IBC Weekly Round-Up [10th February -16th February 2025]

Nominal Index: Global Indian School Education Services Pvt. Ltd. Versus Mr. Abhay Narayan Manudhane, Comp. App. (AT) (Ins) No. 1617 of 2023 & I.A. No. 5841, 5842, 5843 of 2023 Parmesh Construction Company Ltd. Versus Pramod Kumar Sharma,Company Appeal (AT) (Insolvency) No. 149 of 2025 Bank of Baroda Versus Shree Rajashthan Syntex Ltd., Company Appeal (AT) (Insolvency) No. 888 of 2023, Comp. App. (AT) ('Insolvency') No. 1492 of 2023 & I.A. No. 5310 of 2023 and Company Appeal (AT) (Insolvency) No.890 of 2023 Sandeep Jain Versus IDBI Trusteeship Services Ltd. & Anr., Company Appeal (AT) (Insolvency) No. 146 of 2025 Riju Raveendran v. Pankaj Srivastava Mr. Anil Syal vs. Mr. Ajay Gupta & Anr., IA-3964/2024 In IB-589(PB)/2020 M/S Transline Technologies Limited v. Experio Tech Private Limited, CP IB NO. 236/(ND)/2023 NCLAT Deposit Of Security Under Memorandum Of Understanding Without Intention Of Commercial Effect Of Borrowing Cannot Be Categorised As Financial Debt: NCLAT Case Title: Global Indian School Education Services Pvt. Ltd. Versus Mr. Abhay Narayan Manudhane Case Number: Comp. App. (AT) (Ins) No. 1617 of 2023 & I.A. No. 5841, 5842, 5843 of 2023 The National Company Law Appellate Tribunal (“NCLAT”) New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member) and Mr. Indevar Pandey (Technical Member) has held that the security amount deposited under a Memorandum of Understanding ('MoU') without any intention of commercial effect of borrowing and time value of money cannot be categorised as financial debt under section 5(8) of the Insolvency and Bankruptcy Code, 2016 (“Code”). Once Resolution Plan Is Approved By CoC & Submitted To Adjudicating Authority For Approval, No Other Plan Can Be Considered By CoC: NCLAT Case Title: Parmesh Construction Company Ltd. Versus Pramod Kumar Sharma Case Number: Company Appeal (AT) (Insolvency) No. 149 of 2025 The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that the Resolution Plan even prior to the approval of the Adjudicating Authority is binding inter se the Committee of Creditors (CoC) and the SRA. It also held that the CoC is clearly not entitled to consider any other request for consideration of any Resolution Plan after it has approved the Resolution Plan, which is pending consideration for approval before the Adjudicating Authority. Application U/S 7 Of IBC Must Be Decided First When Application U/S 54C Is Filed 14 Days After S.7 Application: NCLAT Case Title: Bank of Baroda Versus Shree Rajashthan Syntex Ltd. Case Number: Company Appeal (AT) (Insolvency) No. 888 of 2023, Comp. App. (AT) ('Insolvency') No. 1492 of 2023 & I.A. No. 5310 of 2023 and Company Appeal (AT) (Insolvency) No.890 of 2023 The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that when an application under section 54C of the IBC is filed after 14 days from the date of the application filed under section 7 of the IBC, the application under section 7 must be decided first as per section 11A(3) of the code. Constitution Of Project Management Committee Under Settlement Agreement Does Not Absolve Corporate Debtor From Repayment Obligations: NCLAT Case Title: Sandeep Jain Versus IDBI Trusteeship Services Ltd. & Anr. Case Number: Company Appeal (AT) (Insolvency) No. 146 of 2025 The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that any dispute even pending in the arbitration does not in any manner prohibit the financial creditor to take remedy under Section 7 of the code. It also held that the constitution of a Project Management Committee comprising members of financial creditors and corporate debtor in pursuance of a Settlement Agreement does not absolve the CD from its repayment obligations. NCLAT Orders NCLT To Decide BCCI's Plea For Settlement And Withdrawal Of CIRP Against Byju's Within One Week Case Title: Riju Raveendran v. Pankaj Srivastava The National Company Law Appellate Tribunal (NCLAT), Chennai bench comprising Justice (retd) Rakesh Kumar Jain (Judicial Member) and Jatindranath Swain (Technical Member) have directed the National Company Law Tribunal (NCLT) to decide the application filed by Board of Control for Cricket in India (BCCI) to withdraw the corporate insolvency resolution process (CIRP) against Byju's within a week's time. NCLT Bankrupt Individual Cannot Seek Discharge U/S 138(1) Of IBC: NCLT New Delhi Case Title: Mr. Anil Syal vs. Mr. Ajay Gupta & Anr. Case Number: IA-3964/2024 In IB-589(PB)/2020 The National Company Law Tribunal (NCLT), New Delhi bench comprising...

IBC Weekly Round-Up [10th February -16th February 2025]

Mohd Malik Chauhan

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