Inter-Corporate Loans and Deposits: Treatment of Such Debts in Case of Default
by Sidharth Sethi† and Shreya Sircar††
Financial Debt
Know Thy Judge | Supreme Court of India: Justice Pankaj Mithal
Sitting Judge of the Supreme Court of India, Justice Pankaj Mithal began his tryst with law in the 1980s.
NCLT initiates corporate insolvency proceedings against Himalayan Mineral Water
The application is filed by Jammu and Kashmir Bank against the Himalayan Mineral Waters Private Limited for a total financial debt of Rs. 50,04,38,456/- for the credit facilities availed by Leel Electricals.
Supreme Court Roundup May 2024 | Art. 370; Pregnant person’s consent; Application of S. 498-A IPC; Financial Debt v. Operational Debt; Jaypee Infratech Resolution Plan; Constitutionality of ICAI guidelines
The roundup revisits the analyses of Supreme Court’s judgments/orders on Pregnant person’s consent; Application of S. 498-A IPC; Financial Debt v. Operational Debt and more. It also covers the top stories; Never reported Judgments and Know thy Supreme Court Judges.
[Financial Debt v. Operational Debt] SC clarifies when a ‘debt’ is considered as financial debt and operational debt under IBC
“While deciding that whether a debt is a financial debt or an operational debt arising out of a transaction covered by an agreement or arrangement in writing, it is necessary to ascertain what is the real nature of the transaction reflected in the writing.”
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.
Adequate pleadings and findings required to establish Section 65 IBC compliance; NCLAT revives Section 7 application
NCLT’s order did not contain specific findings regarding whether the entire loan amount had been paid and whether nothing remained due.
Transition between the parties should be direct to construe the debt as ‘Financial Debt’ under Section 5(8) of the IBC: NCLAT
Amount taken by the Directors of the Corporate Debtor in their personal capacity cannot be construed as ‘Financial Debt’ under S. 5(8) of the IBC.
Deduction of TDS and deposit in Form 16-A under Section 194-A of Income Tax Act proves the deduction was TDS relating to ‘Interest other than interest on securities’: NCLAT observes
In the instant matter an appeal was preferred against the order of NCLT admitting S. 7 IBC application or repayment of financial debt. Upholding the order of the NCLT, the Tribunal held that even if there is no proof of loan agreement other materials on record can prove the financial debt.
Recovering Foreign Award Debts in Insolvency Proceedings
by Kartikey Mahajan, Siddhant Sharma and Jatan Rodrigues
Cite as: 2022 SCC OnLine Blog Exp 87
Can default in payment of instalments under the settlement agreement be defined as an operational debt? NCLT decides
National Company Law Tribunal, New Delhi: The bench of Abni Rajan Kumar Sinha, Judicial Member and Hemant Kumar Sarangi, Technical Member has
Can post-dated cheque issued for repayment of principal amount be taken as unqualified admission of debt? NCLT Allahabad decides
National Company Law Tribunal, Allahabad (NCLT): The bench of Rajasekhar V.K., Judicial Member and Virendra Kumar Gupta, Technical Member decided that for
Liability in respect of a claim arising out of a Recovery Certificate is a “financial debt” under Section 5(8) of the IBC: Supreme Court
Supreme Court: The 3-judge bench of L. Nageswara Rao, BR Gavai* and AS Bopanna, JJ has held that a liability in respect
National Company Law Tribunal orders insolvency proceedings against Supertech: Indebted and defaulted repayment of loan
National Company Law Tribunal, New Delhi: The Coram of P.N. Prasad, Judicial Member and Rahul Bhatnagar, Technical Member, declared insolvency proceedings against
‘Interest’: A Legal Quandary under IBC
by Bishwajit Dubey† and Prafful Goyal††
Cite as: 2022 SCC OnLine Blog Exp 25
Whether a Decree or an Arbitral Award or a Settlement Deed can Form the Basis of a Financial or Operational Debt under IB Code [Part III]
by Akaant Kumar Mittal±
Cite as: 2022 SCC OnLine Blog Exp 14
NCLT rejects withdrawal application under S. 12-A IBC where corporate debtor entered into settlement only with a fraction of creditors: CIRP against Rolta India Ltd. will continue
National Company Law Tribunal, NCLT Mumbai: Coram of Suchitra Kanuparthi, Judicial Member and Chandra Bhan Singh, Technical Member, observed that, “…a Judicial
NCLT Decodes | Whether working capital provided by an investor to run a restaurant would come under the ambit of Financial Debt?
National Company Law Tribunal (NCLT): Coram of H.V. Subba Rao (Judicial Member) and Chandra Bhan Singh (Technical Member) held that ‘Working Capital’
Directors of the ‘Corporate Debtor’ held to be ‘Financial Creditor’ against the same company in light of outstanding unsecured debt: NCLAT
National Company Law Appellate Tribunal (NCLAT): A two-member bench comprising of Justice S.J. Mukhopadhaya, Chairperson and Justice Bansi Lal Bhat, Member (Judicial),