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...

Approval Of OTS Proposal By One Member Of Consortium Subject To Approval Of Other Lenders Can't Bar Petition U/S 7 Of IBC: 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 an One Time Settlement (OTS) proposal submitted by the corporate debtor, and approved by one consortium member subject to approval by all members, cannot bar the filing of an application under Section 7 of...

Interest Accrued During & After S.10A Period Can Be Combined With Principal Amount To Meet ₹1 Crore Threshold U/S 4 IBC: NCLT Kolkata

The National Company Law Tribunal (NCLT), Kolkata Bench, comprising Justice Bidisha Banerjee (Member-Judicial) and Siddharth Mishra (Member-Technical), has held that if the default is committed prior to or during the section 10A period and liability to pay interest is accrued during the section 10A period and continued thereafter, such interest could be counted to meet the threshold of Rs....

Claims Of EPFO Based On Inspection Conducted During CIRP Are Unenforceable: 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 claims of the EPFO based on inspection conducted subsequent to initiation of the Corporate Insolvency Resolution Process (CIRP) are unenforceable and cannot be admitted. The present three appeals have been filed against orders passed...

Shareholders & Guarantors Have No Locus To Intervene In CIRP Based On Private Unregistered MoU: NCLT Kochi

The National Company Law Tribunal (NCLT), Kochi Bench, comprising Justice Vinay Goel (Member-Judicial) and Madhu Sinha (Member-Technical), has held that any private agreement between the corporate debtors, borrowers, and guarantors is not binding on the financial institutions unless the institutions are parties to the agreement and have explicitly consented to...

Unconditional Consent By Sole Financial Creditor Satisfies Requirements Of S.12A IBC & Regulation 30A Of CIRP Regulations: NCLT New Delhi

The National Company Law Tribunal, New Delhi, Court-IV, comprising Justice Jyotsna Sharma (Member-Judicial) and Anu Jagmohan Singh (Member-Technical), has held that if there is a stay on the meetings of CoC, then the unconditional consent of the sole financial creditor is sufficient for the withdrawal of the CIRP. The resolution professional filed an application u/s 12A of the IBC...

Lease Dues Incurred During CIRP Prior To Vesting Date Are Payable To Financial Creditor, Do Not Belong To Successful Resolution Applicant: NCLT Hyderabad

The National Company Law Tribunal (NCLT), Hyderabad Bench, comprising Justice Rajeev Bhardwaj (Member-Judicial) and Sanjay Puri (Member-Technical), has held that the lease dues incurred during the corporate insolvency resolution period prior to the vesting date are payable to the financial creditor and don't belong to the Successful Resolution Applicant (SRA). Background of...

Personal Guarantors Cannot Seek Disclosure Of Resolution Plan Details U/S 60(5) IBC Or Rule 11 Of NCLT Rules: NCLT Mumbai

The National Company Law Tribunal, Mumbai Bench, comprising Justice Sushil Mahadeorao Kochkey (Member-Judicial) and Prabhat Kumar (Member-Technical), has held that personal guarantors cannot seek disclosure of resolution plan details u/s 60(5) or Rule 11 of the NCLT Rules. The CIRP of the corporate debtor, Prabhat Technologies (India) Ltd., was initiated in furtherance of the section...

Settlement Agreement Between Parties Merely Acknowledging & Structuring Repayment Doesn't Change Nature Of Debt: NCLT Mumbai

The National Company Law Tribunal, Mumbai Bench, Court-III, comprising Justice Lakshmi Gurung (Member-Judicial) and Hariharan Neelakanta Iyer (Member-Technical), has held that a settlement agreement entered between the parties merely for the purpose of acknowledging the debt and structuring the repayment schedule doesn't necessarily change the nature of the debt when it is concreted...

Specific Pleadings U/S 9 Of IBC Regarding Part Payments, Supported By Written Acknowledgment Resets Limitation Period: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that when there are specific pleadings under Section 9 of the IBC regarding part payments made by the Corporate Debtor, further supported by a written acknowledgment in the reply to the demand notice, the limitation period for filing the...