CIRP Order Based On GST Dept Letter Neither Addressed To, Nor Received By Corporate Debtor Is Invalid: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial), Justice Mohammad Faiz Alam Khan (Member-Judicial), and Mr. Naresh Salecha (Member-Technical), has invalidated a CIRP Order Passed by the Adjudicating Authority Based on a Letter Neither Addressed to Nor Received by the Corporate...

NCLT Hyderabad Grants Interim Protection To Petitioner After EGM Allotted 2.49 Crore Shares To Respondent, Making Them Majority Shareholder

The NCLT Hyderabad bench of Mr Rajeev Bhardwaj, Member Judicial, and Mr Sanjay Puri, Member Technical, while hearing a petition filed under Section 241 and 242 of the Companies Act, read with Sections 59 and 213 of the Companies Act, granted interim relief to the Petitioner. The Bench, after perusing the record, observed that a prima facie case exists in favour of the Petitioner....

Guarantor's Liability Can't Be Restricted To Cap Prescribed Under Deed Of Guarantee On Principal Borrower's Liability: 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 liability of the guarantor cannot be restricted to only the capped amount prescribed in respect of the principal borrower's liability, since the guarantor's liability to discharge repayment obligations upon invocation of the guarantee and...

Issue Of Share Application Money As Financial Debt Once Decided In Earlier Proceedings Can't Be Reagitated In Subsequent Plea U/S 7 Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that Once the issue of whether share application money amounts to a financial debt has been decided by the Adjudicating Authority in earlier proceedings, the same question cannot be agitated in a subsequent application filed under Section 7 of...

Adjudicating Authority Can Enforce Arbitral Award Upon Application By Resolution Professional U/S 60(5) Of IBC: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Technical), Justice Mohammad Faiz Alam Khan (Member-Technical), and Mr. Naresh Salecha (Member-Technical), has held that the adjudicating authority has jurisdiction under Section 60(5) of the IBC to entertain an IA filed by the Resolution...

When There Is More Than One Guarantor, Creditor Has Discretion To Proceed Against All Or Any One Of Them: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra has held that it is for the creditors to decide whether to proceed against all or any one of the personal guarantors when there are multiple guarantors. Therefore, an application under Section 95 of the IBC cannot be rejected merely on the ground that the creditor chose to...

Corporate Debtor Cannot File Appeal U/S 61 Of IBC In It's Own Name After Appointment Of Resolution Professional: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial), Mr. Naresh Salecha (Member-Technical), and Mr. Indevar Pandey (Member-Technical), has held that a corporate debtor in its own name cannot file an appeal under section 61 of the IBC after initiation of CIRP and appointment of IRP. Background of...

State Gains Revenue Only If Businesses Operate; Cancelling GST Registration On Procedural Grounds Serve No Purpose: Calcutta High Court

The Calcutta High Court stated that the state gains revenue only if business operates; GST registration cancellation on procedural grounds serves no purpose. Justice Aniruddha Roy stated that the cancellation of GST registration of the assessee on the procedural ground would not enure any benefit either to the revenue authority or to the assessee. On the contrary, if the GST...

Absence Of Disciplinary Proceedings Bars NCLT From Rejecting Proposed IRP Under IBC: Madras High Court

The Division Bench of Madras High Court, comprising Justice Dr. Anita Sumanth and Mr. Justice N. Senthilkumar, has held that in the absence of disciplinary proceedings pending against the professional, NCLT is bound to appoint the IRP proposed by the applicant under sections 7 and 10 of the IBC, 2016. Background of the Case The petition under Article 226 was filed to quash...

NCLAT New Delhi Affirms CIRP Of M/S Revital Reality Private Limited (Group Company Of Supertech Limited)

The National Company Law Appellate Tribunal (NCLAT), New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member - Technical), has affirmed the initiation of the Corporate Insolvency Resolution Process (CIRP) against M/s Revital Reality Private Limited, under section 7 of the IBC, 2016. The bench ruled that the non-obtaining of an Occupation Certificate (OC)...

Mere Allegations Of Fraud Can't Invalidate Auction When Unsuccessful Bidder Failed To Put In Bid Despite Opportunity: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Yogesh Khanna and Mr. Indevar Pandey (Technical Member) has held that mere bald assertions or allegations of fraud cannot invalidate an otherwise valid auction, especially when the unsuccessful bidder was given ample opportunity to log in to the system but failed to place a valid bid. The present appeal...

Additional Documents Need Not Be Filed With Reply To Demand Notice U/S 8(2) Of IBC: 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 section 8 of the IBC doesn't allow placing on record any documents while responding to a demand notice, except the ones mentioned in sub-section 2. The appeal was filed challenging the impugned order passed...