IBC News
Corporate Debtor's Statement To Enter Into OTS With Financial Creditor Indicates Existence Of Debt And Default: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that the Corporate Debtor's submission before the Adjudicating Authority regarding entering into a One Time Settlement with the Financial Creditor itself amounts to an admission of debt and default. The present appeal has been filed under section...
NCLT, NCLAT Vacancies Must Be Filled On War Footing; RERA Must Be Adequately Staffed : Supreme Court
The Supreme Court directed the Union Government to fill up the vacancies at the National Company Law Tribunals(NCLT) and the National Company Law Appellate Tribunal(NCLAT) on a "war-footing"."Dedicated IBC benches with additional strength should be constituted. Services of retired judges may be utilized on ad hoc basis until regular appointments are made," the Court observed.The Court noted...
Absence Of Charge Defeats Income Tax Department's Secured Creditor Status: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT), New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial) and Mr. Naresh Salecha (Member-Technical), has held that in the absence of the charge, the income tax department cannot be considered as a secured creditor. The financial creditor, M/s Prutha Enterprises, filed a section 7 application before the adjudicating...
Vehicles Repossessed Before CIRP Can't Form Part Of Corporate Debtor's Assets: NCLAT In Appeal By SMAS Auto Leasing Against Gensol
The National Company Law Appellate Tribunal bench of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical), disposed of an appeal filed by SMAS Auto Leasing India Pvt. Ltd. against the order of the National Company Law Tribunal Ahmedabad,which had admitted filed by the Indian Renewable Energy Development Agency Limited against Gensol Engineering Limited. It held that since...
IBC Proceedings Not Barred By Pending Writ Petition Or Administrative Classification Of Account As NPA Or Fraudulent: NCLT Kochi
The National Company Law Tribunal, Kochi Bench, comprising Mr. Vinay Goel (Member-Judicial) and Madhu Sinha (Member-Technical), has held that the IBC proceedings are not barred by the pending writ petition or administrative classification of accounts as NPA or fraudulent. The financial creditor, Axis Bank, filed an application u/s 7 of the IBC read with rule 4 of the NCLT Rules,...
Application U/S 7 Of IBC Can Be Filed Against Multiple Corporate Debtors Forming Part Of Same Project: 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 7 of the IBC can be filed against multiple corporate debtors which are part of the same project. The present appeal has been filed under section 61 of the Insolvency...
Adjudicating Authority Can Decide Allegations Of Fraud U/S 65 Of IBC While Resolution Plan Is Being Considered: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice N Seshasayee and Mr Arun Baroka (Technical Member) has held that the stage at which an application under Section 65 is considered is inconsequential; and if fraud in initiating insolvency proceedings is proved, the entire proceedings stand vitiated. The mere fact that a resolution plan was under consideration...
Adjudicating Authority Is Not Appropriate Forum To Determine Liability Of Corporate Debtor To Pay Interest Under MSME Act: NCLT Amrawati
The National Company Law Tribunal (NCLT) Amrawati bench of Shri Kishore Vemulapalli, Member (Judicial) and Shri Umesh Kumar Shukla and Member (Technical) has held that the Adjudicating Authority is not the appropriate forum for determination on the liability of the Corporate Debtor to pay interest under the MSME Act or Interest Act. The present application has been filed under section...
Neither Registry Nor NCLT Can Dismiss S.7 Petition Without Giving An Opportunity To Cure Defects In Supporting Affidavit: 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 held that neither the registry nor the NCLT can dismiss a section 7 application without giving an opportunity to the party to cure the defects in the supporting affidavit. The financial creditor, HDFC...
IBC | Homebuyers Can't Be Denied Flat Possession If Their Claims Were Verified & Admitted By Resolution Professional : Supreme Court
The Supreme Court on Tuesday (Sep.9) observed that once a claim is verified and admitted by the Resolution Professional (RP), it cannot be treated as “belated” to deny substantive relief under a resolution plan. A bench of Justices Sanjay Kumar and Satish Chandra Sharma ruled in favour of the homebuyers, holding that their verified and admitted claims could not be downgraded to...
Any Defect In Title Of Security Does Not Vitiate Duly Executed Personal Guarantee: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai Bench, Court VI, comprising Justice Nimesh Sharma (Member-Judicial) and Sameer Kakar (Member-Technical), has held that any defect in the title of the security does not vitiate the personal guarantee, duly executed, specifically when the person admits the execution. The application under rule 11 of the NCLT Rules, 2016, was filed by...