Cases Reported in Comp Cas| Latest Cases on Company Laws
Explore the latest cases reported in SCC’s Company Cases (Comp Cas) Volume on Insolvency Resolution, Winding up and Liquidation, Moratorium, Dissolution of Company, and much more.
Liquidation
‘Secured Creditor who relinquishes interest cannot seek priority among others based on charge’; NCLT directs distribution of sale proceeds of Monnet Power’s assets
“Once a Secured Creditor relinquishes its security interest to the liquidation estate, it cannot seek priority among other Secured Creditors on the basis of the charge and is only entitled to receive proceeds from the sale of assets in the manner specified under Section 53 of the IBC.”
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.”
Delhi High Court grants permission for execution of a decree passed after 20 years against a Company under liquidation
The applicant must have spent considerable resources fighting the suit for the last 20 years and therefore, it would not be appropriate to deprive him of the opportunity to execute the decree obtained in his favour.
Delhi High Court dismisses petition seeking Guidelines for Suspended Insolvency Professionals by IBBI Disciplinary Committee
The Court exonerated the charges of contravention of prescribing non-refundable participation fee levied on Liquidator of Corporate Debtor, however, he was found guilty of paying excess fees to BDO Restructuring Advisory LLP.
NCLAT rules on Secured Creditor’s right to choose method of debt realisation
NCLAT stated that since the IBC overrides the SARFAESI Act, the Liquidator ought not to prefer a petition, based on the SARFAESI Act, and therefore Liquidator’s decision to classify the appellant as an unsecured financial creditor was illegal and invalid.
IBBI excludes assets in a real estate project that have been handed over to the allottee from liquidation process of the company
IBBI notifies Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024.
NCLAT affirms Committee of Creditors’ authority to opt for liquidation under Section 33(2) of the IBC; sets aside show cause notice
The NCLAT held that the CoC had the jurisdiction to decide on liquidation as per Section 33(2) and its explanation, even before completing all steps for resolution.
Adjudicating Authority’s order for liquidation valid when Resolution Plan remains unapproved, and no alternative plan in CIRP exists: NCLAT
The Liquidator should endeavor to sell the Corporate Debtor as a going concern in the Liquidation Proceeding, and the appellant may participate by submitting its plan.
[Harmonious Construction] Section 529A of Companies Act, 1956 would prevail over Income Tax Act, 1961: Madhya Pradesh High Court
“…the Act of 1956 is a special Act which govern the law regarding companies only whereas IT Act is a general Act which percolates in just about every sphere of life and is applicable to all the citizen of India when it comes to payment of Income Tax.”
Delhi High Court upholds LOC issued by SFIO for alleged siphoning off public funds of public sector banks and financial institutions
LOCs impinge upon the individual’s right to travel which is recognised as a Fundamental Right. However, the rights and interest of the investing public would also be a relevant consideration which cannot be ignored.
Companies (Registration Offices and Fees) Amendment Rules, 2023
The Central Government has notified Companies (Registration Offices and Fees) Amendment Rules, 2023 to amend the Companies (Registration Offices and Fees) Rules,
Adjudicating Authority is obligated to give direction for liquidation only when CoC’s decision is in accordance with IBC: NCLAT
In the instant matter, an appeal was filed challenging NCLT's order directing the CoC to reconsider its decision. Upholding the NCLT's order, the Tribunal held that when the CoC's decision for liquidation is in accordance with IBC, then only NCLT's obligation to direct liquidation will arise.
Delhi High Court| Courts are duty bound to lean towards an interpretation which uphold jurisdiction of a Civil Court in case of suspicion
Section 9 of CPC is also symbolised as the gateway to the civil Courts as it envisages not only the inherent powers of the Civil Courts to entertain any suit of a civil nature, but also the inherent rights of the disgruntled yet hopeful litigants to approach the civil Courts with a huge expectation that they will get justice from this forum, which would adjudicate upon their infracted legal rights and will invoke the legal machinery to protect and vindicate such rights.
Rule 11 of NCLAT Rules 2016 cannot be invoked even if there is no provision in IBC to deal with certain circumstances: NCLAT
National Company Law Appellate Tribunal | Dismissing the appeals, a bench comprising of Rakesh Kumar Jain*, J. and Kanthi Narahari
NCLAT | Rejection of Resolution Plan by the NCLT due to Non-Serious, Casual and Non-Diligent Conduct of Resolution Appellant is Good in Law
“The CIRP is a time bound process where timeline has been prescribed for each step. The CIRP cannot be allowed to continue for indefinite period.”
Signing of charge e-forms by insolvency resolution professional or resolution professional or liquidator for companies under resolution or liquidation vide Companies (Registration of Charges) Second Amendment Rules, 2022
The Central Government has notified the Companies (Registration of Charges) Second Amendment Rules, 2022 to amend the Companies (Removal of Names of
8 Legal Stories of the Week: From the release of movie Gangubai Kathiawadi to WhatsApp Admin’s liability if a member of group shares objectionable content on group and many more such stories
Here’s our interesting picks of the week from the stories reported “Notaries operating from public taxis around vicinity of Court”: Dignity of
“Shylock has received their promised pound of flesh but they seem to want more”; Bank entitled to withhold payment where Bond holder’s title is clouded as fraudulent: SC
Supreme Court: The Division Bench of Hrishikesh Roy* and R. Subhash Reddy, JJ., while deciding on an appeal challenging dismissal of suit
Can application filed under S. 95(1) read with S. 60(1) IBC be rejected on ground that no Corporate Insolvency Resolution Process was pending against Corporate Debtor? NCLAT addresses
If CIRP or Liquidation Proceeding of a Corporate Debtor is pending before a NCLT, application relating to Insolvency Process of Corporate or