corporate insolvency resolution process
Pre-existing dispute irrelevant once debt and default proved: Supreme Court restores Section 7 IBC proceedings
Unapproved restructuring of loan facility not in compliance with the Debenture Trust Deed cannot defeat the admission of Section 7 IBC application once financial debt and default are established.
EPFO stakeholder claims based on assessment order post liquidation commencement date inadmissible: NCLAT
“Non-admission of the claim of the Appellant in liquidation proceeding shall not preclude it from taking such steps as available in law for realisation of its claim which arose after liquidation commencement date.”
No Financial Creditor status with invalid Debt Assignment: NCLAT sets aside initiation of CIRP under Section 7 IBC
“For maintaining an application for default of another Financial Creditor, the essential ingredients to be fulfilled by the Applicant is that the Applicant has to be a Financial Creditor on its own facts.”
Madras HC: NCLT bound to appoint applicant-recommended Interim Resolution Professional under Ss. 7 and 10 of IBC
“In regard to an application under Sections 7 or under 10 of the IB Code, the professional recommended by the applicant must mandatorily be appointed as IRP, the only caveat being that no disciplinary proceedings should be pending as against him, leaving no elbowroom to the NCLT to take a different view.”
Shardul Amarchand Mangaldas & Co. advises Committee of Creditors of Vadraj Cement on its Corporate Insolvency Resolution Process
Shardul Amarchand Mangaldas & Co. advised the Committee of Creditors (CoC) of Vadraj Cement Limited (VCL)
Setting Aside of an Executed Resolution Plan: Supreme Court’s Verdict in the JSW — Bhushan Steel Insolvency Case Saga Opens a Pandora Box
by Vasanth Rajasekaran and Harshvardhan Korada
‘Single Homebuyer can’t challenge CoC approved Resolution Plan’; NCLAT upholds CoC’s commercial wisdom
The Resolution Plan has been approved by 83.46% voting share of the CoC, therefore, at the instance of Appellant, approval of Resolution Plan cannot be allowed to be questioned.”
Is Time of Essence: A Test of IBC’s Timelines and Accountability
by Aseem Chaturvedi*, Arpit Kumar Singh**, Siddhant Kumar*** and Amaan Khan****
Force Majeure doesn’t absolve Corporate Debtor from contractual obligations; NCLT directs initiation of CIRP against Corporate Debtor
The NCLT acknowledged the impact of force majeure events, particularly the unprecedented rise in coal prices and operational disruptions caused by the COVID-19 pandemic on Corporate Debtor.
Electricity is an “essential service” under Section 14(2) IBC; can’t be discontinued even if dues remain unpaid during CIRP: NCLAT
“If the Corporate Debtor operates as a manufacturing facility, then electricity may be treated as critical service by the insolvency professional and the dues for such services must be paid.”
Financial Creditors’ involvement in project monitoring does not absolve Corporate Debtors from repayment obligations: NCLAT
“Any dispute even pending in the arbitration does not in any manner prohibit the financial creditor to take remedy under Section 7 IBC.”
Proviso to S. 31(4) IBC mandatory in nature; Breakdown of SC’s 2:1 verdict holding AGI Greenpac’s Resolution Plan for HNGIL unsustainable
“Legislative intent behind inserting the proviso to Section 31(4) of the IBC would suggest that prior approval of the CCI was specifically mandated and it should not be seen as a flexible provision to be ignored in certain exigencies.”
NCLT dismisses Akshay Kumar’s insolvency plea against Math tutoring platform, Cue Learn
“The essence of the IBC lies in resolving insolvency matters through a process driven approach, and any deviation from its prescribed scope would undermine the legislative intent of the Code.”
NCLT allows liquidation of Go First Airways
“Decision taken by the CoC for liquidation in commercial wisdom of the CoC should not be interfered with by the Adjudicating Authority.”
Strengthening Our Insolvency Regime: The Answer Lies Within
by Arush Khanna* and Swetalana Rout**
‘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.
