Strengthening Our Insolvency Regime: The Answer Lies Within
by Arush Khanna* and Swetalana Rout**
corporate insolvency resolution process
‘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.
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.
Money advanced for clearing land title is an investment, not financial debt under Section 5(8) of the IBC: NCLAT
The NCLAT reinforced that not all financial transactions qualify as financial debts under the IBC.
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.”
[Jaypee Infratech Resolution Plan] SC closes home buyers’ pleas after Suraksha Realty offers for allotment of homes or refund
About 538 home buyers, who paid more than 80% of the demand, will be given this option for allotment of the flat, in which event, the said home buyers will be treated on par with other home buyers.
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.
[Clean Slate Basis] Delhi HC sets aside assessment order pertaining to previous liability against corporate debtor issued after NCLT Chennai concluded the CIRP
The Court stated that once the resolution plan was approved by the COC, it should be binding on all the stakeholders. Thus, the successful resolution applicant starts running the business of the corporate debtor on a fresh slate.
‘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 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.
Delhi High Court dismisses petition seeking Guidelines for Suspended Insolvency Professionals by IBBI Disciplinary Committee
The Court exonerated the charges of contravention of prescribing non-refundable participation fee levied on Liquidator of Corporate Debtor, however, he was found guilty of paying excess fees to BDO Restructuring Advisory LLP.
NCLT approves withdrawal of insolvency resolution proceedings against Syska LED Lights after settlement
The NCLT directed the Resolution Professional to hand over control of Syska LED Lights Pvt. Ltd. back to the Corporate Debtor, if it had been taken over.
Jaypee Infratech Resolution Plan and belated claims of Homebuyers: SC issues notice to Jaypee Infratech Ltd.
“The issue of notice will not come in the way of execution or implementation of the resolution plan and the allotment of the unit to the appellant, if made, will be subject to the outcome of the present appeal.”
Interim relief to Deccan Charters; NCLAT stays Corporate Insolvency Resolution Process
The NCLT admitted Section 7 IBC application against the Deccan Charters, Air Charter Company over a default of approx. Rs. 9 Crore 82 Lakhs.
To Verify or Not? The Saga of Belated Claims During the CIRP
By Aditya Vikram Singh† and Vedant Singh††
Delhi High Court directs IBBI to frame code of conduct for effective working of Committee of Creditors
“The need for a code of conduct assumes greater importance in light of the fact that once a decision is taken by the CoC, the aggrieved party is deprived of the legal remedies, except to a limited extent.”
‘No demonstrated legal infirmity or non-compliance with Section 30(2) of the IBC found’; NCLAT upholds Resolution Plan approval
The NCLAT held that the commercial wisdom of the CoC was considered paramount, and no interference was justified.
IBC| NCLAT deems CoC’s rejection of Section 12A proposal unjustified; orders remittance of deposited amount for creditor distribution
Section 12A was introduced in the Insolvency and Bankruptcy Code, 2016, allowing the withdrawal of CIRP with the approval of 90% voting share of the CoC.