No Automatic Right To Interest Under IBC, Regulation 16A(7) Of CIRP Regulations Does Not Mandate Interest On Principal Amount: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of Justice Sushil Mahadeorao Kochey (Judicial Member) and Mr. Charanjeet Singh Gulati (Technical Member) has held that there is no provision in the Insolvency and Bankruptcy Code, 2016 (the Code) for automatic interest on the principal amount. Specifically, Regulation 16A(7) of the CIRP Regulations, 2016 does not provide for...

Lenient Approach To Be Adopted While Condoning Delay In Refiling, But Sufficient Cause Must Be Shown: 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 a lenient approach has to be adopted by the court while condoning the delay in refiling the appeal; however, sufficient cause must still be shown before the application for condonation...

Homebuyers File Review Petition Against Supreme Court Judgment Holding Greater Noida Industrial Authority A 'Secured Creditor' Under IBC

A plea has been filed before the Supreme Court seeking review of its judgment dated February 12, 2024 which classified Greater Noida Industrial Development Authority as a 'secured creditor' for the purposes of Corporate Insolvency Resolution Processes under the Insolvency and Bankruptcy Code (IBC).Filed by a homebuyers' association, the plea states that the impugned judgment has led the...

Ten-Day Time Period U/S 99 Of IBC For Submission Of Report By Resolution Professional Is Directory, Not Mandatory: 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 10-day period provided under Section 99 of the Insolvency and Bankruptcy Code,2016 (Code) within which the Resolution Professional has to submit the report after appointment, cannot...

Service Of Notice On Email Provided In Section 7 Petition Constitutes Sufficient Compliance With Rule 38(1) Of NCLT Rules: 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 service of notice on the email address provided in the petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (the Code) constitutes sufficient compliance with Rule 38(1) of the NCLT...

Petition U/S Section 7 Of IBC Cannot Be Entertained Based On Guarantee Invoked During Prohibited Period U/S 10A 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 liability of the guarantor arises only when the guarantee executed by them in favor of the creditor is invoked. If such guarantee was invoked during the period prohibited under Section 10A of the Insolvency and...

IBC Weekly Round-Up [31st March-6th April 2025]

Nominal Index: Busy Bee Airways Pvt. Ltd. vs. Dinkar T Venkatasubramanian, Liquidator, Go Airlines (India) Ltd. & Ors.,Company Appeal (AT) (Insolvency) No.124 of 2025 with Company Appeal (AT) (Insolvency) No.175 of 2025 with Company Appeal (AT) (Insolvency) No.244 of 2025 RBL Bank Limited Vs Sical Logistics Limited and Ors., Company Appeal (AT) (CH) (Ins) No.36/2024 (IA...

NCLAT Upholds Liquidation Of Go Airlines, Permits Submission Of Compromise/Arrangement Within 90 Days Of Liquidation Order

The National Company Law Appellate Tribunal (NCLAT), New Delhi bench of Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) have held that the Committee of Creditors (CoC), acting under its commercial wisdom and in accordance with Section 33(2) of the Insolvency and Bankruptcy Code, 2016, was within its rights to resolve to...

Dissenting Financial Creditors Are Entitled To Receive Payments On Pro-Rata Basis Of Resolution Plan Value Rather Than Liquidation Value: NCLAT

The National Company Law Appellate Tribunal (NCLAT) Chennai bench of Justice Sharad Kumar Sharma (Judicial Member) and Mr. Jatindranath Swain (Technical Member) has held that dissenting financial creditors are entitled to receive payments on a pro-rata basis of the Resolution Plan rather than the liquidation value. Further, it was held that priority in payment means that whenever...

Speculative Investment Without Commercial Effect Of Borrowing Not A 'Financial Debt': NCLT New Delhi

The National Company Law Tribunal (NCLT), New Delhi Bench-III, comprising Bachu Venkat Balaram Das (Judicial Member) and Shri Atul Chaturvedi (Technical Member) have dismissed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, filed by M.K. Jain and family (Financial Creditors) against Krrish Realtech Pvt. Ltd. (Corporate Debtor) for default of Rs. 12.3...

IBC Monthly Digest: March 2025

Nominal Index: Shri Krishan V. H.S Oberoi Buildtech Private Ltd.,Company Appeal (AT) (Insolvency) No. 128 of 2025 Mr. Shailendra Singh, Resolution Professional of Foxdom Technologies Pvt Ltd vs. Directorate Of Enforcement & Anr., ΙΑ NO. 4689 OF 2023 IN IB-102(ND)/2022 Himanshu Singh, Suspended Director of Kriti Prakashan Private Limited Versus HDFC Bank Limited and...

Breach Of Settlement Agreement Does Not Preclude Financial Creditors From Filing Application U/S 7 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 financial creditors are not precluded from filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (Code), merely because they have entered into a settlement...