Only Resolution Professional Is Empowered To File Application For Avoidance Of Preferential Transactions U/S 43 Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that an application for avoidance of preferential transactions under Section 43 of the Insolvency and Bankruptcy Code, 2016 (Code) can be filed only by the Resolution Professional. Hence,...

Adjudicating Authority Not Justified In Rejecting Plan Based On Valuation Report When No Objections Were Raised By Stakeholders: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that when no objection to the valuation conducted of the Corporate Debtor was raised by any stakeholders, it was not open for the Adjudicating Authority to enter into the issue of valuation...

Execution Of Fresh Personal Guarantee Post-Restructuring Bars Initiation Of Insolvency Process U/S 95 Of IBC Against Personal Guarantor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that when the lenders restructured their debts and extinguished prior security interests by obtaining a fresh personal guarantee from the Personal Guarantor, the Appellant cannot invoke...

Gratuity With Interest Qualifies As Operational Debt U/S 5(21) Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that the claim for gratuity along with interest falls within the definition of operational debt; therefore, an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (Code) based on such a claim, is...

NCLT Can Exercise Inherent Powers To Forward A Copy Of Its Order To Relevant Statutory Authorities For Necessary Action: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) that the National Company Law Tribunal (NCLT) in exercise of its inherent jurisdiction under Rule 11 of the NCLT Rules, 2016, may direct that a copy of its order be forwarded to...

Interim Resolution Professional Is Empowered To Take Possession Of Assets Owned By Corporate Debtor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that Interim Resolution Professional (IRP) is well within his authority under Section 18(1)(f) of the Insolvency and Bankruptcy Code, 2016 (Code) to take possession of assets owned by the...

IBC Weekly Round Up [12th May-18th May 2025]

High Court Calcutta High Court Upholds Order Dismissing Plea Challenging Shift Of NCLT Premises To New Town Case: NCLT Advocates Bar Association & Ors. -Vs- Union of India & Ors Case No: MAT 469 of 2025 The Calcutta High Court has upheld a single bench order declining a plea challenging the move to shift the NCLT Kolkata premises located near the High Court, to...

Majority's Consideration Of Debt Restructuring With Corporate Debtor Does Not Bar Individual Member From Filing Petition U/S 7 Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that the fact that a majority of consortium lenders are considering debt restructuring with the Corporate Debtor does not preclude an individual member from independently initiating insolvency proceedings under Section 7 of...

State Entitled To Secured Creditor Status Under IBC Due To Statutory Charge Created U/S 48 Of GVAT Act: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member) has held that after completion of the assessment of the Corporate Debtor under Gujarat Value Added Tax (GVAT) Act before Corporate Insolvency Resolution Process (CIRP), a charge in view section 48 of the GVAT Act is created by...

Insolvency Proceedings Can't Be Initiated By Operational Creditor When Complaints Regarding Defects Remain Unresolved: NCLT Delhi

The National Company Law Tribunal (NCLT), New Delhi bench of Shri Manni Sankariah Shanmuga Sundaram (Judicial Member) and Dr. Sanjeev Ranjan (Technical Member), held that an Operational Creditor can't initiate insolvency proceedings against the Corporate Debtor for non-payment, when complaints regarding defects in products remain unresolved. Background Facts: Schneider Electric...

Order Of DRT Setting Aside NPA Classification Does Not Negate Existence Of Financial Debt Or Occurrence Of Default: NCLT Delhi

The National Company Law Tribunal (NCLT), New Delhi bench of Shri Manni Sankariah Shanmuga Sundaram (Judicial Member) and Dr. Sanjeev Ranjan (Technical Member), held that an order of Debt Recovery Tribunal (DRT) setting aside NPA classification does not negate existence of financial debt or occurrence of default, which are the two primary factors for admitting a Section 7 petition under...

Income Tax Department Cannot Be Considered As A Secured Creditor In Liquidation Proceedings: NCLT Chennai

The National Company Law Tribunal, Chennai, comprising Shri Jyoti Kumar Tripathi (Member-Judicial) and Shri Ravichandran Ramasamy (Member-Technical), disposed of the application filed by the Canara Bank of India under Section 60(5) of the IBC r/w Rule 11 of the NCLT Rules 2016 against the Income Tax Department, seeking a refund of Rs 1.12 Cr. into the liquidation estate of...