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The NCLAT held the appellant’s claim was inflated, and the Adjudicating Authority rightly recalculated the actual unpaid amount, which fell below the Rs 1 crore threshold.
Entry 31 of Schedule of Fees prescribed by the NCLT Rules stipulates that the fee for obtaining true certified copies of final orders passed to parties other than the concerned parties under Rule 50 shall be Rs 5 per page. The stipulation of Rupees five per page in Entry 31 excludes “the concerned parties under Rule 50”.
by Anupm Prakash* and Kirti Talreja**
The NCLAT reinforced that not all financial transactions qualify as financial debts under the IBC.
by Sidharth Sethi† and Shreya Sircar††
Arbitration — Arbitration and Conciliation Act, 1996 — Ss. 34 and 37 — Arbitral award — Validity of: Law explained on validity
The NCLAT criticized the appellants for unnecessarily burdening the Tribunal with excessive documentation, voluminous records and citations of little value, thereby wasting Tribunal’s resources and acting contrary to professional ethics.
Shardul Amarchand Mangaldas & Co. advised the committee of creditors (CoC) in the corporate insolvency resolution process of Metalyst Forgings Limited (Metalyst),
by Neelambera Sandeepan* and Srivaishanavi R.**
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.
by Gaurav Mitra* and Lavanya Pathak**
by Yogendra Aldak†, Pranav Mundra†† and Balraaj Singh Chhatwal†††
The State Commission absolved Flipkart from any liability as it was merely facilitating the sale through its portal. However, it was noted that Flipkart should have displayed a strict attitude vis-à-vis breach of terms regarding sale of counterfeit products on its site.
“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.”
“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.”
The NCLAT held that the appellant, having obtained a recovery certificate from RERA, qualified as Financial Creditors.
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.
The NCLAT warned against manipulating the IBC for debt recovery purposes, as it would defeat the code’s purpose of rehabilitating Corporate Debtors.
NCLAT held that CoCs’ resolution not to consider Resolution Plans from additional new entrants rendered the NCLAT’s orders unsustainable.