Weekly Digest Of IBC Cases: 2nd To 8th October 2023

NCLAT Registry Remained Open, Summer Vacation Not Excluded From Computation Of Limitation: NCLAT Delhi Case title: M K Overseas Export Pvt. Ltd. v Sapan Mohan Garg Case No.: Company Appeal (AT) (Ins.) No.1040 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member) and Shri Arun Baroka (Technical Member), has held that the duration of summer vacation of NCLAT cannot be excluded from computation of limitation period, since filing facility was not discontinued by the Registry and urgent matters were also being heard twice a week by the NCLAT. “In so far as the submission of the applicant that there was summer vacation, therefore, appeal could not be filed. There is already notification issued by the Registry that filing of the appeal is not precluded during summer vacation and Court also use to convene twice in a week to consider urgent matters. Therefore that submission has also no legs to stand.” NCLAT Directs Indexing Of All Interim Applications In The Main Volume Ref: F. No. 10/37/2018-Estt./NCLAT The National Company Law Appellate Tribunal (“NCLAT”) has issued a notice dated 04.10.2023, directing the Advocates/Authorised Representatives/Parties-in-Person to index all Interim Applications (“IA”) in the main volume of the Appeal/application filed before the NCLAT. The indexing of the IAs is to be done after Memo of Parties and Synopsis, but before the Pleadings. “In compliance of the order dated 26.09.2023 passed in Company Appeal (AT) (Ins.) No.545 of 2023 and as directed by the Competent Authority, henceforth Ld. Advocates/Authorised Representatives / Parties-in-Person are directed to index all the IAs (whatever it may be) in the main volume after Memo of Parties and Synopsis but before the pleadings.” NCLAT New Delhi: Objective Of IBC Is To Revive Corporate Debtor And Liquidation Is The Last Resort Case Title: Gayatri Polyrub Pvt. Ltd. vs. Anil Kohli & Anr. Case No.: Company Appeal (AT) (Insolvency) No. 650 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member), has held that the objective of IBC is to revive the Corporate Debtor and Liquidation as the last resort in a well-settled law. The Bench gave an opportunity to the CoC to consider the Revised Offer and take the decision to meet the ends of justice and extend the CIRP for a period of 60 days. NCLAT New Delhi: Resolution Plan Cannot Go Back And Forth Making CIRP An Endless Process, Even If NCLT Has Not Approved The Plan Case Title: IDBI Bank Ltd. vs. Jalesh Kumar Grover RP of GPI Textiles Ltd. Case No.: Company App. (AT) (Ins) No. 799 of 2023 The National Company Law Appellate Tribunal (‘NCLAT’), Principal Bench, New Delhi comprising of Justice Rakesh Kumar Jain (Judicial Member) and Arun Baroka (Technical Member), has held that as per the principle established by the Supreme Court in RPS Infrastructure Ltd. vs. Mukul Kumar & Anr., even if the NCLT has not approved a Resolution Plan, it should not lead to a situation where the Plan can go back and forth making the CIRP an indefinite and never-ending process. NCLAT Chennai: Not Open To NCLT To Reject Withdrawal Application U/S 12A, Where 90% Voting Share Of CoC Exists Case Title: Mayuras Industrial Services vs. S R Shriraam Shekher & Anr Case No.: Company Appeal (AT) (CH) (Ins) No. 07/2023 The National Company Law Appellate Tribunal (‘NCLAT’), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Shreesha Merla (Technical Member), has held that the jurisdiction of NCLT under 12A of IBC is limited. Further, where the CoC had approved more than 90% of the voting share, it is not open to the NCLT in law to reject the application. NCLAT New Delhi: Ex-Director Cannot Claim Copy Of Resolution Plan When Entire CIRP Process Completed Case Title: Diwakar Sharma vs. Anand Sonbhadra Case No.: Company Appeal (AT) (Insolvency) No. 1182 of 2023 The National Company Law Appellate Tribunal (‘NCLAT), New Delhi bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member), and Shri Arun Baroka (Technical Member), has held that an Ex-Director cannot claim a copy of the Resolution Plan after its approval since the entire CIRP process is over with the Resolution Plan already approved in 2022. NCLT Operational Creditor Misleads Court To Evade Prohibition Under Section 10A Of IBC, NCLT Mumbai Imposes Cost of Rs. 25,000/- Case Title: Oswal Minerals Limited v Vidhi Minerals & Alloys Private Limited Case No.: CP (IB) NO. 414 OF 2023 The National Company Law Tribunal (NCLT), Mumbai Bench, comprising of Ms. Lakshmi Gurung (Judicial Member) and Shri Charanjeet Singh ...

Weekly Digest Of IBC Cases: 2nd To 8th October 2023

Pallavi Mishra

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