IBC Cases Weekly Round-Up: 26 September To 2 October, 2022

NCLAT Voluntary Initiation Of CIRP By Bihar State Construction Corp., NCLAT Delhi Approves Case Title: Bihar State Construction Corporation Limited Employee Union v Bihar State Construction Corporation Limited Case No.: Company Appeal (AT) (Insolvency) No. 1493 of 2019 The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Shri Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member), has upheld the Adjudicating Authority's decision to initiate Corporate Insolvency Resolution Process ("CIRP") against Bihar State Construction Corporation Ltd. ("BSCCL"). BSCCL had moved a petition under Section 10 of IBC seeking initiation of its own insolvency process for being unable to pay debt amounting to Rs. 104,16,98,874/- as on 31.03.2016. Mr. Nitesh Kumar More has been appointed as the Interim Resolution Professional. NCLAT Delhi Imposes Cost Of Rs. 2Lakhs On Bidder Who Initiated Misconceived Litigation Case Title: M/s. SGA Fashion Pvt. Ltd. v CMA Sandeep Kumar Bhatt Case No.: Company Appeal (At) (Insolvency) No. 117 Of 2022 The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member), has rejected the application filed by an auction bidder close to the auction date, wherein the bidder after having participated in the bidding process, had turned around and challenged the eligibility criteria for being erroneous. The Bench observed that the bidder had not challenged the eligibility condition before any appropriate forum and thus filing an application before the NCLT was truly misconceived. The Bench imposed a cost of Rs. 2 Lakhs on the bidder. NCLT Can't Refer To Arbitration U/S8 Of The A&C Act While Exercising Powers U/S 7, 9 And 10 Of The IBC: NCLAT Principal Bench Case Title: Trafigura India Pvt. Ltd. V. TDT Copper Ltd. Case No.: Company Appeal (AT) (Insolvency) No. 742 of 2020 The NCLAT Principal Bench comprising of Justice Anant Bijay Singh, Judicial Member and Ms. Shreesha Merla, Technical Member has upheld the order passed by the Adjudicating Authority which upheld the order of the AA, dismissing Appellant's S. 9 Application under IBC on the ground that unpaid amounts in the Settlement Agreement do not constitute 'operational debt' u/s 5(21) of the IBC and that the role of the NCLT is limited while exercising its powers u/s 7, 9 and 10 of the Code and thus cannot refer the matter to arbitration u/s 8 of the Arbitration and Conciliation Act. NCLT NCLT Delhi Issues Notice To Spicejet In An Insolvency Plea U/S 9 Of IBC The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri P.S.N. Prasad Judicial Member) and Shri Rahul Bhatnagar (Technical Member), has issued notice to Spicejet Ltd. to appear and file its Reply in a petition under Section 9 of IBC filed against it. Spicejet Ltd. is engaged in affordable aviation business with domestic, international and charter flight facilities in India.

IBC Cases Weekly Round-Up: 26 September To 2 October, 2022

Pallavi Mishra

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