2024 SCC Vol. 10 Part 2
Bombay Stamp Act, 1958 (60 of 1958) — Ss. 33, 34, 37, 4(2), 4(1) and Sch. I Art. 25 Expln. I — Stamp duty on agreement to sell — Liability to pay under the 1958 Act
NCLT
IBBI and INSOL India 2nd International Conclave on ‘Insolvency Resolution: Evolution and Global Perspectives’
The Insolvency Bankruptcy Board of India (‘IBBI’) and INSOL India held the 2nd International Conclave in Delhi on 7th December to engage in the path-breaking discourse surrounding the ever-evolving space of insolvency and bankruptcy.
‘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.
Supreme Court overturns NCLAT judgment that closed insolvency process against Byju’s, following settlement with BCCI
The present appeal raises substantial questions about the legal framework governing the withdrawal of a CIRP; the settlement of claims after the admission of an application instituted by a debtor; and the scope of the inherent powers vested in the NCLAT under Rule 11 of the NCLAT Rules.
‘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.
Section 245 — The Road Less Travelled
by Urvashi Misra* and Anant Narayan Misra**
Condonation of delay by NCLAT | Free & paid certified copy of final orders are on the same footing as per Rule 50 of NCLT Rules: SC
Entry 31 of Schedule of Fees prescribed by the NCLT Rules stipulates that the fee for obtaining true certified copies of final orders passed to parties other than the concerned parties under Rule 50 shall be Rs 5 per page. The stipulation of Rupees five per page in Entry 31 excludes “the concerned parties under Rule 50”.
Calcutta High Court rejects stay on NCLT Kolkata relocation to Rajarhat: Advocates’ inconvenience not sufficient to halt policy decision
The petition was filed by NCLT Advocates Bar Association, Kolkata challenging the Ministry of Corporate Affairs’ decision to shift the National Company Law Tribunal (NCLT), Kolkata, from its current location at Esplanade Row (East) to a new facility in Rajarhat.
Delhi High Court refuses to exercise power of judicial review and usurp powers of NCLT in petition filed against Reserve Bank of India
‘The Adjudicating Authority alone has the jurisdiction to regulate the conduct of CoC and finally adjudicate upon the resolution plan through powers of judicial review while ensuring that CoC functions as per the role and responsibilities delineated under IBC.’
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.
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.”
Inter-Corporate Loans and Deposits: Treatment of Such Debts in Case of Default
by Sidharth Sethi† and Shreya Sircar††
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.
Insolvency of “Group Companies”
by Anuja Pethia* and Rishabh Govila**
2024 SCC Vol. 6 Part 2
Arbitration — Arbitration and Conciliation Act, 1996 — Ss. 34 and 37 — Arbitral award — Validity of: Law explained on validity
Procedural orders directing consolidation of related petitions not appealable under Section 421 of Companies Act: NCLAT
The NCLAT criticized the appellants for unnecessarily burdening the Tribunal with excessive documentation, voluminous records and citations of little value, thereby wasting Tribunal’s resources and acting contrary to professional ethics.