Weekly Digest Of IBC Cases: 27 June To 3 July 2023

Supreme Court Is Resolution Professional A 'Public Servant' Under Prevention Of Corruption Act? Supreme Court To Examine Case Title: Sanjay Kumar Agarwal v. Central Bureau of Investigation Citation: SLP(Crl) No. 7029/2023 The Supreme Court Bench comprising Justice AS Bopanna and Justice Prashant Kumar Mishra, has issued notice in a plea challenging the ruling of the Jharkhand High Court that a Resolution Professional (RP) will be considered a ‘public servant’ under Section 2(c)(v) and Section 2(c)(viii) of the Prevention of Corruption Act, 1988 (PC Act). The High Court had opined that the Resolution Professional performs ‘public duty’ within the meaning of Section 2(b) of the PC Act and hence is a ‘public servant’ liable to be prosecuted under the Prevention of Corruption Act (“PC Act”). The impugned judgment was passed by the High Court while rejecting the petition praying for quashing of the entire criminal proceeding instituted against an Insolvency Professional, as well as the FIR registered for the offence under Section 7 (public servant taking gratification other than legal remuneration in respect of an official act) of the PC Act. Google Appeals To Supreme Court Against NCLAT Order Upholding Rs. 1337.76 Crores Penalty Imposed By CCI The tech giant Google has filed an appeal before the Supreme Court, challenging the order dated 29.03.2023 passed by the National Company Law appellate Tribunal (“NCLAT”), New Delhi, whereby the imposition of Rs. 1337.76 Crores penalty on Google by the Competition Commission of India (“CCI”) was upheld. Google has been penalized for abusing its dominant position in the Android OS app store market, which resulted in denial of market access for competing search apps. HIGH COURT S.220 IBC | Prima Facie Disciplinary Committee Can Consist Only Of Whole Time Members: Bombay High Court Stays Insolvency Professional's Suspension Case Title: Kairav Anil Trivedi v. Union of India and Ors. Case No.: Writ Petition (L) No. 16317 of 2023 The Bombay High Court Bench comprising of Justice BP Colabawalla and Justice MM Sathaye has stayed the suspension of registration of Insolvency Professional, who is accused of misrepresentation and entering into unauthorised agreement in a Corporate Insolvency Resolution Process (CIRP). The Bench observed that prima facie, the order against the Insolvency Professional was passed by the Chairperson of the Insolvency and Bankruptcy Board of India (IBBI) and not its Whole Time Member who is empowered to pass a disciplinary order. “…prima facie we are of the opinion that the Disciplinary Committee can consist only of Whole Time Member(s), who can then pass orders. In the present case, the impugned order dated 23.05.2023 is passed by Mr. Ravi Mital, who, at least on the Website of the IBBI, is shown as the Chairperson of the IBBI and not its Whole Time Member”, the Court observed. NCLAT Liquidator To Fix The Reserve Price Based On Average Of Two Valuation Reports Received In The CIRP Process: NCLAT Delhi Case Title: Amit Ahirrao v Anagha Anasingharaju & Anr. Case No.: Company Appeal (AT) (Insolvency) No. 842 of 2022 The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has held that the Liquidator while auctioning the assets has to fix the reserve price based on average of two valuation reports received in the CIRP process. “We, however, are of the view that the Liquidator while proceeding to sell the assets in accordance with Liquidation Process Regulation, 2016 has to take the reserve value as per Schedule-I of the Liquidation Regulation. The reserve price has to be value of assets arrived at as per Regulation 35(1), as noted above. We, thus, are of the view that the Liquidator while proceeding to sell the assets has to take reserve price on the basis of average of two valuation reports received in the CIRP process.” NCLT NCLT Approves Resolution Plan For D S Kulkarni Developers, Homebuyers Will Get Flats Against Their Claims: NCLT Mumbai Case Title: Bank of Maharashtra v D.S. Kulkarni Developers Limited Case No.: CP (IB) No. 1633/MB/C-I/2019 The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri H.V. Subba Rao (Judicial Member) and Shri Shyam Babu Gautam (Technical Member), has approved the Resolution Plan submitted by a consortium of Ashdan Properties Pvt. Ltd., Classic Promoters and Builders Pvt. Ltd. and Atul Builders for D.S. Kulkarni Developers Ltd. Under the Resolution Plan, the Homebuyers of the Corporate Debtor’s projects will be given flats against their claim amount. NCLT New Delhi Bench Re-Constituted W.E.F 3rd July 2023; Timings Of Indore & New Delhi Bench Changed File No.: 10/03/2023-NCLT The National Company Law Tribunal (“NCLT”), has issued a Circular 30.06.2023 ...

Weekly Digest Of IBC Cases: 27 June To 3 July 2023

Pallavi Mishra

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