Supreme Court Half Yearly Digest 2023: Insolvency And Bankruptcy Code

Companies Act, 2013 - Upholds the constitutionality of Section 327(7) of the Companies Act, which excludes workers dues from priority payment in the event of liquidation of a company under the Insolvency and Bankruptcy Code 2016 - The object and purpose of amending the Companies Act 2013 and to exclude Sections 326 and 327 in the event of liquidation of a company under IBC seem to be that there may not be two different provisions in respect to the winding up/ liquidation of a company. Therefore, in view of the enactment of the IBC, it was necessary to exclude the applicability of Section 326 and 327 of the 2013 Act, which cannot be said to be arbitrary, as contended on behalf of the petitioners. (Para 6) Moser Baer Karamchari Union v. Union of India, 2023 LiveLaw (SC) 386 : 2023 INSC 479Constitution of India, 1950; Article 142 - Insolvency of Reliance Home Finance Ltd (RHFL) - the Supreme Court allowed the Resolution Plan (RP) proposed by Authum Investments and Infrastructure Ltd. (AIIL) to cover the debenture holders of RHFL - the plan will not cover dissenting debenture holders - the dissenting debenture holders should be provided an option to accept the terms of the resolution plan who proposed such acquisition or they can pursue other legal remedies to recover their dues. Authum Investment and Infrastructure Ltd. v. R.K. Mohatta Family Trust, 2023 LiveLaw (SC) 173 : AIR 2023 SC 1459 : 2023 INSC 205Delay in filing CIRP application condonable on sufficient reasons. Sabarmati Gas Ltd. v. Shah Alloys Ltd., 2023 LiveLaw (SC) 9: AIR 2023 SC 288 : (2023) 3 SCC 229 : 2023 INSC 10IBBI (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) Victory Iron Works Ltd. v. Jitendra Lohia, 2023 LiveLaw (SC) 193 : (2023) 7 SCC 227 : 2023 INSC 230IBC - Ineligibility of resolution applicant as per S.164(2)(b) Companies Act can't be presumed unless competent authority declares disqualification. M.K. Rajagopalan v Dr. Periasamy Pal ani Gounder, 2023 LiveLaw (SC) 403 : 2023 INSC 486IBC - No modified resolution plan can be directly placed before NCLT without being finally approved by the CoC. M.K. Rajagopalan v. Dr. Periasamy Palani Gounder, 2023 LiveLaw (SC) 403 : 2023 INSC 486IBC - Once a resolution plan is approved, no modifications are permissible. SREI Multiple Asset Investment Trust Vision India Fund v. Deccan Chronicle Marketeers, 2023 LiveLaw (SC) 231 : (2023) 7 SCC 295 : 2023 INSC 251IBC - Principle of commercial wisdom not validate a decision taken by CoC in contravention of law. M.K. Rajagopalan v Dr. Periasamy Pal ani Gounder, 2023 LiveLaw (SC) 403 : 2023 INSC 486IBC - Resolution professional entitled to take control of corporate debtor's rights in assets licensed to third parties. Victory Iron Works Ltd. v. Jitendra Lohia, 2023 LiveLaw (SC) 193 : (2023) 7 SCC 227 : 2023 INSC 230IBC | Application under Section 12A for withdrawal of CIRP is maintainable prior to the Constitution of CoC. Abhishek Singh v. Huhtamaki Ppl Ltd., 2023 LiveLaw (SC) 250 : 2023 INSC 308Insolvency and Bankruptcy Code (Amendment) Act, 2021 - Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - 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. Shekhar Resorts Ltd. v. Union of India, 2023 LiveLaw (SC) 15 : AIR 2023 SC 276 : (2023) 3 SCC 220 : 2023 INSC 15Insolvency and Bankruptcy Code 2016; Section 31 - After passing of the Resolution Plan under Section 31 of IBC by the Adjudicating Authority and in the light of Section 32A of IBC, the criminal proceedings under Section 138 of the NI Act will stand terminated only in relation to the Corporate Debtor if the same is taken over by a new management. (Para 86) Ajay Kumar Radheyshyam Goenka v. Tourism Finance Corporation of India Ltd., 2023 LiveLaw (SC) 195 : 2023 INSC 232Insolvency and Bankruptcy Code 2016; Section 31 - Process under the IBC whether under Section 31 or Sections 38 to 41 cannot extinguish criminal proceedings under Section 138 NI Act 1881 against former directors of the corporate debtor. (Para 18) Ajay Kumar Radheyshyam Goenka v. Tourism Finance Corporation of India Ltd., 2023 LiveLaw (SC) 195 : 2023 INSC 232Insolvency and Bankruptcy Code 2016; Section 53 - Waterfall mechanism - Complete code - The waterfall mechanism is based on a structured mathematical formula, and the hierarchy is created in terms of payment of debts in order of priority with several...

Supreme Court Half Yearly Digest 2023: Insolvency And Bankruptcy Code

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