financial creditor Archives

Case Briefs Tribunals/Commissions/Regulatory Bodies

‘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.

Experts Corner JSA

Inter-Corporate Loans and Deposits: Treatment of Such Debts in Case of Default

by Sidharth Sethi† and Shreya Sircar††

Case Briefs Tribunals/Commissions/Regulatory Bodies

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.

Case Briefs Tribunals/Commissions/Regulatory Bodies

Reflection of name in balance sheet alone does not override rejection of claim to be Financial Creditor in Liquidation Proceedings: NCLAT

In the instant matter, the appellant claimed to be a Financial Creditor as their name was included in the balance sheet of the Corporate Debtor.

Experts Corner Lakshmikumaran & Sridharan

Decoding Section 7 of IB Code for admitting an application for Corporate Insolvency Resolution Process

by Ankit Parhar† and Rashi Srivastava††
Cite as: 2023 SCC OnLine Blog Exp 55

Case Briefs Tribunals/Commissions/Regulatory Bodies

Application U/S 7 IBC not maintainable if Financial Creditor steps into the shoes of Operational Creditor; NCLAT upholds NCLT’s order

NCLAT held that the application preferred by the appellants in the second appeal under S. 7 IBC has rightly been held to be not maintainable and was rightly relegated to avail their remedy of filing the application under S. 9 IBC in relation to invoice discounting of the receivables by the seller.

Op Eds OP. ED.

Change in principles for initiation of CIRP by financial creditors

by Disha Jain†

Case Briefs Tribunals/Commissions/Regulatory Bodies

Do Third-party/shareholders have locus to challenge initiation of CIRP against Corporate Debtor? NCLAT answers

The NCLAT held that there is no law which allows a third party or shareholders to settle the claims of Financial Creditor on behalf of the Corporate Debtor, M/s McDowell Holdings Limited.

Case Briefs Tribunals/Commissions/Regulatory Bodies

Advance paid for purchase of shares of Corporate Debtor does not fall under definition of Financial Debt: NCLT

NCLT held that the amount of advance paid for purchase of shares of the Corporate Debtor does not fall under the definition of Financial Debt as it was not disbursed against the consideration for the time value of money.

Case Briefs Supreme Court

IBC| CIRP proceedings can be initiated against two Corporate Debtors but same amount cannot be realised from both: Supreme Court

Supreme Court: The bench of Indira Banerjee* and JK Maheshwari, JJ has held that if there are two borrowers or if two

Legal RoundUp Supreme Court Roundups

Supreme Court July 2022 Roundup| PMLA constitutional; Bail Act; Abu Salem’s scheduled release; Unmarried women’s right to abortion; and more

Top Stories Your cheat sheet to Supreme Court’s 545 pages long Money Laundering verdict The 3-judge bench of AM Khanwilkar, Dinesh Maheshwari

Case Briefs Tribunals/Commissions/Regulatory Bodies

NCLAT Mumbai |Interest on Delayed Payments is a part of Operational Debt under S. 3(11) of IBC

National Company Appellate Tribunal, Mumbai: The Bench of Ashok Bhushan, J., Chairperson, M. Satyanarayana Murthy, Judicial Member, and Naresh Salecha, Technical member

Case Briefs Tribunals/Commissions/Regulatory Bodies

NCLAT | Can the OTS proposal be an ‘acknowledgment of debt’ under S. 18 of the Limitation Act, 1963?

National Company Law Appellate Tribunal, Delhi: The Bench of Anant Bijay Singh, J., Judicial Member, and Shreesha Merla, Technical Member,

Case Briefs Tribunals/Commissions/Regulatory Bodies

NCLT| Can a Financial Creditor initiate Insolvency Resolution Process against a Personal Guarantor?

National Company Law Tribunal, Hyderabad: The Bench of N. Venkata Ramakrishna Badarinath, Judicial Member, and Veera Brahma Rao Arekapud, Technical Member held

Case Briefs Supreme Court

IBC – Section 7(5)(a) | NCLT “may” reject Financial Creditor’s CIRP application even in case of Corporate Debtor’s default in payment of debt

Supreme Court: The bench of Indira Banerjee* and JK Maheshwari, JJ has rejected the view of NCLT and NCLAT that once it

Case Briefs Tribunals/Commissions/Regulatory Bodies

Should Resolution Professional include delayed claims of homebuyers under memorandum of information? NCLAT decides

National Company Appellate Tribunal, New Delhi: The Coram of Ashok Bhushan, J (Chairperson), Shreesha Merla (Technical member), and Naresh Salecha (Technical member)

Case Briefs Tribunals/Commissions/Regulatory Bodies

Can post-dated cheque issued for repayment of principal amount be taken as unqualified admission of debt? NCLT Allahabad decides

National Company Law Tribunal, Allahabad (NCLT): The bench of Rajasekhar V.K., Judicial Member and Virendra Kumar Gupta, Technical Member decided that for

Akaant Mittal Experts Corner

Whether a Decree or an Arbitral Award or a Settlement Deed can form the Basis of a Financial or Operational Debt under IB Code – Part II

by Akaant Kumar Mittal†
Cite as: 2022 SCC OnLine Blog Exp 9

Op Eds OP. ED.

Does Unsecured Loan with No Returns have the Effect of Time Value of Money and be Covered under the Commercial Borrowing under the IBC Code?

by Love Kumar Gupta† and Angad Sandhu††

Case Briefs Tribunals/Commissions/Regulatory Bodies

NCLAT | On not finding flaws in the NCLT order, abstains from interfering- Petitioner not being authorised under S.7 IBC, lacks locus standi

National Company Law Appellate Tribunal (NCLAT)- The Coram of Justice Jarat Kumar Jain (Judicial Member), Ashok Kumar Mishra (Technical Member), and Alok