Supreme Court Annual Digest 2023 - Insolvency And Bankruptcy Code

A company could not avail benefit of the Sabka Vishwas scheme as it was under moratorium under IBC - The Courts are meant to do justice and cannot compel a person to do something which was impossible for him to do - Directed that the payment of amount already deposited by the company be appropriated towards settlement dues under “Sabka Vishwas Scheme 2019 and the company be issued discharge certificate. 2023 LiveLaw (SC) 15A resolution applicant cannot be rendered ineligible to submit a resolution plan under the IBC, by assuming his/her disqualification under Section 164(2)(b) of the Companies Act, 2013, unless a categorical order disqualifying him/her to act as a director of any company is passed by the competent authority. There is no concept of 'deemed disqualification' under Section 164(2)(b) of the Companies Act, 2013. 2023 LiveLaw (SC) 403Admitting claims after a resolution plan has been accepted by COC would make CIRP an endless process. 2023 LiveLaw (SC) 773Admitting claims after the Resolution Plan has been accepted by the Committee of Creditors (COC) under IBC even though the Adjudicating Authority has yet to approve the plan, would make the Corporate Insolvency Resolution Process (CIRP) an endless process. (Para 21) 2023 LiveLaw (SC) 773Application under Section 12A for withdrawal of CIRP is maintainable prior to the Constitution of CoC. 2023 LiveLaw (SC) 250Cannot ask successful resolution applicant to pay arrears payable by corporate debtor for grant/restoration of electricity connection. 2023 LiveLaw (SC) 788Commissioner and employees of the Employees Provident Fund Organization (EPFO) must ensure that they comply with the timelines under the IBC. In case of failure to comply with the timelines, action must be taken against erring employees. 2023 LiveLaw (SC) 734Delay in filing CIRP application condonable on sufficient reasons. 2023 LiveLaw (SC) 9Development rights created in favour of the Corporate Debtor constitute “property” within the meaning of the expression under Section 3(27) of IBC -Since the expression “asset” in common parlance denotes “property of any kind”, the bundle of rights that the Corporate Debtor has over the property in question would constitute “asset” within the meaning of Section 18(f) and Section 25(2)(a) of IBC- these rights and interests in the immovable property are definitely liable to be included by the Resolution Professional in the Information Memorandum and the Resolution Professional is duty bound under Section 25(2)(a) to take custody and control of the same. (Para 37) 2023 LiveLaw (SC) 193Doctrine of Election cannot be applied to prevent a Financial Creditor from approaching the National Company Law Tribunal (NCLT) for initiation of Corporate Insolvency Resolution Process (“CIRP”) against a Corporate Debtor. (Para 11) 2023 LiveLaw (SC) 914EPFO employees must comply with the IBC timeline for filing claims; default officers must face action. 2023 LiveLaw (SC) 734Exclusion of assets owned by a thirdparty, but in the possession of the Corporate Debtor held under contractual arrangements, from the definition of the expression “assets”, is limited to Section 18. In other words, the Explanation under Section 18 does not extend to Section 25. 2023 LiveLaw (SC) 193For rejection of a resolution plan under Section 31(2), NCLT must pass a reasoned order. 2023 LiveLaw (SC) 1007Homebuyers who secure RERA decrees can't be treated differently from other financial creditors under IBC. 2023 LiveLaw (SC) 894IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 - Regulation 30 - NCLT as well as NCLAT were right in holding that the possession of the Corporate Debtor, of the property needs to be protected. This is why a direction under Regulation 30 had been issued to the local district administration. (Para 50) 2023 LiveLaw (SC) 193IBC is a significant prong in economic reforms. It has radically reshaped the law relating to insolvency and bankruptcy. The manner in which the law is administered will have to keep pace with technology. Both the Union government in its rule making capacity and the administrative heads of tribunals must ensure a seamless transition to working in the electronic mode. A copy of this judgment shall be forwarded to the Chairperson of the NCLAT and to the Secretaries to the Union Government respectively in the Ministries of (i) Finance; (ii) Corporate Affairs; and (iii) Law and Justice for ensuring compliance and remedial steps. (Para 30, 31) 2023 LiveLaw (SC) 406IBC overrides electricity act; dues to secured creditors at higher footing than electricity dues. 2023 LiveLaw (SC) 534IBC was specifically introduced by Parliament for ensuring quick and time-bound resolution of insolvency of corporate entities in financial trouble, by first attempting to revive the Corporate Debtor, failure whereof would entail liquidation of the Corporate Debtor's assets, and no unnecessary impediment should be created to delay or derail the CIRP. (Para...

Supreme Court Annual Digest 2023 - Insolvency And Bankruptcy Code

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