‘No demonstrated legal infirmity or non-compliance with Section 30(2) of the IBC found’; NCLAT upholds Resolution Plan approval
The NCLAT held that the commercial wisdom of the CoC was considered paramount, and no interference was justified.
NCLAT
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.
IBC| NCLAT deems CoC’s rejection of Section 12A proposal unjustified; orders remittance of deposited amount for creditor distribution
Section 12A was introduced in the Insolvency and Bankruptcy Code, 2016, allowing the withdrawal of CIRP with the approval of 90% voting share of the CoC.
Upholding the Validity of Provisions Related to Personal Guarantors Under IBC – Good for Lenders, Bad for Guarantors
by Zorawar Singh† and Hitesh Mankar††
Tribunal RoundUp October and November 2023| Top Stories on Low Groundwater levels, Delhi’s Air Quality Index, Baap of Chart and more
A quick legal roundup to cover important stories from Tribunals, Regulatory Bodies, Commissions for the month of October and November 2023.
Limitation period for appeals starts from date of Rectification Order when merged with Original Order: NCLAT
The NCLAT directed the Adjudicating Authority to hear and decide the application under Section 7 of the IBC expeditiously, treating it as not covered by Section 10A of the IBC.
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.”
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.
IBC| Doctrine of promissory estoppel cannot be applied against approved Resolution Plan: NCLAT
NCLAT upheld the Adjudicating Authority’s order on finding no error in rejecting the appellant’s objections to the Resolution Plan.
Corporate Debtor’s early denial of liability indicates pre-existing dispute; rejection of the Section 9 application justified: NCLAT
While affirming the impugned order, the NCLAT granted the appellant option to pursue proceedings as per the agreement between the parties before an appropriate forum in accordance with the law.
Can rents receivable by debtors be assigned to the lender as an actionable claim? Supreme Court answers
After applying the rule that all the contemporaneous documents are to be read together, to discern the true purport of the contract, Supreme Court said that the parties intended assignment of the debt, i.e., the rents payable.
‘Admitted Claim versus Security Interest’; NCLAT determines how to distribute Corporate Debtor’s assets to Secured Creditors
The NCLAT reiterated that Commercial wisdom of the CoC is crucial in determining the viability and feasibility of a resolution plan.
NCLAT issues notice in appeal against NCLT’s rejection of challenge to Lay-Off notice under Industrial Disputes Act
The main contention of the appellants is that the lay-off notice was not issued in accordance with the provisions of the Industrial Disputes Act, 1947.
Review Petition has limited purpose, cannot be allowed to be appeal in disguise: Supreme Court regurgitates law on scope of review
Supreme Court reiterated that a co-ordinate Bench cannot comment upon the judgment rendered by another co-ordinate Bench of equal strength and that subsequent decision or a judgment of a co-ordinate Bench or larger Bench by itself cannot be regarded as a ground for review.
Belated claims, even if allegedly due to fraud, may not be admitted once Resolution Plan is approved: NCLAT
The NCLAT rejected Resolution Professional’s reliance on Section 17 of the Limitation Act, 1963, as no fraud was found on the part of the Corporate Debtor.
‘Withdrawal of suit cannot be considered as failure of prior proceeding’; NCLAT rejects Section 9 application as being time-barred
A mere availability of arbitration or any other proceeding could not preclude the operational creditor from initiating proceedings under Section 9 of the IBC. The critical question would be whether the application was filed within the limitation period.
NCLAT affirms dismissal of minority homebuyers’ challenge to Resolution Plan; says it does not fall foul of law on reduction in claim
The democratic principles of the determinative role of majority opinion are enshrined in the IBC, and objections by a minority within a class, when the majority has approved a resolution plan, have no legal standing.
Irrevocable and unconditional bank guarantees can be invoked during moratorium period: NCLAT
“The ‘Bank Guarantee’ is a ‘contract of Guarantee’ provided/furnished by the Bank, the “surety”, to perform the ‘promise’, or ‘discharge’ the liability, of the third person, being the Corporate Debtor herein, in case of his ‘default’.”
NCLT can’t impose fine on suspended directors for non-cooperation under Sections 19(2) or 34(3) of IBC: NCLAT
The Adjudicating Authority erred in passing the impugned order, directing the imposition fine, overlooking the law of the land through the Insolvency and Bankruptcy Code, 2016.
‘Timelines are of great significance in IBC’; NCLAT dismisses condonation of delay application
Limitation shall commence from the date when order is passed and shall not depend on the date when Appellant came to know of the order.