A Significant Legal Conundrum in Section 7 under the Insolvency and Bankruptcy Code, 2016
by Mridul Chitransh* and Milan Asati**
NCLT
NCLT grants exclusion of 854 days to Resolution Professional; directs completion of CIRP
The RP sought exclusion of the time it took for NCLT to decide the applications filed under Section 19 of the IBC regarding the non-cooperation by the Company.
‘Interlocutory and Consensual Order’; NCLAT denies relief to BYJU’s in appeal filed against NCLT’s status quo order on its shareholding in Aakash
“The impugned order is exclusively interlocutory in nature which is yet to be considered on merits and yet to be given a final shape till the conduct of the final hearing when the interim reliefs prayed for, are heard and decided by the Tribunal.”
IBBI introduces Non-submissions of Repayment Plan strengthening Insolvency Resolution Process
Enhancing creditor strength through faster debt recovery.
Sole proprietorship firm don’t fall under definition of “debtor” under S. 94 of IBC; MP High Court refuses to halt recovery proceedings
“Section 94 of IBC gives remedy to “debtor’ only to either apply personally or through a Resolution Professional to the Adjudicating Authority for initiating the insolvency resolution process.”
Protection of minority shareholder rights | NCLT lays down structured buy-out mechanism to resolve deadlock between shareholders
The NCLT gave the first right to buy shares to the petitioners and then the Deccan Group. If neither party purchased the other’s shares, the NCLT would consider winding up the company under Section 242(1)(b) of the Companies Act.
Force Majeure doesn’t absolve Corporate Debtor from contractual obligations; NCLT directs initiation of CIRP against Corporate Debtor
The NCLT acknowledged the impact of force majeure events, particularly the unprecedented rise in coal prices and operational disruptions caused by the COVID-19 pandemic on Corporate Debtor.
NCLT rejects Vedanta Ltd.’s demerger plan over non-disclosure of SEPCO’s debt and procedural irregularities
“The present one is a case where material facts have not been disclosed by the Applicant Company, violating Section 230 (2)(a) of the Companies Act, 2013, which in our considered opinion is bound to prejudice the public interest at large.”
Despite acknowledging ECL’s violations, RBI failed to act; Delhi High Court upholds direction to RBI to intervene
It is an elementary principle that when a public authority is vested with specific powers, it is duty bound to act accordingly. Therefore, any failure to exercise statutory powers gives rise to a cause of action to secure performance of such duty by way of issuance of writ of mandamus under Article 226.
Supreme Court’s Ruling in China Development Bank Creates Further Confusion on Third-Party Securities
by Prachi Johri* and Rishi Thakur**
Delhi High Court sets aside PMLA proceedings by ED against Bhushan Power & Steel Ltd. in view of Section 32A of IBC
A plain reading of Section 32A IBC reveals that once a resolution plan is approved under Section 31, the Corporate Debtor shall not be prosecuted for an offence committed prior to the commencement of the CIRP. However, this immunity does not extend to the erstwhile officers and persons responsible for the conduct of its business prior to CIRP.
Call for Submissions | NLS Business Law Review [Volume 11(2)]
Editorial Board to the NLS Business Law Review is calling for submissions for Volume 11(2) of the Journal
NCLT dismisses Akshay Kumar’s insolvency plea against Math tutoring platform, Cue Learn
“The essence of the IBC lies in resolving insolvency matters through a process driven approach, and any deviation from its prescribed scope would undermine the legislative intent of the Code.”
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.”
2024 SCC Vol. 10 Part 2
Bombay Stamp Act, 1958 (60 of 1958) — Ss. 33, 34, 37, 4(2), 4(1) and Sch. I Art. 25 Expln. I — Stamp duty on agreement to sell — Liability to pay under the 1958 Act
IBBI and INSOL India 2nd International Conclave on ‘Insolvency Resolution: Evolution and Global Perspectives’
The Insolvency Bankruptcy Board of India (‘IBBI’) and INSOL India held the 2nd International Conclave in Delhi on 7th December to engage in the path-breaking discourse surrounding the ever-evolving space of insolvency and bankruptcy.
‘Delays arising from statutory compliance not force majeure’; NCLT admits insolvency proceeding against Raheja Developers
The NCLT held that non-delivery of possession despite payments and continued acknowledgment of liability through emails and communications proved default under Section 7 IBC.
Supreme Court overturns NCLAT judgment that closed insolvency process against Byju’s, following settlement with BCCI
The present appeal raises substantial questions about the legal framework governing the withdrawal of a CIRP; the settlement of claims after the admission of an application instituted by a debtor; and the scope of the inherent powers vested in the NCLAT under Rule 11 of the NCLAT Rules.
‘Absence of NOC not automatically invalidates Security Documents’; NCLT upholds Axis Bank & NKGSB Bank’s claims as Secured Debt
The NCLT held that the Resolution Professional does not have adjudicatory powers to invalidate or challenge the charges based on an absence of NOC.