Weekly Digest Of IBC Cases: 06th To 12th May 2024

Supreme Court Can Homebuyer's Claim For Apartment Be Rejected For Not Filing Claim During Insolvency Process Against Builder? Supreme Court To Decide Case Title: Ayush Agarwal vs Jaypee Infratech Ltd. & Ors. Citation: Civil Appeal No. 5185/2024 The Supreme Court of India is set to determine whether the non-filing of a claim during the insolvency resolution process of a builder can result in the rejection of a homebuyer's claim for allotment of apartment. The case surrounds the insolvency process of Jaypee Infratech Limited. Its resolution plan was approved by the National Company Law Tribunal and was subsequently challenged in the Appellate Tribunal. In the main appeal, several intervention applications were filed including the one filed by the present appellant, an allottee of unit in Kosmos. The same was supposed to be developed by Jaypee. The Division Bench of Justices Sanjiv Khanna and Dipankar Datta, while issuing notice in the instant appeal, also added: “We clarify that the issue of notice in the present appeal will not come in the way of execution/implementation of the resolution plan. Allotment of the unit to the appellant, if made, will be subject to the outcome of the present appeal and the right and claim of the appellant.” Ambiguities In Uploading Of NCLT Orders, Requirement Of Enclosing Certified Copies With Appeal: Supreme Court Seeks IBBI Clarification Case Title: Manan Chopra and Ors vs Soni Realtors Pvt Ltd. Citation: Civil Appeal No. 5452/2024 The Supreme Court of India (on May 06) issued notice to the Insolvency and Bankruptcy Board of India, inter-alia, on the requirement to obtain a certified copy of the order and attach the same with the appeal. The Bench of Justices Sanjiv Khanna and Dipankar Datta has issued notice considering that there is “considerable ambiguity” in certain issues concerning the service of the orders passed by the National Company Law Tribunal, uploading of orders on the website, and the one mentioned above. "We are also inclined to issue notice to the Insolvency and Bankruptcy Board of India, as there appears to be considerable ambiguity concerning service of the orders passed by the National Company Law Tribunal, uploading of orders on the website and also the requirement to obtain a certified copy of the order and enclose the same with the appeal." In view of this, the Insolvency Board has been asked to examine whether the process requires any clarification, modification, or simplification. HIGH COURTS Lender Bank Registered With CERSAI Has 1st Priority Over DCST Against Proceeds Of Enforcement Under SARFAESI Act: Bombay High Court Case Title: Purushottam Prabhakar Chavan Versus Deputy Commissioner of Sales Tax (GST) Case No.: Writ Petition No. 3477 Of 2024 The Bombay High Court has held that lender bank registration with the Central Registry of Securitisation and Security Interest of India (CERSAI) has first priority over Deputy Commissioner of Sales Tax (GST) (DCST) against proceeds of enforcement under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The bench of Justice B.P. Colabawalla and Justice Somasekhar Sundaresan observed that the Lender Bank had first priority in enforcement against the Walkeshwar Flat with effect from January 24, 2020, having been the first to register with CERSAI, which was done on January 2, 2020. The bench noted that Encore ARC, which conducted the auction on February 28, 2023, acquired the entitlement to priority from the lender bank along with the assignment of the loans to the borrowers with attendant security interests on March 21, 2020. NCLT Claim Cannot Be Admitted After The Approval Of Resolution Plan By The CoC Even If Approval By The Adjudicating Authority U/S 31 Of IBC Is Pending: NCLT Mumbai Case Title: Mr. Jai Kumar Rai and Mrs. Supriya Saxena v. Mr. Arun Kapoor In M/s. Capri Global Capital Ltd. v. M/s. Monarch Brookefields LLP Case No.: IA No. 3014 of 2021 In CP (IB) 2517(MB) of 2018 The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising Mr. Kuldip Kumar Kareer (Judicial Member) and Mr. Anil Raj Chellan (Technical Member) has held that claims cannot be admitted after the approval of the resolution plan by the Committee of Creditors (“CoC”) even if approval by the Adjudicating Authority under section 31 of the Insolvency and Bankruptcy Code, 2016 (“Code”) is pending. NCLT Notifies Holidays And Upcoming Vacation In Benches Of NCLT File No.: 10/03/2024-NCLT The Registrar of the National Company Law Tribunal (“NCLT”) has issued a circular dated 02.05.2024, intimating the holidays and upcoming vacation benches at NCLT. The Registrar has directed that during the vacation only urgent matters at NCLT Benches shall be taken up via video conferencing mode. The same is subject to the...

Weekly Digest Of IBC Cases: 06th To 12th May 2024

Sachika Vij

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