Weekly Digest Of IBC Cases: 10 April To 16 April 2023

NCLAT Threshold Limit Of Rs. 1 Crore Applicable From The Date Of Filing And Not From Date Of Registration Of Petition: NCLAT Delhi Case Title: Royal Manpower Services v Faridabad Autocomp System Pvt. Ltd. Case No.: Company Appeal (AT) (Insolvency) No. 370 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Kanthi Narahari (Technical Member), has held the revised minimum threshold of Rs. 1 Crore is applicable from the date of filing of petition and not from the date of registration. The Bench revived a petition under Section 9 of IBC having a default lesser than Rs. 1 Crore, which was filed in 2019 but got registered in 2021. It has been observed that the subsequent registration of the petition will not change the date of filing. S. 66 Of IBC: Fraud Includes A Debt Which Debtor Has No Intention To Repay: NCLAT Delhi Case Title: Shri Baiju Trading and Investment Private Limited v Mr. Arihant Nenawati & Ors. Case No.: Company Appeal (AT) (Ins.) No. 699 of 2021 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Shri Naresh Salecha (Technical Member), has held under that ‘fraud’ for the purpose of Section 66 of IBC would consist of debts which the Debtor has no intention to repay or does not expect to be able to pay. Further, fraud may also happen by way of false representation, without there being any intention to pay back. The expression ‘any persons’ in Section 66 of IBC includes a knowing party to the carrying out of fraudulent transactions. NCLT NCLT Mumbai Bench Re-Constituted W.E.F 10th April 2023 File No.: 10/03/2022-NCLT The National Company Law Tribunal (“NCLT”) has released a Circular dated 10.04.2023, notifying that the Bench of Court No. 1 in NCLT Mumbai has been re-constituted with effect from 10.04.2023. The re-constituted NCLT Mumbai Bench shall comprise of: NCLT Mumbai, Court Room No. 1 (First Half) Shri H.V. Subba Rao (Judicial Member) Ms. Anju Jagmohan Singh (Technical Member) NCLT New Delhi Rejects Section 9 Application For Initiation Of CIRP Against G.S.P. Power Systems Private Limited Case Title: Connecting People of India vs G.S.P. Power Systems Private Limited. Case No.: COMPANY PETITION IB (IBC)/ 89(ND)/2022 The National Company Law Tribunal (NCLT), New Delhi bench, comprising Shri Rahul Bhatnagar (Technical Member) and Shri P.S.N. Prasad (Judicial Member), has rejected an application under section 9 of the Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) seeking initiation of Corporate Insolvency Resolution Process (“CIRP”) against G.S.P. Power Systems Private Limited. The Tribunal observed that the amount of default was Rs. 4,15,08,378.56 and the date of defaults were stated to be 05.11.2020 and 25.11.2020. Since the dates of default were after 25th March 2020, the petition was barred by Section 10A of IBC, 2016. NCLT Mumbai Rejects Section 9 Application For Initiation Of CIRP Against Elder Projects Limited Case Title: Nanz Med Science Pharma Private Limited vs Elder Projects Limited Case No.: CP (IB) 245/MB/C-I/2022 The National Company Law Tribunal (NCLT), Mumbai bench, comprising Shri Shyam Babu Gautam (Technical Member) and Shri H.V. Subba Rao (Judicial Member), has rejected an application under Section 9 of IBC seeking initiation of Corporate Insolvency Resolution Process (“CIRP”) against Elder Projects Limited. The Bench observed that the date of default was beyond 25th March 2020 and the petition fell within the purview of Section 10A of IBC. Also, the Operational Creditor failed to mention the date of default in Part 4 of the Petition. Entries Made In Balance Sheet Amounts To Acknowledgement Of Debt As Per Section 18 Of Limitation Act, 1963: NCLT New Delhi Case Title: M/s SKC Infratech Pvt. Ltd vs M/s EOS Hospitality Pvt. Ltd Case No.: IB-356/(ND)/2020 The National Company Law Tribunal, New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial member) and Shri Rahul Bhatnagar (Technical Member), while adjudicating an application filed under Section 9 of IBC has reiterated that entries made in the Balance Sheet amounts to acknowledgement of debt as per section 18 of Limitation Act, 1963. Interest Bearing Refundable Advance Paid Under An MoU Which Has Lost Legal Force Can Still Be Categorized As Financial Debt: NCLT Ahmedabad The National Company Law Tribunal (NCLT), Ahmedabad Bench, comprising of Dr. Madan B Gosavi (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member) has categorized an advance amount as Financial Debt which was paid under an Memorandum of Understanding with no legal force and which was refundable with an interest @ 18% p.a. The Tribunal remarked that it is neither dwelling into whether the interest is payable ...

Weekly Digest Of IBC Cases: 10 April To 16 April 2023

Pallavi Mishra

Tags