IBC Weekly Round Up [23rd December-29th December 2024]

NOMINAL INDEX China Development Bank vs Doha Bank OPSC and others, 2024 LiveLaw (SC) 1029 Ram Kishor Arora, Suspended Director of Supertech Ltd. vs. Union Bank of India & Anr., Company Appeal (AT) (Insolvency) No. 406 of 2022 & Interlocutory Application No.6557 of 2024 Harpal Singh Chawla (Suspended Director of Spaze Towers Pvt. Ltd.) Versus Vivek Khanna & Ors., Interlocutory Application No.7853 of 2024 in Company Appeal (AT) (Insolvency) No. 2002 of 2024 Mr. Rakesh Kumar Jain vs. M/s ADTV Communications Private Limited, Company Appeal (AT) (Insolvency) No. 849 of 2023 & I.A. No. 2894, 2895 of 2023 Dinesh Kumar Versus Narendra Kumar Sharma & Ors., Company Appeal (AT) (Insolvency) No. 1422 of 2024 Mehul Patel (Member of Suspended Board of Anupam Port Cranes Corporation Ltd.) Vs. Nandish S. Vin & Anr, Company Appeal (AT) (Insolvency) No.2191 of 2024 Ghaziabad Development Authority vs. Competition Commission of India, Competition Appeal (AT) No. 26 of 2018 Varun Gupta vs. ISINOX Pvt. Ltd. Through the IRP Mr. Manishkumar R. Patel & Ors., Comp. App. (AT) (Ins) No. 430 of 2023 & I.A. No. 1429, 1430, 1431 of 2023 & 2005 of 2024 Vadilal Industries Ltd. vs. Fanendra Munot & Ors., Company Appeal (AT) (Ins.) No. 748 of 2023 Vidyadhar Sarfare & Anr Versus CS Anagha Anasingharaju & Ors., Company Appeal (AT) (Insolvency) No.1733 of 2024 M/S ALLIED HI-TECH INDUSTRIES PRIVATE LIMITED VS. KARVY DATA MANAGEMENT SERVICES LIMITED, I.A. (IBC) (PLAN) NO.24 OF 2024 IN CP (IB) No. 25/7/HDB/2022 : M/s. METRO TYRES LIMITED VERSUS M/s. HERO ELECTRIC VEHICLES PVT. LTD, C.P. (IB) –397(ND)/2024 SUPREME COURT IBC | Financial Creditor Can Submit Claim Even If There Is No Default Of Debt : Supreme Court Case Title : China Development Bank vs Doha Bank OPSC and others Citation : 2024 LiveLaw (SC) 1029 The Supreme Court has observed a default is not necessary for a debt to become a financial debt under the Insolvency and Bankruptcy Code, 2016. A bench comprising Justice Abhay S Oka and Justice Augustine George Masih held that under Section 5(7) of the IBC, any person to whom financial debt is owed becomes a Financial Creditor even if there is no default in payment of debt. "Therefore, for submitting the claim by a Financial Creditor, there is no requirement of actual default," the Court held. NCLAT NBCC To Lead Completion Of Supertech's Stalled Projects, Securing Homebuyers' Rights Case Title: Ram Kishor Arora, Suspended Director of Supertech Ltd. vs. Union Bank of India & Anr. Case Number: Company Appeal (AT) (Insolvency) No. 406 of 2022 & Interlocutory Application No.6557 of 2024 In a landmark judgment, the National Company Law Appellate Tribunal (NCLAT) Delhi bench comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) has approved NBCC (India) Ltd.'s proposal to complete 16 incomplete projects of Supertech Limited. NBCC will act as the Project Management Consultant to ensure timely and quality completion of these projects. The judgment advocates for transparency and accountability in the real estate industry and protection of the rights of homebuyers, lenders, and public funds. No Claim Survives When Unit Holder Is Handed Over Possession And Conveyance Deed Has Been Executed: NCLAT Case Title: Harpal Singh Chawla (Suspended Director of Spaze Towers Pvt. Ltd.) Versus Vivek Khanna & Ors. Case Number: Interlocutory Application No.7853 of 2024 in Company Appeal (AT) (Insolvency) No. 2002 of 2024 The NCLAT New Delhi bench of Mr. Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that when a unit holder is handed over possession and a Conveyance Deed has also been executed, no claim survives of such unit holders. Whether a claim filed by a Financial Creditor in a class, deserves admission, is a question, which need to be first looked into by the RP as per the statutory regulations governing the collation and verification of the claim. Decree Holder Is “Financial Creditor” Under IBC, Limitation For Filing Section 7 Petition Is Extendable On Acknowledgment Of Debt: NCLAT Case Title: Mr. Rakesh Kumar Jain vs. M/s ADTV Communications Private Limited Case Number: Company Appeal (AT) (Insolvency) No. 849 of 2023 & I.A. No. 2894, 2895 of 2023 The National Company Law Appellate Tribunal (NCLAT) New Delhi bench comprising Justice Yogesh Khanna (Judicial member) and Arun Baroka (Technical member) has held that a decree holder falls within the definition of "Financial Creditor" under Section 5(7) and Section 5(8) of the Insolvency and Bankruptcy Code (IBC) if the decree is based on a financial debt. The Tribunal observed that the cause of action for initiating proceedings under Section 7 of the IBC arises when the debt is acknowledged by the debtor. The Tribunal noted that the Petition filed by...

IBC Weekly Round Up [23rd December-29th December 2024]

Mohd Malik Chauhan

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