IBC News
Debt Can Be Established Through Any Documentary Evidence Under Regulation 8(2) Of CIRP Regulations, Written Contract Not Needed: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain, Justice Mohd Faiz Alam Khan and Mr. Naresh Salecha (Technical Member) has held that a written contract is not a precondition to prove the existence of a legally payable debt. If other documentary evidence listed under Regulation 8(2) of the CIRP Regulations is available and clearly shows...
Workmen Can Claim Dues After Layoff Only If They Continued To Work After Notice Was Issued By Corporate Debtor: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain, Justice Mohd Faiz Alam Khan and Mr. Indevar Pandey (Technical Member) has held that if the workmen or employees fail to prove that they actually worked after a layoff notice was issued by the corporate debtor, they are not entitled to claim any dues for the period after the layoff. Such dues...
EPFO Dues From Pre-CIRP Period Cannot Be Claimed Based On Assessment Made During Moratorium: NCLAT New Delhi
The NCLAT, Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial) and Mr. Naresh Salecha (Member-Technical), has held that EPFO dues of the pre-CIRP period cannot be claimed based on assessments made during the imposition of the moratorium. The appeal was filed by the RPFC-II, challenging the NCLT, Ahmedabad order, rejecting the application for setting...
NCLT Cannot Allow Alternate Prayers After Rejecting Main Prayer Without Cogent Reasons: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Yogesh Khanna (Member-Judicial) and Ajai Das Mehrotra (Member-Technical), has held that the adjudicating authority cannot reject the main prayer without cogent reasons and allow the alternative prayers. The appeal was filed against the order of the NCLT, Mumbai...
Gujarat High Court Stays IBBI Disciplinary Committee's Order Suspending Resolution Professional For 6 Months
The Gujarat High Court last week stayed an order issued by Insolvency and Bankruptcy Board of India (IBBI) which had suspended the registration of an insolvency resolution professional for six months pursuant to disciplinary proceedings. The court passed the order after the petitioner questioned the procedure by which the disciplinary proceedings were conducted. Justice Mauna M Bhatt...
Adjudicating Authority Cannot Invoke S.60(5) IBC When Ingredients U/S 66 Are Not Made Out: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra), has held that the adjudicating authority cannot invoke section 60(5) of the IBC when ingredients of section 66 are not made out. Background of the Case The adjudicating authority by its order dated 22.01.2025, while acknowledging that...
Suspended Director Cannot Halt Liquidation By Submitting Third-Party Settlement Offer After Expiry Of CIRP: NCLAT New Delhi
The NCLAT, Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has held that a suspended director cannot halt liquidation by submitting a third-party settlement offer after expiry of CIRP. The appellant contended that it had given the higher offer and has also filed the application seeking direction to consider its offer. It...
Distribution Among Financial Creditors Should Be Based On Pro Rata Basis As Per Vote Share: NCLAT New Delhi
The NCLAT, Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has held that the distribution among financial creditors should be based on security interest or on a pro rata basis as per voting shares. The appeal was filed against the decision of the NCLT, Jaipur, wherein the Adjudicating Authority, by its impugned order,...
NCLT's Reference To IBBI Order After Reserving Judgment Does Not Violate Natural Justice If RP Does Not Contest Order: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial) and Naresh Salecha (Member-Technical), has observed that NCLT's reference to the IBBI order passed post reserving the judgment does not violate natural justice if the order is not contested by the resolution professional. The CIRP of the corporate...
Application U/S 9 IBC Can't Be Rejected Over Issuance Of Demand Notice In Wrong Form When Invoices Contained In Notice Are Unchallenged: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain, Justice Mohammad Faiz Alam Khan and Mr. Naresh Salecha (Technical Member) has held that an application under Section 9 of the IBC cannot be rejected on a hyper-technical plea that, since the claim was based on invoices, the demand notice should have been issued in Form 4 of Rule 5 of...
Successful Auction Purchaser Liable To Pay 'True-Up' Charges After Sale Of Corporate Debtor As Going Concern: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain, Justice Mohammad Faiz Alam Khan and Mr. Naresh Salecha (Technical Member) has held that once the Corporate Debtor is taken over by a Successful Auction Purchaser on a going-concern basis and a sale certificate is issued by the Liquidator, the purchaser cannot avoid its responsibility to pay...
Right To Sue U/S 9 Of IBC Begins When MSME Arbitral Award Becomes Final: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has held that the right to sue under section 9 of the IBC begins when the MSME award becomes final and operative. The MSME Council passed an arbitral award in favor of the appellant in the year 2011. The award was...