Absence Of Assignee Name In Balance Sheet Of Corporate Debtor Does Not Negate Applicability Of Section 18 Of Limitation Act: 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 the debt was assigned to Assignee and the assignee was not named in the balance sheets does not negate the applicability of Section 18 of the Limitation Act, 1963 (Limitation Act). It further held that the debt...

Joint Application U/S 9 Of IBC Not Maintainable If Individual Claims Do Not Meet Threshold Limit U/S 4 Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Baurn Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that in a joint application filed by operational creditors under Section 9 of the Insolvency and Bankruptcy Code, 2016 (the Code), the threshold limit prescribed under Section 4...

No Claim Can Be Submitted After Approval Of Resolution Plan By CoC If Creditor Was Aware Of CIRP Initiation Against Corporate Debtor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that when a creditor is well aware of the initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor but chooses not to file a claim before the Resolution Professional, it cannot be permitted...

Homebuyers Remain Financial Creditors U/S 5(8)(F) Of IBC Regardless Of Whether They Obtained RERA Recovery Certificates: 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 whether or not homebuyers have obtained recovery certificates from the Real Estate Regulatory Authority (RERA), they remain financial creditors under Section 5(8)(f) of the...

Explained| Why Supreme Court Set Aside JSW's Resolution Plan For Bhushan Steel & Power Ltd

The Supreme Court in its recent decision to set aside the Resolution Plan submitted by JSW Steel for Bhushan Steel and Power Ltd, flagged the various procedural non-compliances done by the Resolution Professional and lack of commercial wisdom exercised by the Committee of Creditors (Coc)Holding that the Resolution Plan of JSW was illegal and contrary to the provisions of the Insolvency...

NCLT/NCLAT Cannot Review Actions Taken By ED Under PMLA : Supreme Court

The Court held that NCLT cannot review the actions taken by statutory authorities under public law.

Resolution Professional Can't Exclude Voting Share Of Members Who Abstain From Voting When Calculating Requisite Majority: NCLT Mumbai

The National Company Tribunal (NCLT), Mumbai Bench comprising of Ms. Lakshmi Gurung (Member (Judicial) and Shri Anil Raj Chellan (Member (Technical) disposed a Section 60(5) application filed by the Applicant against the approval of the Resolution Plan, stating that the same lacked the desired voting percentage to be approved as a resolution plan. Background The following case...

NCLT Cannot Adjudicate Disputed Contractual Claims During Liquidation Under IBC If There Exists An Arbitration Clause: NCLAT Chennai

The National Company Law Appellate Tribunal (NCLAT), Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), dismissed an appeal arising out of an order passed by the NCLT, Chennai. The tribunal observed that a liquidator under the IBC, 2016, cannot seek adjudication of a disputed contractual claim if the contract provides...

Supreme Court Rejects JSW's Resolution Plan For Bhushan Steel As Illegal, Orders Liquidation; Says CoC Acted Without Commercial Wisdom

The Court also slammed the conduct of the Resolution Professional.

Existence Of Proceedings Under MSMED Act Or S.138 NI Act Doesn't Amount To Pre-Existing Dispute U/S 9 Of IBC: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench, comprising Shri Prabhat Kumar (Member- Technical) and Justice V. G. Bisht, has allowed an application filed by an operational creditor under section 9 of the IBC seeking initiation of the CIRP against the Corporate Debtor. The Adjudicating Authority observed that the proceedings under the Micro, Small, and Medium Enterprises...

Loan Taken From "Special Window For Affordable & Mid-Income Housing Fund" To Be Recognised As 'Interim Finance' U/S 5(15) Of IBC: NCLT, Delhi

The National Company Law Tribunal (“Tribunal”), New Delhi bench of Shri Manni Sankariah Shanmuga Sundaram (Judicial Member) and Dr. Sanjeev Ranjan (Technical Member), allowed the claim of the applicant as Interim Finance holding that Loan provided by SWAMIH Fund (Special Window for Affordable and Mid-Income Housing) qualifies to be recognised as 'Interim Finance' under Section 5(15)...

Guarantor's Liability Cannot Exceed Contractual Cap By Adding Interest On Principal Amount For Delayed Payment: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of Justice Sh. Sushil Mahadeorao Kochey (Judicial Member) and Sh. Charanjeet Singh Gulati (Technical Member) has held that the guarantor's liability cannot exceed the limit specified in the contract of guarantee. When the corporate debtor defaults, the guarantor is bound only to the extent of the capped amount that is Rs. 25 crore...