IBC Only Overrides Another Statue When There Is A Clear And Direct Conflict: NCLAT

The National Company Law Appellate Tribunal, Principal Bench, New Delhi (NCLAT) comprising of Justice Rakesh Kumar Jain (Member (Judicial), Mr. Naresh Salecha (Member (Technical) and Mr. Indevar Pandey (Member (Technical) dismissed appeal filed against the impugned order of NCLT, Jaipur allowing Respondent to recover Fuel Surcharge (FS) and Special Fuel Surcharge (SFS) from Appellant for periods prior to the admission of the Company in Pre-Packaged Insolvency Resolution Process (PPIRP). ...

Consideration And Subsequent Rejection Of Resolution Plan By Committee Of Creditors Submitted After Due Date Cannot Be Questioned: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that the consideration and subsequent rejection of a resolution plan by the Committee of Creditors submitted after the due date cannot be questioned. Brief Facts: Corporate Insolvency Resolution Process (CIRP) of the corporate debtor, AA Estate Private Limited, commenced by order dated 06.12.2022. Resolution Professional...

Application For CIRP Not Maintainable If Default Occurred During Protected Period U/S 10A Of IBC

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, consisting of Justice Ashok Bhushan (Chairperson), Barun Mitra (Member - Technical), and Arun Baroka (Member - Technical), disposed of an appeal arising from an order by the NCLT Kolkata Bench-II regarding the initiation of CIRP under Section 9 of the Insolvency and Bankruptcy Code (IBC). The bench ruled that default occurring within the period covered by Section 10A of the IBC could not be counted as part of...

NCLAT Clarifies Computation Of Limitation Under Section 61 Of IBC When Last Day Falls On A Holiday

The National Company Law Appellate Tribunal (NCLAT) bench comprising Justice Ashok Bhusan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) have held that for computing the 30 days' period under Section 61 of the Insolvency and Bankruptcy Code (IBC), if the last day expires on a day when the office of the NCLAT is closed, that day and any succeeding day on which the NCLAT remains closed shall also be excluded. Brief Facts The Appellant is a vegetable...

Operational Creditor Can Only Trigger CIRP Process When There Is An Undisputed Debt And Default In Payment: NCLAT

The National Company Law Appellate Tribunal, Principal Bench, New Delhi (NCLAT) comprising of Justice Yogesh Khanna (Member (Judicial) and Mr. Ajai Das Mehrotra (Member (Technical) dismissed appeal filed by the operational creditors due to the presence of a pre-existing dispute between the operational creditor and corporate debtor. Brief Facts The present appeal arises out of an impugned order passed by the National Company Law Tribunal (NCLT), New Delhi allowing M/s Ambassador...

Rights Of Auction Purchaser Are Crystallized Upon Issuance Of Sale Certificate: NCLAT Chennai

The National Company Law Tribunal (NCLAT), Chennai comprising of Justice Sharad Kumar Sharma (Member (Judicial) and Jatindranath Swain (Member (Technical) dismissed an appeal filed by the former director of the corporate debtor (Nexus Electro Steel Ltd.) challenging the impugned order of NCLT, Chennai and the auction process being undertaken by the liquidator. Brief Facts The following appeal has been preferred by the Appellant who is the former managing director of the corporate...

Penalties U/S 65 Of IBC Can Be Imposed Against Those Who Fraudulently Initiate Insolvency Process: NCLAT

The National Company Law Appellate Tribunal, Principal Bench, New Delhi (NCLAT) comprising of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member Technical) and Arun Baroka (Member (Technical) disposed an appeal filed by a majority shareholder of the corporate debtor stating that the Section 7 application filed by financial creditors was fraudulently filed in collusion with the corporate debtors' promoters. Brief Facts The present appeal arises from an order passed by the...

For Initiating Proceedings U/S 7 Of IBC, Existence Of Financial Debt And Corresponding Default Is A Sine Qua Non: NCLAT

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising of Justice Ashok Bhushan (Chairperson) and Arun Baroka (Member (Technical), dismissed a Section 7 petition filed by the Appellant (M/s Santoshi Finlease Private Limited) and upholding the decision of Adjudicating authority, stating that the petition was filed with malicious intent. Brief Facts The Appellant (M/s Santoshi Finlease Private Limited) filed a Section 7 application under the IBC...

Approved Resolution Plan Cannot Be Reopened For Belatedly Agitated Claims: NCLAT

The National Company Law Appellate Tribunal, Principal Bench, New Delhi comprising of Justice Ashok Bhushan (Chairperson), Barun Mitra (Member (Technical) and Arun Baroka (Member (Technical), dismissed a set of four appeals filed under Section 61 of Insolvency and Bankruptcy Code 2016 stating that the appellants had failed to exercise due diligence on protecting their rights with the prescribed timelines. Brief Facts The case involves the adjudication of four appeals filed by...

Promoter Undergoing CIRP Can Be Permitted To Complete Project For Benefit Of Homebuyer: NCLAT

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising of Justice Ashok Bhushan] Chairperson, Barun Mitra (Member (Technical) and Arun Baroka (Member (Technical), dismissed an appeal filed by the suspended directors of the Supertech Township Projects Ltd stating that the resolution plan of the corporate debtor must proceed strictly as per the Insolvency and Bankruptcy Code (IBC), 2016. Brief Facts The case is regarding Supertech Township...

No Straight Jacket Formula Can Be Laid Down For Adjudication Of Application U/S 12A Of IBC & Objections Therein: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that no straight jacket formula can be laid down for adjudication by the Adjudicating Authority of a 12A application and the objections filed therein. It further observed that the Adjudicating Authority has to see whether the claim has substantially been settled substantially or not. If it is...

Timely Implementation Of Resolution Plan Is The Underlying Objective Of The IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) Principal Bench, New Delhi in the case of Darwin Platform Infrastructure Limited vs Union Bank of India, recently dismissed the appeal filed by Darwin Platform, upholding an order passed by the National Company Law Tribunal (NCLT), Mumbai, which had reinstated the Corporate Insolvency Resolution Process (CIRP). The case arose from the failure of the appellant to implement the resolution plan within the stipulated timeline, leading to the...