Interim relief to Deccan Charters; NCLAT stays Corporate Insolvency Resolution Process
The NCLT admitted Section 7 IBC application against the Deccan Charters, Air Charter Company over a default of approx. Rs. 9 Crore 82 Lakhs.
corporate insolvency resolution process
To Verify or Not? The Saga of Belated Claims During the CIRP
By Aditya Vikram Singh† and Vedant Singh††
Delhi High Court directs IBBI to frame code of conduct for effective working of Committee of Creditors
“The need for a code of conduct assumes greater importance in light of the fact that once a decision is taken by the CoC, the aggrieved party is deprived of the legal remedies, except to a limited extent.”
‘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.
IBC| NCLAT deems CoC’s rejection of Section 12A proposal unjustified; orders remittance of deposited amount for creditor distribution
Section 12A was introduced in the Insolvency and Bankruptcy Code, 2016, allowing the withdrawal of CIRP with the approval of 90% voting share of the CoC.
‘Set-off inapplicable to CIRP under IBC’; Supreme Court verdict on Right to claim Set-off in Corporate Insolvency Resolution Process, explained
“If a Resolution Professional proceeds in terms of Section 25 of the IBC and secures the assets from the creditors, the creditors would not be entitled to claim set-off during the course of the Corporate Insolvency Resolution Process.”
Upholding the Validity of Provisions Related to Personal Guarantors Under IBC – Good for Lenders, Bad for Guarantors
by Zorawar Singh† and Hitesh Mankar††
10 Important Insolvency Law Judgments of 2023
by Vasanth Rajasekaran† and Harshvardhan Korada††
Cite as: 2024 SCC OnLine Blog Exp 1
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.
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.
Closure of CIRP proceedings renders jurisdictional question regarding pre-CIRP dues irrelevant; NCLAT dismisses appeal
NCLAT observed that the issue raised by the appellant, while attractive, no longer had relevance after the closure of the CIRP proceedings.
Arbitrator’s fees to be treated as preferential payments even where CIRP proceedings are pending before NCLT: Madras High Court
Madras High Court said that if the Arbitrators are not paid their fees / costs on account of the moratorium order, the object of arbitration will get defeated, as competent Arbitrators will hesitate to become Arbitrators in a dispute involving Companies facing financial crisis.
In project wise insolvency, IRP/RP cannot seek unpaid Fees/Costs from members of CoCs of another project of Corporate Debtor: NCLAT
The NCLAT held that the appellant has no Locus Standi to make claim for any unpaid Fees/Costs from the members of the CoCs, as he is neither the RP in the project nor is connected with another project.
Corporate Debtor cannot constitute Committee of Creditors with a single Operational Creditor under IBC: NCLAT
NCLAT held that CIRP be closed with respect to the Corporate Debtor since not a single ‘Claim' was received by the IRP even after the public announcement.
DSK Legal advises Resolution Professional of DS Kulkarni Developers Ltd. with respect to its Corporate Insolvency Resolution Process
DSK advised and assisted Mr. Manoj Kumar Agarwal, Resolution Professional of DS Kulkarni Developers Limited (“DSKDL”) with respect to the corporate insolvency
Decoding Section 7 of IB Code for admitting an application for Corporate Insolvency Resolution Process
by Ankit Parhar† and Rashi Srivastava††
Cite as: 2023 SCC OnLine Blog Exp 55
Operational creditor cannot seek to initiate CIRP against Corporate Debtor when real dispute exists: NCLAT
The NCLAT set aside Adjudicating Authority’s order initiating CIRP of the Corporate Debtor.
Insolvency proceeding can be restored when Consent term entered between parties includes a revival clause: NCLAT
“When consent term itself contains clause for revival, non-giving liberty specifically for revival by the Adjudicating Authority is inconsequential”, held NCLAT
Entitlement of Dissenting Financial Creditors under IBC
by Vikas Mehta†
NCLT admits Go Air insolvency plea
A creditor has limited grounds to object to S. 10 of IBC application.