IBC Cases Weekly Round-Up: 3 October To 9 October, 2022

SUPREME COURT Discretion Of NCLT Under Section 7(5)IBC - Observations In 'Vidarbha Industries' Made In Context Of Case: Supreme Court Refuses Review Case Title : Axis Bank Ltd versus Vidarbha Industries Power Ltd Case No.: 2022 LiveLaw (SC) 817, RP (Civil) 1043/2022 The Supreme Court Bench comprising of Justices Indira Banerjee and JK Maheshwari held that there is no ground to review the judgment in Vidarbha Industries Power Ltd. vsAxis 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. Disposing of the review petition filed by Axis Bank, the Court stated that the observations in the judgment were made in the context of the facts of the case. The Court refused to accept the argument of Solicitor General of India that certain observations made in the judgment could be interpreted in a manner that might be contrary to the aims and objects of the IBC and render the law infructuous."The apprehension appears to be misconceived", the Bench observed in the review. NCLAT Withdrawal Of Resolution Plan Will Have Disastrous Effect: NCLAT Case Title: Shardha Buildcon Pvt. Ltd v. The Dhar Textile Mills Ltd. Case No.: Company Appeal (AT) (Ins) No. 1128 of 2022 The National Company Law Appellate Tribunal (NCLAT) bench, comprising of Justice Ashok Bhushan and Mr. Barun Mitra dismissed the appeal filed by the Resolution Applicant seeking permission to withdraw its resolution plan and held that allowing withdrawal of a resolution plan will have serious disastrous effect on the whole purpose of the IBC. The Appellant filed the appeal before the NCLAT against the order passed by NCLT, which relying upon the judgment of Supreme Court in Ebix v. Educomp dismissed the application filed by Appellant seeking withdrawal of the resolution plan. "The IBC is process consists of different steps with a ultimate object of reviving the Corporate Debtor. Permitting Successful Resolution Applicant to withdraw after the Plan has been approved will have serious disastrous effect on whole purpose and object of IBC." Accordingly, NCLAT dismissed the appeal filed by the Appellant and upheld the order of NCLT. NCLAT Delhi Sets Aside Unreasoned Order Passed By AA For Not Satisfying "Requirements Of An Order" Case Title: Gandhar Oil Refinery (India) Ltd. v City Oil Pvt. Ltd. Case No.: Company Appeal (AT) (Insolvency) No. 915 of 2022 The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice M. Satyanarayana Murthy (Judicial Member) and Mr. Barun Mitra (Technical Member), has set aside an order passed by Adjudicating Authority dismissing a petition under Section 9 of IBC, for not being a reasoned order and thus not satisfying the requirements of an order. It was observed that though no specific form is prescribed under IBC for contents of order or Judgment, but general rules relating to contents shall be followed by Adjudicating Authority. NCLT NCLT Rules 43 Only Empowers AA To Seek Production Of A Document, Not Parties: NCLT Hyderabad Case Title: Ind Barath Power Infra Ltd. v India Infrastructure Finance Co. Ltd. Case No.: CP (IB) No.363/7/HDB/2020 The National Company Law Tribunal ("NCLT"), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Veera Brahma Rao Arekapudi (Technical Member), has held that Rule 43 of the NCLT Rules 2016 only empowers the Adjudicating Authority and not the Parties to seek production of documents/further information. Accordingly, the Bench dismissed an application filed by Corporate Debtor, seeking direction to the Financial Creditor to produce a Corporate Guarantee Deed. NCLT Mumbai Initiates Insolvency Process Against First Flight Couriers Case Title: Srinidhi Comprint Private Limited v First Flight Couriers Limited Case No.: CP (IB)738/MB/C-IV/2021 The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Shri Kishore Vemulapalli (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), has initiated Corporate Insolvency Resolution Process (CIRP) against First Flight Couriers Ltd. and Mr. Indrajit Mukherjee has been appointed as Interim Resolution Professional. First Flight Couriers Limited ("Corporate Debtor") is a premier courier service providing company in India, operating since 30 years in both domestic and international domain.

IBC Cases Weekly Round-Up: 3 October To 9 October, 2022

Pallavi Mishra

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