IBC Weekly Round-Up [2nd February-9th February 2025]

Nominal Index: Damodar Valley Corporation vs. Mackeil Ispat & Forging Ltd. & Anr., Company Appeal (AT) (Insolvency) No. 1663 of 2023 M/s Power Mech Projects Ltd. Versus Essar Power (Jharkhand) Ltd. and Anr., Company Appeal (AT) (Insolvency) No.106 of 2025 Ankur Kumar Versus Sustainable Agro-Commercial Financial Ltd., Company Appeal (AT) (Insolvency) No. 484 of 2023 Bhushan Power & Steel Limited vs. Union of India & Anr., 2025 LiveLaw (Del) 148 Riju Ravindran Suspended Director & Promoter of Think & Learn Pvt Ltd. vs. Pankaj Srivastava, RP of Think & Learn Pvt. Ltd & 3 Ors., Company Appeal (AT) (CH) (Ins) No. 58/2025 (IA Nos. 204 & 205/2025) 'CA Ramchandra Dallaram Choudhary Versus Adani Infrastructure & Developers Private Limited', 'I.A. No. 8709 of 2024 in Comp. Appeal (AT) (Insolvency) No. 2316 of 2024' M/s.Isthara Parks Private Limited v M/s.Valmar Projects LLP & Ors., CP (113) No.216/9/IIDB/2023 Aditya Birla Finance Limited vs. Mr. Pankaj Srivastava, IA No. 660, 820 of 2024 in C.P. (IB) No. 149/BB/2023 High Court Corporate Debtor Immune From Prosecution Under PMLA Post Approval Of Resolution Plan: Delhi High Court Case Title: Bhushan Power & Steel Limited vs. Union of India & Anr. Citation: 2025 LiveLaw (Del) 148 The Delhi High Court bench of Justice Manmeet Pritam Singh Arora has held that in accordance with Section 32A(1) of the Insolvency and Bankruptcy Code, 2016 (IBC), a Corporate Debtor that has successfully undergone a resolution process under Section 31 of the IBC shall not be prosecuted for offences committed prior to the commencement of the CIRP. NCLAT Pre-CIRP Electricity Dues Stand Extinguished Upon Approval Of Resolution Plan: NCLAT Case Title: Damodar Valley Corporation vs. Mackeil Ispat & Forging Ltd. & Anr. Case Number: Company Appeal (AT) (Insolvency) No. 1663 of 2023 The National Company Law Appellate Tribunal (NCLAT) bench comprising Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) have reiterated that all claims which are not included in the approved Resolution Plan stand extinguished upon its approval. The Tribunal held that Damodar Valley Corporation (DVC/ Appellant) was not entitled to demand pre-CIRP dues from Mackeil Ispat & Forging Ltd. (Corporate Debtor/ Respondent No. 1) when it requested resumption of electricity supply. The Tribunal directed DVC to refund the pre-CIRP amount. Decision Taken By Liquidator To Proceed With Private Sale By 'Swiss Challenge Method' Cannot Be Said To Be Beyond Jurisdiction: NCLAT Case Title: M/s Power Mech Projects Ltd. Versus Essar Power (Jharkhand) Ltd. and Anr. Case Number: Company Appeal (AT) (Insolvency) No.106 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 decision taken by the Liquidator to proceed with private sale by adopting Swiss Challenge Mechanism, cannot be said to be a decision beyond the jurisdiction or authority of the Liquidator and that too when the said decision came to be approved by the Stakeholders Consultation Committee. Claims Based On Uninvoked Guarantee Cannot Be Admitted By Resolution Professional: NCLAT Case Title: Ankur Kumar Versus Sustainable Agro-Commercial Financial Ltd. Case Number: Company Appeal (AT) (Insolvency) No. 484 of 2023 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 guarantee given by the corporate debtor cannot be invoked after initiation of the CIRP. Any claims based on such guarantee cannot be admitted by the Resolution Professional. NCLAT Member Recuses From Hearing Appeal By Riju Ravindran Against Inclusion Of Aditya Birla, Glas Trust In CoC As Financial Creditors Of Byju's Case Title: Riju Ravindran Suspended Director & Promoter of Think & Learn Pvt Ltd. vs. Pankaj Srivastava, RP of Think & Learn Pvt. Ltd & 3 Ors. Case Number: Company Appeal (AT) (CH) (Ins) No. 58/2025 (IA Nos. 204 & 205/2025) Justice Sharad Kumar Sharma (Judicial Member), Judicial Member of of the National Company Law Appellate Tribunal (NCLAT) Chennai bench, has recused from hearing ed-tech start-up, Byjus' founder, Riju Raveendran's appeal against the order of the National Company Law Tribunal (NCLT) Bengaluru, which allowed Glas Trust and Aditya Birla Finance to be included in the Committee of Creditors (CoC) as Financial Creditors of Think & Learn (Parent Company of Byjus). Delay Of 115 Days In Refiling Appeal Cannot Be Condoned On Frivolous Grounds: NCLAT Case Title: 'CA Ramchandra Dallaram Choudhary Versus Adani Infrastructure & Developers Private Limited' Case Number: 'I.A. No. 8709 of 2024 in Comp. Appeal (AT) (Insolvency) No. 2316...

IBC Weekly Round-Up [2nd February-9th February 2025]

Mohd Malik Chauhan

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