Consideration And Subsequent Rejection Of Resolution Plan By Committee Of Creditors Submitted After Due Date Cannot Be Questioned: 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 consideration and subsequent rejection of a resolution plan by the Committee of Creditors submitted after the due date cannot be questioned. Brief Facts: Corporate Insolvency Resolution Process (CIRP) of the...

Nona Lifestyle Moves NCLT To Seek Initiation Of CIRP Against Zomato Over Alleged Non-Payment Of Dues

The National Company Law Tribunal (NCLT), New Delhi bench of Ashok Kumar Bharadwaj (Judicial Member) and Reena Sinha Puri (Technical Member) today heard a petition filed by Nona Lifestyle, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Zomato for alleged non-payment of dues of Rs. 1,64,83,194. In 2023, Zomato had placed orders for rider t-shirts,...

No S.138 NI Act Case Against Ex-Director Of Company When Cause Of Action Arose After IBC Moratorium Was Declared: Supreme Court

The Supreme Court held that if the cause of action for the offence of cheque dishonour under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) has arisen after the declaration of moratorium with respect to the company as per the Insolvency & Bankruptcy Code, 2016 (IBC), then the proceedings under S.138 NI Act cannot be continued against the ex-director of the company. The...

Application For CIRP Not Maintainable If Default Occurred During Protected Period U/S 10A Of IBC

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, consisting of Justice Ashok Bhushan (Chairperson), Barun Mitra (Member - Technical), and Arun Baroka (Member - Technical), disposed of an appeal arising from an order by the NCLT Kolkata Bench-II regarding the initiation of CIRP under Section 9 of the Insolvency and Bankruptcy Code (IBC). The bench...

NCLAT Clarifies Computation Of Limitation Under Section 61 Of IBC When Last Day Falls On A Holiday

The National Company Law Appellate Tribunal (NCLAT) bench comprising Justice Ashok Bhusan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) have held that for computing the 30 days' period under Section 61 of the Insolvency and Bankruptcy Code (IBC), if the last day expires on a day when the office of the NCLAT is closed, that day and any succeeding day...

Operational Creditor Can Only Trigger CIRP Process When There Is An Undisputed Debt And Default In Payment: NCLAT

The National Company Law Appellate Tribunal, Principal Bench, New Delhi (NCLAT) comprising of Justice Yogesh Khanna (Member (Judicial) and Mr. Ajai Das Mehrotra (Member (Technical) dismissed appeal filed by the operational creditors due to the presence of a pre-existing dispute between the operational creditor and corporate debtor. Brief Facts The present appeal arises out of...

Rights Of Auction Purchaser Are Crystallized Upon Issuance Of Sale Certificate: NCLAT Chennai

The National Company Law Tribunal (NCLAT), Chennai comprising of Justice Sharad Kumar Sharma (Member (Judicial) and Jatindranath Swain (Member (Technical) dismissed an appeal filed by the former director of the corporate debtor (Nexus Electro Steel Ltd.) challenging the impugned order of NCLT, Chennai and the auction process being undertaken by...

Penalties U/S 65 Of IBC Can Be Imposed Against Those Who Fraudulently Initiate Insolvency Process: NCLAT

The National Company Law Appellate Tribunal, Principal Bench, New Delhi (NCLAT) comprising of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member Technical) and Arun Baroka (Member (Technical) disposed an appeal filed by a majority shareholder of the corporate debtor stating that the Section 7 application filed by financial creditors was fraudulently filed in collusion with...

IBC Weekly Round-Up [3rd March To 9th 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...

For Initiating Proceedings U/S 7 Of IBC, Existence Of Financial Debt And Corresponding Default Is A Sine Qua Non: NCLAT

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising of Justice Ashok Bhushan (Chairperson) and Arun Baroka (Member (Technical), dismissed a Section 7 petition filed by the Appellant (M/s Santoshi Finlease Private Limited) and upholding the decision of Adjudicating authority, stating that the petition was filed with malicious...

Approved Resolution Plan Cannot Be Reopened For Belatedly Agitated Claims: NCLAT

The National Company Law Appellate Tribunal, Principal Bench, New Delhi comprising of Justice Ashok Bhushan (Chairperson), Barun Mitra (Member (Technical) and Arun Baroka (Member (Technical), dismissed a set of four appeals filed under Section 61 of Insolvency and Bankruptcy Code 2016 stating that the appellants had failed to exercise due diligence on protecting their rights...

IBC Monthly Digest [February 2025]

Nominal Index: Damodar Valley Corporation vs. Mackeil Ispat & Forging Ltd. & Anr., Company Appeal (AT) (Insolvency) No. 1663 of 2023 M/s Power Mech Projects Ltd. Versus Essar Power (Jharkhand) Ltd. and Anr., Company Appeal (AT) (Insolvency) No.106 of 2025 Ankur Kumar Versus Sustainable Agro-Commercial Financial Ltd., Company Appeal (AT) (Insolvency) No. 484...