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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.
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.
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.
The NCLT held that the Resolution Professional does not have adjudicatory powers to invalidate or challenge the charges based on an absence of NOC.
by Urvashi Misra* and Anant Narayan Misra**
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”.
The petition was filed by NCLT Advocates Bar Association, Kolkata challenging the Ministry of Corporate Affairs’ decision to shift the National Company Law Tribunal (NCLT), Kolkata, from its current location at Esplanade Row (East) to a new facility in Rajarhat.
‘The Adjudicating Authority alone has the jurisdiction to regulate the conduct of CoC and finally adjudicate upon the resolution plan through powers of judicial review while ensuring that CoC functions as per the role and responsibilities delineated under IBC.’
Cyril Amarchand Mangaldas (CAM) advised IDFC Limited (“IDFC”) and IDFC Financial Holding Company Limited (“IDFC FHC”)
The instant matter revolved around a deadlock in management caused by alleged financial mismanagement and oppressive actions by the respondents.
NCLT held that the Resolution Professional followed the principles of Natural Justice and considered relevant documents, therefore, the Personal Insolvency Resolution Process should be initiated.
The NCLAT reinforced that not all financial transactions qualify as financial debts under the IBC.
“The term “personal guarantor” is defined under Section 5(22) of the IBC as “personal guarantor” means an individual who is the surety in a contract of guarantee to a corporate debtor.”
by Sidharth Sethi† and Shreya Sircar††
“A provision vesting “inherent powers” on a Court or Tribunal are to be used sparingly and should not be used to imply and read in substantive powers where the statue itself does not prescribe such powers.”
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.
by Anuja Pethia* and Rishabh Govila**
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.
The Court further directed that the exercise of deciding as per the remand order by Single Judge must be completed expeditiously and before 31-07-2024.