Weekly Digest Of IBC Cases: 4th To 9th July 2023

NCLAT NCLAT Delhi Terminates Insolvency Proceedings Against ZEE Entertainment Enterprises Ltd., As Parties Enter Settlement Case Title: Punit Goenka v Indusind Bank Ltd. & Anr. Case No.: Company Appeal (AT) (Insolvency) No. 232/2023. The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has closed the Corporate Insolvency Resolution Process against Zee Entertainment Enterprises Ltd. The Bank and Zee Entertainment Enterprises Ltd. have entered into a Settlement Agreement and the latter has paid the amount towards the same. No Provision In IBC For Constitution Of COC With A Single Operational Creditor: NCLAT Chennai Case Title: V. Duraisamy v Jeyapriya Fruits and Vegetables Commission Agent Case No.: Company Appeal (AT)(CH)(Ins) No.25/2022 The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Ms. Shreesha Merla (Technical Member), has held that IBC does not contain any provision for constitution of the Committee of Creditors (CoC) with a single Operational Creditor, when no claims are received by the IRP after public announcement. The Bench has terminated the CIRP of a Corporate Debtor in which claim was received from the only Operational Creditor and there was no Financial Creditor to constitute the CoC. Section 7 IBC | Ruling In ‘Vidarbha Industries’ Inapplicable When Corporate Debtor Admits Due Debt Amount: NCLAT Delhi Case Title: Mohan Nathuram Sakpal v State Bank of India Case No.: Company Appeal (AT) (Insolvency) No. 1527 of 2022 The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Shri Naresh Salecha (Technical Member), has held that the ruling given in Vidarbha Industries Power Limited v. Axis Bank Limited is inapplicable to proceedings under Section 7 of IBC when the Corporate Debtor has clearly admitted the due debt amount. The Bench held as under: “We have heard Counsel for the parties and are of the considered opinion that in the given facts and circumstances of the case Vidarbha Industries Power Limited (Supra), relied upon by the Appellant, is not applicable because there is a clear admission on the part of the Corporate Debtor of the amount of debt due in view of the letter dated 31.01.2018.” Section 61(2) | Holidays Can Be Excluded Only From Limitation Period Of 30 Days, Inapplicable To Further 15 Days Period: NCLAT Delhi Case Title: Sandeep Anand v Gopal Lal Baser Case No.: Company Appeal (AT) (Ins) No. 767 of 2023 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 while computing limitation in filing of appeal, the benefit of excluding public holiday or holiday is only available with respect to 30 days limitation period given under Section 61(2). Such benefit would not apply to the further 15 days period given under Proviso to Section 61(2) of IBC. Notice Period Of 30 Days Should Be Given For E-Auction, Even Though There Are No Timelines Under Liquidation Regulations: NCLAT Delhi Case Title: Naren Seth v Sunrise Industries & Ors. Case No.: Company Appeal (AT) (Insolvency) No. 401 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) a nd Shri Naresh Salecha (Technical Member), has held that a notice period of thirty days should be given in e-auction to obtain best value, even though Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016 do not provide any timelines. The Bench has set aside an e-auction which was concluded by the Liquidator within five days of issuing Sale Notice. NCLT File Refund Claims Before Resolution Professional; NCLT Delhi Tells Go First Passengers File No. 25/02/2023-NCLT The National Company Law Tribunal (“NCLT”) has issued Advisory dated 03.07.2023 in reference to the refund claims of the passengers of Go-Air. The Advisory states that the passengers of Go Air have been contacting the NCLT officials for seeking refund of their booked/cancelled tickets of Go Air airlines. The NCLT has informed the ticket holders (passengers) that Mr. Shailendra Ajmera has been appointed as the Resolution Professional of Go Air (India) Ltd., which has been admitted into Corporate Insolvency Resolution Process (“CIRP”) under the Insolvency and Bankruptcy Code, 2016 (“IBC”).

Weekly Digest Of IBC Cases: 4th To 9th July 2023

Pallavi Mishra

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