Weekly Digest Of IBC Cases: 29 May To 4 June 2023

NCLATNCLAT Reprimands RP For Seeking Police Help For Security Of Assets Of Corporate Debtor Instead Of Private SecurityCase Title: RP Modern Syntex (India) Ltd. v Supdt. of Police Anandpura, Vadodra Gujarat & Ors.Case No.: Company Appeal (AT) Insolvency No. 682 of 2023The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Naresh Salecha (Technical Member), has held for security of private property of the Corporate Debtor, the Resolution Professional cannot seek deployment of police at site. Instead, the Resolution Professional is required to hire security personnel for the said purpose and make payment to them.“We are of the view that Resolution Professional should know that what prayers may be granted by the Adjudicating Authority and prayers which were made by the Resolution Professional requesting the Adjudicating Authority to direct deployment of police/gunmen at the site was wholly uncalled for. For security of private property, the RP has to hire security personnel for which payment has to be made for them. Prayers in the Applications were wholly inappropriate and has rightly been not considered.”Third Party Cannot Obtain Copy Of Resolution Plan Pending Approval By AA: NCLAT DelhiCase Title: Rupinder Singh Gill v Three C Universal Developers Pvt. Ltd.Case No.: Comp. App. (AT) (Ins) No. 729 of 2021The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Dr. Alok Srivastava (Technical Member), has held that a party who is not a Claimant, Creditor or a participant in the CIRP of the Corporate Debtor, is not entitled to be given a copy of the Resolution Plan which is pending approval or rejection before the Adjudicating Authority. The IBC also does not contain any such provision.Home Buyers Have No Right To File Intervention Application Prior To Admission Of Section 7 Petition: NCLAT DelhiCase Title: Vikash Kumar Mishra & Ors. v Orbis Trusteeship Service Pvt. Ltd. & Anr.Case No.: Comp. App. (AT) (Ins) No. 246 of 2023The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Shri Naresh Salecha (Technical Member), has held that an intervention application filed by the homebuyers in petition under Section 7 of IBC is not maintainable before such petition gets admitted. The right to file such application would accrue after admission of the Section 7 petition. The homebuyers of ‘Sikka Kaamna Greens’ project had filed an intervention application supporting the case of the Corporate Debtor (Builder) that the petition under Section 7 of IBC must be rejected. Both NCLT and NCLAT rejected the application on grounds of maintainability.Delay In Filing Of Appeal Under Section 42 Of IBC Is Condonable Under Section 5 Of Limitation Act: NCLAT DelhiCase Title: Canara Bank v Commercial Tax Department Circle 09, Indore, Madhya Pradesh & Anr.Case No.: Company Appeal (AT) (Insolvency) No. 655 of 2023The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has held that delay in filing the Appeal under Section 42 of IBC is condonable in exercise of power under Section 5 of the Limitation Act, 1963.NCLAT Notifies Summer Vacations For NCLAT Principal Bench W.E.F. 05.06.2023 To 02.07.2023, Registry To Remain FunctionalF. No. 10/36/2018-NCLATThe National Company Law Appellate Tribunal (“NCLAT”) has issued a notice dated 30.05.2023, notifying Annual Summer Vacation from 05.06.2023 to 02.07.2023 for NCLAT, Principal Bench (New Delhi).The Registry of NCLAT Principal Bench and the facility of E-filing of cases shall be operational during the said vacation period.Urgent matters would be taken up as per the decision of the Competent Authority and an email must be sent to the Registrar of NCLAT Principal Bench at: registrar-nclat@gov.in for urgent hearing.During the vacations, the NCLAT Principal Bench would sit on every Monday and Wednesday at 10:30 AM on 05.06.2023, 07.06.2023, 12.06.2023, 14.06.2023, 19.06.2023, 21.06.2023, 26.06.2023 & 28.06.2023, to take up only the urgent matters. The Board constituted for hearing urgent matters would be notified.NCLTNCLT Notifies Vacation Benches; Matters To Be Heard Through VC And Registry To Remain FunctionalFile No. 10/03/2023-NCLTThe National Company Law Tribunal (“NCLT”) has issued a circular dated 18.05.2023 notifying the Vacation Bench for NCLT benches having vacation in the month of June 2023. 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 vacation.NCLT Cuttack Bench (from 05.06.2023 to 16.06.2023)Shri P. Mohan Raj...

Weekly Digest Of IBC Cases: 29 May To 4 June 2023

Pallavi Mishra

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