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...

NCLAT Directs Modification Of Resolution Plan On Ground Of Discrimination Between Similarly Situated Financial Creditors

Although the Appellate Tribunal found the resolution plan to be in contravention of provisions of the IBC, it did not set aside the plan. An opportunity was given to the resolution applicant to remove the discrimination by providing similar treatment, as was provided to other similarly situated financial creditors.

Imposition Of Pre CIRP Moratorium: Icing On The Cake

Pre CIRP moratorium will prevent corporate debtors from taking advantage of delay in admitting insolvency applications.

IBC Proceedings Maintainable Even If Company's Name Struck Off From The Register Of Companies: NCLAT

The NCLAT has reiterated that an application under Sections 7 and 9 of the Insolvency and Bankruptcy Code, 2016 ('I&B Code') for the initiation of 'Corporate Insolvency Resolution Process' (CIRP) is maintainable even if the name of the Company has been struck-off by the Registrar of Companies. The Appellate Bench was hearing an appeal filed by Elektrans Shipping Pvt....

Non Payment Of Debt After Issuance Of Recovery Certificate Not A 'Continuing Wrong' : SC [Read Order]

The Supreme Court has held that non-payment of debt after the issuance of recovery certificate cannot be regarded as a continuing wrong so as to give rise to a continuing cause of action under the Limitation Act.The bench of Justices R F Nariman and Surya Kant held so while allowing an appeal against an order of NCLAT which allowed the admission of an insolvency petition with respect to...

SC Stays Liquidation Of Amtek Auto Passed By NCLAT

The Supreme Court has issued notice in a civil appeal filed by the 'Committee Of Creditors' (CoC) of 'Amtek Auto Limited' and stayed the liquidation order passed by the NCLAT. Since the liquidation of Amtek was approved by NCLAT, the CoC of Amtek approached SC by way of an appeal. Solicitor General Tushar Mehta appeared on behalf of the CoC, before the SC Bench comprising of Justices...

NCLAT Clears Ambiguity Over NCLT's Power To Dispense With The Meetings Of Shareholders & Creditors In A Scheme Of Arrangement/ Amalgamations [Read Judgment]

Case Title: DLF Phase-IV Commercial Developers Limited & Others, Company Appeal (AT) No. 180 of 2019, Judgement Dated: 19th August 2019.In a landmark Judgement, the National Company Law Appellate Tribunal (NCLAT) set aside the order of National Company Law Tribunal (NCLT), Chandigarh Bench, as being per incuriam. This was because it declined the dispensation of certain meetings of shareholders and creditors of Applicant Companies while holding that such dispensations are not permissible...