IBC News
Liquidator Must Not Restrict Sale Of Corporate Debtor's Assets Through Private Sale To Single Buyer, Must Strategise To Attract Multiple Buyers: NCLT Mumbai
The National Company Law Tribunal (NCLT) Mumbai bench of Shri Anil Raj Chellan (Judicial Member) and Shri K. R. Saji Kumar (Technical Member) while disallowing the Liquidator's application for the private sale of the Corporate Debtor's assets, it was held that the Liquidator must not restrict the private sale to a single buyer but should strategize to attract the maximum number of buyers...
Corporate Debtor Not Barred From Raising Pre-Existing Dispute Even When No Reply Was Given To Demand Notice Within 10 Days U/S 8 Of IBC: NCLT Mumbai
The National Company Law Tribunal (NCLT) Mumbai bench of Hon'ble Shri K. R. Saji Kumar (Judicial Member) and Hon'ble Shri Sanjiv Dutt (Technical Member) has held that failure to respond to a demand notice within 10 days under Section 8 of the Insolvency and Bankruptcy Code, 2016 (the Code) does not bar the Corporate Debtor from asserting the existence of a pre-existing...
Imposition Of Moratorium Bars Recovery Of Pre-CIRP Tax Dues During CIRP: NCLT Hyderabad
The National Company Law Tribunal (NCLT), Hyderabad Bench-I, consisting of Dr. Venkata Ramakrishna Badrinath (Member - Judicial) and Shri Charan Singh (Member - Technical), disposed of an application filed by Resolution Professional (RP) against the Commissioner, Greater Hyderabad Municipal Corporation (GHMC), and held that once the CIRP has commenced, proceedings for property tax...
Petition U/S 7 Of IBC Against Corporate Guarantor Cannot Be Admitted Unless Valid Delivery Of Guarantee Invocation Notice Is Established: NCLT Mumbai
The National Company Law Tribunal (NCLT) Mumbai bench of Hon'ble Reeta Kohli (Judicial Member) and Hon'ble Madhu Sinha (Technical Member) has held that an insolvency application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (the Code) against the corporate guarantor of the corporate debtor cannot be admitted unless the delivery of the demand-cum-guarantee invocation notice...
All Claims Which Are Not Part Of Resolution Plan Shall Stand Extinguished, No Person Entitled To Initiate Any Proceedings Over Such Claims: Bombay HC
The Bombay High Court bench of Justice Sharmila U. Deshmukh dismissed an Interim Application filed by the Appellant seeking the release of the bank guarantees, stating that all claims which are not part of the Resolution Plan shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect of any such claim. Brief Facts The present...
Google Abused Dominant Position Through Restrictive App Store Billing Policy But Didn't Deny Market Access: NCLAT Reduces Penalty From ₹936 Cr To ₹216 Cr
The National Company Law Appellate Tribunal (NCLAT), New Delhi bench of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) has partially upheld the decision of the Competition Commission of India (CCI) that Google leveraged its dominance in the Play Store ecosystem to promote Google Play which violates section 4(2)(e) of the Competition Act, 2002. The...
Any Default Falling Within Section 10-A Period Of IBC Must Be Excluded When Calculating Total Outstanding Debt: NCLT Hyderabad
The National Company Law Tribunal (NCLT), Hyderabad Bench comprising of Sri Rajeev Bhardwaj, Member (Judicial) and Sri Sanjay Puri, Member (Technical) dismissed Section 9 petition filed by the Operational Creditor (Noveltech Feeds Private Limited) stating that the default amount falls within the Section 10-A period and there is presence of non-compliance of Rule 5 which is fatal to...
Demand Notice Issued U/S 13(2) Of SARFAESI Act Without Obligating Guarantor To Make Payment Is Not An Invocation Of Guarantee: NCLT Mumbai
The National Company Law Tribunal (NCLT) Mumbai bench of Shri K. R. Saji Kumar (Judicial Member) and Sanjiv Dutt (Technical Member) has held that Both the demand notice issued under Rule 7(1) of the Personal Guarantors Rules, 2019, and the notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002...
IBC | Supreme Court Accepts Apology Of Tax Authorities For Asking Successful Resolution Applicant To Pay Dues Not Covered By Approved Plan
Giving the benefit of doubt and accepting their unconditional apology, the Supreme Court today disposed of a contempt petition filed against Chhattisgarh tax authorities for raising demand notices against a successful resolution applicant over claims in respect of a period prior to the approval of the resolution plan."we have no hesitation in holding that the demands raised by...
Application U/S 94 Of IBC Cannot Be Entertained Against Sole Proprietorship Firms: Madhya Pradesh High Court
The Madhya Pradesh High Court bench of Justice Vivek Rusia and Justice Prem Narayan Singh has held that since sole proprietorship firms are not included in the definition of the corporate person under section 3(7) of the Insolvency and Bankruptcy Code, 2016 (Code), an application under section 94 of the Code cannot be entertained. Brief Facts: The petitioner is an owner of the...
NCLT Kolkata Remits Repayment Plan U/S 114(3) Of IBC To Committee Of Creditors Due To Non Consideration Of Detective Report
The National Company Law Tribunal (NCLT) Kolkata bench of Smt. Bidisha Banerjee (Judicial Member) and Smt. Madhu Sinha (Technical Member ) has remitted the repayment plan remitted to the Committee of Creditors (CoC) for reconsideration on the ground that no discussion took place on the detective report, which disclosed that the personal guarantor had sold certain properties and acquired...
Notice U/S 263 Of Income Tax Act Cannot Be Issued By Authority After Approval Of Resolution Plan U/S 31 Of IBC: Gujarat High Court
The Gujarat High Court bench of Justice Bhargav D. Karia and Justice D.N.Ray has held that after approval of the Resolution Plan under Section 31 of the Insolvency and Bankruptcy Code, 2016 (Code), all liabilities prior to the approval of the plan stand extinguished. Therefore, the Income Tax Authority cannot be permitted to issue a notice under Section 263 of the Income Tax Act, 1961...