Latest Updates

Section 11A of the Code shall not apply where an application under Section 7, 9 or 10 is filed and pending as on the date of the commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2021-NCLAT 

Jaldhara Properties and Trading Pvt. Ltd. …Appellant Versus Sudal Industries Ltd. & Anr. Company Appeal (AT) (Ins) No. 707 of 2023 Facts: 1) Appeal is filed against the order dated…

Continue Reading Section 11A of the Code shall not apply where an application under Section 7, 9 or 10 is filed and pending as on the date of the commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2021-NCLAT 

Demands for pre-resolution liabilities, post the approval and implementation of a resolution plan, are inconsistent with the doctrine of ‘fresh start’ under the IBC-Delhi HC

Ocl Iron And Steel Limited vs Union Of India WP 8316 of 2024  Facts: 1) Petitioner was established in 2006 as a coal based direct reduced iron production unit in…

Continue Reading Demands for pre-resolution liabilities, post the approval and implementation of a resolution plan, are inconsistent with the doctrine of ‘fresh start’ under the IBC-Delhi HC

There is no quarrel over the fact that Section 10 vests rights on the Corporate Debtor to resolve their insolvency. However, one cannot lose sight of the fact that this protective umbrella over the assets of the Corporate Debtor is not misused or abused in a manner so as to become a tool for deriving undue advantage at the cost of insolvency resolution which objective unequivocally resonates in the preambular aspirations of the IBC.-NCLAT 

AGROHA PAPER INDUSTRIES PRIVATE LIMITED VS BANK OF MAHARASHTRA CA AT )Ins) 1342/ND/2023 Facts: 1) Appeal is filed against order passed by the Adjudicating Authority in C.P. (IB) No. 72/ALD/2022.…

Continue Reading There is no quarrel over the fact that Section 10 vests rights on the Corporate Debtor to resolve their insolvency. However, one cannot lose sight of the fact that this protective umbrella over the assets of the Corporate Debtor is not misused or abused in a manner so as to become a tool for deriving undue advantage at the cost of insolvency resolution which objective unequivocally resonates in the preambular aspirations of the IBC.-NCLAT 

Curable defect of non-stamping or insufficient stamping does not preclude institution of Insolvency against Personal Guarantors-NCLT Mumbai 

State Bank of India VS Mamta Apparao CP IB 101 of 2021 Facts: 1) Application filed under Section 95 of the Insolvency and Bankruptcy Code. 2016 (hereinafter referred to as…

Continue Reading Curable defect of non-stamping or insufficient stamping does not preclude institution of Insolvency against Personal Guarantors-NCLT Mumbai 

Not responding to a notice under Section 13 (2) of the Act of 2002 raises a rebuttable assumption that the borrower has accepted the default in repayment of secured debt and the classification of the account as NPA.-Calcutta HC 

State Bank Of India vs Atibir Industries Co. Ltd. & Anr APO 180 of 2023  Facts: 1) Two appeals directed against the judgement and order dated October 5, 2023, passed…

Continue Reading Not responding to a notice under Section 13 (2) of the Act of 2002 raises a rebuttable assumption that the borrower has accepted the default in repayment of secured debt and the classification of the account as NPA.-Calcutta HC 

The CoC has no jurisdiction to modify the Resolution Plan already approved by the CoC and submitted before the Adjudicating Authority for approval under Section 30(6) of the IBC with a caveat that in appropriate cases, under order of the Adjudicating Authority or COC on its own can pass a resolution for modifying the Resolution Plan to make it compliant of Section 30(2)-NCLAT 

M/s. Swan Energy Limited VS Chandan Prakash Jain & ORS CA (At) Ins 313 of 2024  Facts: 1) Corporate Insolvency Resolution Process of the Corporate Debtor commenced vide an order…

Continue Reading The CoC has no jurisdiction to modify the Resolution Plan already approved by the CoC and submitted before the Adjudicating Authority for approval under Section 30(6) of the IBC with a caveat that in appropriate cases, under order of the Adjudicating Authority or COC on its own can pass a resolution for modifying the Resolution Plan to make it compliant of Section 30(2)-NCLAT 

A holding company is not the owner of the assets of its subsidiary. Therefore, the assets of the subsidiaries cannot be included in the resolution plan of the holding company-Supreme Court 

BRS VENTURES INVESTMENTS LTD. VS. SREI INFRASTRUCTURE FINANCE LIMITED Civil Appeal 4565 of 2021  Facts: 1) The corporate debtor approached the 1st respondent–SREI Infrastructure Finance Limited (the financial creditor), for…

Continue Reading A holding company is not the owner of the assets of its subsidiary. Therefore, the assets of the subsidiaries cannot be included in the resolution plan of the holding company-Supreme Court 

The amount, which has been deposited with the Registrar General, may be reclaimed by the Official Liquidator with accrued interest and the same may be brought within the corpus of the funds of the company (in liquidation) to be utilised for satisfaction of the claims of the secured stakeholders in accordance with law- Delhi HC 

SMT. USHA JAIN & ANR. vs M/S VIGNESHWARA DEVELOPWELL P. LTD CO Pet 145 of 2014  Facts: 1. Petitioners herein jointly applied for allotment of a commercial unit admeasuring 500…

Continue Reading The amount, which has been deposited with the Registrar General, may be reclaimed by the Official Liquidator with accrued interest and the same may be brought within the corpus of the funds of the company (in liquidation) to be utilised for satisfaction of the claims of the secured stakeholders in accordance with law- Delhi HC 

Non-compliance of Rule 22, sub-rule (2) has not been provided, nor any consequence has been provided in the Rules in the event Appeal is filed without accompanied by a certified copy of the order. When the power has been given to Court to extend the time or waive compliance of any rule, the Appeal can be filed without applying a certified copy of the orders, in the facts and situation of particular case-NCLAT

Innovators Cleantech Private limited VS Pasari Multi Projects Private Limited I.A. No. 1622 & 1623 of 2024 CA (AT) Ins 115 of 2024 Facts: 1) Application under Section 9 of…

Continue Reading Non-compliance of Rule 22, sub-rule (2) has not been provided, nor any consequence has been provided in the Rules in the event Appeal is filed without accompanied by a certified copy of the order. When the power has been given to Court to extend the time or waive compliance of any rule, the Appeal can be filed without applying a certified copy of the orders, in the facts and situation of particular case-NCLAT

There is no prohibition or bar imposed by the IBC towards payment of dues arising from essential services supply during CIRP period nor is there any statutory provision which stipulates that the Corporate Debtor is not liable to pay such amounts till completion of the period of moratorium-NCLAT

SANSKRITI ALLOTTEE WELFARE ASSOCIATION (RETD.) AND ORS. VS GAURAV KATIYAR CA AT 873 of 2023 Facts: 1. Corporate Debtor- Earthcon Infracon Pvt. Ltd. was developing a residential project named ‘Sanskriti’…

Continue Reading There is no prohibition or bar imposed by the IBC towards payment of dues arising from essential services supply during CIRP period nor is there any statutory provision which stipulates that the Corporate Debtor is not liable to pay such amounts till completion of the period of moratorium-NCLAT