IBC Weekly Round-Up [9th December To 15th December 2024]

NOMINAL INDEXIndian Renewable Energy Development Agency Limited Versus Waaree Energies Limited and Anr., Company Appeal (AT) (Insolvency) No.1380 of 2024 Suraksha Asset Reconstruction Ltd. Vs. Varsha Bagri, Liquidator of Bharat NRE Coke Ltd., Company Appeal (AT) (Insolvency) No. 650 of 2024 & I.A. No. 2325 of 2024 Harish Chander Arora Liquidator of Rathi Super Steel Ltd. Versus The Principal Commissioner of Income Tax, Ghaziabad, & Anr., Comp. App. (AT) (Ins) No. 306 of 2024 & I.A. No. 898, 8327 of 2024 Mobile Constructions Private Limited Versus Apple Land Development Private Limited, Company Appeal (AT) (Insolvency) No. 756 of 2024 Shikshak Sahakari Bank Ltd. Versus Mr. Jagdish Kumar Parulkar, Company Appeal (AT) (Insolvency) No. 2023 of 2024 & I.A. No. 7595 of 2024 Bank of India Rep. Versus Mr. Naren Sheth, Company Appeal (AT) (Insolvency) No. 533 of 2021 Puneet P. Bhatia vs. ASERC (India) Ltd. & Ors., Company Appeal (AT) (Ins.) No. 139 of 2024 NCLAT Raising Money Through Optional Convertible Debentures Can Be Considered As Financial Debt U/S 5(8): NCLAT Case Title: Indian Renewable Energy Development Agency Limited Versus Waaree Energies Limited and Anr. Case Number: Company Appeal (AT) (Insolvency) No.1380 of 2024 The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) has held that raising money by issuance of convertible debentures with an option to be later converted into equity shares can be classified as a financial debt if a default is committed by the corporate debtor. Security Interest Shall Stand Relinquished If Liquidation Costs Is Not Paid As Per R. 21A(3) Of Liquidation Regulations: NCLAT Case Title: Suraksha Asset Reconstruction Ltd. Vs. Varsha Bagri, Liquidator of Bharat NRE Coke Ltd. Case Number: Company Appeal (AT) (Insolvency) No. 650 of 2024 & I.A. No. 2325 of 2024 The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Barun Mitra (Technical Member) has held that if the secured creditor fails to pay the liquidation costs within 90 days after its intention to realise the security interest, the security interest shall stand relinquished under Regulation 21A(3) of the Liquidation Regulations, 2016. Amount Seized By Income Tax Department And Adjusted Against Demand Prior To Initiation Of CIRP Is Not Asset Of CD: NCLAT Case Title: Harish Chander Arora Liquidator of Rathi Super Steel Ltd. Versus The Principal Commissioner of Income Tax, Ghaziabad, & Anr. Case Number: Comp. App. (AT) (Ins) No. 306 of 2024 & I.A. No. 898, 8327 of 2024 The NCLAT New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member) Has held that an amount seized by the Income Department and adjusted against demand prior to initiation of the CIRP cannot be considered as assets of the corporate debtor. Petition U/S 7 Of IBC Cannot Be Barred For Default Committed Prior To S.10A Period: NCLAT Case Title: Mobile Constructions Private Limited Versus Apple Land Development Private Limited Case Number: Company Appeal (AT) (Insolvency) No. 756 of 2024 The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Barun Mitra( Technical Member) and Arun Baroka (Technical Member) has held that when default has been committed by the Corporate Debtor prior to Section 10A period, any default committed during the Section 10A period cannot be held to bar the application which is filed on the basis of default prior to Section 10A and subsequent to Section 10A period. Secured Creditor Is Liable To Pay Liquidator's Fees Under Rule 21A Of Liquidation Regulations If Option U/S 52 Of IBC Is Exercised: NCLAT Case Title:Shikshak Sahakari Bank Ltd. Versus Mr. Jagdish Kumar Parulkar Case Number:Company Appeal (AT) (Insolvency) No. 2023 of 2024 & I.A. No. 7595 of 2024 The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Barun Mitra( Technical Member) and Arun Baroka (Technical Member) has held that the fee of the liquidator has to be paid within 90 days from the liquidation commencement date as provided under Regulation 21A of the Liquidation Regulations if the secured creditor opts to realise its security interest under section 52 of the code. Deposit In Pursuance Of One Time Settlement Proposal Remains Corporate Debtor's Asset If Settlement Fails: NCLAT Case Title: Bank of India Rep. Versus Mr. Naren Sheth Case Number: Company Appeal (AT) (Insolvency) No. 533 of 2021 The NCLAT New Delhi bench of Justice Yogesh Khanna (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member) has held that the amount deposited with the bank by the corporate debtor in pursuance of an One Time Proposal to show bonafides will remain assets of the corporate debtor and can be taken into...

IBC Weekly Round-Up [9th December To 15th December 2024]

Mohd Malik Chauhan

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