IBC News
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...
Sale Of Corporate Debtor's Assets Can't Be Allowed At Reserve Price Reduced Beyond 25% As It Violates Liquidation Regulations: NCLT Bengaluru
The National Company Law Tribunal (NCLT), Bengaluru Bench of Shri. Sunil Kumar Aggarwal (Judicial Member) and Shri. Radhakrishna Sreepada (Technical Member) has held that the sale of the Corporate Debtor's assets cannot be allowed at a reserve price reduced beyond the 25% threshold, as it would violate Schedule I of the Liquidation Regulations. This cannot be done by the...
Changing Incorrect Date Of Default Is Permitted Before Final Adjudication If No New Cause Of Action Is Raised By Such Amendment: NCLT Amravati
The National Company Law Tribunal (NCLT), Amravati Bench of Shri Umesh Kumar Shukla (Technical Member) and Shri Kishore Vemulapalli (Judicial Member) held that a change in the incorrect date of default mentioned in the original petition can be allowed before final adjudication, provided it does not introduce a new cause of action and no prejudice is caused to the corporate debtor by...
After Initiation Of CIRP, There Can Be No Encumbrances On Corporate Debtor's Assets: NCLT Chennai
The National Company Law Tribunal (NCLT), Chennai Bench of Sanjiv Jain (Judicial Member) Shri. Ravichandran Ramasamy (Technical Member) has held that after the initiation of the Corporate Insolvency Resolution Process (CIRP), there can be no encumbrances on the assets of the corporate debtor, and all claims must be dealt with in accordance with Section 53 of the IBC. The...
Sale Of Corporate Debtor's Property Can't Be Declared Fraudulent Merely On Claim Of Security Interest Without Supporting Evidence: NCLT Kochi
The National Company Law Tribunal (NCLT), Kochi Bench of Shri. Vinay Goel (Judicial Member) and Smt. Madhu Sinha (Technical Member) has held that when the property of the Corporate Debtor is purchased in good faith by a bona fide purchaser, the mere fact that the sale price was slightly lower than the actual price does not bring the transaction within the ambit of a...
Ex-Parte Order Is Invalid Where Company Petition Is Renumbered After Restoration Without Informing Corporate Debtor: 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 a Company Petition is restored and assigned a different number, due to which the Corporate Debtor could not access the case and present its defence effectively, an ex-parte order cannot be passed in such circumstances. The...
In Absence Of Claims From Financial Or Operational Creditors, Liquidation Order Must Be Passed U/S 33 Of IBC: NCLT Bengaluru
The National Company Law Tribunal (NCLT), Bengaluru Bench of Shri Sunil Kumar Aggarwal (Judicial Member) and Shri Radhakrishna Sreepada (Technical Member) has held that in the absence of any claims from either financial or operational creditors, due to lack of supporting documents to prove such claims and the inability to constitute the Committee of Creditors (CoC), liquidation of...
Limitation For Filing Application Under IBC Is Three Years If No Extension Is Sought, Even If Such Application Is Filed Based On Court's Decree: 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 time period for filing an application under the IBC remains three years, even if it is based on a court decree. It is not extended merely because the limitation period for executing the decree is 12 years. The present two appeals have...
Order Passed By NCLT President On Transfer Application Listed In Court Is Judicial Order, Appealable U/S 421 Of Companies 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 although the President of the NCLT exercises administrative functions such as listing and transferring cases, once a transfer application is listed before the Court, any order passed, even if by the President, becomes a judicial order,...