No IBC Provision That Resolution Plan Should Match Liquidation Value; Approved Resolution Plan Can't Be Withdrawn Under S12A : SC [Read Judgment]

The Supreme Court has held that there is no requirement under the Insolvency and Bankruptcy Code that the resolution plan should match the liquidation value of the corporate debtor.This was held by a bench comprising Justices R F Nariman and Aniruddha Bose in the case Maharashtra Seamless Ltd(MSL) v Padmanabhan Venkatesh and others.The bench was considering the legality of an order of...

Feigning Dispute Under Insolvency & Bankruptcy Code

Insolvency and Bankruptcy Code, 2016 (I & B Code in short) which is a consolidated Act dealing with reorganisation and insolvency of corporate persons, partnership firms and individuals in a time bound manner with object of maximisiation of value of assets and protecting interest of all stake holders. A Financial creditor/s or Operational creditor may make an application for initiating corporate insolvency resolution process, if the minimum amount of default committed by the...

Tatas vs Cyrus Mistry : SC Issues Notice On Plea Against NCLAT Observations On Registrar Of Companies

The Supreme Court on Friday issued notice on Tata Sons's plea against the NCLAT's January 6 order declining the Registrar of Companies' request for modification of its judgement in the Cyrus Mistry-Tata Sons dispute. A plea was moved by the Registrar of Companies in Mumbai seeking removal of certain adverse observations in the December 18 judgment which ordered the reinstatement of...

Acceptance Of Corporate Insolvency Resolution Not A Ground To Quash Case Under Sec 138 NI Act: Madras HC [Read Judgment]

In a significant ruling, the Madras High Court has held that acceptance of the Corporate Insolvency Resolution Plan under Section 31 of the Insolvency and Bankruptcy Code, 2016 cannot be a ground for quashing the prosecution initiated under Section 138 of the Negotiable Instruments Act, 1881 against the corporate debtor and its officials. "No clause in the Corporate Insolvency...

SC Issues Notice On Pleas Against Conditions Introduced By IBC Ordinance 2019 For Homebuyers' Insolvency Petitions [Read Order]

The Supreme Court on Monday issued notice on petitions which challenge the constitutional validity of the conditions introduced by Insolvency and Bankruptcy Code (Amendment) Ordinance 2019 on the homebuyers' right to file insolvency petition against defaulting builders.A bench comprising Justices R F Nariman and Ravindra Bhat has also ordered status quo on the homebuyers' petitions pending...

SC Stays NCLAT Judgment Which Reinstated Cyrus Mistry As Executive Chairman Of Tata Sons

In a temporary relief to Tata Sons Pvt Ltd, the Supreme Court on Friday stayed the December 18 order of the National Company Law Appellate Tribunal which reinstated Cyrus Mistry as the Executive Chairman of the company.A bench comprising CJI SA Bobde, Justices Surya Kant and BR Gavai issued notice to Mistry in the appeal filed by Tata Sons Pvt Ltd.Tata side gives assurance in court that they...

Plea In SC Challenges Provisions Of IBC Ordinance 2019 Imposing Conditions On Homebuyers' Right [Read Petition]

A writ petition has been filed in Supreme Court challenging Section 3 of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 (Ordinance). The said provision, which adds certain provisos to Section 7 of the Insolvency and Bankruptcy Code (IBC) and purports to set out new conditions for real estate allottees to approach the NCLT, is alleged to be ultra vires the Constitution of India...

Vijay Mallya Cannot Cite Cases Pending In India To Stall Insolvency Proceedings Abroad, Clarifies SC

Calling out the evasive tactics of fugitive liquor baron Vijay Mallya, the Supreme Court on Monday declared that the pendency of his plea before it shall not serve as a tool for halting proceedings in other jurisdictions.Solicitor General Tushar Mehta brought to the attention of the bench headed by Chief Justice S. A. Bobde that Mallya has been hanging the dream of a pay-back before...

Sh. BSV Prakash Appointed As Acting President Of NCLT [Read Notification]

The Centre has appointed Bethala Shantha Vijaya Prakash Kumar, senior most Member of the National Company Law Tribunal, as the Acting President. He will succeed Justice MM Kumar, who is set to retire on January 4, 2020. Kumar will hold office for a period of three months or until a regular President is appointed, whichever is earlier. Read...

NCLAT Allows Dutch Administrator To Participate In Insolvency Proceedings Of Jet Airways

The NCLAT has given its nod to offshore proceedings in the Jet Airways insolvency case by allowing the Administrator, Rocco Mulder, appointed by Dutch Insolvency Court (Trustee) to participate in the meetings of the Committee of Creditors (CoC). The Appellate Tribunal was dealing with cross border insolvency in the matter, as insolvency proceedings were initiated against the...

Date Of Default Alone Is Relevant For Triggering Limitation For Winding Up Petition: SC Dismisses IL&FS Petition Against La-Fin [Read Judgment]

"Though it is clear that a winding up proceeding is a proceeding 'in rem' and not a recovery proceeding, the trigger of limitation, so far as the winding up petition is concerned, would be the date of default".

Conference On Recent Developments In The Insolvency And Bankruptcy Code

The 'Forum for Development of Legal Knowledge and Skills' supported by NCLT and AT Bar Association is organizing a Conference on 'Insolvency and Bankruptcy Code – Jurisprudence in Focus'. Hon'ble Justice S J Mukhopadhyay, Chairperson NCLAT, has agreed to deliver the key note address and be part of the interactive session. Other...