Weekly Digest Of IBC Cases:13th To 18th June 2023

NCLTGo Airlines | NCLT Directs RP To Protect Assets Under Control Of Corporate DebtorCase Title: Go Airlines (India) LimitedCase No.: Company Petition No. (IB)-264(PB)/2023The National Company Law Tribunal (“NCLT”), Special Bench, comprising of Shri Mahendra Khandelwal (President) and Shri Rahul Bhatnagar (Technical Member), has directed the Resolution Professional to protect the assets in possession and control of Go Airlines (India) Ltd. in terms of Section 25(1) of IBC. The direction has been given in view of an application filed by the Lessors of the Aircraft engines, who have raised concerns regarding the need to timely service and maintain the engines.Further the Interim Resolution Professional has been replaced by Mr. Shailendra Ajmera as the Resolution Professional of Go Airlines (India) Ltd.NCLT Hyderabad Rejects Resolution Plan For Being Incompliant With Regulation 36B 4(A) Of CIRP Regulations:Case Title: Asset Reconstruction Company (India) Limited v Viceroy Hotels LimitedCase No.: CP (IB) No. 219/7/HDB/2017The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Charan Singh (Technical Member), has rejected the Resolution Plan submitted for Viceroy Hotels for being incompliant with Regulation 36B 4(A) of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”).The Performance Bank Guarantee submitted by the Resolution Applicant was valid for 6 months period, whereas, the plan implementation schedule was spread over 675 days. The Bench held that the Performance Bank Guarantee must remain valid for the entire period of plan implementation schedule, which is a mandatory provision as per Regulation 36B 4(A) of CIRP Regulations. Since the resolution plan was found incompliant of this mandatory legal provision, the Bench rejected the plan on this basis alone.NCLT Chennai To Have Special Bench From 19th To 28th June 2023File No.: 10/03/2023-NCLTThe National Company Law Tribunal (“NCLT”) has issued a circular dated 14.06.2023, intimating the constitution of Special Bench for NCLT Chennai Bench (Court No. 1) for the period of 19.06.2023 to 28.06.2023. The Special Bench shall attend to the matters listed before Justice Ramalingam Sudhakar (President) and Shri Sameer Kakkar (Technical Member).The matters are to be heard in physical mode.The Special Bench shall comprise of:NCLT Chennai Bench (Court No. 1)Shri Sanjiv Jain (Judicial Member)Shri Sameer Kakkar (Technical Member)It is to be noted that Shri Sanjiv Jain (Judicial Member) shall first take up matters of their own Division Bench (NCLT Chennai Court No. 2) and thereafter attend to matters before NCLT Chennai (Court No. 1) as per convenience.NCLT Re-Notifies Vacation Bench For NCLT Delhi; Matters To Be Heard Through VCFile No. 10/03/2023-NCLTThe National Company Law Tribunal (“NCLT”) has issued a circular dated 09.06.2023, in partial modification to its previous circular dated 18.05.2023, re-notifying the Vacation Bench for NCLT Delhi Bench for the period of 19.06.2023 to 23.06.2023. The previous circular dated 18.05.2023 shall remain effective for all other benches listed therein.The re-notified Vacation Bench shall comprise of:NCLT New Delhi (19.06.2023 & 20.06.2023)Shri Ashok Kumar Bhardwaj (Judicial Member)Shri Avinash K Srivastava (Technical Member)NCLT New Delhi (from 21.06.2023 to 23.06.2023)Shri Ashok Kumar Bhardwaj (Judicial Member)Shri Rahul Prasad Bhatnagar (Technical Member)Further, only urgent matters would be heard during the vacation period, subject to the availability of the Hon’ble Member(s) and as per the convenience of the concerned Hon’ble Member(s). Matters are to be heard through Video Conferencing and the Registry would remain functional during the vacationMCAMCA Notification: Moratorium Inapplicable To Contracts Entered Into By The CD Under Oilfields (Regulation And Development) ActFile No.: Insol-30/1/2023-Insolvency-MCAThe Ministry of Corporate Affairs, Government of India, has issued a notification dated 14.06.2023, notifying that Section 14(1) of the Insolvency and Bankruptcy Code, 2016 (“IBC”) would be inapplicable to agreements/transactions/arrangements entered into by the Corporate Debtor under the Oilfields (Regulation and Development) Act, 1948. The notification has been published in Extraordinary Gazette of India.“S.O. 2660(E).—In exercise of the powers conferred by clause (a) of sub-section (3) of section 14 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Central Government hereby notifies that the provisions of sub-section (1) of section 14 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), shall not apply where the corporate debtor has entered into any of the following transactions, arrangements or agreements, namely: -(i) the Production Sharing Contracts, Revenue Sharing Contracts, Exploration Licenses and Mining Leases made under the Oilfields (Regulation and...

Weekly Digest Of IBC Cases:13th To 18th June 2023

Pallavi Mishra

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