Resolution Professional Can Be Replaced U/S 60(5) IBC If He Deliberately Avoids Placing Agenda For His Replacement Before CoC: NCLAT

The NCLAT, Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), has held that Section 60(5) of the IBC can be invoked to replace a resolution professional (RP) if he deliberately avoids placing the agenda for his replacement before CoC The CIRP of the corporate debtor was initiated, and the appellant was appointed as the resolution professional. However, the financial creditor sought replacement of the appellant, citing the...

Resolution Professional Can Terminate Leave & Licence Agreements Even In Absence Of RERA Proceedings: NCLAT New Delhi

The NCLAT, Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has upheld the termination of the leave and license agreement by the resolution professional (RP) in the absence of RERA proceedings. The corporate debtor executed three separate leave and license agreements with the appellants pertaining to the use of the fourth floor of the 'Pulse Care' building. However, the RERA didn't permit the commercial use of the fourth...

Revival Of Insolvency Proceedings Permissible Despite Absence Of Revival Clause In Settlement Agreement: NCLAT New Delhi

The NCLAT, Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial), Justice Mohammad Faiz Alam Khan (Member-Judicial), and Indevar Pandey (Member-Technical), has allowed the revival of the insolvency proceedings despite the absence of a revival clause in the settlement agreement. The appeal was filed against the dismissal of the restoration application filed by the appellant. While rejecting the application, the adjudicating authority noted that there was no...

Resolution Plan Can't Be Approved By NCLT If Leasehold Rights Over Primary Assets Are Not Proved: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) upheld an order of NCLT Kolkata which refused to sanction a resolution plan wherein a disputed parcel of land was the primary asset.The Tribunal held that since the corporate debtor failed to prove leasehold rights over the land as the deed was executed by unauthorised persons, lacked proof of payment, and was void; the resolution plan could not be approved. ...

NCLAT Expunges NCLT Remarks Against SBI Officials, Says Tribunal Cannot Make Stigmatic Observations Without Giving Hearing

The NCLAT, Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), has expunged the stigmatic remark against the SBI officials and counsel, while observing that the tribunals cannot make stigmatic observations or impose costs without giving an opportunity to be heard. The NCLT dismissed the SBI's petition under section 95 of the IBC, 2016. In the impugned order, the learned adjudicating authority observed that the counsel of ...

Recall Application Seeking Review Of NCLAT Judgment Is Not Permissible: NCLAT Chennai

The National Company Law Appellate Tribunal (NCLAT), Chennai Bench, comprising Justice Rakesh Kumar Jain (Member-Judicial) and Mr. Ajai Das Mehrotra, has held that a recall application seeking review of the NCLAT's order is not permissible. The appellant, erstwhile liquidator of the corporate debtor, filed an appeal against the decision of the adjudicating authority, which was dismissed by the NCLAT. The appellant, however, was aggrieved by some observations made against him by NCLT...

Completion Certificate Issued By Corporate Debtor With Caveat On Rectification Of Defects Is Not Unconditional Acceptance Of Work: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain, Justice Mohd Faiz Alam Khan and Mr. Naresh Salecha (Technical Member) dismissed an appeal filed by Operational Creditor. The Tribunal held that issuance of completion certificate containing a caveat that the defects in the work have to be rectified cannot be construed as an unconditional acceptance of work. Therefore, it held that the petition under section 9 of the IBC was rightly rejected...

BIFR Scheme Under SICA Stands Superceded After Enforcement Of IBC, Benefits Can't Be Claimed After Approval Of Resolution Plan: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Mohammad Faiz Alam Khan and Mr. Naresh Salecha (Technical Member) has held that an unresolved claim under the Board for Industrial & Financial Reconstruction (BIFR) scheme constitutes a claim under Section 3(6) of the IBC and should be dealt with within the Code. The failure of the BIFR scheme does not create an independent cause of action; therefore, benefits under the BIFR scheme cannot be claimed after...

Termination Of Concession Agreement Does Not Discharge Corporate Debtor's Repayment Obligations When Unrelated To Its Default: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain and Mr. Naresh Salecha (Technical Member) has held that termination of a Concession Agreement by the Government of Maharashtra does not discharge the Corporate Debtor from its repayment obligations, especially when such termination has no relation to the default committed by the Corporate Debtor. The present appeal has been filed under section 61 of the Insolvency and Bankruptcy Code, 2016...

IDBI Trusteeship Can Initiate CIRP If There Is Valid Authorization From Assignee Of Debt: NCLAT New Delhi

The NCLAT, Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has held that a security trustee can file a section 7 application seeking initiation of the CIRP if there is a valid authorization from the assignee of the debt. The present appeal was filed by the suspended director challenging the impugned order passed by the NCLT, Mumbai, court-II, admitting the section 7 application filed by the IDBI Trusteeship. The main issue...

Debt Can Be Established Through Any Documentary Evidence Under Regulation 8(2) Of CIRP Regulations, Written Contract Not Needed: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain, Justice Mohd Faiz Alam Khan and Mr. Naresh Salecha (Technical Member) has held that a written contract is not a precondition to prove the existence of a legally payable debt. If other documentary evidence listed under Regulation 8(2) of the CIRP Regulations is available and clearly shows that the debt exists, it is sufficient to file an insolvency application. The present appeal has been...

Workmen Can Claim Dues After Layoff Only If They Continued To Work After Notice Was Issued By Corporate Debtor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain, Justice Mohd Faiz Alam Khan and Mr. Indevar Pandey (Technical Member) has held that if the workmen or employees fail to prove that they actually worked after a layoff notice was issued by the corporate debtor, they are not entitled to claim any dues for the period after the layoff. Such dues can only be claimed if they continued to work despite the layoff notice. The present appeal has...