Subsequently Modified OTS Proposal Would Further Refresh The Limitation Period: NCLAT Chennai

Case Title: M/s. State Bank of India v M/s. Hackbridge Hewittic and Easun Limited

Case No.: Company Appeal (AT) (CH) (Ins.) No. 05 of 2021

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Shri Naresh Salecha (Technical Member), has held that submission of a One Time Settlement (“OTS”) proposal is acknowledgement of debt in terms of Section 18 of Limitation Act, 1963. Further, any fresh or subsequent/modified OTS proposal would further extend the limitation period by three years.

NCLAT Delhi Upholds Rejection Of ‘Discovery & Inspection’ Application Filed By Corporate Debtor In Section 9 Petition

Case Title: Baba Baidnath Spinners Pvt. Ltd. v Textile Solutions

Case No.: Company Appeal (AT) (Insolvency) No. 426 of 2023

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Judicial Member) and Shri Barun Mitra (Technical Member), has upheld the rejection of an application for discovery and inspection of documents field by the Corporate Debtor in a petition under Section 9 of IBC. The Bench held that the worth of document filed by the Operational Creditor is to be considered at the time of considering the Section 9 petition. Further, the embargo to file relevant documents in support of its case is on the Operational Creditor alone.

NCLT

IBC-NCLT Chandigarh Approves Resolution Plan For Haryana Telecom Limited

Case Title: Parivartan Investment and Finance Company vs Haryana Telecom limited

Case No.: CP (IB) No.515/Chd/Chd/2019

The National Company Law Tribunal (“NCLT”), Chandigarh bench, comprising of Shri Harnam Singh Thakur (Judicial Member) and Shri Subrata Kumar Dash (Technical Member) has approved a Rs. 25 crore worth resolution plan of Mr. Abhimanyu Singh Mehlawat for Haryana Telecom Limited (“Corporate Debtor”). The resolution plan offered a 15.33% recovery of 8.20 crores to the Secured Financial Creditors amounting to 1.25 crores. It further offered a 24.10% recovery of 86.63 crores amounting to 20.88 crores to Operational Creditors.

IBC-NCLT Chennai Approves Resolution Plan For Hindustan Photo Films Mfg. Co. Ltd.

Case Title: CA M. Suresh Kumar (RP of Hindustan Photo Films Mfg. Co. Ltd.

Case No: TPC/1/2021

The National Company Law Tribunal (“NCLT”), Chennai bench, comprising of Shri Ramalingam Sudhakar (Judicial Member) and Shri Sameer Kakar (Technical Member) has approved a Rs. 105.30 crore worth resolution plan of Mr. M.K. Rajagopalan for Hindustan Photo Films Mfg. Co. Ltd. (“Corporate Debtor”).

The final settlement involved sale of assets of the Corporate Debtor through the resolution plan and the remaining assets called the “Leasehold Assets” would undergo Liquidation, which were treated as “Excluded Assets” by the CoC. The Liquidation Value of the assets of the Corporate Debtor was determined to be Rs. 91.87 crores. The Liquidation Value of the Leasehold Land was determined to be Rs. 544.97 crores. The resolution plan offered a 0.0023% recovery of Rs. 39,274 crores to the Secured Financial Creditors amounting to Rs. 100.80 crores. It did not offer any recovery to Unsecured Financial Creditors and Operational Creditors.

NCLT Chennai Orders Dissolution Of M/S Pillar Industries India Private Limited Under Section 59 Of IBC

Case Title: M/s Pillar Industries India Private Limited

Case No.: CP (IB)/ 80(CHE)/2022

The National Company Law Tribunal (“NCLT”), Chennai bench, comprising of Ashok Kumar Bharadwaj (Judicial Member) and Sameer Kakar (Technical Member), has ordered for dissolution of M/s Pillar Industries India Private Limited (“the Company”) under section 59 of IBC. The Company filed a petition before NCLT Chennai through its Liquidator for initiation of voluntary liquidation proceedings. The Company was incorporated on 11.03.2020 but it was not able to commence business operations due to COVID-19 pandemic. There were 2 directors of the company who had infused capital in it and had given a declaration of solvency dated 16.08.2021. The assets of the Company amounted to Rs. 8,86,42,273 and the Company had no debts.

HIGH COURT

IBC-Gujarat High Court Stays The Order Of IBBI Disciplinary Committee

Case title: Bhupendra Singh Rajput v Insolvency and Bankruptcy Board of India (IBBI)

Case No.: R/SPECIAL CIVIL APPLICATION NO. 6988 of 2023

The Gujarat High Court Bench, comprising of Justice Vaibhavi D. Nanavati, while adjudicating a petition filed in Bhupendra Singh Rajput v Insolvency and Bankruptcy Board of India (IBBI), has stayed the order passed by the Disciplinary Committee of the Insolvency and Bankruptcy Board of India (“IBBI”), whereby the registration of an Insolvency Professional was suspended over alleged violations of the IBC provisions. The ground of challenge was that the coram of Disciplinary Committee comprised of only one Member, which contravened Section 220(1) of IBC.