Weekly Digest Of IBC Cases: 25th To 31st December 2023

NCLAT NCLAT New Delhi: Barter Agreements Don't Constitute 'Operational Debt' Case Title: Real Estate Regulatory Authority vs. D.B. Corp Ltd. & Anr. Case No.: Company Appeal (AT) (Insolvency) No.1172-1173 of 2022 The National Company Law Appellate Tribunal ('NCLAT'), New Delhi Bench, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member), has held that the Corporate Insolvency Resolution Process ('CIRP') cannot be initiated under Section 9 of Insolvency and Bankruptcy Code, 2016 ('IBC') based on Barter Agreement/Transactions. NCLAT New Delhi: Inter-Corporate Deposit In A Joint Venture Can't Be Construed As A 'Financial Debt' Under IBC Case Title: Ansal Housing Ltd. Vs. Samyak Projects Pvt. Ltd. Case No.: Company Appeal (AT)(Insolvency) No. 542 of 2023 The National Company Law Appellate Tribunal ('NCLAT'), New Delhi Bench, comprising Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member) has held that financial assistance given by one party to another in a Joint Venture Agreement ('JVA') by way of an Inter-Corporate Deposit ('ICD') to develop a real estate project jointly cannot be construed as a 'Financial Debt' in terms of IBC. NCLAT New Delhi: RERA Has Locus To Appeal Against CIRP Initiation Order And Is An “Aggrieved Person” U/S 61 Of IBC Case Title: Real Estate Regulatory Authority vs. D.B. Corp Ltd. & Anr. Case No.: Company Appeal (AT) (Insolvency) No.1172-1173 of 2022 The National Company Law Appellate Tribunal ('NCLAT'), New Delhi Bench, comprising Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has held that the Real Estate Regulatory Authority ('RERA') has locus to challenge Corporate Insolvency Resolution Process ('CIRP') initiation Order in Real Estate Insolvency in appeal under Section 61 of IBC before NCLAT. NCLAT New Delhi: Liquidator Is Not Entitled To Charge Fee From Scheme Proponent Submitting Scheme Under S.230 Of The Companies Act Case Title: CA Jai Narayan Gupta (Liquidator of Barcle Enterprises Limited) vs. Radhasiriya Properties Pvt. Ltd. Case No.: Company Appeal (AT) (Insolvency) No.1473 of 2023 The National Company Law Appellate Tribunal ('NCLAT'), New Delhi Bench, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member), has held that the Liquidator is not entitled to charge any fee from the Scheme Proponent, who has submitted the Scheme under Section 230 of the Companies Act, 2013 read with Regulation 2B of IBBI (Liquidation Process) Regulations, 2016 (“Liquidation Regulations”). The NCLAT observed that Regulation 2B of the Liquidation Regulations only refers to the cost incurred by the Liquidator and Regulation 4 of the Liquidation Regulations deals with the Liquidator's fee. It held that being aware of the difference between the cost and fee, Regulation 2B does not indicate that any fee by the Liquidator can be charged from the Scheme Proponent. The Liquidator is entitled to his fee as per the statutory provision of Section 34, sub-sections (8) and (9) read with Regulation 4 of Liquidation Regulations. Thus, no fee can be charged from the Scheme Proponent, who has submitted the Scheme under Section 230 of the Companies Act, 2013 read with Regulation 2B of Liquidation Regulations. NCLAT Delhi: Decisions To Liquidate Corporate Debtor By CoC U/S 33(2) Of IBC Must Be With Reasons And Cannot Be Done Arbitrarily Case Title: Jaipur Trade Expocentre Pvt. Ltd. vs. Metro Jet Airways Training Pvt. Ltd. & Ors. Case No.: Company Appeal (AT) (Ins.) No. 1224 of 2023 The National Company Law Appellate Tribunal ('NCLAT'), New Delhi Bench comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has held that decisions of the Committee of Creditors ('CoC') to liquidate the Corporate Debtor under Section 33(2) of IBC have to be with reasons and the liquidation cannot be decided arbitrarily. NCLT NCLT Chennai Terminates Insolvency Proceedings Against Appu Hotels Ltd., Approves Settlement Proposal By Promoter Case Title: Tourism Financial Corporation of India Ltd v M/s. Appu Hotels Limited Case No.: IA(IBC)/1134(CHE)/2022 in IBA/1459/2019 The National Company Law Tribunal (NCLT), Chennai Bench, comprising of Shri Sanjiv Jain (Judicial Member) and Shri Venkataraman Subramaniam (Technical Member), has terminated the Corporate Insolvency Resolution Process (“CIRP”) against Appu Hotels Ltd. while allowing an application filed under Section 12A of IBC by the Resolution Professional. The Committee of Creditors have approved the Settlement Proposal submitted by Promoter of Corporate Debtor valued at Rs. 592 Crores, whereas the total claims admitted by the Resolution Professional amounted to Rs. 438.8 Crores. A Resolution Plan submitted by MGM Healthcare's owner, Mr. M.K. Rajagopalan, valued at Rs. 423 Crores was earlier...

Weekly Digest Of IBC Cases: 25th To 31st December 2023

Pallavi Mishra

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