IBC News
Examining The Interplay Between Sections 29A And 240A Of IBC: Clarifying The Status Of MSMEs Within Insolvency Resolution Framework
The NCLAT in a recent decision titled Ashish Singh, Resolution Professional forVibrant Buildwell Pvt. Ltd. v. Raj Kumar Sahani & Ors (Company Appeal (AT) (Insolvency)No. 253-254 of 2024) observed that under section 240A of the IBC, the date of submission of the resolution plan has to be seen to assess whether ineligibility under section 29A of the IBC is triggered. In this...
Limitation Period U/S 61 Commences From Pronouncement Of Order And Not On Uploading Date Of Order: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT) Principal Bench, New Delhi, comprising of Justice Rakesh Kumar Jain, Mr. Barun Mitra (Member Technical) and Mr. Naresh Salecha (Member Technical), disposed two applications filed by the appellant seeking condonation of one-day delay in filing their appeal against the order of the National Company Law Tribunal (NCLT).Background of the...
Time-Period U/S 61 Of IBC Cannot Be Extended On Ground Of S.14 Of Limitation Act: NCLAT
The NCLAT Chennai Bench of Justices Justice Sharad Kumar Sharma and Jatindranath Swain held that the provisions contained under Section 14 of the Limitation Act will not be a recourse available to the appellant, owing to the fact that Section 61 of the IBC, since being a self-contained provision dealing with the principles of Limitation prescribes an upper limit within which an Appeal...
Any Claimed/Unclaimed Dues Prior To Approval Date Of Resolution Plan Stand Extinguished: NCLT Kolkata
The National Company Law Tribunal (NCLT), Kolkata bench of Smt. Bidisha Banerjee (Judicial Member) and Shri D. Arvind (Technical Member) have held that the income tax notice, demand notice and payment for past dues that accrued prior to the date of the Resolution Plan against the corporate debtor is null and void. It observed, “It is a well-established law that the corporate debtor...
Dissolution Of Corporate Debtor Can Be Sought U/S 54 Of IBC Only After Complete Liquidation: NCLAT
The NCLAT New Delhi Bench of Justices Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member) and Arun Baroka (Technical Member) held that the scheme of the IBC clearly provides that dissolution is a step subsequent to the Corporate Debtor having been completely liquidated. In the present case, the liquidation proceedings have not been undertaken and resorting to Section 54...
Ineligibility Of Successful Resolution Applicant U/S 29A Of IBC Has To Be Seen On Date Of Submission Of Resolution Plan: NCLAT New Delhi
The NCLAT New Delhi Bench of Justices Ashok Bhushan and Barun Mitra held that the eligibility/ineligibility of Successful Resolution Applicant under section 29A of the Insolvency and Bankruptcy Code (IBC) has to be seen on the date of submission of Resolution Plan.Brief FactsOn an Application filed by a Financial Creditor of the Corporate Debtor – Dilwara Leasing and Investment Ltd.,...
Banks Have Inherent Power To Classify Account Of Personal Guarantor As NPA During Moratorium Period: NCLT New Delhi
The NCLT, Delhi comprising of Justice Bachu Venkat Balaram Das, Member (Judicial) and Justice Atul Chaturvedi (Technical Member), accepted a Section 95 application filed by the applicant bank to initiate Corporate Insolvency Resolution Process (CIRP) against the Personal Guarantor of M/s CMYK Printech Limited.Background of the Case The Central Bank of India filed an application under...
Uncorroborated Allegations Pertaining To Pre-Existing Dispute Cannot Be Entertained: NCLT Admits Petition U/S 9 Of IBC
The National Company law Tribunal (NCLT) Hyderabad Bench of Justices Rajeev Bhardwaj and Sanjay Puri admitted M/s Nandi Irrigation Systems Limited (Corporate Debtor) into Corporate Insolvency Resolution Process (CIRP) on an application made by M/s Rishabh Triexim LLP (Operational Creditor) under section 9 of the Insolvency and Bankruptcy Code (IBC). This case arises due to the default made by...
Development Rights Are Fully Covered By Definition Of "Property" U/S 3(27) Of IBC: NCLAT New Delhi
The NCLAT New Delhi Bench of Justices Ashok Bhushan (Chairperson) Barun Mitra (Technical Member) held that it is no more res integra, that the Development Rights are Rights which can be claimed by a Developer in assets. Development Rights are also fully covered by the definition of Property under Section 3(27) of the IBC.Brief FactsThese four Appeals arise out of the order passed by the NCLT...
NCLAT Dismisses Travel Agents Association Of India's Allegations Of Anti-Competitive Practices Against Union Govt's Dept Of Expenditure
The NCLAT, New Delhi bench comprising Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member) and Mr. Indevar Pandey (Technical Member) has held that the Department of Expenditure, Government of India does not qualify as an "enterprise" under Section 2(h) of the Competition Act, 2002, being a “consumer” of air ticketing services.The Travel Agents Association...
IBC Cases Weekly Round Up: 13th October To 20th October 2024
Nominal IndexCoC of KSK Mahanadi Power Company Ltd. v. Uttar Pradesh Power Corporation Ltd. and Ors., 2024 LiveLaw (SC) 815 Orissa Manganese & Minerals Ltd. v. State of Odisha and Ors., W.P.(C) No. 1497 of 2024 with W.P. (C) No. 2304 of 2024 and W.P.(C) No. 2307 of 2024 Kher Nagar Sukhsadan Co-operative Housing Society Ltd. v. State of Maharashtra & Ors., Writ Petition No. 3893...
Dissenting Financial Creditor Only Entitled To Liquidation Value Of Secured Interest U/S 30(2)(b) Of IBC, Commercial Wisdom Of CoC Sacrosanct: NCLAT
The NCLAT, New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Indevar Pandey (Technical Member) has affirmed that as per Section 30(2)(b) of the Insolvency and Bankruptcy Code, 2016, a dissenting financial creditor is only entitled to the liquidation value of its secured interest, not the total liquidation value of the Corporate Debtor. The Tribunal reiterated...