Weekly Digest Of IBC Cases: 4th To 10th March 2024

NCLAT NCLAT Delhi: Treatment Of Income Tax Dues In The Resolution Plan As 'Operational Creditor' Doesn't Violate Section 30(2) Of IBC Case Title: Jaiprakash Associates Ltd. vs. Jaypee Infratech Ltd. and Ors. Case No.: Company Appeal (AT) (Insolvency) No. 548 of 2023 The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has held that treatment of the Income Tax Department's dues in the Resolution Plan as 'Operational Creditor' is not violative of Section 30(2) of IBC. NCLT Can't Direct CoC To Consider Suspended Management's Settlement Proposal, Without Opportunity To SRA: NCLAT Delhi Case title: One City Infrastructure Pvt. Ltd. v Pratham Expofab Private Limited & Ors. Case No.: Company Appeal (AT) (Insolvency) No.287 of 2024 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member) and Shri Arun Baroka (Technical Member), has held that the NCLT cannot direct the CoC to consider settlement proposal of Suspended Management of Corporate Debtor, without granting an opportunity to be heard to the Successful Resolution Applicant (SRA). During the pendency of plan approval application before NCLT, the Suspended Management filed an application seeking consideration of their settlement proposal by Committee of Creditors (“CoC”). The NCLT did not accord any opportunity to SRA to file its response to the application and directed the CoC to consider the settlement proposal vis-à-vis the resolution plan. The NCLAT has set aside the NCLT order. NCLAT Delhi: Non-Grant Of Reliefs And Concessions By NCLT Does Not Have Any Adverse Effect On The Validity Of The Resolution Plan And Is Not Violative Of The Law Case Title: Jaiprakash Associates Ltd. vs. Jaypee Infratech Ltd. and Ors. Case No.: Company Appeal (AT) (Insolvency) No. 548 of 2023 The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that non-grant of any reliefs and concessions by NCLT does not have any adverse effect on the validity of the Resolution Plan and is not a violation of the law. The Bench emphasized that the Successful Resolution Applicant is obligated to implement the Resolution Plan, irrespective of whether specific reliefs and concessions are granted or not. It rejected the argument that the non-approval of certain reliefs and concessions within the Resolution Plan, the Resolution Plan cannot be approved and should be sent back to the CoC. NCLAT Delhi: Personal And Corporate Guarantors Have No Right Of Subrogation After Approval Of Resolution Plan Case Title: Jaiprakash Associates Ltd. vs. Jaypee Infratech Ltd. and Ors. Case No.: Company Appeal (AT) (Insolvency) No. 548 of 2023 & I.A. No. 2643, 3702 of 2023 The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that the personal guarantors and corporate guarantors have no right of subrogation after the approval of the Resolution Plan under IBC. NCLAT Delhi: Section 29A(C) Disqualifies Those Managing And Controlling Corporate Debtor Who Failed To Clear Debts Case Title: Navayuga Engineering Company Ltd. vs. Mr. Umesh Garg RP of Athena Demwe Power Ltd. and Ors. Case No.: Company Appeal (AT) (Insolvency) No. 783 of 2023 The National Company Law Appellate Tribunal ('NCLAT') New Delhi, comprising Mr. Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has held that Section 29A(c) of IBC disqualifies not only those in management and control of the Corporate Debtor when its account was declared Non-Performing Asset ('NPA') but also those in management and control of the Corporate Debtor in close proximity of time before the Resolution Plan was submitted, who failed to clear the debts of the Corporate Debtor. NCLAT Delhi: Resolution Professional Is An Aggrieved Person If NCLT Overturns His Decision Case Title: Devendra Singh Vs. Homebuyers of Sidhartha Buildhome Pvt. Ltd. & Ors. Case No.: Company Appeal (AT) (Ins.) No. 791 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), held that the Resolution Professional is an aggrieved party when the decision of the National Company Law Tribunal (“NCLT”) directly overturns his decision. Whether The Vote Of Each Homebuyer Is Required During The Voting On CIRP Withdrawal Resolutions? NCLAT Clarifies S 12A of IBC Case Title: Vijay Saini vs Devender Singh & Ors. Case No.: Company Appeal (AT) (Ins.) No. 1194, 791 & 982 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench,...

Weekly Digest Of IBC Cases: 4th To 10th March 2024

Pallavi Mishra

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