Weekly Digest Of IBC Cases: 27 February To 6 March 2023

NCLAT Defences Of ‘Pre-Existing Dispute’ Or ‘No Amount Due’ Can Be Raised Directly In Reply To Section 9 Application: NCLAT Delhi Case Title: Greymatter Entertainment Pvt. Ltd. v Pro Sportify Pvt. Ltd. Case No.: COMPANY APPEAL (AT) (INSOLVENCY) NO. 1043 of 2021 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Ms. Shreesha Merla (Technical Member), has held that IBC does not prevent the Corporate Debtor from establishing defences of ‘Pre-existing dispute’ or ‘No amount due’ through its Reply to Section 9 application and supporting documents, even if it failed to respond to the Section 8 Demand Notice within 10 days of receipt. Shifting Entire Blame On IRP Not Justified; Creditors Must Also Play Catalytic Role In CIRP: NCLAT Delhi Case Title: Shri Guru Containers v Jitendra Palande Case No.: Company Appeal (AT) (Insolvency) No.106 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 held that creditors must not shift the entire blame on the IRP on grounds of non-performance of duty and make him the scapegoat. It is equally important for the creditors to play a catalytic role in the insolvency resolution process given the creditor-driven regime of IBC. The rigours of similar standards of discipline should also apply on the creditors. NCLAT Delhi Sets Aside Rs. 25000 Cost Imposed On Resolution Professional By AA Case Title: Sanjai Kumar Gupta v Gouri Prasad Goenka Case No.: Company Appeal (AT) (Insolvency) No.70 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has set aside an order whereby the Adjudicating Authority had imposed a cost of Rs. 25,000/- on Resolution Professional for allegedly filing a frivolous application. The Bench observed that the orders of the Adjudicating Authority depicted that Suspended Director was neither cooperating with the Resolution Professional nor complying with the directions of Adjudicating Authority. Further, the Adjudicating Authority directed personal appearance of Suspended Director twice and noted the non-cooperation of the latter. The sudden turn of events where the application was rendered infructuous and frivolous by the Adjudicating Authority is not explained in the order dated 02.12.2022. NCLAT Delhi Upholds Liquidation Of M/S Ajanta Offset And Packaging Limited Case Title: Govind Prasad Todi & Anr. v Satya Narayan Guddeti & Ors. Case No.: Company Appeal (AT) (Insolvency) No. 1125 of 2022 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has directed the liquidation of the Corporate Debtor, M/s Ajanta Offset and Packaging Limited. Bench had also set aside the approval of the Resolution Plan by the Suspended Board of Directors. It has been held that the Successful Resolution Applicants, being the suspended promoters of the Corporate Debtor, cannot avail the exemptions from ineligibility under clause (c) and (h) of Section 29A of the Code. They could not submit a Resolution plan by registering as an MSME in view of section 240A of the Code after the initiation of the Corporate Insolvency Resolution Process. Shareholders Have No Locus To Challenge The Initiation Of CIRP Against Corporate Debtor: NCLAT Chennai Case Title: Nirej Vadakkedathu Paul v Sunstar Hotels and Estates Private Limited Case No.: Company Appeal (AT) (CH) (Ins.) No. 142 of 2022. 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 shareholders of Corporate Debtor have no locus to challenge the initiation of CIRP against the Corporate Debtor. The Bench has upheld the initiation of CIRP against M/s McDowell Holdings Limited. NCLT NCLT Chennai Bench Re-Constituted W.E.F 27th February 2023 File No.: 10/03/2023-NCLT The National Company Law Tribunal, Chennai Bench, has been re-constituted vide a Circular dated 24.02.2023 issued by NCLT. The re-constituted NCLT Chennai Bench shall comprise of: NCLT Chennai, Court Room No. II (First Half) Shri Sanjiv Jain (Judicial Member) Shri Sameer Kakar (Technical Member) NCLT Mumbai Initiates Insolvency Proceedings Against Reliance Broadcast Network Limited Case Title: IDBI Trusteeship Services Limited V. Reliance Broadcast Network Limited Case No.: C.P. 310 OF 2022 The National Company Law Tribunal (‘NCLT’), Mumbai bench comprising of Mr. Kuldip Kumar Kareer (Judicial Member) and Ms. Anuradha Sanjay Bhatia (Technical Member), while adjudicating an...

Weekly Digest Of IBC Cases: 27 February To 6 March 2023

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Pallavi Mishra

Weekly Digest Of IBC Cases: 27 February To 6 March 2023

Pallavi Mishra

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

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Pallavi Mishra

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