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...

Renewed Hope For Amtek Auto Resolution As SC Allows RP To Issue Invitation For Fresh Bids

Supreme Court has allowed the plea of the Committee of Creditors (CoC) of Amtek Auto for granting extension to the extent that, fresh bids may be invited by the Resolution Professional from potential resolution applicants. Solicitor General Tushar Mehta appearing for the CoC of Amtek, asked for an extension of 90 days for completing resolution process. He contended that the...

IBC- Article 137 Limitation Act Applies To Section 7 Applications; Not Article 62: SC [Read Judgment]

"Article 62 would only apply to suits. "An application" which is filed under Section 7, would fall only within the residuary article 137."

SFIO Challenges NCLT's Order Directing Investigation Into Fraud By Companies

The Government through Serious Fraud Investigation Office (SFIO) has moved NCLAT against NCLT Principal Bench's order directing SFIO to investigate alleged siphoning of funds by two companies undergoing insolvency proceedings, Luxury Train Pvt. Ltd. and Zynke Exports Pvt. Ltd. The Principal Bench headed by Judicial Member M M Kumar in both the cases observed that funds were...

Insolvency & Bankruptcy Code Prevails Over Prevention Of Money Laundering Act : PMLA Appellate Authority

In a decision with a possibility of having a far-reaching effect, the Appellate Authority of the Prevention of Money Laundering Act, 2002 (PMLA) has upheld the prevalence of the IBC over the provisions of PMLA. The Appellate Bench has ordered the release of specific properties of PMT Machines Ltd., which were attached by the ED (Directorate of Enforcement), in view of allegations...

NCLAT Allows Group Insolvency Of Group Companies For Adel Landmarks Limited [Read Judgment]

NCLAT recently allowed group insolvency of the 100 percent subsidiaries of Adel Landmarks Limited namely Sachet, Sameeksha, Mehak, Jamvant and Magadh with that of Adel. This was done while admitting the five out of the nine Appeals preferred by Edelweiss Asset Reconstruction Company against the Order passed by NCLT, Principal Bench, declining the Insolvency Petitions filed. NCLAT directed NCLT to admit the aforesaid five companies and appoint the Resolution Professional of Adel as the common...

NCLAT Says Dissenting Financial Creditors Cannot Be Discriminated Against [Read Judgment]

Ringing a bell of caution for all future resolution plans under the IB Code, the Hon'ble NCLAT has reiterated that resolution plans must not discriminate between similarly situated creditors, and must conform to the requirements of the amended Regulation 38 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("IBBI Regulation").In the present case, CIRP had been initiated against M/s Rave Scan Private Limited ("Corporate...