Weekly Digest Of IBC Cases: 20 February To 26 February 2023

NCLAT Principal Amount Paid In Full, Section 9 Application Not Maintainable For Recovery Of Interest: NCLAT Delhi Case Title: Rohit Motawat v Madhu Sharma Case No.: Comp. App. (AT) (Ins) No. 1152 of 2022 The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member), has held that an application under Section 9 of IBC being pursued only for interest component, while principal amount has been paid in full, is not maintainable. The spirit of IBC is resolution of debt and not for ‘recovery’. Reliance was placed on Karnataka High Court judgment in Jyothi Limited Vs. Boving Fouress Limited, Company Petition No. 48 of 1998, wherein it was held that interest cannot be claimed over an invoice which is a unilateral document, unless it is signed by the parties. No Acknowledgement Of Liability Based On An Unrealized Cheque: NCLAT Chennai Case Title: M/s. Primee Silicones (Chennai) Pvt. Ltd. v M/s. UCAL Fuel Systems Ltd. Case No.: Company Appeal (AT) (CH) (Ins.) No. 299 of 2021 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 a cheque which has not been encashed, cannot amount to an ‘acknowledgement of liability’ in terms of Section 18 of the Limitation Act, 1963. NCLAT Extends Benefit Of Limitation Computation To Appeals Filed Between 01.11.2022 To 23.12.2022 F.No. 23/4/2022-Estt./NCLAT On 24.12.2022 the National Company Law Appellate Tribunal (“NCLAT”) had issued fresh directions for computation of limitation for filing of appeals before NCLAT. Earlier the benefit of order dated 24.12.2022 was only available to appeals filed on and after 24.12.2022. However, the NCLAT vide an Order dated 21.02.2023 has extended the benefit of Order dated 24.12.2022 to appeals which have been filed between 01.11.2022 to 23.12.2022. Directions For Computation Of Limitation On 24.12.2022, the NCLAT had issued fresh directions for computation of limitation for filing of appeals before NCLAT. The directions are as follows: The Limitation shall be computed from the date of e-filing. The hard copy has to be filed within 7 days of e-filing. However, the Competent Authority is at liberty to notify to extend the period of filing hard copy in case of any unforeseen exigency. In a case where hard copy is filed after 7 days, the appeal will be placed before the Tribunal for appropriate order. The requirement of filing Appeals by electronic mode shall continue along with mandatory filing of the Appeals as per Rule 22 of the NCLAT Rules, 2016. NCLAT Delhi Stays Insolvency Proceedings Against Zee Entertainment Enterprises Ltd. 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 stayed the NCLT order dated 22.02.2023, whereby Corporate Insolvency Resolution Process (“CIRP”) was initiated against Zee Entertainment Enterprises Ltd. Zee Entertainment Enterprises Ltd. (formerly Zee Telefilms Ltd.) is an Indian media conglomerate owned by Essel Group, engaged in media and entertainment business. Zee had given India its first private satellite TV channel in 1992 and now also runs Over The Top (OTT) online streaming platform named Zee5. NCLT Resolution Applicant Wilfully Fails To Implement Plan, NCLT Mumbai Orders Liquidation Without Monitoring Committee’s Mandate Case Title: BMW Financial Services Pvt. Ltd. v S.K. Wheels Pvt. Ltd. Case No.: C.P.(I.B.) No. 4301 of 2018 The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri H.V. Subba Rao (Judicial Member) and Ms. Madhu Sinha (Technical Member), has ordered liquidation of the Corporate Debtor as the Resolution Applicant willfully failed to implement the resolution plan. The order of liquidation has been made without the mandate of the Implementation and Monitoring Committee (IMC) and to secure the asset value of the Corporate Debtor. Further, action has been initiated under Section 74 of IBC to penalize the Resolution Applicant for wilful non-implementation of the plan. NCLT Mumbai Initiates Insolvency Proceedings Against Siti Networks Ltd. Case Title: Indusind Bank Ltd. v Siti Networks Ltd. Case No.: C.P. No. 690/IBC/MB/2022 The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri H.V. Subba Rao (Judicial Member) and Ms. Madhu Sinha (Technical Member), has initiated Corporate Insolvency Resolution Process (“CIRP”) against Zee Entertainment Enterprises Ltd. Mr. Rohit Mehra has been appointed as the Interim Resolution...

Weekly Digest Of IBC Cases: 20 February To 26 February 2023

Pallavi Mishra

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