Weekly Digest Of IBC Cases: 15 To 21 May 2023

Supreme Court Supertech Insolvency: Supreme Court Approves 'Project Wise Resolution' Plan Case Title: Indiabulls Asset Reconstruction Company Limited v Ram Kishore Arora & Ors. Citation: 2023 LiveLaw (SC) 436 The Supreme Court Bench comprising of Justice Dinesh Maheshwari and Justice Sanjay Kumar, has declined to grant any interim relief in respect of order passed by the National Company Law Appellate Tribunal (“NCLAT”) directing ‘project wise insolvency resolution process’ of Supertech Ltd.’s Eco Village-II project. The Bench has observed that constituting Committee of Creditors (CoC) for all the projects of Supertech Limited would affect the ongoing projects and cause hardship to the homebuyers. The Bench has directed that during the pendency of the appeal, any process beyond voting on the Resolution Plan should not be undertaken without specific orders of the Supreme Court in respect to the Corporate Insolvency Resolution Process (CIRP) of Eco Village-II project. NCLAT Not Mandatory To File Hard Copies; NCLAT Dispenses The Requirement Of Physical Filing In Addition To E-Filing File No.: 10/37/2018-NCLAT The National Company Law Appellate Tribunal (“NCLAT”) has issued a circular dated 15.05.2023, directing that the physical filing of hard copies alongwith appeals, interlocutory applications, reply, rejoinders etc., which have been electronically filed, is not mandatory now. The NCLAT had rolled out its e-filing portal available at: (https://efiling.nclat.gov.in), for electronic filing of Appeals/Interlocutory Applications/Reply/Rejoinder etc. w.e.f. 04.01.2021. However, it was mandatory to file a hard copy of the concerned appeal/application/reply/rejoinder etc. after the e-filing gets concluded. Through the circular dated 15.05.2023, the NCLAT has modified its earlier filing procedure and has dispensed with the ‘mandatory’ requirement of filing hard copies after e-filing. Disposed Petition On Consent Terms Can Be Revived On Breach Of Terms, Irrespective Of Liberty Granted Or Not: NCLAT Delhi Case Title: IDBI Trusteeship Services Limited v Nirmal Lifestyle Limited Case No.: Company Appeal (AT) (Insolvency) No. 117 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has held that when a petition is withdrawn by placing on record the consent/settlement terms, then the petition is liable to be revived if consent terms provide for its revival in the event of default. The Bench has further held that it is inconsequential whether or not the NCLT has granted any liberty for revival, the petition is liable to be revived if consent terms placed on record contains a clause for revival. NCLT Land Owners Entering Into Joint Development Agreements For Sharing Of Profit Do Not Come Within The Ambit Of Operational Creditors: NCLT New Delhi Case Title: Mrs Gurmeet Kaur Gill vs Raheja Developers Limited Case No.: C.P. (IB)/393(PB)/2019 The National Company Law Tribunal, New Delhi Bench, comprising Justice Ramalingam Sudhakar (Judicial Member) and Shri Avinash K. Srivastava (Technical Member), has held that an agreement in the nature of a Joint Development Agreement for a project with sharing of profit in an agreed ratio does not come within the ambit of an Operational Debt. It was further observed that there may be a wide variety of development contracts like Collaboration Agreement, Joint Development Agreement, etc under different names which may have a component in the nature of a loan. The purposes of these agreements involve giving rise to mutually binding legal relation in lieu of consideration. These types of agreements cannot come within the purview of an Operational Debt and what needs to be seen is the real intention of the parties. NCLT Mumbai Admits Section 7 Petition Against M/S Tulip Hotels Private Limited For Defaults Of More Than Rs. 900 Crores Case Title: J C Flowers Asset Reconstructions Pvt. Ltd vs M/s Tulip Hotels Private Limited Case No.: CP (IB) No. 05/MB-IV/2020 The National Company Law Tribunal (“NCLT”), Mumbai bench, comprising of Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member), has initiated Corporate Insolvency Resolution Process (“CIRP”) against M/s Tulip Hotels Private Limited. The Corporate Debtor had defaulted in payment of two Guarantees amounting to Rs. 900,00,00,000/- (Rs. 900 Crores) in its capacity as a guarantor for loans disbursed by Yes Bank to Cox and Kings Limited and Ezeege One Travel & Tours Limited (“Principal Burrowers”). Prior Approval Of AA Under Section 33(5) Mandatory Before Initiation Of Legal Proceedings By Liquidator: NCLT Mumbai Case Title: Birla Cotsyn (India) Limited vs Birla Global Corporate Private Limited Case No.: C.P. 565 OF 2021 The National Company Law Tribunal...

Weekly Digest Of IBC Cases: 15 To 21 May 2023

Pallavi Mishra

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