Supreme Court’s Ruling in China Development Bank Creates Further Confusion on Third-Party Securities
by Prachi Johri* and Rishi Thakur**
National Company Law Tribunal
Call for Submissions | NLS Business Law Review [Volume 11(2)]
Editorial Board to the NLS Business Law Review is calling for submissions for Volume 11(2) of the Journal
Cyril Amarchand Mangaldas advises Hindustan Unilever Limited on the demerger of its Ice-Cream Business into Kwality Wall’s (India) Limited
Cyril Amarchand Mangaldas (“CAM”) advised Hindustan Unilever Limited (HUL)
NCLT dismisses Akshay Kumar’s insolvency plea against Math tutoring platform, Cue Learn
“The essence of the IBC lies in resolving insolvency matters through a process driven approach, and any deviation from its prescribed scope would undermine the legislative intent of the Code.”
NCLT allows liquidation of Go First Airways
“Decision taken by the CoC for liquidation in commercial wisdom of the CoC should not be interfered with by the Adjudicating Authority.”
‘Delays arising from statutory compliance not force majeure’; NCLT admits insolvency proceeding against Raheja Developers
The NCLT held that non-delivery of possession despite payments and continued acknowledgment of liability through emails and communications proved default under Section 7 IBC.
‘Absence of NOC not automatically invalidates Security Documents’; NCLT upholds Axis Bank & NKGSB Bank’s claims as Secured Debt
The NCLT held that the Resolution Professional does not have adjudicatory powers to invalidate or challenge the charges based on an absence of NOC.
Cyril Amarchand Mangaldas acts as legal counsel for IDFC Limited and IDFC Financial Holding Company Limited
Cyril Amarchand Mangaldas (CAM) advised IDFC Limited (“IDFC”) and IDFC Financial Holding Company Limited (“IDFC FHC”)
Buy-Out of one Group by other a preferred remedy to resolve deadlock in equal shareholding companies: NCLT
The instant matter revolved around a deadlock in management caused by alleged financial mismanagement and oppressive actions by the respondents.
Suspension of CIRP for defaults during Pandemic under Section 10-A IBC does not apply to personal guarantors: NCLT
NCLT held that the Resolution Professional followed the principles of Natural Justice and considered relevant documents, therefore, the Personal Insolvency Resolution Process should be initiated.
Insolvency proceeding under Section 95 IBC can’t be continued against legal heirs after personal guarantor’s death: NCLT
“The term “personal guarantor” is defined under Section 5(22) of the IBC as “personal guarantor” means an individual who is the surety in a contract of guarantee to a corporate debtor.”
Absence of specific waiver provision indicates Legislative Intent to strictly follow Section 43 of LLP Act: NCLT
“A provision vesting “inherent powers” on a Court or Tribunal are to be used sparingly and should not be used to imply and read in substantive powers where the statue itself does not prescribe such powers.”
NCLT approves replacement of IRP with Insolvency Professional Entity based on CoC’s resolution & IBC’s timeline
The NCLT noted that Form AA, meant for individual Insolvency Professionals, had been modified by the Insolvency Professional Entity to fit its consent as no separate form for IPEs exists.
An Insight into Ms Kaveri Shrivastava’s indomitable presence in the Corporate Sector
Interviewed by K V Vinaya
Insolvency of “Group Companies”
by Anuja Pethia* and Rishabh Govila**
‘Indemnity obligation on guarantee is not operational debt’; NCLT dismisses CIRP petition due to limitation and Lack of Privity
The NCLT stated that the petitioner neither had a direct contractual relationship with the respondent, nor was the respondent provided with any goods/services, thereby disqualifying them as an operational creditor.
NCLT restrains Byju’s from utilising funds collected on second rights issue until disposal of mismanagement petition
The NCLT ordered the respondents to maintain the status quo regarding existing shareholders and their shareholding.
NCLT initiates corporate insolvency proceedings against Himalayan Mineral Water
The application is filed by Jammu and Kashmir Bank against the Himalayan Mineral Waters Private Limited for a total financial debt of Rs. 50,04,38,456/- for the credit facilities availed by Leel Electricals.
NCLT approves Viacom18, Digital18 and Star India’s merger
The Merger scheme aims to restructure and streamline the operations of the applicant companies to achieve operational efficiencies and facilitate future growth and expected to create synergies, reduce costs, and create value for shareholders of the involved entities.