Does Issuance Of Moratorium Under IBC Bar Statutory Proceedings U/S 138 Of Negotiable Instruments Act? SC To Consider [Read Order]

A Supreme Court Bench of Justices U.U. Lalit & Aniruddha Bose on Monday issued Notice to Attorney General on a petition seeking a bar on proceedings instituted under section 138 of Negotiable Instruments Act, 1881 towards a Company on account of its declaration of insolvency. Relying on BSI Ltd. & Anr. Vs. Gift Holdings Pvt. Ltd. & Anr., Counsel appearing for...

Application For Withdrawal Is Not A Suit/ Proceeding/ Execution Within S. 14 Of IBC: Bombay HC [Read Judgment]

The Bombay High Court has held that an application made for withdrawal of an amount deposited with the court does not amount to a suit/ proceeding/ execution within Section 14 of the IBC and therefore, the party that deposited the amount cannot oppose such an application merely because it is undergoing moratorium. In his order, Justice G.S. Patel has clarified that such amount is considered to be placed beyond the reach of either party and therefore, it is not 'the property' of either...

SC Transfers Petition Challenging IBC Ordinance Before Delhi HC To Itself [Read Order]

The Supreme Court on Monday allowed the transfer of a petition challenging the constitutional validity of IBC (Amendment) Ordinance, 2019, from the Delhi High Court to itself. The petition titled KIC Food Products Pvt. Ltd. v. Union of India & Anr., WP (C) No. 310/2020, pending before the Delhi High Court, was the first case challenging the constitutional validity of IBC...

CIRP Against Real Estate Company Limited To Project Concerned And Will Not Affect Other Projects : NCLAT [Read Judgment]

The National Company Law Appellate Tribunal has held that an insolvency process against a real estate company will impact only the project concerned and not the other projects of the builder-developer."In CIRP against a real estate, if allottees or financial institutions, banks or operational creditors of one project initiated CIRP against the corporate debtor, it is confined to the...

Dispute Raised To Application U/S 9 IBC Over Telephone Inadmissible: NCLT, Allahabad [Read Order]

In its recent order the Allahabad bench of the NCLT has decided that 'notice of dispute' to a claim under Section 9 of the Insolvency and Bankruptcy Code, 2016 is not admissible if made over a telephonic communication, not supported by phone records. The observations have been made in a company petition filed under Section 9 of the Code for initiation of Corporate Insolvency...

Companies Act 2013: Time To Reboot?

The Finance Minister of India has one of the least enviable jobs in the country at the moment. With GDP growth on the decline and other macro-economic indicators not suggesting a quick recovery, Ms. Sitharaman has her task cut out. She is set to present the Union Budget for 2020 which is likely to face close scrutiny and will indicate the approach that the Modi government proposes to take to address the current, rather stubborn, economic downturn. While the economy has been the...

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...