IBC Weekly Round Up [24th February - 2nd March 2025]

Nominal Index: ASHOK HARRY POTHEN Vs. THE AUTHORISED OFFICER, M/S. INDIAN BANK, W.P (C) No.4147/2025 M/s. Stesalit Limited Vs Union of India & Ors, WPA 532 of 2025 State Bank of India Versus Mr. Deepak Kumar Singhania, Company Appeal (AT) (Insolvency) No.191 of 2025 DKY Finance Pvt. Ltd. and Ors. Versus Mr. Sanjay Garg and Anr., Company Appeal (AT) (Insolvency) No. 1367 of 2024 & I.A. No. 4973 of 2024 ILD Owners Welfare Association Versus M/s. ALM Infotech City Pvt. Ltd.,Company Appeal (AT) (Insolvency) No. 2198 of 2024 & I.A. No. 8172 of 2024 Ajay Vij and Anr. Vs Mr Abhishek Dutta and Anr., COMPANY APPEAL (AT)(INS) NO. 726 & 728 OF 2021 and COMPANY APPEAL (AT)(INS) NO. 818-819 OF 2021 NAVIN MADHAVJI MEHTA Versus JALDHI OVERSEAS PTE LTD AND ORS., Company Appeal (AT) (Ins) No. 792 of 2024 Sanjeev Agarwal & Anr. Versus Avishek Gupta & Ors.,Company Appeal (AT) (Insolvency) No.228 of 2025 Assistant Commissioner (Central Goods & Services Tax & Central Excise, Division) Versus Meera Prasad, Company Appeal (AT) (Ins) No. 1850 of 2024 and I.A. No. 6671, 6777 of 2024 Punjab State Power Corporation Limited Versus Akums Lifesciences Limited, Company Appeal (AT) (Insolvency) No. 1258 of 2023 In the Application of Mr. Rohit Ramesh Mehra (Resolution Professional of Reliance Big Private Limited), IA No. 54 of 2024 IN CP(IB) No. 845 (MB) of 2022 Mr. Sudhir Bobba V M/s. TVN Enterprises and Anr.,Company Appeal (AT) (CH) (Ins) No.95/2024 (IA Nos.262, 263 & 264/2024) Maharashtra State Electricity Distribution Company Ltd. & Anr. Versus Ravi Sethia Resolution Professional of Morarjee Textiles Ltd and Ors.,Company Appeal (AT) (Insolvency) No. 56 of 2025 & I.A. No. 235 of 2025 Krishan Kumar Jajoo Versus Piramal Enterprises Ltd. and Anr.,Company Appeal (AT) (Ins) No. 1601 of 2024 & I.A. No. 5835 of 2024 BSE Ltd. Versus Mrudula Brodie & Ors., Company Appeal (AT) (Insolvency) No. 1862 of 2024 & Interlocutory Application No.6846 of 2024 and Company Appeal (AT) (Insolvency) No. 1883 of 2024 & Interlocutory Application No.6950 of 2024 High Court Banks Can Initiate Proceedings Under SARFAESI Act To Recover Loan If It Wasn't Party To Resolution Plan: Kerala High Court Case Title: ASHOK HARRY POTHEN Vs. THE AUTHORISED OFFICER, M/S. INDIAN BANK Case Number: W.P (C) No.4147/2025 The Kerala High Court bench of Justice Gopinath P. has held that a bank can initiate proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) to recover outstanding dues if it was not a party to the resolution plan approved under the Insolvency and Bankruptcy Code, 2016. The Court clarified that the bar against claims outside a resolution plan does not extend to third parties merely associated with the corporate debtor through agreements such as joint ventures. Gratuity Dues Of Workers Do Not Form Part Of 'Liquidation Estate' Of Corporate Debtor, Must Be Paid In Full: Calcutta High Court Case Title: M/s. Stesalit Limited Vs Union of India & Ors. Case Number: WPA 532 of 2025 The Calcutta High Court bench of Justice Shampa Dutt (Paul) has held that gratuity dues are statutorily protected under the Payment of Gratuity Act, 1972, and do not form part of the liquidation estate of the Corporate Debtor under the Insolvency and Bankruptcy Code, 2016 (IBC). The court held that gratuity payments are outside the waterfall mechanism under Section 53 of the IBC and must be paid in full, irrespective of the resolution plan. It further observed that Section 14 of the Payment of Gratuity Act has an overriding effect, ensuring that employees' statutory rights are upheld even in insolvency proceedings. NCLAT Serving Demand Notice To Personal Guarantor Under Rule 7 Of Personal Guarantors Rules Cannot Be Considered Invocation Of Guarantee: NCLAT Case Title: State Bank of India Versus Mr. Deepak Kumar Singhania Case Number: Company Appeal (AT) (Insolvency) No.191 of 2025 The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that a Notice served to the personal guarantor under Rule 7 of Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 (“2019 Rules”) cannot be considered 'Invocation of Guarantee', therefore unless a guarantee has been invoked as per the terms of the 'Deed of Guarantee', an application under section 95 of the Insolvency and Bankruptcy Code, 2016 (Code) against the personal guarantor cannot be entertained. Order Approving Resolution Plan Passed Beyond 330 Days Cannot Be Questioned When Application Seeking Approval Was Filed Within CIRP Period: NCLAT Case Title: ...

IBC Weekly Round Up [24th February - 2nd March 2025]

Mohd Malik Chauhan

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