Penalty Orders U/S 270A Of Income Tax Act Cannot Be Issued After Approval Of Resolution Plan U/S 31 Of IBC: Gujarat HC

The Gujarat High Court bench of Justices Bhargav D. Karia and D.N.Ray has held that Penalty orders under Sections 270A, 271(1)(c), and 271AAC(1) of the Income Tax Act, 1961 (Income Tax Act) cannot be issued after the approval of the Resolution Plan under Section 31 of the Insolvency and Bankruptcy Code, 2016 (Code). Once the Resolution Plan is approved by the Adjudicating...

Insolvency Proceedings Can't Be Initiated Against Corporate Debtor For Non-Payment Of Debt When Creditor Owes Larger Amount To Debtor: NCLT Delhi

The National Company Law Tribunal (NCLT), Mumbai bench of Justice V. G. Bisht (Judicial Member) and Shri Prabhat Kumar (Technical Member) dismissed a section 7 petition on the ground that Financial Creditor cannot seek insolvency of a debtor alleging default in payment of a financial debt when such creditor owes more than the amount claimed to be in default to such...

Payment Made Against Specific Invoice Can't Be Adjusted Against Back-Dated Invoices: NCLT Delhi

The National Company Law Tribunal (NCLT), New Delhi bench of Shri Manni Sankariah Shanmuga Sundaram (Judicial Member) and Dr. Sanjeev Ranjan (Technical Member), rejected a section 9 Petition filed by the operational creditor under the Insolvency & Bankruptcy Code, 2016 (the code), holding that when a payment is made by the Corporate Debtor against a specific invoice raised by...

Mere Filing Of Closure Application By Liquidator Does Not Bar Tribunal's Inherent Powers To Modify Orders: NCLAT Chennai

The National Company Law Appellate Tribunal (NCLAT), Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), allowed an appeal by modifying an order passed by the Adjudicating Authority (NCLT, Chennai). The NCLAT held that the mere fact that the liquidator has filed an application for closure of the liquidation proceedings does...

Ex-Promoter Of Bhushan Power Moves NCLT To Enforce Supreme Court's Liquidation Order

Sanjay Singal, the former promoter of Bhushan Power and Steel Ltd (BPSL), has approached the National Company Law Tribunal (NCLT), Delhi, urging it to enforce the Supreme Court's recent order which directed liquidation of BPSL. On May 2, the Supreme Court set aside JSW Steel's ₹19,700 crore resolution plan, holding that it failed to comply with Sections 30(2) and 31(2) of the...

Demand Notice Served On Registered Email Address Of Corporate Debtor Sufficient To Satisfy Requirement U/S 8 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 the issuance of a demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016 (Code) to the registered email address of the corporate debtor, as reflected in the Company...

Inadvertent Typographical Errors In Orders Passed By NCLT Can Be Corrected Under Rule 154 Read With Rule 11 Of NCLT Rules: 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 inadvertent typographical errors in the orders passed by the National Company Law Tribunal (NCLT) can be corrected by exercising its powers under Rule 154 read with Rule 11 of the...

Interest On Unilateral Invoices For Delayed Payment Doesn't Constitute Operational Debt In Absence Of Contractual Clause: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson), Barun Mitra (Member-Technical), and Arun Baroka (Member-Technical), has dismissed an appeal arising out of a decision by the NCLT, Chandigarh Bench-I. The bench held that in the absence of any contractual clause, interest on the unilateral invoices for...

Application For Approval Of Resolution Plan Can't Be Rejected Solely Based On Withdrawal Of Consent By One Of Coc Members: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Yogesh Khanna (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member) has held that an application seeking approval of a Resolution Plan, approved by an overwhelming majority of 98.15%, cannot be rejected solely due to the withdrawal of consent by one Committee of Creditors (CoC) member...

Amendment In Application U/S 7 Of IBC Cannot Be Permitted If It Amounts To Withdrawal Of An Admission: NCLAT Chennai

The National Company Law Appellate Tribunal (NCLAT), Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), allowed an appeal arising out of a decision of the NCLT, Amravati Bench. The main issue before the tribunal was whether an amendment in a Section 7 IBC application can be allowed if it withdraws a pleading...

Secured Creditors Relinquishing Security Interest Cannot Claim Priority During Distribution Of Sale Proceeds Of Secured Assets: NCLT Cuttack

The National Company Law Tribunal (NCLT), Cuttack comprising of Justice Deep Chandra Joshi (Member (Judicial) and Banwari Lal Meena (Member (Technical) dismissed an application filed by the liquidator seeking directions for distribution of the balance sale consideration and for extending the time for distribution of sale proceeds under Section 53 of the IBC...

IBC Weekly Round Up [28th April-4th May 2025]

Nominal Index: Kalyani Transco vs M/s Bhushan Steel and Power Ltd and connected appeals | C.A. No. 1808/2020, 2025 LiveLaw (SC) 524 VISA COKE LIMITED VERSUS M/S MESCO KALINGA STEEL LIMITED, 2025 LiveLaw (SC) 505 Employees' Provident Fund Organization v/s Dr. Madurai Sundaram Sankar, Company Appeal (AT) (CH) (Ins) No. 193/2025 Kavindra Kumar and Ors. Vs M/s...