IBC News
Section 94 Of IBC Cannot Be Used To Hinder Recovery Process Under SARFAESI Act: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising of by Justice Ashok Bhushan (Chairperson), Barun Mitra (Member-Technical), and Arun Baroka (Member-Technical) has upheld the dismissal of a Section 94 IBC petition filed by the personal guarantor and held that IBC proceedings cannot be misused to obstruct legitimate recovery under SARFAESI Act. It...
Section 45 Of IBC Applies To Transactions Made Prior To CIRP, Not On Date Of Initiation: NCLAT Principal Bench, New Delhi
The National Company Law Appellate Tribunal, (NCLAT), Principal Bench, New Delhi comprising of Justice Ashok Bhushan (Chairperson), Barun Mitra (Member (Technical) and Arun Baroka (Member (Technical) dismissed joint appeals filed by eight appellants against a common judgment of the adjudicating authority (NCLT, New Delhi) in various interlocutory applications (IAs)...
Application U/S 95 Of IBC Against Personal Guarantors Not Barred By Change In Debt Quantum After Approval Of Plan Against Corporate Debtor: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that a change in the quantum of debt to be paid by the personal guarantor, following the approval of the resolution plan in the Corporate Insolvency Resolution Process (CIRP) of the corporate debtor, does not negate the right of...
Creditor Obtaining Award Directing Real Estate Firm To Not Create Third-Party Interest In Specified Units Doesn't Amount To 'Security Interest': 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 merely obtaining an arbitral award in which the corporate debtor was directed not to create any third‑party interest in specified units does not amount to creating a “security interest” within the meaning of...
Petition U/S 9 Of IBC Cannot Be Entertained Based On Fabricated Invoices Created To Pursue Revenge Litigation Against Corporate Debtor: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that a Section 9 petition under the Insolvency and Bankruptcy Code, 2016 (Code) cannot be admitted when the operational creditor has used its control over the corporate debtor's affairs to fabricate invoices and drag the...
Absence Of Record In Information Utility Negates Claim Of Pre-Existing Dispute: NCLT Bengaluru
The National Company Law Tribunal, Bengaluru Bench, Bengaluru comprising of Hon'ble Shri Sunil Kumar Aggarwal (Member (Judicial) and Hon'ble Shri Radhakrishna Sreepada, (Member (Technical) admitted a Section 9 application filed by the operational creditor (PAN Oceanic Seed Solutions Private Limited) due to the presence of operational debt and non-repayment despite repeated...
NCLAT Upholds Order Directing Suspended Directors To Repay ₹32 Lakh Which Was Withdrawn During CIRP, Imposes ₹5 Lakh Cost
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 upheld the order of the Adjudicating Authority directing the suspended directors of the Corporate Debtor to return the Rs.32 lakh along with interest they had withdrawn during Corporate...
Liquidated Damages Validly Deducted During CIRP Cannot Be Refunded After Approval Of Resolution Plan: 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 once the Resolution Professional opted to continue the contract during Corporate Insolvency Resolution Process (CIRP), all its terms including liquidated‑damages deductions from invoices...
Proceedings U/S 37 A Of FEMA Can't Be Continued During Moratorium U/S 33(5) Of IBC: Calcutta High Court
The Calcutta High Court bench of Justice Jay Sengupta has held that once a liquidation order against the Corporate Debtor is passed, all proceedings including those pending at the time of such order under the Foreign Exchange Management Act, 1999 (FEMA) cannot be continued, nor can any new proceedings be initiated, in view of the bar under Section 33(5) of the Insolvency and Bankruptcy...
Withdrawal Application Filed After Constitution Of CoC Must Obtain Its Approval U/S 12A Of IBC: NCLAT, Chennai
The National Company Law Appellate Tribunal, (NCLAT), Chennai comprising of Justice Rakesh Kumar Jain (Member (Judicial) and Jatindranath Swain (Member (Technical) dismissed joint appeals filed by the suspended director of Think & Learn Pt ltd and BCCI against the order of the National Company Law Tribunal, Bangalore Bench in relation the CIRP process of the corporate debtor- Think...
Defaults Occurring Out Of Settlement Agreements Are Not “Operational Debts” U/S 5(21) Of IBC: 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 Default occurring out of settlement agreements are not “operational debts” under...
IBC | Section 12A Application Not Mandatory If No Other Creditors Are Involved & Settlement Is Reached: NCLAT New Delhi
The National Company Law Appellate Tribunal, Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson), Barun Mitral (Member-Technical), and Arun Baroka (Member-Technical), disposed of an appeal while holding that if no other claims have been received in the Corporate Insolvency Resolution Process (CIRP) and a full settlement has been reached between the parties, then it...