‘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.
resolution plan
[Section 29A of IBC] Disqualification of promotors applying for resolution plan not applicable to MSMEs: Supreme Court
Supreme Court observed that the law laid in Digambar Anandrao Pingle (supra) by NCLAT was not correct, and that the date of submission of resolution plan has to be the cut off date.
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.
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.
Terms contained in approved Resolution Plan also binding on stakeholders who can file claims, but did not do so: Delhi High Court
“The respondent, having failed to lodge its claim, cannot enforce the impugned orders and notices, given the binding nature of the approved Resolution Plan.”
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.
Approval of Resolution Plan under IBC extinguishes all claims, dispute cannot be urged again before Arbitral Tribunal: Delhi High Court
“The IBC and the resolution process does not contemplate matters being left inchoate. In fact, it exhorts one to accept the seal of finality and quietude which stands attached to the approval of a Resolution Plan.”
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.
Calcutta High Court warns disquiet litigant against misuse of Legal Process; imposes Rs. 5 Lakh cost
Calcutta High Court observed that the argument advanced by the applicants leave an impression that “a desperate attempt is made to have the order reviewed in the garb of recall”.
Operational Creditor cannot claim payment equal to Financial Creditor in Insolvency proceeding under IBC: NCLAT
The principle of equality is applicable only in same class of creditors, i.e., secured or unsecured, financial or operational.
Employees entitled to Provident Fund and Gratuity Fund dues even if funds not available with Liquidator: NCLAT
NCLAT held that the Provident Fund and Gratuity dues of the appellant are to be paid in full.
DSK Legal advises Resolution Professional of JBF Petrochemicals Ltd. with respect to the corporate insolvency resolution process of JBF
DSK Legal advised and assisted Mr. Sundaresh Bhat, appointed as Resolution Professional JBF Petrochemicals Limited (“JBF”) with respect to the corporate insolvency
Khaitan & Co advises Standard Chartered Bank for providing financial assistance by way of term loan facilities of INR 150 crores
DEAL DETAILS Standard Chartered Bank | Resolution Plan and Acquisition Financing Khaitan & Co advised Standard Chartered Bank for providing financial assistance
Khaitan & Co acts as legal counsel for Reliance Industries Limited and Assets Care & Reconstruction Enterprise Ltd in relation to submission of Resolution Plan for Sintex Industries Limited
DEAL DETAILS Reliance Industries Limited | Sintex Resolution Plan Khaitan & Co acted as legal counsel for Reliance Industries Limited and Assets
“Law will take its own course”; NCLAT refuses to interfere with NCLT’s order approving Resolution Plan
NCLAT held that that the allocation of meagre amount in Resolution Plan to Creditors can be questioned when the plan value earmarked for them is less than the liquidation value but same is not the case in instant matter.
NCLAT upholds NCLT’s rejection to dislodge resolution plan against POSCO India Processing Center Private Limited
NCLAT observed that allowing present appeal holding the Successful Resolution Applicant ineligible would automatically make the resolution plan redundant.
Top 14 Rulings from Tribunals, Commissions, Regulatory Authorities: Shiv Sena Party Symbol Dispute, Income Tax Act, Medical Negligence and more| February 2023 Roundup
This roundup contains many interesting rulings including the Shiv Sena Party Name and Symbol Dispute, Negligence committed by doctors and Compensation therein, Amendment to Section 178(6) of the Income Tax Act, Initiation of the Corporate Insolvency Resolution Process and more.
Adjudication of an avoidance application is independent of the resolution of the corporate debtor and can survive CIRP: Delhi High Court
The Delhi High Court held that adjudication of an avoidance application was independent of the resolution of the corporate debtor and could survive Corporate Insolvency Resolution Process (CIRP) and a Resolution Professional would not be functus officio with respect to adjudication of avoidance application.
NCLAT| After closure of Challenge Process and consequent receipt of resolution plan, Adjudicating Authority cannot direct consideration of the revised plan submitted thereafter
National Company Law Appellate Tribunal observed that once the CoC has decided to vote on the resolution plans after closure of challenge process, the Adjudicating Authority cannot direct the CoC to consider any revised plan submitted thereafter.