IBC Cases Weekly Round-Up: 28 November To 4December 2022

NCLATNCLAT Chennai Condones Delay Of 147 Days In Filing Appeal,The Time Spent On Bona fide LitigationCase Title: M.K. Resely & Ors. v Union Bank of India Case No.: Company Appeal (AT)(CH)(Ins) No.337/2022 The National Company Law Appellate Tribunal ("NCLAT"), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Shri Naresh Salecha (Technical Member), has condoned a delay of 147 days in filing of appeal before NCLAT upon equity. The delay had occurred as the Appellant had challenged the Impugned Order before the High Court instead of NCLAT but on a bona fide basis. The time taken by the High Court in deciding the matter has been excluded by the NCLAT in computation of limitation. Net Worth Of Transferor & Transferee Company Being Highly Positive, Consent Of Secured Creditors Not Required For Amalgamation: NCLAT Delhi Case Title: Lasa Supergenerics Limited v Harishree Aromatics & Chemicals Private Limited Case No.: Company Appeal (AT) No. 82 of 2021 The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member), has held that in cases where the net worth of the Transferor and Transferee Companies are highly positive, it is not required to seek consent of secured creditor for amalgamation. In place of seeking a No Objection Certificate from Secured Creditor, the Bench has directed the Secured Creditor to file an objection to the Scheme of Amalgamation, if any, within 30 days. Section 96(1)(B) Of IBC Does Not Stay Any Future Liability Or Obligation: NCLAT Delhi Case Title: Ashok Mahindru & Anr. v Vivek Parti Case No.: Company Appeal (AT) (Insolvency) No.1324 of 2022 The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has held that Section 96(1)(b) of IBC does not stay any future liability or obligation. The Bench declined to stay proceedings under Section 19(2) and Section 66-67 of IBC initiated against the Personal Guarantors in another insolvency petition, in view of interim moratorium imposed under Section 96 of IBC in insolvency proceedings against the Personal Guarantors. NCLAT Approves Sugar Farmers As Separate Creditors Group In The Sugar Industry Resolution Plan Case Title: Excel Engineering & Ors. v Mr. Vivek Murlidhar Dabhade & Anr. Case No.: Comp. App. (AT) (Ins.) No. 85-86 of 2020 The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member), has urged the Government and the IBBI to examine some minimum entitlement to Operational Creditors based on the amount realised in the Resolution Plan over and above the liquidation value. NCLT RP Cannot Pursue An Avoidance Application After Approval Of Resolution Plan By The AA: NCLT Mumbai Case Title: State Bank of India v Ushdev International Limited Case No.: C.P (IB) No. 1790/MB/C-II/2017 The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Justice P.N. Deshmukh (Judicial Member) and Mr. Shyam Babu Gautam (Technical Member), has held that the Resolution Professional cannot carry the hat of the "Former Resolution Professional" and pursue an avoidance Application in respect of preferential transaction after the change of hands in the management of the Corporate Debtor. The Bench has rejected the avoidance application which was filed prior to approval of Resolution Plan but was being heard post approval. Central Government Notifies The Posting Of Newly Appointed NCLT Members The central government vide its order dated 02.12.2022 notified the posting of newly appointed NCLT Members. The posting of judicial members is as follows; a. Justice (Retd.) T Krishna Vali- Bengaluru b. Kuldeep Kunar Kareer- Mumbai c. Ashok Kumar Bhardawaj- New Delhi d. Praveen Gupta- Allahabhad e. Bidisha Banerjee- Kolkata The Posting of Technical Members is as follows: a. Prabhat Kumar- Mumbai b. Charan Singh-Hyderabad c. Anu Jagmohan Singh-Mumbai d. Ashish Verma-Allahabhad e. Atul Chaturvedi- New Delhi. Earlier, the Central Govt. notified the appointment of 15 new members for NCLT but only 10 members took oath and joined so far. After these appointments, the working strength of NCLT rises to 38 members as against the sanctioned strength of 63 members. Recently, the Central Government informs the Supreme Court that after the appointment of these 15 members process for appointment of other 19 vacancies is under process. HIGH COURTGujarat High Court Refuses Former NCLT Member's Plea For Re-Appointment Case Title: Manorama Kumari v Union of India Case No.: R/Special Civil Application No....

IBC Cases Weekly Round-Up: 28 November To 4December 2022

Pallavi Mishra

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