Submission Of Default Record Not Compulsory For Initiating CIRP: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai, consisting of Shri Sameer Kakar (Member - Technical) and Shri Nilesh Sharma (Member - Judicial), passed an order and admitted the Corporate Debtor into the CIRP under section 9 of the IBC. The tribunal addressed the issue of mandatory submission of the record of default from an information utility under Regulation 20(1A) of...

Appeal U/S 61 Of IBC Is Maintainable Against Order Passed By NCLT Initiating Insolvency Process Against Personal Guarantors: 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 appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016 (Code) can be filed by personal guarantors against an order passed by the Adjudicating Authority under Section 100 of...

Adjudicating Authority Cannot Suo Moto Amend Date Of Default In Insolvency Application Unless Amendment Application Is Filed: 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 Adjudicating Authority cannot suo moto amend the date of default mentioned in the insolvency application unless an amendment application is filed; otherwise, it would tantamount...

Liquidation Order U/S 33 Of IBC Cannot Be Set Aside When Third Party Has Taken Possession Of Property After Sale Conducted By Liquidator: NCLAT

The National Company Law Appellate Tribunal (NCLAT) Chennai bench of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Jatindranath Swain (Technical Member) has held that the order passed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (Code), directing the liquidation of the corporate debtor, cannot be set aside once the Successful Auction Purchaser has taken...

Committee Of Creditors Not Prohibited From Seeking Multiple Modifications Or Revisions Of Resolution Plans: 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 Committee of Creditors (CoC) is empowered to seek revisions or modifications in the Resolution Plans submitted by the Resolution Applicants multiple times, as Regulation 39(1A)...

Decree Obtained By Operational Creditors From Civil Court Does Not Mean They Cease To Be Operational Creditors: 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 an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (Code), cannot be rejected solely on the ground that the Operational Creditor, having obtained a decree for the debt, ceases to be an...

IBC Weekly Round-Up [24th March - 30th March 2025]

Nominal Index: M/S JSW STEEL LIMITED VERSUS PRATISHTHA THAKUR HARITWAL & ORS., CONTEMPT PETITION (CIVIL) NO. 629 OF 2023, 2025 LiveLaw (SC) 361 Garden Silk Mills Limited v. Gayatri Industries, INTERIM APPLICATION NO. 3540 OF 2021 in FIRST APPEAL NO. 748 OF 2003 United Futuristic Trade Impex Pvt Ltd. v. Varaha Infra Ltd., Company Appeal (AT) (Insolvency) No. 480...

Supreme Court Upholds Piramal's Resolution Plan For DHFL, Sets Aside NCLAT Order

The Supreme Court today (April 1) approved the Resolution Plan proposed by Piramal Capita and Housing Finance for the erstwhile Dewan Housing Finance Corporation Ltd(DHFL).The Court held that funds recovered from the fraudulent transactions at Dewan Housing Finance Corporation Ltd (DHFL) will go to Piramal Capital & Housing Finance Ltd.The Court set aside the NCLAT order, which directed...

Petition Filed U/S 9 Of IBC Based On Arbitral Award Cannot Be Entertained After 3 Yrs From Date Of Award: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of Shri K. R. Saji Kumar (Judicial Member) and Shri Sanjiv Dutt (Technical Member) has held that an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (Code), based on an Arbitral Award passed in favor of the Operational Creditor, cannot be admitted after three years from the date of the Award, as...

Recall Application Filed By Shareholder Cannot Be Entertained When Director Who Pursued Earlier Proceedings Had Resigned: NCLAT

The National Company Law Appellate Tribunal (NCLAT) Chennai bench of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Jatindranath Swain (Technical Member) has held that an application filed by a shareholder cannot be entertained when the Suspended Director, who pursued the proceedings leading to the order sought to be recalled, has resigned. A shareholder cannot substitute the...

Third Parties Who Sold Land To Corporate Debtor Cannot Be Held Liable U/S 66 Of IBC: NCLT New Delhi

The National Company Law Tribunal (NCLT), New Delhi bench of Justice Ashok Kumar Bhardwaj (Judicial Member) and Anil Raj Chellan (Technical Member) has held that third parties who sold land to the Corporate Debtor cannot be said to fall within the ambit of expression “any persons who were knowingly parties to the carrying on the business of the Corporate Debtor” as used in Section 66...

Accepting OTS Payments While Simultaneously Pursuing CIRP Proceedings Is An Attempt To Use IBC For Debt Recovery: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai bench comprising Ms. Reeta Kohli, Member (Judicial) and Ms. Madhu Sinha, Hon'ble Member (Technical) has held that the conduct of the Financial Creditor in accepting substantial 'one-time settlement' (OTS) payments while simultaneously pursuing Corporate Insolvency Resolution Process (“CIRP”) proceedings represents an attempt to use...