resolution plan Archives

Supreme Court sets aside NCLAT order de-recognizing four lenders of the insolvent Reliance Infratel as Financial Creditors

Noting that hypothecation means the process of using an asset as collateral for a loan. It acts as a protection to the lender when the borrower does not repay the loan, the Supreme Court highlighted that the name of the document is not a decisive factor. Only because the title of the document contains the word hypothecation, it cannot be concluded that guarantee is not a part of this document.

Case Briefs Tribunals/Commissions/Regulatory Bodies

‘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.

Case Briefs Supreme Court

Read why Supreme Court dismissed NOIDA Special Economic Zone Authority’s appeal for claim of Rs. 6 Crore against corporate debtor

The claims pertaining to the transfer fees, etc., cannot be dealt with by courts or tribunals as the same relates to the commercial wisdom of the Committee of Creditors for they are the best persons to determine their interests, and any such interference is non-justiciable except as provided by Section 30(2) of IBC 2016.

Case Briefs Tribunals/Commissions/Regulatory Bodies

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.

Case Briefs Supreme Court

[Jaypee Infratech Resolution Plan] SC closes home buyers’ pleas after Suraksha Realty offers for allotment of homes or refund

About 538 home buyers, who paid more than 80% of the demand, will be given this option for allotment of the flat, in which event, the said home buyers will be treated on par with other home buyers.

Case Briefs Tribunals/Commissions/Regulatory Bodies

‘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.

Experts Corner Lakshmikumaran & Sridharan

Clean Slate Doctrine — Wiggle Room for “Uncrystallised Claims”?

by Yogendra Aldak†, Pranav Mundra†† and Balraaj Singh Chhatwal†††

Case Briefs Tribunals/Commissions/Regulatory Bodies

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.

Case Briefs Tribunals/Commissions/Regulatory Bodies

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.

Case Briefs Tribunals/Commissions/Regulatory Bodies

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.

Case Briefs Supreme Court

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.

Case Briefs High Courts

‘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.

Case Briefs High Courts

[Section 29A of IBC] Disqualification of promotors applying for resolution plan not applicable to MSMEs: Supreme Court

Supreme Court observed that the law laid in Digambar Anandrao Pingle (supra) by NCLAT was not correct, and that the date of submission of resolution plan has to be the cut off date.

Case Briefs Tribunals/Commissions/Regulatory Bodies

Financial Debt claim under Section 5(8) of IBC cannot be entertained after CoC’s approval of Resolution Plan: NCLAT

The NCLAT reiterated the importance of adhering to timelines in the Insolvency resolution process and the unacceptability of claims filed after the approval of the Resolution Plan by the CoC.

Case Briefs Tribunals/Commissions/Regulatory Bodies

IBC| Doctrine of promissory estoppel cannot be applied against approved Resolution Plan: NCLAT

NCLAT upheld the Adjudicating Authority’s order on finding no error in rejecting the appellant’s objections to the Resolution Plan.

Case Briefs Tribunals/Commissions/Regulatory Bodies

Belated claims, even if allegedly due to fraud, may not be admitted once Resolution Plan is approved: NCLAT

The NCLAT rejected Resolution Professional’s reliance on Section 17 of the Limitation Act, 1963, as no fraud was found on the part of the Corporate Debtor.

Case Briefs High Courts

Terms contained in approved Resolution Plan also binding on stakeholders who can file claims, but did not do so: Delhi High Court

“The respondent, having failed to lodge its claim, cannot enforce the impugned orders and notices, given the binding nature of the approved Resolution Plan.”

Case Briefs Tribunals/Commissions/Regulatory Bodies

NCLAT affirms dismissal of minority homebuyers’ challenge to Resolution Plan; says it does not fall foul of law on reduction in claim

The democratic principles of the determinative role of majority opinion are enshrined in the IBC, and objections by a minority within a class, when the majority has approved a resolution plan, have no legal standing.

Case Briefs High Courts

Approval of Resolution Plan under IBC extinguishes all claims, dispute cannot be urged again before Arbitral Tribunal: Delhi High Court

“The IBC and the resolution process does not contemplate matters being left inchoate. In fact, it exhorts one to accept the seal of finality and quietude which stands attached to the approval of a Resolution Plan.”

Case Briefs Tribunals/Commissions/Regulatory Bodies

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.