‘Timelines are of great significance in IBC’; NCLAT dismisses condonation of delay application
Limitation shall commence from the date when order is passed and shall not depend on the date when Appellant came to know of the order.
NCLAT
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.
Adjudicating Authority’s order for liquidation valid when Resolution Plan remains unapproved, and no alternative plan in CIRP exists: NCLAT
The Liquidator should endeavor to sell the Corporate Debtor as a going concern in the Liquidation Proceeding, and the appellant may participate by submitting its plan.
Adequate pleadings and findings required to establish Section 65 IBC compliance; NCLAT revives Section 7 application
NCLT’s order did not contain specific findings regarding whether the entire loan amount had been paid and whether nothing remained due.
Closure of CIRP proceedings renders jurisdictional question regarding pre-CIRP dues irrelevant; NCLAT dismisses appeal
NCLAT observed that the issue raised by the appellant, while attractive, no longer had relevance after the closure of the CIRP proceedings.
Navigating the Hub-and-Spoke Cartel in India: An Analytical Overview of the New Provision
by Sanjay Vashishtha† and Abhay Pratap††
Cite as: 2023 SCC OnLine Blog Exp 75
NCLAT dismisses appeal due to delayed defect rectification and insufficient justification for delay
“In application for condonation of delay in refiling of appeal, the applicant/appellant has to give sufficient reason for not re-filing the appeal within the time prescribed.”
NCLAT upholds NCLT’s order imposing ₹ 10 Lakh compounding fees for non-compliance with Section 185 of the Companies Act, 2013
In a matter concerning advancement of ₹360 crore loan by Hewlett Packard Enterprise India in violation of Section185 which only permit granting of loan for repayment of the loan and not for any other reason, the NCLT imposed ₹ 10 Lakh compounding fees.
NCLAT rejects Liquidator’s petition to retrieve Bank Guarantees/Fixed Deposit Receipts under IBC
NCLAT held that during the moratorium period under Section 14 of IBC, Customs Authorities are authorized to utilize Bank Guarantees and Fixed Deposits furnished against Zero Import Duty.
[Go Airlines] NCLAT allows inspection of leased Aircraft Engines
NCLAT held that the impugned order passed by the Adjudicating Authority is at a prima facie stage and should not be treated as a final expression of opinion.
Operational Creditor cannot claim payment equal to Financial Creditor in Insolvency proceeding under IBC: NCLAT
The principle of equality is applicable only in same class of creditors, i.e., secured or unsecured, financial or operational.
In project wise insolvency, IRP/RP cannot seek unpaid Fees/Costs from members of CoCs of another project of Corporate Debtor: NCLAT
The NCLAT held that the appellant has no Locus Standi to make claim for any unpaid Fees/Costs from the members of the CoCs, as he is neither the RP in the project nor is connected with another project.
Liquidation| Successful Bidder of sale as going concern can only pray for necessary directions in accordance with the process document: NCLAT
The NCLAT stated that prayers in general or in a very wide term or which is too elaborate as prayed in the applicant’s application may not require any consideration by the Adjudicating Authority.
Employees entitled to Provident Fund and Gratuity Fund dues even if funds not available with Liquidator: NCLAT
NCLAT held that the Provident Fund and Gratuity dues of the appellant are to be paid in full.
Corporate Debtor cannot constitute Committee of Creditors with a single Operational Creditor under IBC: NCLAT
NCLAT held that CIRP be closed with respect to the Corporate Debtor since not a single ‘Claim' was received by the IRP even after the public announcement.
Application under Section 9 of the IBC is not maintainable in absence of strict proof of Debt and Default: NCLAT
“The Proceedings under the IBC, 2016, are summary in character and a trial is not conducted, like that of ‘Civil’ matter, before the ‘Competent Civil Court’.”
‘Arbitration Proceedings’ and ‘IBC Proceedings’ cannot go on together; NCLAT upholds NCLT’s order rejecting Section 9 application
NCLAT held that an application preferred under Section 9 of the IBC for implementation of an Arbitral Award is not maintainable.
While admitting application under Section 7 of the IBC, existence of Debt and Default needs to be examined not ‘Quantum of Debt’: NCLAT
“In the instant case, the record establishes that there is a ‘debt’ and a ‘default’ and the Application is complete and the Adjudicating Authority has rightly admitted the Application under Section 7 of the Code.”