IBC Cases Weekly Round-Up: 31st October To 6th November 2022

NCLAT Change In Composition Of COC Will Not Affect Its Prior Decisions: NCLAT New Delhi Case Title: DBS Bank v. Rakesh Kumar Jain Case No.: CA (AT) (Ins) No. 540/2021 The National Company Law Appellate Tribunal bench comprising of Justice Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member) has held that the change in composition of the Committee of Creditors (COC) of the Corporate Debtor will not affect its previous decision and the same will be binding on the newly included members of the COC. NCLAT Delhi Upholds Dismissal Of Section 9 Petition In Absence Of Cogent Evidence To Prove Supply Of Goods Case Title: M/s Mahadev Trading Company v M/s Supreet Chemicals Pvt. Ltd. Case No.: Company Appeal (AT) (Ins.) No. 149 of 2022 The National Company Law Appellate Tribunal ("NCLAT"), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Kanthi Narahari (Technical Member), has held that in absence of cogent evidence to prove that goods were supplied to the Corporate Debtor, a petition filed under Section 9 of IBC by Operational Creditor cannot be admitted. NCLT No Notice Is Required For Personal Guarantor At The Stage Of Appointment Of IRP: NCLT Amravati Case Title: Central Bank of India v Mr.Kothapatti Raju Case No.: CP (IB) No. 89/95/AMR/2022 The National Company Law Tribunal ("NCLT"), Amravati Bench, comprising of Justice Telaprolu Rajani (Judicial Member), has held that in terms of Section 97 and Section 100 of IBC, no notice or right of audience can be given to the Personal Guarantor at a stage before appointing the Interim Resolution Professional. It was observed that it is only under Section 100(3) of IBC that the Adjudicating Authority shall provide a copy of the order passed under Section 100(1) to the Creditors. Hence, in terms of Section 97 & Section 100 of IBC, no right of audience can be given to the Personal Guarantor at a stage before appointing the Interim Resolution Professional (IRP). Past Tax Liabilities That Are Not Part Of Resolution Plan Shall Stand Extinguished: NCLT Mumbai Case Title: Subodh Kumar Agrawal v Taguda Pte. Limited Case No.: CP(IB)No. 1790/MB/2017 The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Justice P.N. Deshmukh (Judicial Member) and Shri Shyam Babu Gautam (Technical Member), has held that all past liabilities arising out of any levies/tax dues to any government authorities, etc., which accrued during CIRP period and are not part of the Resolution Plan, shall stand extinguished from the date of approval of the Resolution Plan. The Bench accordingly waived off the income tax and GST liabilities of the Corporate Debtor that had accrued after initiation of CIRP. Continuation Of RP Till Appointment Of Liquidator Doesn't Contravene IBC: NCLT Chandigarh Case Title: Brij Lal Ashok Kumar v Tara Chand Rice Mills Pvt. Ltd. Case No.: CP (IB) No.121/Chd/Hry/2017 The National Company Law Tribunal ("NCLT"), Chandigarh Bench, comprising of Shri Harnam Singh Thakur (Judicial Member) and Shri Subrata Kumar Dash (Technical Member), has held that in absence of any order from the Adjudicating Authority appointing a liquidator, the Resolution Professional's continuation in its position is not in contravention of IBC. The Bench also directed the Liquidator to pay the professional fees to the Resolution Professional for such unauthorized period of service. IBBI IBBI Amends Model Bye-Laws Regulations For Insolvency Professional Agencies Notification No.: IBBI/2022-23/GN/REG101 The Insolvency and Bankruptcy Board of India ("IBBI") has amended the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 ("Model Bye laws Regulations") for a second time vide Gazette notification dated 31.10.2022. The Model Bye Laws Regulations lay down the governance structure and provides for model bye laws of the Insolvency Professional Agencies (IPA). The IBBI had issued three circulars, namely, (i) Circular No. IP/005/2018 dated 16.01.2018 specifying the format for disclosure of relationship by the insolvency professional; (ii) Circular no. IPA/009/2018 dated 19.04.2018 mandating IPAs to submit Annual Compliance Certificate in the format given in the circular; and (iii) Circular No. IBBI/IPA/43/2021 dated 28.07.2021 specifying the list of contraventions by IP and the amount of penalty to be imposed by IPAs. The second amendment incorporates the aforesaid three Circulars in the amended Model Bye Laws Regulations and the said circulars stand rescinded.

IBC Cases Weekly Round-Up: 31st October To 6th November 2022

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IBC Cases Weekly Round-Up: 31st October To 6th November 2022

Pallavi Mishra

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Pallavi Mishra

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