India Columns

The money distribution to the financial and operational creditors is changed in the resolution plan provided by ArcelorMittal in the resolution proceedings involving Essar Steel India Limited

Date: Aug 16, 2022

The National Company Law Appellate Tribunal ("NCLAT") approved the resolution plan submitted by ArcelorMittal India Pvt. Ltd. ("ArcelorMittal") in the resolution proceedings involving Essar Steel...

Analysis of U.P. Police Regulations

Date: Aug 11, 2022

The Uttar Pradesh Police Regulations: A Juridical Analysis of Statutory Authority, Judicial Interpretation, and Operational Dynamics Introduction The Uttar Pradesh Police Regulations (hereinafter...

Deemed Sanction of Building Plans in India

Date: Aug 10, 2022

The Doctrine of Deemed Sanction of Building Plans in Indian Law: Scope, Limitations, and Judicial Scrutiny Introduction The regulatory framework governing urban development and building construction...

Because the liquidation value exceeds the value of the resolution plan, a corporate debtor cannot be placed into liquidation for this reason alone

Date: Aug 10, 2022

In its ruling dated April 6, 2022, in the case of CFM Asset Reconstruction Private Limited v. S. S. Natural Resources Private Limited and Others [IA No. 538/KB/2021 in CP (IB) No. 349/KB/2017], the...

The "authority" to consider cases under the PMLA is not granted to the adjudicating authority

Date: Aug 10, 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.,...

Notice of contract termination sent to the corporate debtor after the start of the CIRP was upheld

Date: Aug 10, 2022

The National Company Law Appellate Tribunal ("NCLAT") has ruled that a contract termination notice sent by Tata Consultancy Services Limited ("Appellant") to S.K. Wheels Private Limited ("Corporate...

Even if the "Promoter" is otherwise ineligible under Section 29A, IBC provides no prohibition against them filing a "resolution application"

Date: Aug 10, 2022

In the case of Sreeram E. Techno School Private Limited v. Beans and More Hospitality Private Limited Through R.P. Prabhjit Singh Soni, which was decided on September 11 of this year, the National...

Under the 2016 Insolvency and Bankruptcy Code, the holder of a decree cannot be categorised as a financial creditor for the purposes of starting the Corporate Insolvency Resolution Process

Date: Aug 10, 2022

In its ruling dated August 14, 2020 ("Judgment") in the case of Sushil Ansal v. Ashok Tripathi and Others [Company Appeal (AT) (Insolvency) No. 452 of 2020], the National Company Law Appellate...

Rights Of Financial Creditor And Operational Creditor

Date: Aug 10, 2022

The NCLAT, while laying down the law on this issue, held that the objective of the I&B Code is resolution and its purpose is for the maximisation of the value of assets of the corporate debtor and...

Explanation VI of Section 11 CPC: Representative Litigation and the Modern Doctrine of Res Judicata

Date: Aug 10, 2022

Explanation VI of Section 11 CPC: Representative Litigation and the Modern Doctrine of Res Judicata Introduction Section 11 of the Code of Civil Procedure, 1908 (“CPC”) embodies the doctrine of res...

An application for the beginning of CIRP under the IBC may be admitted or rejected based on the occurrence of a default, not the incapacity to pay debt

Date: Aug 10, 2022

Monotrone Leasing Private Limited v. PM Cold Storage Private Limited (decided on July 6, 2020): The National Company Law Appellate Tribunal ("NCLAT") held that the inability to pay debts and...

Resolution Professional's "Success Fee" is not covered under the IBC

Date: Aug 10, 2022

The National Company Law Appellate Tribunal ("NCLAT"), while upholding the decision of the National Company Law Tribunal, Mumbai ("NCLT"), held that the provisions of the Insolvency and Bankruptcy...

The High Court's Writ Jurisdiction under Article 226 cannot be used to appeal an NCLT order

Date: Aug 9, 2022

In the case of Sulochana Gupta & Ors. V. RBG Enterprises Pvt. Ltd., the Division Bench of Hon'ble Justices S Manikumar and Shaji P Chaly decided that the order issued by NCLT cannot be challenged...

Any application made in accordance with NCLT Rule 131 is sufficient to request a forensic audit

Date: Aug 9, 2022

Due to the order's enigmatic and silent nature, there is nothing in it to support the instructions for a forensic audit of the Company's financial records. the ruling rendered by the NCLAT New Delhi...

SC upholds constitutional validity of regulation 2B of the Liquidation process

Date: Aug 9, 2022

The Supreme Court recently considered the interaction between liquidation proceedings under the Insolvency and Bankruptcy Code, 2016 ("IBC") and Section 230 of the Companies Act, 2013 in the case of...

Insider trading orders against P. Chand Jeweller are dismissed by the SC

Date: Aug 9, 2022

In this instance, the Supreme Court overturned SEBI and SAT rulings that found the managing director of PC Jewellers and a few of his family guilty of breaking the rules against insider trading. The...

SC upholds corporate tussle in favour of the Tata Company

Date: Aug 9, 2022

Recently, the Supreme Court ruled in the well-known corporate dispute case known as the Tata-Mistry dispute: Tata Consultancy Services Ltd. v. Cyrus Investment Pvt. Ltd. & Ors. One of the biggest...

The compounding fees must be greater than or equal to the statutory minimum fine

Date: Aug 9, 2022

In the recent case before the NCLAT, the Appellant claimed that the Respondent is liable for the minimum fine prescribed for the violation under Section 165 (6) of the Companies Act, 2013, but the...

When a guarantor fails to pay back the amount borrowed by the principal borrower, a financial creditor who has a guarantee on the debt in question may file legal action against the guarantor under Section 7 of the Code

Date: Aug 9, 2022

In this case, which is a landmark decision, the NCLAT had to decide whether a financial creditor could file a claim under Section 7 of the Code against both the principal debtor and the guarantor for...

Limitation Only Starts When A Default Takes Place, Not When The Debt Becomes Due

Date: Aug 9, 2022

The limitation only kicks in when there is a default and not when the obligation becomes due. In this instance, the respondent still owed the appellant money that it owed. As a result, the appellant...

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