Weekly Digest Of IBC Cases: 03rd June 2024 To 09th June 2024

HIGH COURTS Official Liquidator Must Adhere To Ethical Principles And Fairness To Discharge Their Duties Under IBC: Delhi High Court Case Title: Sundaresh Bhat vs Insolvency And Bankruptcy Board of India Case No.: W.P.(C) 14389/2022 The Delhi High Court bench of Justice Subramonium Prasad held that official liquidators must adhere to ethical principles and demonstrate an unwavering commitment to fairness to discharge their duties under the Insolvency and Bankruptcy Code. Once Resolution Plan Is Approved By NCLT, Corporate Entity Starts With Clean Slate : Calcutta High Court Case Title: Union of India & Anr. vs Ramswarup Lohh Udyog & Ors Case No: IA No. GA/2/2024 The Calcutta High Court bench of Justice Sugato Majumdar held that after the insolvency proceeding is over and the resolution plan is duly approved by the National Company Law Tribunal, the corporate entity starts with a clean slate on rejuvenation. No Irreversible Actions In Winding Up, Company Court Can Transfer Proceedings To NCLT: Bombay High Court Case Title: Omkara Assets Reconstruction in the matter of ICICI Bank Limited vs Classic Diamonds (India) Limited Case Number: Interim Application (L) No. 25210 of 2022 in Company Petition No. 317 of 2012 The Bombay High Court bench of Justice Abhay Ahuja held that as long as no irreversible actions, such as actual sales of immovable or movable properties, have occurred, the Company Court retains the discretion to transfer proceedings to the NCLT. Mere Initiation Of Proceedings Under IBC Doesn't Bar Liability Of Signatory Of Cheque Under Negotiable Instruments Act: Madhya Pradesh High Court Case Title: Anurodh Mittal vs Rehat Trading Company Case No.: Miscellaneous Criminal Case No. 17782 of 2024 The Madhya Pradesh High Court bench of Justice Gurpal Singh Ahluwalia has held that merely because of the initiation of proceedings under the Insolvency and Bankruptcy Code, 2016 the signatory of the cheque cannot escape from his liability under the Negotiable Instruments Act, 1881. NCLAT NCLAT Dismisses Appeal Raised By Byju's Investors Against Alleged Violation Of NCLT Directives Case Title: MIH Edtech Investments and Ors. vs Think and Learn Pvt Ltd Case No.: Company Appeal (AT) (CH) No.24/2024 (IA No.420/2024) (IA No.422/2024) (IA No.421/2024) The National Company Law Appellate Tribunal Chennai bench comprising Justice Sharad Kumar Sharma and Jatindranath Swain (Technical Member) dismissed the appeals brought by four investors since the Adjudicating Authority has not made any final decision on any significant rights against the investors and instead has merely requested them to file an affidavit to support their claims regarding the alleged violation of its directives. Once Company Board Finds That Proposed Scheme Is Not Against Public Policy, NCLT Can't Sit In Appeal: NCLAT Case Title: Oriental Carbon & Chemicals Ltd vs OCCL Ltd Case No.: Company Appeal (AT) No. 144 of 2024 The National Company Law Appellate Tribunal, Principal Bench of Justice Yogesh Khanna (Judicial Member) and Ajai Das Mehrotra (Technical Member) held that if the Company Court finds no violation of any law and the proposed scheme is not objectionable or against public policy, then the NCLT lacks jurisdiction to question the commercial judgment of those who approved it. NCLAT Delhi: Claims Of Tax Assessment Orders Passed During Moratorium Under IBC Can Be Considered As Unsecured Operational Debt Case Title: Commissioner of State Tax Department vs Ramchandra Dallaram Chaudhary (Liquidator) Case No.: Company Appeal (AT) (Ins) No. 34 of 2024 & I.A. No. 105, 106, 990 of 2024 The National Company Law Appellate Tribunal Delhi, comprising Mr. Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member), and Mr. Indevar Pandey (Technical Member) held that the claims of Tax Assessment Orders passed during the moratorium under Sections 14 & 33(5) of Insolvency and Bankruptcy Code, 2016 can be considered as Unsecured Operational Debt. NCLAT Delhi: Proceedings U/S 66 Of IBC For Fraudulent Or Wrongful Trading Can Be Initiated Against Third Parties Case Title: Royal India Corporation Ltd. vs Mr. Nandkishor Vishnupant Deshpande, RP of Royal Refinery Pvt. Ltd. and Ors. Case No.: Company Appeal (AT) (Ins) No. 137 of 2021 The National Company Law Appellate Tribunal Delhi comprising Justice Rakesh Kumar Jain (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member) held that proceedings under Section 66 of Insolvency and Bankruptcy Code, 2016 (“IBC”) for fraudulent or wrongful trading can be initiated against third parties. Refundable Security Deposit Carrying Interest In Development Agreement Constitutes Financial Debt U/S 5(8) Of IBC: NCLAT New Delhi Case Title: Chintan Jhunjhunwala vs Avani Towers Private Limited & Ors Case No.:...

Weekly Digest Of IBC Cases: 03rd June 2024 To 09th June 2024

Sachika Vij

Tags