IBC Cases Weekly Round Up: June 13 To 19 June, 2022

Issuance Of Post Dated Cheques Is Not An Unqualified Admission Of Debt, NCLT Allahabad Dismisses Section 7 ApplicationCase Title: N.C. Goel & Maya Goel v Piyush Infrastructure India Private Limited Case No.: CP (IB) No.453/ALD/2019 The National Company Law Tribunal ("NCLT"), Allahabad Bench, comprising of Shri Rajasekhar V.K. (Judicial Member) and Shri Virendra Kumar Gupta (Technical Member), has held that issuance of post dated cheques cannot be taken to be unqualified admission of debt, because the presumptions drawn under Section 118 and Section 139 of the Negotiable Instruments Act, 1881, are rebuttable presumptions. The Bench further observed that the loans were given between 2011 to 2016 by the Applicants. However, in absence of any documentation, no date of default could be established. The date of default can only be calculated when the tenure of the loan is established, or when there is a demand for repayment. It was observed that receipt of interest was only evidenced through two letters of the Respondent, thus the claim regarding receipt of interest remain unsubstantiated. The order was passed on 13.06.2022. NCLT Mumbai Initiates Insolvency Process Against Bombay Rayon Fashions Ltd. Case Title: Vikash Parasprampuria v Bombay Rayon Fashions Limited Case No.: CP (IB) No.1443/MB-IV/2020 The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Mr. Kishore Vemulapalli (Judicial Member) and Mr. Rajesh Sharma (Technical Member), has initiated Corporate Insolvency Resolution Process ("CIRP") against Bombay Rayon Fashions Ltd. and Mr. Santanu T Ray has been appointed as the Interim Resolution Professional. The order was passed on 07.06.2022. Application By Chairman Of Monitoring Committee For CIRP Of Corporate Debtor's Debtor, Maintainable: NCLT Delhi Case Title: Educomp Infrastructure & School Management Ltd. v Millenium Education Foundation Case Title: C.P. No. (IB) 245/ND/2022. The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri Abni Ranjan Kumar Sinha (Judicial Member) and Shri Hemant Sarangi (Technical Member), has held that a Chairman of Monitoring Committee can file an application under IBC for initiating Corporate Insolvency Resolution Process ("CIRP") against the Corporate Debtor's debtor. It was observed that the Chairman of Monitoring Committee is covered under the purview of IBC by virtue of Section 2(d), which states that the provision of IBC is applicable to "such other body incorporated under any law for the time being in force, as the Central Government may, by notification, specify in this behalf". The Monitoring Committee is formed and its Chairman is appointed under the provisions of IBC. Therefore, the Chairman possesses the proper authority to take necessary steps to protect the Corporate Debtor's interest. The order was passed on 03.06.2022. IBBI Amends Its Regulations On Information Utilities The Insolvency and Bankruptcy Board of India has introduced second round of amendments to the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017 ("Information Utility Regulations") vide a notification dated 14.06.2022, bearing No. IBBI/2022-23/GN/REG085 in order to improve the availability of information. These amendments have come into force on 14.06.2022. The amendments are as follows: Before filing an application to initiate Corporate Insolvency Resolution Process (CIRP) under Section 7 or 9 of the Insolvency and Bankruptcy Code, 2016 ("IBC"), the creditor shall have to file the information of default, with the Information Utility. The Information Utility shall process the said information for the purpose of issuing record of default in accordance with Regulation 21. Previously only creditors were duty bound to submit their claims to the Resolution Professional, now the Corporate Debtor or its Promoter or any associate thereof is required to submit such information to the Resolution Professional in the prescribed format. The Operational Creditors will have to furnish the extracts of E-way bill, Form GSTR-1 and Form GSTR-3B alongwith their application under Section 9 of the IBC, if the concerned laws are applicable to them. In order to aid the Resolution Professional in preparation of the Information Memorandum, the creditors of the Corporate Debtor will have to share information with the Resolution Professional pertaining to the Corporate Debtor's assets, liabilities, latest financial statements and other financial information, as available with them. The Financial and Operational Creditors will have to furnish their PAN number and email ID while filing application under Section 7 or 9 of IBC.

IBC Cases Weekly Round Up: June 13 To 19 June, 2022

Pallavi Mishra

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