IBC Cases Weekly Round-Up: 11 September To 17 September 2022

SUPREME COURT NCLT Has Discretion To Not Admit Financial Creditor's CIRP Application? Supreme Court Allows Open Court Hearing For Review Case Title: Axis Bank Ltd versus Vidarbha Industries Power Ltd Case No.: RP (Civil) 1043/2022 The Supreme Court Bench comprising of Justice Indira Banerjee and Justice MM Sundersh allowed open court hearing for the review petition filed against the judgment in Vidarbha Industries Power Ltd. vs Axis Bank Limited which held that the National Company Law Tribunal has discretion to not admit the insolvency application filed by a financial creditor even if the corporate debtor is in default. The Petition is listed for hearing in open court on September 19, 2022. The judgment delivered in Vidarbha Industries Case on July 12, 2022 had held that it is not mandatory for the Adjudicating Authority to admit an application to initiate Corporate Insolvency Resolution Process even if a debt existed and the Corporate debtor is in default. The Adjudicating Authority (NCLT) would have to exercise its discretion to admit and initiate CIRP on satisfaction of the existence of a financial debt and default on the part of the Corporate Debtor in payment of the debt, unless there are good reasons not to admit the petition. NCLAT Unregistered Sale Cannot Be The Basis For Claim On Immovable Property: NCLAT Delhi Case Title: Smt. Sabita A. Biswa v Shri Vinodkumar Pukhraj Ambavat Case No.: Company Appeal (AT) (Insolvency) No. 1056 of 2022 The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has declined to entertain the claim of a creditor based on an unregistered and unstamped sale deed which was only executed before the Notary and has held that such document cannot be basis for any claim with respect to the purchase of immovable property. NCLT SEBI Order No Bar To Initiation Of CIRP; NCLT Mumbai Initiates Insolvency Proceedings Against Pancard Clubs Case Title: Mr. Nitin Suresh Satghare & Ors. v Pancard Clubs Limited Case No.: CP (IB) 4578/MB/C-I/2018 The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Justice P. N. Deshmukh (Retd.) (Judicial Member) and Shri Shyam Babu Gautam (Technical Member), has initiated Corporate Insolvency Resolution Process ("CIRP") against Pancard Clubs Ltd., while observing that an Order passed by Securities Exchange Board of India ("SEBI") is no bar for initiation of CIRP under the IBC. Time Schedule Has A Purpose; NCLT Kolkata Declines To Entertain The Bid Submitted After The Time Case Title: State Bank of India v Ess Dee Aluminum Limited Case No.: C.P (IB) No.1284/KB/2019 The National Company Law Tribunal ("NCLT"), Kolkata Bench, comprising of Shri Rohit Kapoor (Judicial Member) and Shri Balraj Joshi (Technical Member), has declined to entertain a revised bid received after the due time fixed by the Liquidator in the bidding notice, while observing that time lines are fixed with a definite purpose and the different stages of bidding process should conclude at the scheduled time. NCLT Delhi Holds Suspended Directors Liable For Running Fraudulently Case Title: M/s Concord Infrastructure Pvt. Ltd. v M/s Shubhkamna Buildtech Pvt. Ltd. Case No.: C.P. No. IB-1059/ND/2018 The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri Dharminder Singh (Judicial Member) and Dr. Binod Kumar Sinha (Technical Member), has approved the resolution plan submitted by Mr. Sunder Kumar Singhal and Mr. Sunil Kumar Agarwal for M/s Shubhkamna Buildtech Pvt. Ltd. The Bench held the Suspended Directors of Subhkamna Buildtech liable under Section 66 of the IBC, for running the business in a fraudulent manner and having siphoned off the funds of the company to the tune of Rs. 106.19 Crores. The Bench has directed the Suspended Directors to contribute Rs. 106.19 Crores, which would be distributed to the Financial Creditors proportionately. NCLT Cuttack To Hear Cases Only On Monday And Tuesday Until Further Orders File No. 10/03/2022-NCLT The National Company Law Tribunal, Cuttack Bench, shall conduct proceedings on only Monday and Tuesday in view of NCLT Circular dated 14.09.2022 and matters shall be heard through video conferencing. The NCLT Cuttack Bench was reconstituted vide a notification dated 10.10.2021 and the Circular dated 14.09.2022 has been issued in partial modification of the said notification. At present the NCLT Cuttack Bench comprises of: NCLT Cuttack Bench Shri P. Mohan Raj (Judicial Member) Shri Satya Ranjan Prasad (Technical Member) NCLT Kochi Bench Re-Constituted,Proceedings To Be Conducted Only On Wednesday, Thursday And Friday Until Further Orders File No. 10/03/2022-NCLT The National Company Law Tribunal, Kochi Bench, has been re-constituted vide a Circular dated...

IBC Cases Weekly Round-Up: 11 September To 17 September 2022

Pallavi Mishra

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