Money advanced for clearing land title is an investment, not financial debt under Section 5(8) of the IBC: NCLAT
The NCLAT reinforced that not all financial transactions qualify as financial debts under the IBC.
IBC
NCLT approves replacement of IRP with Insolvency Professional Entity based on CoC’s resolution & IBC’s timeline
The NCLT noted that Form AA, meant for individual Insolvency Professionals, had been modified by the Insolvency Professional Entity to fit its consent as no separate form for IPEs exists.
Calcutta High Court refuses to consider order of the U.S. Bankruptcy Court for binding Trial Judge to stay anti-arbitration suit
The Calcutta High Court said that the principle of comity of nations and comity of courts had been recognized by the Indian Courts by giving adequate weightage to orders or decrees of a foreign court while deciding any proceeding in a domestic court.
IBC proceedings don’t bar liability under Section 138 of NI Act: MP High Court
The Court held that the proceedings under Section 138 of the Negotiable Instruments Act, 1881 are penal in nature and not akin to civil recovery proceedings.
‘Indemnity obligation on guarantee is not operational debt’; NCLT dismisses CIRP petition due to limitation and Lack of Privity
The NCLT stated that the petitioner neither had a direct contractual relationship with the respondent, nor was the respondent provided with any goods/services, thereby disqualifying them as an operational creditor.
Can arbitration proceedings act as a bar for proceedings under Section 7 of the IBC? Delhi HC answers
“Section 7 of the Insolvency and Bankruptcy Code, 2016 states a financial creditor, either by itself or jointly, with other financial creditors, or any other person on behalf of the financial creditor, may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when a default has occurred.”
2024 SCC Vol. 4 Part 5
Arbitration and Conciliation Act, 1996 — Ss. 34 and 37 r/w Ss. 2(4) and 16 — Jurisdiction of arbitrator to adjudicate under
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.
Clean Slate Doctrine — Wiggle Room for “Uncrystallised Claims”?
by Yogendra Aldak†, Pranav Mundra†† and Balraaj Singh Chhatwal†††
[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.”
Resolution versus Penalisation: Is IBC Deviating from its Purpose?
by Shekhar Raj Sharma* and Akshita Grover**
‘Inconvenience of specific party cannot outweigh statutory provisions’; Delhi High Court directs DGCA to process deregistration of 54 leased GoAir aircrafts
“It is trite that the international treaty obligations are required to be followed strictly and any deviation therefrom would have adverse effects including downgrading of the business interests of country in the international community.”
Filing of ‘Certified Copy’ not an empty ritualistic formality: NCLAT
NCLAT upheld appellant’s classification as a Financial Institution and it’s liability to pay Liquidation Costs.
75 Landmark Judgments on Constitutional Law by the Supreme Court in 2023 Part III
by Siddharth R. Gupta* and Prakruthi N.**
Cite as: 2024 SCC OnLine Blog Exp 20
Explained| Madras High Court verdict on constitutionality of Section 204 of the Insolvency and Bankruptcy Code
“Regulations and Byelaws framed under Section 204 IBC clearly provide checks and balances. Therefore, it cannot be said to be confirmation of excessive or unbridled power”
‘Set-off inapplicable to CIRP under IBC’; Supreme Court verdict on Right to claim Set-off in Corporate Insolvency Resolution Process, explained
“If a Resolution Professional proceeds in terms of Section 25 of the IBC and secures the assets from the creditors, the creditors would not be entitled to claim set-off during the course of the Corporate Insolvency Resolution Process.”
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”
Refusal to re-hear matter after reservation of order in company petition does not cause miscarriage of justice: NCLAT
“Debt acknowledgment in balance sheets and OTS proposal demonstrated Corporate Debtor’s awareness of assignment, rendering technical challenges unfounded.”