Weekly Digest Of IBC Cases: 10 To 17 July 2023

NCLAT NCLAT Delhi Stays Insolvency Proceedings Against DB Realty Ltd., Grants Opportunity To Deposit Ots Amount Case Title: Imtiyaz Javed Siddiqui v Bank of India & Anr. Case No.: Company Appeal (AT)(Insolvency) No. 819 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has stayed the Corporate Insolvency Resolution Process (“CIRP”) proceedings initiated against DB Realty Ltd. The Bench has granted DB Realty Ltd. an opportunity to deposit the amount offered in their One Time Settlement (“OTS”) proposal with the Tribunal. The matter is next listed on 06.09.2023. NCLT Lien Created On Cd’s Account Prior To Cirp Cannot Continue After Moratorium Is Imposed U/S 14 Of IBC: NCLT Mumbai Case Title: Rani Agro Private Limited v S & H Gears Private Limited Case No.: C.P.(IB) No. 3703/MB/2019 The National Company Law Tribunal (NCLT), Mumbai Bench, comprising of Shri. Kuldip Kumar Kareer (Judicial Member) and Smt. Anuradha Sanjay Bhatia (Technical Member), has held that the lien created on the Corporate Debtor’s account prior to initiation of CIRP cannot sustain after moratorium is imposed under Section 14 of IBC post CIRP commencement, as it will hinder the entire resolution process. The Bench has set aside the lien created by Regional Provident Fund Commissioner on the Corporate Debtor’s bank account prior to commencement of CIRP. When CD Didn’t Open Separate Account For PF, Even IRP/RP/Liquidator Cannot Provide For It Except Under Sec. 53 Of IBC: NCLT Mumbai Case Title: Rani Agro Private Limited v S & H Gears Private Limited Case No.: C.P.(IB) No. 3703/MB/2019 The National Company Law Tribunal (NCLT), Mumbai Bench, comprising of Shri. Kuldip Kumar Kareer (Judicial Member) and Smt. Anuradha Sanjay Bhatia (Technical Member), while adjudicating a petition filed in the matter of Rani Agro Private Limited v S & H Gears Private Limited, has held that if the Corporate Debtor had not opened a separate Bank Account for the `Provident Fund', then even IRP/RP/Liquidator cannot provide for it except under Section 53 of IBC. “However, it is important to note that such `Provident Fund’, has to be an `Establishment Fund’, kept separately by the company and only then this proviso will be applicable. If even wrongly and in violation of the laws of the land, the company fails to establish such `Provident Fund’, in that event `Interim Resolution Professional/Resolution Professional/Liquidator’ is not expected to provide for same, except under Section 53 of the I & B Code, 2016.” NCLT Hyderabad Approves Resolution Plan For Indu Projects Ltd. Case Title: Bank of India v Indu Projects Ltd. Case No.: CP (IB) No. 372/7/HDB/2018 The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Justice Telaprolu Rajani (Judicial Member) and Shri Charan Singh (Technical Member), has approved the Resolution Plan submitted by a consortium of B. Subba Reddy and C. Venkateswara Reddy for Indu Projects Ltd. The Resolution Plan is valued at Rs. 501 Crores. The resolution plan proposes to pay the Financial Creditors an amount of Rs. 394 Crores against an admitted claim of 3890 Crores. The Workmen and Employees of the Corporate Debtor would receive Rs. 1 Crore as against an admitted claim of Rs. 4.21 Crores. The Operational Creditors other than workmen and employees will be paid Rs. 4.9 Crores as against an admitted claim of Rs. 178 Crores. The Government will receive Rs. 18,432 towards their admitted dues of Rs. 1.82 Lakhs. The Related Party of the Corporate Debtor have been paid NIL. NCLT New Delhi To Conduct Virtual Hearings Till Further Orders File: 25/02/2023-NCLT The National Company Law Tribunal (“NCLT”) has issued a Circular dated 11.07.2023, intimating that NCLT New Delhi would be conducting hearing through Video Conferencing till further orders. The NCLT New Delhi is awaiting logistic clearance from CPWD in terms of “Fit for Use” for its premises situated at Block III, CGO Complex, Lodhi Road, New Delhi.

Weekly Digest Of IBC Cases: 10 To 17 July 2023

Pallavi Mishra

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