IBC- Miscellany

Insolvency and Bankruptcy Code, 2016 ("IBC" or the "Code") will be completing two years after Chapters II and III pertaining to the provisions relating to Insolvency Resolution and Liquidation for Corporate Persons and Liquidation Process became operational. The Code has proved its purpose and several crores of rupees have been recovered either by way of settlement between the creditor and the corporate debtor, putting in place an acceptable resolution plan or through liquidation of the...

Winding Up Proceedings Under SICA Are To Continue In HC And Not In NCLT : SC[ Read Judgment]

The Supreme Court has held that winding up proceedings under the Sick Industrial Companies(Special Provisions) Act 1985 will continue in the High Court and not the National Company Law Tribunal, until an application for transfer to NCLT is filed by a party under Section 434(1)(c) of the Companies Act 2013.The bench of Justices R F Nariman and M R Shah held so in Jaipur Metal and...

Jaypee Infratech Case : Publication Of Homebuyers' Names In List Of Creditors Will Not Violate Privacy, Rules NCLT [Read Order]

The Allahabad bench of National Company Law Tribunal has held that disclosure of the names of homebuyers in the list of creditors will not result in violation of privacy.The Tribunal was dealing with the resolution process of Jaypee Infratech Ltd(JIL), following directions from the Supreme Court. The SC had directed on August 9 to include homebuyers in the Committee of Creditors(CoC),...

NCLT Chennai Stresses Need To Set Norms For Evaluation Of Resolution Plans By Committee Of Creditors [Read Order]

Chennai Bench of the National Company Law Tribunal (NCLT) has called for "Standard Operating Procedures" for managing the affairs of the Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code (IBC)."…the Head offices of the members of the CoCs are directed to work out a "Standard Operating Procedure" for being followed by the member of the CoCs for determining the suitability...

Application Under Section 7 Of IBC Cannot Be Admitted After Settlement Between Parties : NCLAT[Read Judgment]

The National Company Law Appellate Tribunal headed by Chariman Justice S J Mukhopadhyaya has declared illegal the admission of application under Section 7 of the Insolvency and Bankruptcy Code after settlement between the parties.In this case, after the application for initiation of corporate resolution process was filed under Section 7 of IBC, the parties entered into a settlement. Although...

S.7 IBC Application Cannot Be Rejected On Account Of "Usurious Penal Interest" Governed By Usurious Loans Act: NCLAT [Read Judgment]

The National Company Law Appellate Tribunal (NCLAT) has held that an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 cannot be rejected on the ground of "usurious and extortionate penal interest", which is governed by Usurious Loans Act, 1918.A bench comprising Justice SJ Mukhopadhaya (Chairperson) and Justice Bansi Lal Bhat (Judicial Member), in Sh. Naveen Luthra v....

NCLT Cannot Decide Legality Of A Foreign Decree, Rules NCLAT [Read Judgment]

The National Company Law Appellate Tribunal has held that NCLT, the 'adjudicating authority' under the Insolvency and Bankruptcy Code, was not a 'court' or a 'tribunal' and hence cannot decide the legality of a foreign decree."we hold that the Adjudicating Authority not being a Court or 'Tribunal' and 'Insolvency Resolution Process' not being a litigation, it has no jurisdiction to decide...

IBC: Pendency Of Case U/S 138 & 141 NI Act Amounts To Admission Of Debt, Not Existence Of Dispute: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has held that pendency of proceedings under Section 138/441 of the Negotiable Instruments Act, 1881 cannot be considered as a dispute pending before a court of law, and hence, cannot be used as a reason for rejection of an application under Section 9 of the Insolvency and Bankruptcy Code.A bench comprising Justice S.J. Mukhopadhaya...

Implications Of Binani Ruling For IBC

On 14 November 2018, the National Company Law Appellate Tribunal (NCLAT) pronounced its ruling in the case of Rajputana Properties Pvt. Ltd. v Ultratech Cement Ltd. & Ors. along with other connected matters, upholding the revised resolution plan submitted by UltraTech Cement Limited (UltraTech) for Binani Cements Limited (Binani Cements). Vide the said order, the resolution plan submitted by the rival contender viz Dalmia Bharat led Rajputana Properties Private Limited (Rajputana), was held...

Corporate Debtor Cannot Maintain Appeal Under Insolvency & Bankruptcy Code : NCLAT [Read Order]

Holding that corporate debtor cannot maintain appeal under the Insolvency and Bankruptcy Code, the National Company Law Appellate Tribunal dismissed an appeal.The appeal was filed by M/s Radius Infratel Pvt Ltd, which challenged an order passed by Adjudicating Authority admitting an application under Section 7 of the IBC moved by a financial creditor.The Tribunal noted that the Supreme Court...

NCLAT Okays UltraTech Cement's Revised Resolution Plan For Binani Cement [Read Judgment]

The National Company Law Appellate Tribunal (NCLAT) on Wednesday approved the revised resolution plan submitted by Ultratech Cement for debt-ridden Binani Cement.The NCLAT bench comprising NCLAT Chairperson, Justice SJ Mukhopadhaya, and Judicial Member, Justice Bansi Lal Bhat accepted Ultratech's plan, while ruling that the plan submitted by the rival Dalmia Bharat group firm Rajputana...

IBC Not Intended To Be Substitute To A Recovery Forum: SC Reiterates [Read Judgment]

'Whenever there is existence of real dispute, the IBC provisions cannot be invoked.'While setting an order of National Company Law Appellate Tribunal (NCLAT), the Supreme Court has reiterated that existence of an undisputed debt is sine qua non of initiating corporate insolvency resolution process (CIRP).Equipment Conductors and Cables Limited had filed a petition under Section 9 of...