IBC Cases Weekly Round-Up: 16 January To 22 January 2023

NCLAT NCLAT Delhi Upholds Dismissal Of Application Seeking Restraint On Oyo From Proceeding With IPO Case Title: Jagadish v Oyo Hotels & Homes Pvt. Ltd. Case No.: Company Appeal (AT) (Insolvency) No. 1408 of 2022 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has upheld the Adjudicating Authority’s order rejecting applications filed by Operational Creditor to direct Oyo not to proceed with its IPO and furnish its financial statements. The reliefs sought by the Operational Creditor have been regarded as premature, since CIRP has not yet been initiated against Oyo. Oyo Hotels & Homes Pvt. Ltd. (“Corporate Debtor”) owns and operates a chain of hotels across India under the banner ‘OYO’. Recently, the Corporate Debtor announced Initial Public Offering (IPO) of its shares and the IPO is still under process. ‘Filed Only For Recovery Of Balance Interest Amount’: NCLAT Delhi Upholds Dismissal Of Section 9 Petition Case Title: Permali Wallace Pvt. Ltd. v Narbada Forest Industries Pvt. Ltd. Case No.: Company Appeal (AT) (Insolvency) No. 36 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has held upheld the Adjudicating Authority’s dismissal of a Section 9 petition, which was filed merely for recovery of balance interest amount in view of a settlement agreement and not for resolution of the Corporate Debtor. The Bench placed reliance on the Supreme Court judgment in Swiss Ribbon Pvt. Ltd. v Union of India, (2019) 4 SCC 17, wherein it was held that IBC is not a recovery proceeding. Section 17 Of Limitation Act Inapplicable Where Limitation Is Prescribed For Appeal: NCLAT Delhi Case Title: Maharashtra State Electricity Distribution Company Ltd. v NRC Ltd. & Anr. Case No.: Company Appeal (AT) (Insolvency) No. 13 of 2023. 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 17(1) of Limitation Act, 1963 deals with period of limitation in the case of any suit or application. On the face of it, Section 17(1)(c) does not come into play in an Appeal when limitation is prescribed for an Appeal. Landowner In A Development Agreement Not A Financial Creditor: NCLAT Delhi Case Title: Ashoka Hi-Tech Builders Pvt. Ltd. v Sanjay Kundra & Anr. Case No.: Company Appeal (AT) (Insolvency) No. 46 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has held that a landowner in a development agreement is not a financial creditor within the meaning of Section 5(8) of IBC and cannot be included in the Committee of Creditors. The Bench observed that the Development Agreement clearly states that the Landowner was a collaborator in the development agreement and not a financial creditor. There was no disbursement for time value of money by the Landowner within meaning of Section 5(8) of the IBC. Operational Creditors Only Entitled To Minimum Of The Liquidation Value: NCLAT Delhi Case Title: Dharmindra Constructions Pvt. Ltd. & Anr. v Rajendra Kumar Jain Case No.: Company Appeal (AT) (Insolvency) No.1477 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 Operational Creditors are only entitled for minimum of the liquidation value. The Bench observed that the Liquidation value of the Appellant/Operational Creditor was Nil. Even the Operational Creditors which are Government and whose verified claim is Rs. 295.18 Crores, were paid NIL. The requirement for the obligation for payment of amount to the Operational Creditor is under Section 30(2)(b) and the plan had not violated the said provision. NCLT NCLT Delhi Admits Unibera Developers Into Insolvency Case Title: Mahi Buildhome Pvt. Ltd. v M/s. Unibera Developers Pvt. Ltd. Case No.: (IB)-505(ND)2022 The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Ashok Kumar Bhardwaj (Judicial Member) and Shri L. N. Gupta (Technical Member), has initiated Corporate Insolvency Resolution Process against Unibera Developers Pvt. Ltd. Mr. Ashok Kumar Jalan has been appointed as the Interim Resolution Professional (IRP). Unibera Developers Pvt. Ltd. (“Corporate Debtor”) is engaged in the development of residential, commercial and government real estate projects. The Corporate Debtor’s projects are located in NOIDA, Greater NOIDA, Ghaziabad and Bihar. NCLT Mumbai Approves Promoter’s Resolution Plan For Srithik Ispat Pvt. Ltd. Case...

IBC Cases Weekly Round-Up: 16 January To 22 January 2023

Pallavi Mishra

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