IBC Cases Weekly Round Up: May 9 To May 15, 2022

SUPREME COURT 1. Supreme Court Issues Notice On Meru Cab's Plea Alleging Anti-Competitive Practices By Ola Case Title: Meru Travels Solutions Pvt. Ltd. v Competition Commission of India Case No.: Civil Appeal No.2843-2844/2022 The Supreme Court Bench comprising of Justices L. Nageswara Rao and B.R. Gavai has issued notice in the appeal filed by Meru Cab, challenging the order of the National Company Appellate Tribunal (NCLAT) wherein it had refused to set aside the order passed by the Competition Commission of India (CCI) exonerating Ola from allegations of abuse of dominant position. The Bench took note of the concurrent findings by the Director General, CCI and NCLAT. Meru had contended before the CCI that Ola had abused its dominant position by indulging in predatory pricing and by entering into anti-competitive agreements with its drivers. Since the Commission prima facie found the allegation of abuse of dominant position to have some merit, it ordered the Director General (DG) to investigate the matter. Based on the investigation report, in 2017, CCI concluded that Ola did not abuse its dominant position. On 07.02.2022, the NCLAT also held that Ola has not indulged in predatory pricing or abused its dominant position. 2. Proceedings Against Personal Guarantor Of Corporate Debtor Can Be Continued Independently - Supreme Court Lifts The Stay Case Title: Mahendra Kumar Jajodia v State Bank of India Case No.: Civil Appeal No. 1871/2022 The Supreme Court bench comprising of Justice S Abdul Nazeer and Justice Vikram Nath has dismissed the civil appeal filed against the judgment of National Company Law Appellate Tribunal (NCLAT) in the case of SBI versus Mahendra Kumar Jajodia. The order was passed on 06.05.2022. The NCLAT on 27.01.2022 had held that even in the absence of any pending Corporate Insolvency Resolution Process or Liquidation proceedings, the application under Section 95(1) of the Insolvency Bankruptcy Code, 2016 against the personal guarantors of the Corporate Debtor is maintainable by the virtue of Section 60(1) of the Code before the National Company Law Tribunal having territorial jurisdiction over the place where the Registered office of the Corporate Person is located. The Supreme Court upheld the NCLAT order and dismissed the appeal by stating that there is no cogent reason to interfere with the order of NCLAT. 3. Supreme Court Issues Notice On Plea Challenging Constitutionality Of IBC Provisions Relating To Personal Guarantors Case Title: Gurmeet Sodhi v Union of India & Ors. Case No.: Writ Petition(s)(Civil) No(s).307/2022 The Supreme Court Bench comprising of Justices Vineet Saran and J K Maheshwari has issued notice on a petition filed by a personal guarantor which raises a constitutional challenge to the personal insolvency provisions under the Insolvency & Bankruptcy Code, 2016 ("IBC"). Since a similar issue is pending, the Court has directed to tag the case along with the pending Special Leave Petition (C) No.16464/2021. The personal guarantor has filed a writ petition under Article 32 before the Supreme Court contending that the IBC does not provide for the personal guarantor's right to be heard before entertaining the insolvency petition and appointment of a resolution professional, thus violating the fundamental right to natural justice. The Bench, as an interim relief, has restrained the resolution professional in the personal guarantor's insolvency proceedings from submitting the statutory report before the Adjudicating Authority while issuing notice in the writ petition. The Court also directed that the Petitioner shall not transfer, alienate, encumber or dispose of any of his assets or his legal rights or beneficial interest therein. 4. Appeal To NCLAT Shall Be Filed Within A Period Of 30 Days, Reiterates Supreme Court Case Title: Safire Technologies Pvt. Ltd v Regional Provident Fund Commissioner & Anr. Case No.: Civil Appeal No.2212 of 2021 The Supreme Court bench comprising of Justice L N Rao and Justice P S Narasimha has reiterated that an appeal against the order of NCLT shall be filed before the NCLAT within a period of 30 days and the appellate tribunal can only condone delay for a period of 15 days. The order was passed on 29.04.2022. 5. IBC - Moratorium Period Can Be Excluded In Computing Limitation Period In A Suit/Application By Corporate Debtor: Supreme Court Case Title: New Delhi Municipal Council v Minosha India Limited Case No.: CA No. 3470 of 2022 The Supreme Court Bench comprising of Justices KM Joseph and Hrishikesh Roy has held that the entire period during which the moratorium was in force in respect of Corporate Debtor, can be excluded while computing the period of limitation for a suit or proceeding by the Corporate Debtor. The appellant had challenged the Delhi High Court's order allowing the application...

IBC Cases Weekly Round Up: May 9 To May 15, 2022

Pallavi Mishra

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