Weekly Digest Of IBC Cases: 17th June 2024 To 23rd June 2024

NCLAT NCLAT Delhi: Pending Scheme Under Section 230 Of Companies Act, Against CD, Can't Be A Ground To Deny Admission Of CIRP Case Title: Grand Developers Pvt. Ltd. vs. Nitin Batra & Ors. Case Number: Company Appeal (AT) (Insolvency) No. 899 of 2024 & I.A. No. 3250 of 2024 The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Mr. Justice Ashok Kumar Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that the pendency of a scheme involving the corporate debtor under Section 230 of the Companies Act, 2013 cannot be a ground to deny the admission of a Corporate Insolvency Resolution Process ('CIRP') application under Section 7 of Insolvency and Bankruptcy Code, 2016 ('IBC') against such corporate debtor. NCLAT Delhi: Section 95(1) Of IBC Permits Creditors To Initiate Insolvency Proceedings Against Personal Guarantors Via A Resolution Professional Case Title: Shrenik Ashokbhai Morakhia vs. Reliance Asset Reconstruction Company Ltd. and Anr. Case Number: Company Appeal (AT) (Insolvency) No. 719 of 2024 The National Company Law Appellate Tribunal ('NCLAT') Delhi bench, comprising Mr. Justice Ashok Bhushan (Chairperson) and Mr. Arun Baroka (Technical Member) held that Section 95(1) of Insolvency and Bankruptcy, Code, 2016 ('IBC') allows creditors to initiate insolvency process against a Personal Guarantor through a Resolution Professional ('RP'). It held that such an application cannot be questioned to be defective on the ground that the application was signed by the Resolution Professional rather than an authorized officer. NCLAT Delhi: Claims Cannot Be Automatically Treated As CIRP Costs Unless Directly Related To CIRP And Approved By CoC Case Title: Avil Menezes Liquidator of Sunil Hitech and Engineers Ltd. vs. Abdul Qudduskhan and Anr. Case Number: Company Appeal (AT) (Insolvency) No. 263 of 2024 The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Mr. Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) laid down the criteria to determine whether a cost incurred by a Resolution Professional ('RP') during the Corporate Insolvency Resolution Process ('CIRP') qualifies as CIRP cost under Section 5(13)(c) of Insolvency and Bankruptcy Code, 2016 ('IBC') read with IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ('CIRP Regulations') Regulation 31. NCLT NCLT Mumbai Approves Demerger Scheme For Raymond And Raymond Lifestyle Case Title: In the Matter of Section 230-232 of the Companies Act, 2013 and other applicable provisions of the Companies Act, 2013 read with the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016; AND In the matter of Arrangement Between Raymond Limited (“Demerged Company”) And Raymond Lifestyle Limited (“Resulting Company or Transferee Company”) And Ray Global Consumer Trading Limited (“Transferor Company”) And their respective Shareholders Case Number: CP (CAA)/38/MB-IV/2024 IN CA (CAA)/281/MB/2023 The National Company Law Tribunal (NCLT), Mumbai bench of Kishore Vemulapalli (Judicial Member) and Anu Jagmohan Singh (Technical Member) has granted approval on for a composite scheme of arrangement involving Raymond Limited (RL), Raymond Lifestyle (RLL), and Ray Global Consumer Trading (RG).Speculative Investor Is Not A Financial Creditor: NCLT ChandigarhCase Title: Nikhil Khanna & Ors vs. Spaze Towers Pvt LimitedCase No.: CP (IB) No. 70/Chd/Hry/2022 & IA No. 81/2024The National Company Law Tribunal, Chandigarh Bench, comprising Shri Harnam Singh Thakur (Judicial Member) and Shri L.N Gupta (Technical Member), while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) has held that speculative investor cannot claim the status and benefits as a Financial Creditor by virtue of being an allottee under Section 5(8)(f) of the Code.NCLT Kolkata: MSME Promoters Can Be Relaxed From Net Worth Criteria For Resolution Plan Submission, But Are Required To Deposit Security Deposit And EMDCase Title: Mr. Manish Kumar, suspended director of Wearit Global Ltd. vs. Rachna Jhunjunwala, RP and Anr.Case Number: I.A. (IB) No. 53/KB/2024 in Company Petition (IB) No. 100/KB/2019The National Company Law Tribunal ('NCLT') Kolkata bench of Justice Bidisha Banerjee (Judicial Member) and Shri Arvind Devanathan (Technical Member) held that MSME promoters can be relaxed from the net worth eligibility criteria to submit a Resolution Plan but not be waived off from depositing Security Deposit and EMD.Adjudicating Authority Rejects Application For Initiating Personal Insolvency Resolution Process Due To Forum Shopping: NCLT DelhiCase Title: Intec Capital Limited vs. Mr. Parul UpadhyayCase Number: CP(IB) 315(ND)/2022 & IA No. 913/2024The National Company Law Tribunal, Delhi Bench, comprising Shri Bachu Venkat...

Weekly Digest Of IBC Cases: 17th June 2024 To 23rd June 2024

Sachika Vij

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