IBC News
Moratorium Under IBC Does Not Prevent Reversal Of Funds Mistakenly Transferred To Corporate Debtor: NCLT New Delhi
The National Company Law Tribunal, New Delhi Bench, comprising Jyotsna Sharma (Member-Judicial) and Anu Jagmohan Singh (Member-Technical), has held that the moratorium under section 14 of the IBC doesn't prevent reversal of funds mistakenly transferred to the corporate debtor's account. The applicant claims that it mistakenly transferred the 'relevant funds' through RTGS. It also sent...
Supreme Court Upholds JSW Steel's Resolution Plan For Bhushan Power & Steel, Says JSW Can't Be Penalised For Reviving Loss-Making Entity
The Supreme Court today upheld the resolution plan of JSW Steel Ltd for Bhushan Power and Steel Ltd (BPSL) and rejected the objections raised by the ex-promoters and certain creditors of BPSL.Allowing the appeals after JSW has revived the loss-making entity by infusing huge amounts of funds will lead to "diastrous results", the Court said.A bench comprising Chief Justice of India BR...
Invocation Of Guarantee Does Not Preclude Financial Creditor From Initiating CIRP: NCLT Kolkata
The National Company Law Tribunal (NCLT) Kolkata bench of Smt. Bidisha Banerjee (Judicial Member) and Cmde Siddharth Mishra (Technical Member) admitted a petition under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Vasupujya Enterprises Pvt. Ltd., a corporate guarantor of Ankit Metal & Power Ltd., holding that there is no bar under the IBC from simultaneously...
Resolution Professional Can Be Replaced U/S 60(5) IBC If He Deliberately Avoids Placing Agenda For His Replacement Before CoC: NCLAT
The NCLAT, Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), has held that Section 60(5) of the IBC can be invoked to replace a resolution professional (RP) if he deliberately avoids placing the agenda for his replacement before CoC The CIRP of the corporate debtor was initiated, and the appellant was appointed...
Discretion Vested Upon NCLT U/S 7(5)(A) IBC Cannot Be Used To Impel Financial Creditor To Consider Settlement: NCLT Chennai
The NCLT, Chennai Bench, comprising Sanjiv Jain (Member-Judicial) and Venkataraman Subramaniam (Member-Technical), has held that the discretion vested upon the adjudicating authority under section 7(5)(a) IBC cannot be used to impel the financial creditor to consider the settlement proposed by the corporate debtor. The financial creditor, Punjab National Bank, filed a petition...
Resolution Professional Can Terminate Leave & Licence Agreements Even In Absence Of RERA Proceedings: NCLAT New Delhi
The NCLAT, Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has upheld the termination of the leave and license agreement by the resolution professional (RP) in the absence of RERA proceedings. The corporate debtor executed three separate leave and license agreements with the appellants pertaining to the use of the fourth...
Revival Of Insolvency Proceedings Permissible Despite Absence Of Revival Clause In Settlement Agreement: NCLAT New Delhi
The NCLAT, Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial), Justice Mohammad Faiz Alam Khan (Member-Judicial), and Indevar Pandey (Member-Technical), has allowed the revival of the insolvency proceedings despite the absence of a revival clause in the settlement agreement. The appeal was filed against the dismissal of the restoration application...
Resolution Plan Can't Be Approved By NCLT If Leasehold Rights Over Primary Assets Are Not Proved: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) upheld an order of NCLT Kolkata which refused to sanction a resolution plan wherein a disputed parcel of land was the primary asset.The Tribunal held that since the corporate debtor failed to prove leasehold rights over the land as the deed was executed...
Inadequate Stamping Of Loan Documents Is Curable Defect, Does Not Bar Admission Of Plea U/S 7 Of IBC: NCLT Mumbai
The National Company Law Tribunal (NCLT) Mumbai bench of Shri Ashish Kalia (Judicial Member) and Shri Sanjiv Dutt (Technical Member) has held that inadequate stamping of loan documents does not bar the admission of a petition under section 7 of the IBC. Background Dombivli Nagari Sahakari Bank Ltd. (“DNS Bank”) advanced financial facilities, including cash credit and term...
NCLAT Expunges NCLT Remarks Against SBI Officials, Says Tribunal Cannot Make Stigmatic Observations Without Giving Hearing
The NCLAT, Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), has expunged the stigmatic remark against the SBI officials and counsel, while observing that the tribunals cannot make stigmatic observations or impose costs without giving an opportunity to be heard. The NCLT dismissed the SBI's petition under section 95 of...
Recall Application Seeking Review Of NCLAT Judgment Is Not Permissible: NCLAT Chennai
The National Company Law Appellate Tribunal (NCLAT), Chennai Bench, comprising Justice Rakesh Kumar Jain (Member-Judicial) and Mr. Ajai Das Mehrotra, has held that a recall application seeking review of the NCLAT's order is not permissible. The appellant, erstwhile liquidator of the corporate debtor, filed an appeal against the decision of the adjudicating authority, which was...
Institution Of Criminal Proceedings Against Officials Of Financial Creditor Does Not Bar Petition U/S 7 Of IBC: NCLT Cuttack
The National Company Law Tribunal (NCLT) Cuttack bench of Deep Chourasia (Judicial Member) and Babulal Meena (Technical Member) has held that institution of criminal proceedings or allegations of fraud against officials of the financial creditor do not bar an application under section 7 of the IBC. It was held that, unlike an application under section 9 of the IBC, the petition under...