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India Columns

A successful resolution applicant is not permitted to alter or withdraw the resolution plan once it has been accepted by the Committee of Creditors and presented to the adjudicating authority

A successful resolution applicant is not permitted to alter or withdraw the resolution plan once it has been accepted by the Committee of Creditors and presented to the adjudicating authority

Date: Aug 16, 2022
In its decision dated September 13, 2021, in the case of Ebix Singapore Private Limited v. Committee of Creditors of Educomp Solutions Limited and Another (Civil Appeal No. 3224 of 2020), the Hon....
The creditor won't be considered a "financial creditor" in the eyes of the corporate debtor under the IBC if the corporate debtor has just pledged shares as security without also agreeing to release the borrower from liability

The creditor won't be considered a "financial creditor" in the eyes of the corporate debtor under the IBC if the corporate debtor has just pledged shares as security without also agreeing to release the borrower from liability

Date: Aug 16, 2022
Phoenix Arc Private Limited v. Ketulbhai Ramubhai Patel (Civil Appeal No. 5146 of 2019): The Hon'ble Supreme Court ("SC") held in its judgement dated February 3, 2021 ("Judgement"), delivered by a...
Rent is not to be regarded as an operational debt under the IBC, the NCLAT reiterated

Rent is not to be regarded as an operational debt under the IBC, the NCLAT reiterated

Date: Aug 16, 2022
In its ruling dated November 10, 2020 ("Judgement") in the case of Promila Taneja v. Surendri Design Private Limited [Company Appeal (Insolvency) No. 459 of 2020], the National Company Law Appellate...
A firm that has been dismissed from operations may file for Corporate Insolvency Resolution

A firm that has been dismissed from operations may file for Corporate Insolvency Resolution

Date: Aug 16, 2022
In Mr. Hemang Phophalia v. The Greater Bombay Co-operative Bank Limited and Another (decided on September 5, 2019), the National Company Law Appellate Tribunal ("NCLAT") held that a creditor can...
There is no chance of discussing the resolution plan between the time it was approved by the CoC and the time it was awaiting NCLT approval

There is no chance of discussing the resolution plan between the time it was approved by the CoC and the time it was awaiting NCLT approval

Date: Aug 16, 2022
In the case of Jaldhi Overseas Pte. Limited v. Steer Overseas Private Limited, decided that a foreign award was insufficient to start insolvency proceedings against the corporate debtor under the...
NBFCs are exempt from the Insolvency and Bankruptcy Code, 2016

NBFCs are exempt from the Insolvency and Bankruptcy Code, 2016

Date: Aug 16, 2022
In the case of Housing Development and Finance Corporation Limited v. RHC Holding Private Limited, the National Company Appellate Law Tribunal ("NCLAT") found that "non-banking financial...
After paying the earnest money deposit, a "successful bidder" cannot place "conditional bids" or change their mind

After paying the earnest money deposit, a "successful bidder" cannot place "conditional bids" or change their mind

Date: Aug 16, 2022
In its order dated February 17, 2022 ("Order") in the case of Anand Kariwala v. Partha Pratim Ghosh and Others [I.A. (IB) No. 20/KB/2021 in CP (IB) No. 533/KB/2018], the National Company Law...
After paying the earnest money deposit, a "successful bidder" cannot place "conditional bids" or change their mind

After paying the earnest money deposit, a "successful bidder" cannot place "conditional bids" or change their mind

Date: Aug 16, 2022
In its decision dated October 7, 2021 ("Judgement") in the case of Sach Marketing Private Limited v. Resolution Professional of Mount Shivalik Industries Limited, Ms. Pratibha Khandelwal [Company...
As long as a disagreement is legitimate and not fictitious, hypothetical, or illusory, an application to start a corporate bankruptcy resolution process will be denied

As long as a disagreement is legitimate and not fictitious, hypothetical, or illusory, an application to start a corporate bankruptcy resolution process will be denied

Date: Aug 16, 2022
By an order rendered in the case of Kay Bouvet Engineering Limited v. Overseas Infrastructure Alliance (India) Private Limited [Civil Appeal No. 1137 of 2019], decided on August 10, 2021...
The committee of creditors cannot take into consideration a new resolution proposal

The committee of creditors cannot take into consideration a new resolution proposal

Date: Aug 16, 2022
In its ruling dated April 18, 2022 ("Judgement") in the case of Steel Strips Wheels Limited v. Shri Avil Menezes, Resolution Professional of AMW Autocomponent Limited and Others [Company Appeal (AT)...
Proceedings under the IBC in the NCLT or NCLAT would be subject to the limitations provisions of the Limitation Act mutatis mutandis

Proceedings under the IBC in the NCLT or NCLAT would be subject to the limitations provisions of the Limitation Act mutatis mutandis

Date: Aug 16, 2022
The NCLT's Kolkata Bench reaffirmed that the adjudicating authority lacked the capacity to consider cases of money laundering in Rahul Carbon Commercials Private Limited v. Kohinoor Steel Pvt. Ltd.,...
The NCLT sustains the JVA and AoA clauses and rejects the appeal against the rejection to register a share transfer in a public business

The NCLT sustains the JVA and AoA clauses and rejects the appeal against the rejection to register a share transfer in a public business

Date: Aug 16, 2022
The National Company Law Tribunal ("NCLT"), Mumbai dismissed the appeal against the refusal to register a share transfer in a public company in the case of Riverdale Infrastructures Private Limited...
According to Section 18 of the Limitation Act, 1963, a balance sheet entry cannot be construed as an acknowledgement

According to Section 18 of the Limitation Act, 1963, a balance sheet entry cannot be construed as an acknowledgement

Date: Aug 16, 2022
In the case of V. Padmakumar v. Stressed Assets Stabilization Fund and Others (dated March 12, 2020), the National Company Law Appellate Tribunal ("NCLAT") held that an entry in a balance sheet or...
The statute of limitations under the IBC, 2016 will not be extended by proceedings brought in DRT

The statute of limitations under the IBC, 2016 will not be extended by proceedings brought in DRT

Date: Aug 16, 2022
In the case of Bimalkumar Manubhai Savalia v. Bank of India and Others (decided as per order dated March 5, 2020), the National Company Law Appellate Tribunal ("NCLAT") held that any actions brought...
A real estate corporation facing a corporate insolvency resolution process will only affect the project in question and not other developments

A real estate corporation facing a corporate insolvency resolution process will only affect the project in question and not other developments

Date: Aug 16, 2022
In the case of Flat Buyers Association Winter Hills - 77, Gurgaon v. Umang Realtech Private Limited through IRP and Others, the National Company Law Appellate Tribunal, New Delhi ("NCLAT"), by order...
A financial creditor cannot interfere with or object to another financial creditor's admission of a corporate bankruptcy resolution process

A financial creditor cannot interfere with or object to another financial creditor's admission of a corporate bankruptcy resolution process

Date: Aug 16, 2022
A financial creditor cannot intervene in or object to an admission of the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC"), according to a recent decision by the...
The committee of creditors shouldn't include creditors who have a direct financial stake in the corporate debtor

The committee of creditors shouldn't include creditors who have a direct financial stake in the corporate debtor

Date: Aug 16, 2022
In M/s. Asset Reconstruction Company (India) Limited v. Mr Gopal Krishna Raju and Others (decided on March 5, 2019), the National Company Law Tribunal ("NCLT"), Chennai ruled that certain unsecured...
After paying the earnest money deposit, a "successful bidder" cannot place "conditional bids" or change their mind

After paying the earnest money deposit, a "successful bidder" cannot place "conditional bids" or change their mind

Date: Aug 16, 2022
In Ravindranatha Bajpe v. Mangalore Special Economic Zone Limited and Others, which was decided on September 27, 2021, the Hon. Supreme Court ("SC") ruled that the chairman, directors, and other key...
The resolution plan may waive the corporate debtor's obligation to the promoter-personal guarantor

The resolution plan may waive the corporate debtor's obligation to the promoter-personal guarantor

Date: Aug 16, 2022
In Lalit Mishra and Others v. Sharon Bio Medicine Limited and Others (decided on December 19, 2018), the National Company Law Appellate Tribunal ("NCLAT") determined that a resolution plan that...
The insolvency procedure cannot be started over from scratch if the resolution plan is not followed

The insolvency procedure cannot be started over from scratch if the resolution plan is not followed

Date: Aug 16, 2022
In the matter of State Bank of India v. Adhunik Metaliks Limited and Others, the National Company Law Tribunal ("NCLT"), Cuttack rejected the resolution plan filed by the resolution applicant on the...
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