Clean Slate Doctrine — Wiggle Room for “Uncrystallised Claims”?
by Yogendra Aldak†, Pranav Mundra†† and Balraaj Singh Chhatwal†††
NCLAT
Tribunals and Commissions Roundup April 2024 | Maggie Noodles consumer dispute, Bengaluru water crisis, Flipkart’s Liability, missing girls in Andhra Pradesh; and more
The State Commission absolved Flipkart from any liability as it was merely facilitating the sale through its portal. However, it was noted that Flipkart should have displayed a strict attitude vis-à-vis breach of terms regarding sale of counterfeit products on its site.
[Financial Debt v. Operational Debt] SC clarifies when a ‘debt’ is considered as financial debt and operational debt under IBC
“While deciding that whether a debt is a financial debt or an operational debt arising out of a transaction covered by an agreement or arrangement in writing, it is necessary to ascertain what is the real nature of the transaction reflected in the writing.”
‘Inconvenience of specific party cannot outweigh statutory provisions’; Delhi High Court directs DGCA to process deregistration of 54 leased GoAir aircrafts
“It is trite that the international treaty obligations are required to be followed strictly and any deviation therefrom would have adverse effects including downgrading of the business interests of country in the international community.”
Homebuyers/Allottees with or without RERA orders are treated equally under Section 7(1) proviso (2) IBC: NCLAT
The NCLAT held that the appellant, having obtained a recovery certificate from RERA, qualified as Financial Creditors.
NCLAT upholds Resolution plan and affirms parties’ right to seek redress for ‘reliefs and concessions’ in Competent Court
The NCLAT upheld the grant of reliefs and concessions regarding shared utilities and services in Resolution Plan to facilitate the smooth and successful implementation of the Resolution Plan.
‘Merely shared management not enough to establish liability’; NCLAT finds claims against Corporate Debtor untenable
The NCLAT warned against manipulating the IBC for debt recovery purposes, as it would defeat the code’s purpose of rehabilitating Corporate Debtors.
CoCs cannot consider Resolution Plans from applicants not listed in Prospective Resolution Applicants’ List: NCLAT
NCLAT held that CoCs’ resolution not to consider Resolution Plans from additional new entrants rendered the NCLAT’s orders unsustainable.
Filing of ‘Certified Copy’ not an empty ritualistic formality: NCLAT
NCLAT upheld appellant’s classification as a Financial Institution and it’s liability to pay Liquidation Costs.
NCLAT rules on Secured Creditor’s right to choose method of debt realisation
NCLAT stated that since the IBC overrides the SARFAESI Act, the Liquidator ought not to prefer a petition, based on the SARFAESI Act, and therefore Liquidator’s decision to classify the appellant as an unsecured financial creditor was illegal and invalid.
2024 SCC Vol. 2 Part 4
M.P. Municipal Corporation Act, 1956 (23 of 1956) — S. 132(6)(l) — Tax on advertisement: Law clarified on requisites for levy of
NCLAT affirms NCLT’s rejection of application for valuation queries post-resolution plan approval
In the instant matter, the NCLT rejected the application, noting the approval of the resolution by the Committee of Creditors and the absence of filing through an authorized representative.
To Verify or Not? The Saga of Belated Claims During the CIRP
By Aditya Vikram Singh† and Vedant Singh††
Supreme Court | NCLT can recall Resolution Plan approval despite misclassification of Creditor’s claim under IBC on submission of proof
The dues shown payable to the appellant was Rs. 13,47,40,819 while the appellant claimed it to be Rs. 43,40,31,951.
‘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.
NCLAT affirms Committee of Creditors’ authority to opt for liquidation under Section 33(2) of the IBC; sets aside show cause notice
The NCLAT held that the CoC had the jurisdiction to decide on liquidation as per Section 33(2) and its explanation, even before completing all steps for resolution.
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.
Upholding the Validity of Provisions Related to Personal Guarantors Under IBC – Good for Lenders, Bad for Guarantors
by Zorawar Singh† and Hitesh Mankar††
Tribunal RoundUp October and November 2023| Top Stories on Low Groundwater levels, Delhi’s Air Quality Index, Baap of Chart and more
A quick legal roundup to cover important stories from Tribunals, Regulatory Bodies, Commissions for the month of October and November 2023.
Limitation period for appeals starts from date of Rectification Order when merged with Original Order: NCLAT
The NCLAT directed the Adjudicating Authority to hear and decide the application under Section 7 of the IBC expeditiously, treating it as not covered by Section 10A of the IBC.