Unexplained Delay In Filing Second Petition U/S 94 Of IBC After Dismissal Of First Reflects Malafide Conduct Of Litigant: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan, Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that filing a second petition under Section 94 of the IBC, without disclosing that the earlier petition based on the same facts and cause of action had been dismissed, reflects mala fide conduct on the part of...

NCLT Can Grant Ex-Post Facto Approval To Criminal Complaints Filed Against Former Management With Adequate Reasons: 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 Adjudicating Authority is empowered to grant ex-post facto approval of criminal complaints filed against the Ex-management by providing adequate reasons. The present appeal has been filed against an order passed by National Company...

Money Deposited By Borrower As Precondition For Sanction Of Guarantee Ceases To Be Corporate Debtor's Asset Upon Invocation Of Guarantees: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that Margin Money deposited by the borrower as a precondition for sanction of Bank Guarantees, being payable towards the Bank Guarantees invoked by the beneficiary, ceases to be the Corporate Debtor's asset once such guarantees are invoked....

Claims Based On Guarantee Can Be Considered By RP Even If Guarantee Was Not Invoked Before Insolvency Commencement Date: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan, Justice N. Seshasayee (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that the claims of the creditor can be considered by the Resolution Professional even if guarantee based on which the claims were filed was not invoked. The present appeal has been filed under section 61...

Successful Bidder Can't Claim Exemptions From Statutory Compliance Merely On Grounds Of Being Successful Bidder Of Corporate Debtor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Arun Baroka (Technical Member) has held that a successful bidder is not entitled to claim exemptions from statutory compliances merely on the ground that the Appellant was a successful bidder of the corporate debtor. The present appeal has been filed under section 61 of the Insolvency...

Findings Of NCLAT While Remanding Case Can't Operate As Res Judicata When No Conclusive Opinion Is Expressed: 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 findings of the Appellate Tribunal in earlier proceedings cannot operate as res judicata when no conclusive opinion was expressed, and the NCLT's order was set aside only for non-consideration of relevant materials and...

Revival Of Company Petition Permissible On Default Of Settlement Terms Despite Absence Of Liberty In NCLT's Withdrawal Order: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Mohd Faiz Alam Khan and Mr. Indevar Pandey (Technical Member) has held that a petition withdrawn pursuant to a settlement agreement between the parties can be revived if the corporate debtor fails to make payment as per the settlement terms, where the agreement clearly provides for such revival in...

Refund Of Security Amount Can't Be Considered As Acknowledgment Of Debt U/S 19 Of Limitation Act: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that refund of security amount which was given by Operational Creditor for carrying out the work contract cannot be considered as an acknowledgement of debt under section 19 of the Limitation Act. The present appeal has been filed under section...

Borrower Can't Plead Non-Service At Previous Address When Change Of New Address Is Not Communicated To Creditor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice N. Seshasayee (Judicial Member) and Arun Baroka (Technical Member) has held that it is the bounden duty of the borrower to inform the creditor of any change in address. If demand notices and other important communications are sent to the previous address, the borrower cannot plead non-service when delivery...

Adjudicating Authority Must Consider Application U/S 65 Of IBC On Merits When Allegations Of Malicious Initiation Of CIRP Are Raised: 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 an application under Section 65 of the IBC is filed and allegations of malicious or fraudulent initiation of the CIRP are raised, the Adjudicating Authority is bound to consider it on merits and cannot reject it solely on the ground...

Liquidation Is Only Recourse When Sole Financial Creditor Is A Related Party: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Mr. N. Seshasayee (Member-Judicial), Mr. Arun Baroka (Member-Technical), and Mr. Indevar Pandey (Member-Technical), has held that the liquidation is the only recourse when the sole financial creditor is a related party. Background of the Case The corporate debtor, M/s/ STROS...

NCLT Declares Former DHFL Chairman Kapil Wadhwa Bankrupt Over ₹4546 Crore Debt

The petition was filed by the Union Bank of India before the NCLT, Mumbai Bench-Court III, seeking initiation of bankruptcy proceedings under section 123 of the IBC, 2016. The respondent, Mr. Kapil Wadhawan, acted as the personal guarantor of the DHFL, a corporate debtor that had undergone the corporate insolvency. The petitioner extended various credit facilities to the...