IBC Cases Weekly Round-Up: 17 October To 23 October, 2022

Supreme Court 1. Standard Of Pre-Existing Dispute Under IBC Is Not Equivalent To Principle Of 'Preponderance Of Probability':Supreme Court Case Title: Rajratan Babulal Agarwal v Solartex India Pvt. Ltd. & Ors. Case No.: Civil Appeal No. 2199 of 2021 The Supreme Court Bench, comprising of Justice K.M. Joseph and Justice Hrishikesh Roy, has held that the standard with reference to which a case of a pre-existing dispute under the IBC must be employed, cannot be equated with the principle of preponderance of probability, which guides a civil court at the stage of finally decreeing a suit. NCLAT 1. AA Can Consider Any Application Arising Out Of Sale In Liquidation: NCLAT Delhi Case Title: RMY Industries v Apple Industries Pvt. Ltd. Case No.: Company Appeal (AT) (Insolvency) No. 1114 of 2022 The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Dr. Alok Srivastava (Technical Member) and Mr. Barun Mitra (Technical Member), has held that the Adjudicating Authority is empowered to consider any application filed by the Liquidator or Successful Auction Purchaser, which may arise with regard to terms and conditions of auction sale or sale as going concern as per the Liquidation Regulation. 2. COC's Decision For Liquidation Is Open To Judicial Review By NCLT And NCLAT: NCLAT Delhi Case Title: Sreedhar Tripathy V Gujarat State Financial Corporation & Ors Case No.: Company Appeal (AT) (Insolvency) No. 1062 of 2022 The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Dr. Alok Srivastava (Technical Member) and Mr. Barun Mitra (Technical Member), has held that when the Committee of Creditors ("CoC") decides to liquidate the Corporate Debtor, the decision of liquidation is open to judicial review by the Adjudicating Authority and the Appellate Authority. 3. Adjudicating Authority Can Invoke Inherent Powers To Replace The Liquidator: NCLAT Case Title: Subrata Maity v Mr. Amit C. Poddar & Ors. Case No.: Comp. App. (AT) (Ins.) No. 1234 of 2022 The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Dr. Alok Srivastava (Technical Member) and Mr. Barun Mitra (Technical Member), has held that the Adjudicating Authority can invoke its inherent powers to replace the Liquidator and to do substantial justice. The Bench observed that as criminal prosecution is going on against the Liquidator and he was arrested by the CBI, the Adjudicating Authority did not err in replacing him with another Liquidator. The Liquidator does not have any personal right to continue in the Liquidation Process. 4. NCLAT Delhi Restores PNB's Original Claim, in Jet Airways CIRP Case Title: Punjab National Bank v Mr. Ashish Chhawchharia & Ors. Case No.: Company Appeal (AT) (Insolvency) No. 584 of 2021 The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has held that the Resolution Professional had incorrectly reduced the Punjab National Bank's admitted claim of Rs. 956 Crores to Rs. 752 Crores. The Bench has set aside the reduction of claim. Further, the Bench has directed the Successful Resolution Applicant of Jet Airways (India) Ltd. to bear the liability of paying additional amount to PNB from the amount reserved under Resolution Plan. NCLT 1. NCLT Mumbai Approves Arcelormittal Promoted AM Mining's Resolution Plan For Uttam GalvaSteels Case Title: State Bank of India v Uttam Galva Steels Limited Case No.: CP (IB) 920/MB/C-I/2020 The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Justice P. N. Deshmukh (Retd.) (Judicial Member) and Mr. Shyam Babu Gautam (Technical Member), has approved the resolution plan submitted by ArcelorMittal promoted AM Mining Pvt. Ltd. for Uttam Galva Steels Ltd. The Resolution Plan has a total resolution amount of Rs. 4020 Crores. 2. Operational Creditor Cannot ChangeThe 'Date Of Default' By Confining The Invoices To A Later Period: NCLT Mumbai Reiterates Case Title: M/s Shri Sadguru Traders v M/s Gajalee Coastal Foods Pvt. Ltd. Case No.: C.P. No. 3443/IBC/MB/2019 The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Shri H.V. Subba Rao (Judicial Member) and Ms. Anuradha Sanjay Bhatia (Technical Member), has reiterated that the Operational Creditor cannot change the 'date of default' by confining the invoices to a later period. Specially when the Demand Notice under Section 8 of IBC includes all the invoices from the date of default and the 'debt amount' is crystallized based on the invoices. 3. NCLT Deprecates Filing Of Bulky Applications By Resolution Professional & Liquidator Case ...

IBC Cases Weekly Round-Up: 17 October To 23 October, 2022

Pallavi Mishra

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