy If Allegation Pertains To Lack Of Jurisdiction Of NCLT: Calcutta High Court

The Calcutta High Court has held that a writ petition Article 226 of the Constitution, challenging the jurisdiction of NCLT in a matter, is maintainable despite existence of an alternate remedy in form of appeal before NCLAT. "Although a wrongful exercise of available jurisdiction would not be sufficient to invoke the High Court's jurisdiction under Article 226 of the Constitution,...

Financial Creditor Can Be Excluded From CoC If It Got Rid Of 'Related Party' Label Only With Intention To Circumvent Bar Under Section 21(2) IBC : SC

'The purpose of excluding a related party of a corporate debtor from the CoC is to obviate conflicts of interest which are likely to arise in the event that a related party is allowed to become a part of the CoC'

Insolvency Law In Review - December 2020

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. The purpose of this column is to fill this gap by providing brief summaries of latest decisions, from the various fora dealing with...

Article Writing Competition On Insolvency Law By IDIA, Delhi Chapter: Register By Feb 27

The Delhi Chapter of IDIA, are conducting an Article Writing Competition on the theme of Insolvency Law. About the Judge All the submissions will be judged by Dr. Risham Garg, Associate Professor at NLU Delhi, Director of the Centre for Transnational Commercial Law (CTCL), and Mr. Lakshman R.S, Associate at S&V Partners, New Delhi. Who can Participate? The competition is...

Increased Threshold: Magical Figure For Allottees Under The Insolvency And Bankruptcy Code, 2016

The status of homebuyers as a class of financial creditors and their right to initiate the Corporate Insolvency Resolution Process (CIRP) against the builder/developer under the Insolvency and Bankruptcy Code (IBC or Code) had traversed a very long journey which witnessed various legislative amendments and Supreme Court's decision (Chitra Sharma versus Union of India & Pioneer Infrastructure versus Union of India) on the constitutionality of those amendments. This journey of...

NCLAT's Chennai Bench To Commence Functioning From January 25 Through Virtual Mode

Over Ten months after the Central government constituted another Bench of the National Company Law Appellate Tribunal (NCLAT) at Chennai, the same will start its functioning from Monday (25th January 2021) through Virtual Mode. A notification issued in this behalf states that the filing of Fresh Appeals against the orders of the Benches of the National Company Law Tribunal...

Inauguration Of NCLAT, Chennai Bench By Union Minister Smt. Nirmala Sitharaman [25th January 2021]

The National Company Law Appellate Tribunal is inaugurating the NCLAT, Chennai Bench through Virtual Inaugural CeremonyThe details are as follows: Date: 25th January 2021(Monday) Time: 12:15 PM For the Event Link, click here Event ID: 158 769 5485 Password:...

Minimum Threshold For Homebuyers' Insolvency Process Against Builder Shields Frivolous & Avoidable Applications : Supreme Court

The Supreme Court has upheld the threshold limit on homebuyers - introduced by way of Insolvency and Bankruptcy Code(Amendment) Act 2020 - as an attempt to "shield the corporate debtor(builder) from avoidable and frivolous applications".A bench comprising Justices R F Nariman, Navin Sinha and KM Joseph upheld Section 3 of the IBC(Amendment) Act 2020 which introduced provisos to Section 7 of...

NCLT Admits ISRO-Arm Antrix's Plea To Wind Up Devas Multimedia; Appoints Provisional Liquidator

The National Company Law Tribunal, Bengaluru, on Tuesday admitted the petition filed by Indian Space Research Organization's commercial arm Antrix Corporation Ltd to wind up Devas Multimedia under Sections 271 and 272 of the Companies Act 2013.Antrix Corporation sought the winding up of Devas Multimedia on the grounds that the Bengaluru-based company's affairs were being have been conducted in...

Supreme Court Upholds Sections 3, 4 & 10 Of IBC Amendment Act 2020

The Supreme Court on Tuesday upheld the constitutional validity of Sections 3, 4 and 10 of the Insolvency and Bankruptcy Code (Amendment) Act 2020.A bench comprising Justices RF Nariman, Navin Sinha and KM Joseph had considered the petitions. Justice KM Joseph authored the judgment delivered in Manish Kumar v Union of India and others and connected cases.While upholding the amendments, the...

Justice (Retd.) Bansi Lal Bhat's Term As Officiating Chairperson Of NCLAT Extended Till He Turns 67 Yrs

The Central Government has extended the term of (Retd.) Justice Bansi Lal Bhat as the officiating Chairperson of the National Company Law Appellate Tribunal (NCLAT), till he attains the age of 67 years, or until further orders, whichever is earlier. The term of Justice AIS Cheema as the Judicial Member of NCLAT has also been extended till he attains the age of 67 years, or until...