Weekly Round Up Of IBC Cases: 2nd May To 8th May 2022

Supreme Court Supreme Court Permits Withdrawal Of SLP Filed By Jayaswal Neco Industries Ltd. Against RBI , Imposing A Cost Of Rs - 10 Lakh Case title: Jayaswal Neco Industries Limited & Another v Reserve Bank of India & Ors. Case No.: Special Leave Petition (Civil) Nos.9286-9287 of 2018. The Supreme Court Bench comprising of Justice U.U. Lalit and Justice S. Ravindra Bhat, while adjudicating a Special Leave Petition (SLP) filed by Jayaswal Neco Industries Ltd., has allowed withdrawal of the SLP subject to costs of Rs. 10 Lakhs. The sole consideration behind permitting withdrawal was that nine lenders of Jayaswal Neco Industries Ltd., which were Public Sector Financial Corporations/Banks, had assigned their debts to Assets Care & Reconstruction Enterprise Ltd. ("ACRE"). If withdrawal was not permitted then these public sector lenders may have to refund huge sums of money. The order was passed on 04.05.2022. NCLAT NCLAT Sets Aside The Liquidation Order Of Ballarpur Industries Limited Case Title: Finquest Financial Solutions Pvt. Ltd. v Anuj Jain (Erstwhile RP of Ballarpur Industries Ltd.) & Ors. Case No.: Company Appeal (AT) (Insolvency) No. 227 of 2022. The National Company Law Appellate Tribunal (NCLAT) Principal Bench comprising of Justice Ashok Bhushan (Chairperson) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal, has set aside the order dated 25.01.2022 passed by NCLT Mumbai Bench whereby Ballarpur Industries Ltd. was sent to liquidation. The NCLAT Bench extended the Corporate Insolvency Resolution Process (CIRP) period till 30.04.2022 and directed the Resolution Professional to get the revised resolution plan approved by NCLT. The order was passed on 19.04.2022.Decision Of Homebuyers As A Class Is Binding On Every Homebuyer: NCLAT, Delhi Case Title: Sandeep Kumar Jain v. Anil Tayal Case No.: Company Appeal (AT) (Insolvency) No. 446 of 2022 The National Company Law Appellate Tribunal (NCLAT), Principal Bench New Delhi, comprising of Justice Ashok Bhushan and Ms. Shreesha Merla, while adjudicating an appeal has held that decision taken by the homebuyers as a class is binding on every single homebuyer. The appeal was filed by two homebuyers against the order of NCLT New Delhi, which had rejected their intervention application on the basis that the class of homebuyers is already being represented before NCLT. The NCLAT upheld the NCLT order and directed that the Authorized Representative of class of homebuyers can always approach the Resolution Professional and the Adjudicating Authority in case of any difficulty.NCLAT Nod To Roma Unicon Designex Consortium As The Successful Resolution Applicant Of Earth Infrastructure Ltd.Case Title: Bipin Sharma v Earth Infrastructure Limited & Anr.Case No.: Company Appeal (AT) (Insolvency) No. 1112 of 2020. The National Company Law Appellate Tribunal (NCLAT), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Ms. Shreesha Merla (Technical Member) and Dr. Alok Srivastava (Technical Member), while adjudicating an appeal filed by one of the Financial Creditors challenging the eligibility of the Successful Resolution Applicant, Roma Unicon Designex Consortium ("SRA"), under Section 29A(c) of the Insolvency and Bankruptcy Code, 2016 ("IBC"), has declined to intervene in the Resolution Plan of SRA, as the same has been approved by the Committee of Creditors ("CoC") including Financial Creditors in class. It was observed that the Resolution Plan being approved by Financial Creditors in class voting through their authorized representative cannot be called into question. The order was passed on 27.04.2022.Insolvency Proceedings Are Not Only For Fees Of Resolution Professional: NCLAT Case Title: Deepankar Sharma v Pradeep Cycle Industries. Case No.: Company Appeal (AT) (Insolvency) No. 474 of 2022. The National Company Law Appellate Tribunal (NCLAT), Principal Bench, comprising of Justice Ashok Bhushan and Ms Sheersha Merla, has held that the Insolvency Proceedings are not proceedings only for fees of the Interim Resolution Professional (IRP). The Corporate Insolvency Resolution Process (CIRP) of Arpan International Pvt. Ltd. was initiated by NCLT on 22.12.2021, however, the Operational Creditor and Corporate Debtor entered into settlement and an application for withdrawal of petition was filed on 03.01.2022. Accordingly, NCLT ordered that IRP fees should be reduced to Rs. 1,75,000/- from the earlier value of Rs. 3,75,000/, as the IRP had worked for only 14 days. NCLAT upheld the reduction of the fees of the IRP by observing that the Insolvency Proceedings are not only for the fee of the IRP and RP, payment of fee and cost are only consequential to the main proceeding.Committee Of Creditors Are Competent To Revise The Approved Fees Of Resolution Professional: NCLAT Case Title: Kushwinder Singhal v Reena Tiwari. Case...

Weekly Round Up Of IBC Cases: 2nd May To 8th May 2022

Pallavi Mishra

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