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21/02/2024

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26/07/2023

Mere Filing of an Application Under Section 7(1), Insolvency and Bankruptcy Code, Does Not Bar the Appointment of an Arbitrator.

The Bombay High Court held that the provisions of the Insolvency and Bankruptcy Code (IBC) would not bar the appointment of an arbitrator until the Adjudicating Authority under Section 7 of the IBC had passed an order admitting the application. Justice Avinash G. Gharote of the Bombay High Court (Na...

20/07/2023

Electricity Dues Do Not Enjoy Any Specific Priority Under the Insolvency and Bankruptcy Code, 2016 During Liquidation.

The Supreme Court held that the electricity dues do not enjoy any specific priority under the Insolvency and Bankruptcy Code (IBC) and are subject to the priority of claims prescribed under the IBC's "waterfall mechanism" in the distribution of assets during liquidation. The Division Bench of the Su...

10/07/2023

NCLT approves the Resolution Plan of Jupiter Wagons Ltd and dismisses the allegation of irregularities.

The National Company Law Tribunal (NCLT), Kolkata Bench of Judicial Member Rohit Kapoor and Technical Member Balraj Joshi was hearing an application filed by G.S. Global Projects Private Limited against the Resolution Professional, alleging irregularities and non-transparency in the evaluation proce...

08/07/2023

NCLAT directs the inclusion of 100% dues of provident fund and gratuity in the Resolution Plan.

The National Company Law Appellate Tribunal (NCLAT), Chennai Bench comprising Justice M. Venugopal, Judicial Member and Ms. Shreesha Merla, Technical Member was recently hearing an appeal and held that both provident fund and gratuity fund should be paid in full under the EPF and NP Act, 1952, and t...

08/07/2023

NCLAT finds the alleged disputes raised by the Corporate Debtor are spurious and Operational Creditor is entitled to initiate the CIRP.

The National Company Law Appellate Tribunal (NCLAT), Chennai Bench comprising Justice M. Venugopal, Judicial Member and Ms. Shreesha Merla, Technical Member was recently hearing an appeal. The NCLAT Chennai bench upheld the admission of the application by the NCLT, finding that the alleged disputes....

07/07/2023

Regulation 39(1A) of CIRP Regulations does not prohibit the CoC from negotiating the Resolution Plan.

The National Company Law Appellate Tribunal (NCLAT), Chennai Bench comprising Justice M. Venugopal, Judicial Member and Ms. Shreesha Merla, Technical Member was recently hearing an appeal and held that the Regulation 39(1A) does not prohibit the Committee of Creditors from negotiating or requesting....

07/07/2023

NCLAT reverses the order of the liquidation and directed the Adjudicating Authority to revive the corporate debtor.

The National Company Law Appellate Tribunal (NCLAT), Chennai Bench comprising Justice M. Venugopal, Judicial Member and Ms. Shreesha Merla, Technical Member was recently hearing an appeal. The NCLAT Chennai bench set aside the order of liquidation and directed the Adjudicating Authority to give the....

05/07/2023

The Adjudicating Authority Overstepped by Ordering a Revised Resolution Plan After the Challenge Process had Ended.

The National Company Law Appellate Tribunal (NCLAT), New Delhi Bench comprising Justice Ashok Bhushan, Chairperson and Barun Mitra, Technical Member was hearing an appeal and observed that the Adjudicating Authority exceeded its authority by ordering the consideration of a revised resolution plan af...

17/06/2023

Central Government notifies exemptions to specific transactions, arrangements and agreements under IBC 2016.

The Ministry of Corporate Affairs has issued a notification granting exemptions to specific transactions, arrangements, and agreements from the provisions of section 14(1) of the Insolvency and Bankruptcy Code, 2016. The notification, numbered S.O. 2660(E), was released on June 14, 2023. According t...

17/06/2023

The Insolvency Professionals to Act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2023.

In a significant move to streamline the appointment process of Insolvency Professionals (IPs), the Insolvency and Bankruptcy Board of India (IBBI) has issued guidelines to create a panel of qualified individuals for various roles in the insolvency and bankruptcy resolution process. The guidelines ai...

15/06/2023

Despite being labelled a Willful Defaulter, Corporate Debtor is Eligible to submit a Resolution Plan.

The National Company Law Appellate Tribunal (NCLAT), New Delhi Bench comprising Justice Ashok Bhushan, Chairperson and Barun Mitra, Technical Member was hearing an appeal filed to challenge the rejection of a resolution plan submitted by the appellant. The NCLAT Bench held that the appellant, despit...

14/06/2023

NCLAT Ruling Preserves Creditor Rights: Upholds Pursuit of Fraudulent Transactions in DHFL Case.

The National Company Law Appellate Tribunal (NCLAT), Principal Bench comprising Justice Ashok Bhushan, Chairperson and Barun Mitra, Technical Member was hearing a bunch of appeals filed by the Ex-Promoter of the Dewan Housing Finance Corporation Finance Limited and allegations regarding fraudulent t...

13/06/2023

An Unsigned Statement of Accounts Attached to an Email Doesn't Constitute a Valid Acknowledgement of Debt Under Section 18 of the Limitation Act.

The National Company Law Appellate Tribunal (NCLAT) in New Delhi, comprising Justice Ashok Bhushan as Chairperson and Barun Mitra as Technical Member, recently delivered a judgment in an appeal case. The NCLAT held that an unsigned and unauthenticated statement of accounts attached to an email does....

13/06/2023

NCLAT Upheld NCLT's Order to Initiate CIRP, Based on Loan Facility Agreements' Governing Law and Jurisdiction Clauses.

The National Company Law Appellate Tribunal (NCLAT), New Delhi Bench comprising Justice Rakesh Kumar, Judicial Member and Dr. Alok Srivastava, Technical Member was hearing an appeal filed by the Corporate Debtor and held the jurisdiction of NCLT Mumbai to initiate the Corporate Insolvency Resolution...

12/06/2023

NCLT must admit Section 7 application upon confirming default, regardless of disputes or debt status.

The Supreme Court Bench comprising Justices Abhay S. Oka and Rajesh Bindal, J. was hearing an appeal filed by the Corporate Debtor and held that once the NCLT is satisfied that a default has occurred, it is obligated to admit an application under Section 7 of the Insolvency and Bankruptcy Code, rega...

12/06/2023

NCLAT Set Asides the NCLT's Rejection of Resolution Plan Based on ARC Involvement and RBI Approval.

In a significant development, the National Company Law Appellate Tribunal (NCLAT) has held today that the rejection of a Resolution Plan by the National Company Law Tribunal (NCLT) was erroneous. The rejection was based on the involvement of an Asset Reconstruction Company (ARC) and the requirement....

11/06/2023

If the SARFAESI Auction Sale is Not Confirmed, the Forfeiture of the Advance Amount is Not Valid.

The Debts Recovery Appellate Tribunal (DRAT), Chennai Bench comprising Justice S. Ravikumar was hearing an appeal on SARFAESI Act and held that the forfeiture of the advance amount in an auction sale conducted under the SARFAESI Act, 2002 is not valid if the sale has not been confirmed, and the term...

08/06/2023

Power to Recall a Judgment is Inherent in NCLAT Even Though It Does Not Possess the Power of Review.

The Five-Judge Bench of the National Company Law Appellate Tribunal, New Delhi comprising Justice Ashok Bhushan, Chairperson, Justice Rakesh Kumar Jain & Justice Rakesh Kumar, Judicial Members and Dr. Alok Srivastava & Barun Mitra, Technical Members were constituted for considering the following que...

08/06/2023

IBBI Releases Discussion Paper to Boost Resolution Possibilities and Value under Insolvency and Bankruptcy Code.

Introduction: The Insolvency and Bankruptcy Code, 2016 (Code) was enacted with the aim of expediting the resolution process and maximizing asset value. However, concerns have been raised regarding the limited number of successful resolutions and the extended duration of the resolution process. To ad...

08/06/2023

The IBBI Seeks Simplification of Enrolment and Registration Process for Insolvency Profession.

The Insolvency and Bankruptcy Board of India (IBBI) has recently released a discussion paper inviting public comments on the simplification of the enrolment and registration process for individuals in the insolvency profession. This move aims to streamline and enhance the ease of entry into the inso...

06/06/2023

High Court Prohibits Banks & FIs From Forcefully Seizing Vehicles Without Following Legal Procedures.

The Patna High Court Single Judge Bench comprising Justice Rajeev Ranjan Prasad was hearing miscellaneous petitions and held that the banks and financial institutions are prohibited from forcefully seizing and repossessing vehicles without following legal procedures, directs an independent investiga...

06/06/2023

The auction purchaser is responsible for settling the electricity dues of the previous owner: All HC

The Division Bench of the Allahabad High Court comprising Justices Mrs. Sunita Agarwal and Vipin Chandra Dixit were hearing a Review Application filed by the Auction Purchaser. HC Bench held that the auction purchaser was responsible for settling the outstanding electricity dues of the previous owne...

03/06/2023

'Audi Alteram Partem' in Banking Law Ensures Fairness in Account Classification as Fraud: SC

The Supreme Court Bench comprising CJI. Dr. Dhananjaya Y. Chandrachud and Justice Hima Kohli were hearing miscellaneous appeals challenging the RBI Directions 2016. The Supreme Court bench observed that the principles of natural justice, particularly the rule of 'audi alteram partem', have to be nec...

02/06/2023

The Appellant/Secured Creditor fails to produce evidence of compliance with Rule 8(6) and Rule 9(1) of the Security Interest (Enforcement) Rules, 2002.

02/06/2023

Supreme Court Rules Auction Proceedings Conducted by Secured Creditor as Invalid and Orders For a Fresh Auction.

The Supreme Court Bench comprising Justices Ajay Rastogi and Bela M. Trivedi was hearing an appeal and ruled in favour of the appellant, declaring that the auction proceedings conducted by the secured creditor were invalid and ordering a fresh auction to be conducted. The case involves a borrower wh...

01/06/2023

SARFAESI Act: A Tenant under a registered lease, cannot be dispossessed by the Bank/Secured Creditor.

The Division Bench of the Andhra Pradesh High Court comprising Justices U. Durga Prasad Rao and B.V.L.N. Chakravarthi was hearing a petition filed by the tenant of the secured property. The HC Bench held that the petitioner, as a lawful tenant under a registered lease, cannot be dispossessed by the....

31/05/2023

The Petitioner's challenge to the order passed under Section 14 of the SARFAESI Act is not maintainable.

The Division Bench of the Allahabad High Court (Lucknow bench) comprising Justices Rajan Roy and Manish Kumar was hearing a petition and observed that the Petitioner's challenge to the order passed under Section 14 of the SARFAESI Act was not maintainable, as the remedy for the petitioner lies under...

30/05/2023

High Courts Should Refrain From Interfering in Commercial Matters Governed by the SARFAESI Act: SC

The Supreme Court bench comprising Justices Sanjiv Khanna and M. M. Sundresh was hearing an appeal and held that the high courts should refrain from interfering in commercial matters governed by the SARFAESI Act when there exists an effective alternative forum, and the specific mechanism provided by...

30/05/2023

Secured Creditors' Right to Realise Secured Debts have Priority over Other Debts & Government Dues.

The Division Bench of the Madras High Court comprising Justices D. Krishnakumar and R. Vijayakumar was hearing a petition and held that the rights of secured creditors to realise secured debts have priority over other debts and government dues, including taxes. In the present case, the High Court Di...