Judgements Insolvency and Bankruptcy Code, 2016 – Sections 7 – Insolvency Resolution – A requirement only needs to be assessed at the threshold while admitting the petition. Hence, if subsequent to the admission, withdrawal applications are preferred and the 10 per cent threshold is reduced, it shall not affect the maintainability of the original petition. December 19, 2021 Ibcode
Judgements Insolvency and Bankruptcy Code, 2016 – Section 60(5)(c) – Residuary jurisdiction of the NCLT cannot be invoked if the termination of a contract is based on grounds unrelated to the insolvency of the Corporate Debtor – NCLT does not have any residuary jurisdiction to entertain the present contractual dispute which has arisen dehors the insolvency of the Corporate Debtor. November 27, 2021 Ibcode
Judgements Appeal under Section 61 IBC – Limitation Period – Litigant has to file its appeal within thirty days, which can be extended up to a period of fifteen days, and no more, upon showing sufficient cause and Limitation period starts from date of pronouncement of order October 24, 2021 Ibcode
Judgements Allowed the filing of an application under Section 7 of the Code despite the fact that the Company Court had passed a winding up order against the corporate debtor. Held that a proceeding under Section 7 of the Code is an independent proceeding and has an overriding effect over winding up proceedings under the Companies Act, 2013. October 17, 2021 Ibcode
Judgements If the RP is unable to form an opinion regarding preferential, undervalued, extortionate or fraudulent transactions within the timeline stipulated under Regulation 35A of the Insolvency and Bankruptcy Board of India (Corporate Insolvency Resolution for Corporate Persons) Regulations, 2016 (CIRP Regulations), it can approach the adjudicating authority for appropriate relief under the provisions of law, but an application for exclusion of time till the availability of books of accounts and details from the personnel of the corporate debtor in order to form an opinion, will not be the appropriate course of action. October 16, 2021 Ibcode
Judgements The liquidation process under the Companies Act, 2013, pursuant to which the vetting of the notice of auction and the final confirmation of sale is in the hands of the High Court, cannot be compared with the liquidation process under the Code. The NCLT, Kolkata, on a reading of Clause 1(12) of Schedule I of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (Liquidation Regulations), held that the liquidator does not have unlimited discretion to cancel the auction or to revisit the invitation to the highest bidder once the highest bidder has been identified. October 16, 2021 Ibcode
Judgements In Gannon Dunkerley & Co. Ltd. v. Sangeeta Aviation Services Private Limited, the NCLT, Mumbai followed the NCLAT, New Delhi decision in M/s Ugro Capital Limited v. M/s Bangalore Dehydration and Drying Equipment Co. Pvt. Ltd., to allow an insolvency application by a financial creditor on the basis of a decree passed by the Bombay High Court against the corporate debtor October 16, 2021 Ibcode
Judgements Financial creditor cannot initiate the insolvency resolution proceedings against the personal guarantor in the absence of any CIRP or liquidation process against the corporate debtor. The NCLT, Mumbai noted that Section 60(2) of the Code contains a non-obstante clause, which specifies that only where a CIRP or liquidation process of a corporate debtor is pending before the adjudicating authority, an application initiating the insolvency resolution process against the personal guarantor of such corporate debtor shall be filed before such adjudicating authority. October 16, 2021October 16, 2021 Ibcode
Judgements Financial creditors and the ex-employees could intervene and oppose any settlement arrived at between the applicants/operational creditors and the promoter director, on the grounds that proceedings of the CIRP are in rem, and any decision regarding the continuation or withdrawal of the CIRP has to be decided in the interest of all stakeholders. It noted that even in the event of the original creditors of the corporate debtor settling their disputes prior to the constitution of the CoC, the adjudicating authority has sufficient jurisdiction to reject an application under Section 12A of the Code, if the facts and circumstances of the case warrant such rejection. October 16, 2021October 16, 2021 Ibcode
