Conversion Of Corporate Debtor To Private Company Can't Be Denied On Grounds Of Pending SFIO Probe After Approval Of Resolution Plan: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench of Sh. Prabhat Kumar (Technical Member) and Sh. Sushil Mahadeorao Kochey (Judicial Member)has held that an application for conversion of a company from a public limited company to a private limited company under an approved resolution plan cannot be rejected on the ground that prosecutions or SFIO investigations are pending against...

Pooling Of Debt By Multiple Operational Creditors Is Prohibited U/S 9 Of IBC: NCLT New Delhi

The National Company Law Tribunal (NCLT), New Delhi Bench of Shri Manni Sankariah Shanmuga Sundaram (Judicial Member) and Shri Atul Chaturvedi (Technical Member) has held that a petition under Section 9 of the IBC cannot be admitted based on the pooling of debt by multiple operational creditors, as such pooling is prohibited under the IBC. While a composite application under Section 7...

Electricity Connection Can't Be Denied To Purchaser Of Corporate Debtor's Properties Due To Past Dues When Claims Are Filed Before Liquidator: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench of Justice Ms. Lakshmi Gurung and Sh. Hariharan Neelakanta Iyer, Technical Member has held that electricity connection cannot be denied to the successful auction purchaser of the corporate debtor's properties on account of past dues, when such claims have already been filed before the Liquidator and will be addressed as per Section...

Set-Off Of Pre-CIRP Tax Dues Is Not Permitted Against Post-CIRP Tax Refund In Absence Of Pre-Existing Contractual Provision: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench of Sh. Prabhat Kumar (Technical Member) and Sh. Sushil Mahadeorao Kochey (Judicial Member) has held that pre-CIRP tax dues cannot be adjusted against post-CIRP tax refunds determined during the CIRP, in the absence of any pre-existing contractual set-off provision. The present application has been filed by the...

NCLT Under IBC Is Not Empowered To Direct De-Attachment Of Property Attached Under PMLA By ED: NCLT Bengaluru

The National Company Law Tribunal (NCLT), Bengaluru Bench of Justice Shri. Sunil Kumar Aggarwal (Judicial Member) and Shri. Radhakrishna Sreepada (Technical Member) has held that the NCLT under the IBC is not empowered to direct the de-attachment of property attached under the PMLA by the Enforcement Directorate, as such power falls within the realm of public law over which the NCLT has...

Director Communications Can't Replace Documentary Proof For Establishment Of Loan: NCLT Delhi

The National Company law Tribunal Delhi bench of Shri Manni Sankariah Shanmuga Sundaram And Shri Atul Chaturvedi Dismissed a section 7 petition for initiation of Corporate Insolvency Resolution process, holding that communications from the directors of the Corporate Debtor cannot override the lack of substantive documentary proof such as audited financials, books of accounts,...

CoC Has Discretion To Allow Resolution Applicant To Submit Revised Plan If Its Name Appears In Final Resolution Applicant List: 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 committee of creditors (CoC) has discretion to allow the Resolution Applicant to submit a revised plan to maximise the value of the corporate debtor's assets if the Resolution Applicant's name appears in the final RA list. The present...

Approval Of Resolution Plan Can't Be Interfered With Over 'NIL' Payment To Operational Creditors If Claims Have Been Properly Dealt With: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that since current legislative scheme does not mandate payment to Operational Creditors in event of the corporate debtor's liquidation, the Adjudicating Authority cannot interfere with the Resolution Plan approved by Committee of Creditors...

In Absence Of Crystallised Debt Due To Dispute Over Quality Of Product Supplied, Petition U/S 9 Can't Be Admitted: 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 debt is not crystallized due to repeated communication on Whatsapp between the parties over the quality of the product supplied by the Operational Creditor and the defects acknowledged by the Supplier, an application under section 9 of the...

Corporate Debtor's Shareholdings Are An Integral Part Of Financial Assets, Can't Be Excluded From Valuation Report: NCLT Bengaluru

The National Company Law Tribunal (NCLT), Bengaluru Bench of Shri Sunil Kumar Aggarwal (Judicial Member) and Shri Radhakrishna Sreepada (Technical Member) the has held that the shareholdings of the corporate debtor in its subsidiaries form an integral part of its financial assets therefore cannot be excluded from the valuation reports. Such exclusion of the financial assets compromise...

Required Percentage For Passing Resolution Must Be Calculated Based On Voting Shares Of All Creditors, Not Just Those Present & Voting: 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 required percentage of 66% as mandated under the Insolvency and Bankruptcy Code, 2016 (IBC) for passing a resolution by the Committee of Creditors cannot be counted merely based on voting shares of the creditors who are present and...

No Direction Pertaining To Fees & Expenses Of Resolution Professional Can Be Passed Prior To Adjudication Of S.99 Report: NCLT Delhi

The National Company Law Tribunal Delhi allowed applications filed by the Central Bank of India seeking replacement of Resolution Professional for failure of submission of report as per section 99 of the Insolvency & Bankruptcy Code, 2016 and demanding fees before adjudication of the report. The bench of Shri Manni Sankariah Shanmuga Sundaram and Shri Atul Chaturvedi held...