Inter-Corporate Loans and Deposits: Treatment of Such Debts in Case of Default
by Sidharth Sethi† and Shreya Sircar††
NCLT
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.
[Rights Issue] | Parties to maintain status quo; Byju’s to not make share allotment till NCLT reaches a final decision during remand proceedings: Karnataka HC
The Court further directed that the exercise of deciding as per the remand order by Single Judge must be completed expeditiously and before 31-07-2024.
Shardul Amarchand Mangaldas & Co. advises the Committee of Creditors of Metalyst Forgings Limited
Shardul Amarchand Mangaldas & Co. advised the committee of creditors (CoC) in the corporate insolvency resolution process of Metalyst Forgings Limited (Metalyst),
IBC proceedings don’t bar liability under Section 138 of NI Act: MP High Court
The Court held that the proceedings under Section 138 of the Negotiable Instruments Act, 1881 are penal in nature and not akin to civil recovery proceedings.
‘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 restrains Byju’s from utilising funds collected on second rights issue until disposal of mismanagement petition
The NCLT ordered the respondents to maintain the status quo regarding existing shareholders and their shareholding.
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.
‘Proceedings still at a nascent stage’; Delhi High Court transfers case for winding up of company to NCLT
The Delhi High Court said that the winding up proceedings which have not progressed to an advanced stage before the High Courts, ought to be transferred to the NCLT.
Delhi High Court directs State Bank of India to provide all documents forming basis of the Show Cause Notices issued to Educomp Solution
The Delhi High Court emphasised that if the relevant documents are not provided to a party, the whole procedure of issuance of Show Cause Notice would be reduced to an empty formality.
NCLT approves Viacom18, Digital18 and Star India’s merger
The Merger scheme aims to restructure and streamline the operations of the applicant companies to achieve operational efficiencies and facilitate future growth and expected to create synergies, reduce costs, and create value for shareholders of the involved entities.
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.
Khaitan & Co advises Siemens Limited (SIL) on the demerger of its energy business into a separate legal entity – Siemens Energy India Limited
DEAL DETAILS Siemens Limited’s demerger of energy business Khaitan & Co advised Siemens Limited (SIL) on the demerger of its energy business
Clean Slate Doctrine — Wiggle Room for “Uncrystallised Claims”?
by Yogendra Aldak†, Pranav Mundra†† and Balraaj Singh Chhatwal†††
Resolution versus Penalisation: Is IBC Deviating from its Purpose?
by Shekhar Raj Sharma* and Akshita Grover**