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,...

Claims Of Multiple Operational Creditors Arising From Different Work Orders Can't Be Clubbed Into Single Debt To Cross Threshold Limit: NCLT Chennai

The National Company Law Tribunal (NCLT) Chennai bench of Justice Sanjiv Jain (Judicial Member) and Venkataraman Subramaniam (Technical Member) has held that claims arising from different work orders cannot be clubbed to cross the threshold limit for filing an insolvency petition under section 9 of the IBC. Furthermore, claims of multiple Operational Creditors cannot be clubbed into a...

'Hard To Believe Corporate Debtor Who Invested ₹5.5 Crore Was Unaware Of CIRP': NCLAT Refuses To Expunge Adverse Remarks Against Suspended Directors

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member), Justice Mohd. Faiz Alam Khan (Judicial Member) and Mr. Naresh Salecha (Technical Member) has held that strong observations made against the suspended directors of the Corporate Debtor, while passing an order of dissolution due to their non-cooperation in providing...

No Bar On Compounding Offence U/S 441 Of Companies Act If Punishable With Fine Only: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench of Hon'ble Shri Ashish Kalia, (Judicial Member) and Hon'ble Shri Sanjiv Dutt (Technical Member) has held that since the punishment under Section 99 of the Companies Act, 2013 is only a fine, and as per Section 441 of the Act there is no bar on the Tribunal to compound an offence punishable only with a fine, the offence of not...

Financial Creditor Can File Plea U/S 7 Of IBC If Actionable Rights Under Guarantee Are Preserved In Approved Resolution Plan: NCLT New Delhi

The National Company Law Tribunal (NCLT), New Delhi Bench of Shri Manni Sankariah Shanmuga Sundaram (Hon'ble Member Judicial) and Shri Atul Chaturvedi (Hon'ble Member Technical) has held that Financial Creditors can proceed against Personal Guarantors even after the approval of the Resolution Plan, if actionable rights under the guarantee are preserved. The present petition has been...

NCLT/NCLAT Under IBC Lacks Jurisdiction To Set Aside Auction Sale Conducted Prior To Initiation Of CIRP: 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 an auction sale conducted before the commencement of the CIRP cannot be set aside by the NCLT while exercising its jurisdiction under the Insolvency and Bankruptcy Code, 2016 (IBC). Such an auction is not hit...

Electricity Can't Be Disconnected At Corporate Debtor's Plant When Assets Are Put On Auction To Maximise Value: NCLT Kolkata

The National Company Law Tribunal (NCLT), Kolkata Bench of Rekha Kantilal Shah (Technical Member) and Labh Singh (Judicial Member) has held that electricity cannot be disconnected at the Corporate Debtor's plant while machinery and other assets are being auctioned. Electricity is essential to maximise asset value and ensure safety of the assets. The present application has...

Impleadment Of GST Authorities Not Permissible In Proceedings U/S 9 Of IBC Merely Due To Allegations Of Bogus Invoices: NCLT Allahabad

The National Company Law Tribunal (NCLT), Allahabad Bench of Shri Praveen Gupta, (Hon'ble Member Judicial) and Shri Ashish Verma (Hon'ble Member Technical) has held that impleadment of the GST Authorities in proceedings under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), is not permissible merely on the ground that the invoices on which the petition is based have...