Limitation Act Applies To Proceedings Under Interest On Delayed Payments To Small Scale & Ancillary Industrial Undertakings Act: Telangana High Court

The Telangana High Court bench of Justice P. Sam Koshy and Justice N. Tukaramji have held that the provisions of the Limitation Act, 1963 are applicable to proceedings initiated under the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993. The Court clarified that the overriding effect under Section 10 of the 1993 Act applies only to the express...

NCLAT Upholds Admission Of CIRP Against Pushp Ratna Realty

The National Company Law Appellate Tribunal (NCLAT), New Dehi bench of Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) have upheld the admission of the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Pushp Ratna Realty Pvt. Ltd. The Tribunal also upheld the rejection of a settlement proposal made by...

Demand Notice Sent To Wrong Address Invalidates Insolvency Petition: NCLT Hyderabad

The National Company Law Tribunal Hyderabad Bench of Shri. Rajeev Bhardwaj (Judicial Member) and Shri Sanjay Puri (Technical Member) dismissed a petition filed under Section 9 of the Insolvency & Bankruptcy code (“the Code”), holding that if demand notice u/s 8 of the code is not sent to the correct address, it does not meet the mandatory requirements of...

S. 13(2) SARFAESI Act Notice Demanding Payment From Guarantor Constitutes Invocation Of Personal Guarantee: NCLAT Delhi

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) held that where a Section 13(2) notice explicitly demands payment from the guarantor in terms of the guarantee agreement, it amounts to an invocation of the personal guarantee. Background...

CoC Not Barred From Holding Second Challenge Process Despite Declaration Of Highest Bidder: NCLAT Delhi

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) held that the Committee of Creditors is not barred from holding a Second challenge process for auction of Corporate Debtor's asset, even if a highest bidder has already been declared in the...

Receiver Of Goods Who Has Made Advance Payments Is Also An Operational Creditor: NCLT Chandigarh

The National Company Law Tribunal (NCLT), Chandigarh bench of Shri Harnam Singh Thakur (Judicial Member) and Shri Ashish Verma (Technical Member), held that the receiver of goods who has made advance payments for the goods purchased is also an Operational Creditor. Background Facts: Kiranakart Technologies Pvt. Ltd. (“Operational Creditor”) is engaged in the business of trading...

Liberty Granted By NCLAT To File Fresh Application Does Not Permit Appellant To Alter Date Of Default In Application U/S 7 Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member) and Mr. Indevar Pandey (Technical Member) has held that the mere fact that the NCLAT granted the Appellant liberty, and the Appellant subsequently failed to pursue the first appeal against the order dated 10.04.2023 by which the...

Only Resolution Professional Is Empowered To File Application For Avoidance Of Preferential Transactions U/S 43 Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that an application for avoidance of preferential transactions under Section 43 of the Insolvency and Bankruptcy Code, 2016 (Code) can be filed only by the Resolution Professional. Hence,...

Adjudicating Authority Not Justified In Rejecting Plan Based On Valuation Report When No Objections Were Raised By Stakeholders: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that when no objection to the valuation conducted of the Corporate Debtor was raised by any stakeholders, it was not open for the Adjudicating Authority to enter into the issue of valuation...

Execution Of Fresh Personal Guarantee Post-Restructuring Bars Initiation Of Insolvency Process U/S 95 Of IBC Against Personal Guarantor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that when the lenders restructured their debts and extinguished prior security interests by obtaining a fresh personal guarantee from the Personal Guarantor, the Appellant cannot invoke...

Gratuity With Interest Qualifies As Operational Debt U/S 5(21) Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that the claim for gratuity along with interest falls within the definition of operational debt; therefore, an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (Code) based on such a claim, is...

NCLT Can Exercise Inherent Powers To Forward A Copy Of Its Order To Relevant Statutory Authorities For Necessary Action: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) that the National Company Law Tribunal (NCLT) in exercise of its inherent jurisdiction under Rule 11 of the NCLT Rules, 2016, may direct that a copy of its order be forwarded to...