Strengthening Our Insolvency Regime: The Answer Lies Within
by Arush Khanna* and Swetalana Rout**
CIRP
‘Supervisory & judicial review powers vested in HCs demands rigorous scrutiny & judicious application’; SC sets aside HC’s order interdicting CIRP proceedings under IBC
“The IBC is a complete code in itself, having sufficient checks and balances, remedial avenues and appeals. Adherence of protocols and procedures maintains legal discipline and preserves the balance between the need for order and the quest for justice.”
‘Delays arising from statutory compliance not force majeure’; NCLT admits insolvency proceeding against Raheja Developers
The NCLT held that non-delivery of possession despite payments and continued acknowledgment of liability through emails and communications proved default under Section 7 IBC.
Delhi High Court dismisses contempt proceedings by GAIL India Limited recognizing reasonable efforts amid insolvency challenges
Delhi High Court observed that the contempt proceedings against the respondents lacked legal foundation, as they were not parties to the original petitions instituted by the consortium companies.
Testing the Limits of the Clean Slate Theory — A Critical Examination of the Madras High Court’s Ruling in National Sewing Thread Co. Ltd. v. TANGEDCO
by Ritika Gambhir Kohli†, Akshaya Ganpath†† and Saumya Tiwari†††
Supreme Court overturns NCLAT judgment that closed insolvency process against Byju’s, following settlement with BCCI
The present appeal raises substantial questions about the legal framework governing the withdrawal of a CIRP; the settlement of claims after the admission of an application instituted by a debtor; and the scope of the inherent powers vested in the NCLAT under Rule 11 of the NCLAT Rules.
Suspension of CIRP for defaults during Pandemic under Section 10-A IBC does not apply to personal guarantors: NCLT
NCLT held that the Resolution Professional followed the principles of Natural Justice and considered relevant documents, therefore, the Personal Insolvency Resolution Process should be initiated.
[Jaypee Infratech Resolution Plan] SC closes home buyers’ pleas after Suraksha Realty offers for allotment of homes or refund
About 538 home buyers, who paid more than 80% of the demand, will be given this option for allotment of the flat, in which event, the said home buyers will be treated on par with other home buyers.
Delhi High Court directs Disclosure of Forensic Audit Report on Show Cause Notices by IDBI Bank
A forensic audit was conducted by Grant Thornton LLP at the request of the respondent-bank. The audit led to the withdrawal of the ‘red flagging’ of the company’s account.
Delhi High Court directs State Bank of India to provide all documents forming basis of the Show Cause Notices issued to Educomp Solution
The Delhi High Court emphasised that if the relevant documents are not provided to a party, the whole procedure of issuance of Show Cause Notice would be reduced to an empty formality.
NCLT approves withdrawal of insolvency resolution proceedings against Syska LED Lights after settlement
The NCLT directed the Resolution Professional to hand over control of Syska LED Lights Pvt. Ltd. back to the Corporate Debtor, if it had been taken over.
NCLAT upholds Resolution plan and affirms parties’ right to seek redress for ‘reliefs and concessions’ in Competent Court
The NCLAT upheld the grant of reliefs and concessions regarding shared utilities and services in Resolution Plan to facilitate the smooth and successful implementation of the Resolution Plan.
To Verify or Not? The Saga of Belated Claims During the CIRP
By Aditya Vikram Singh† and Vedant Singh††
Upholding the Validity of Provisions Related to Personal Guarantors Under IBC – Good for Lenders, Bad for Guarantors
by Zorawar Singh† and Hitesh Mankar††
10 Important Insolvency Law Judgments of 2023
by Vasanth Rajasekaran† and Harshvardhan Korada††
Cite as: 2024 SCC OnLine Blog Exp 1
Explained| Supreme Court verdict upholding constitutional validity of provisions relating to Personal Guarantors in IBC
“The principle aims of IBC are to promote investment, and resolution of insolvencies of corporate persons, firms, and individuals in a time bound manner. The IBC consolidated and amended a web of laws which had led to an ineffective and inefficient mechanism for resolution of insolvencies marked with significant delay”
Financial Debt claim under Section 5(8) of IBC cannot be entertained after CoC’s approval of Resolution Plan: NCLAT
The NCLAT reiterated the importance of adhering to timelines in the Insolvency resolution process and the unacceptability of claims filed after the approval of the Resolution Plan by the CoC.
NCLAT affirms dismissal of minority homebuyers’ challenge to Resolution Plan; says it does not fall foul of law on reduction in claim
The democratic principles of the determinative role of majority opinion are enshrined in the IBC, and objections by a minority within a class, when the majority has approved a resolution plan, have no legal standing.