Filing of ‘Certified Copy’ not an empty ritualistic formality: NCLAT
NCLAT upheld appellant’s classification as a Financial Institution and it’s liability to pay Liquidation Costs.
IBC
75 Landmark Judgments on Constitutional Law by the Supreme Court in 2023 Part III
by Siddharth R. Gupta* and Prakruthi N.**
Cite as: 2024 SCC OnLine Blog Exp 20
Explained| Madras High Court verdict on constitutionality of Section 204 of the Insolvency and Bankruptcy Code
“Regulations and Byelaws framed under Section 204 IBC clearly provide checks and balances. Therefore, it cannot be said to be confirmation of excessive or unbridled power”
‘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
Explained| Supreme Court verdict upholding constitutional validity of provisions relating to Personal Guarantors in IBC
“The principle aims of IBC are to promote investment, and resolution of insolvencies of corporate persons, firms, and individuals in a time bound manner. The IBC consolidated and amended a web of laws which had led to an ineffective and inefficient mechanism for resolution of insolvencies marked with significant delay”
Refusal to re-hear matter after reservation of order in company petition does not cause miscarriage of justice: NCLAT
“Debt acknowledgment in balance sheets and OTS proposal demonstrated Corporate Debtor’s awareness of assignment, rendering technical challenges unfounded.”
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.
Supreme Court upholds constitutional validity of provisions relating to Personal Guarantors in IBC; Holds IBC cannot operate in retroactive manner
“IBC does not suffer from any manifest arbitrariness to violate Article 14 of the Constitution”
Review Petition has limited purpose, cannot be allowed to be appeal in disguise: Supreme Court regurgitates law on scope of review
Supreme Court reiterated that a co-ordinate Bench cannot comment upon the judgment rendered by another co-ordinate Bench of equal strength and that subsequent decision or a judgment of a co-ordinate Bench or larger Bench by itself cannot be regarded as a ground for review.
Single Real Estate Allottee cannot trigger Insolvency Proceedings under Section 7 of IBC: NCLAT
The underlying claim of an aggrieved party, such as an allottee, is crystallized in the form of a court order or decree, and this does not alter or disturb their status as financial creditors.
Irrevocable and unconditional bank guarantees can be invoked during moratorium period: NCLAT
“The ‘Bank Guarantee’ is a ‘contract of Guarantee’ provided/furnished by the Bank, the “surety”, to perform the ‘promise’, or ‘discharge’ the liability, of the third person, being the Corporate Debtor herein, in case of his ‘default’.”
NCLT can’t impose fine on suspended directors for non-cooperation under Sections 19(2) or 34(3) of IBC: NCLAT
The Adjudicating Authority erred in passing the impugned order, directing the imposition fine, overlooking the law of the land through the Insolvency and Bankruptcy Code, 2016.
‘Timelines are of great significance in IBC’; NCLAT dismisses condonation of delay application
Limitation shall commence from the date when order is passed and shall not depend on the date when Appellant came to know of the order.
NCLT orders initiation of Insolvency Process due to default in payment and bounced Post-Dated Cheques
NCLT held that the Corporate Debtor failed to prove a pre-existing dispute to justify the rejection of the Section 9 application.
Default occurred when post-dated cheques bounced; NCLT directs to initiate insolvency process
NCLT held that the Corporate Debtor failed to prove a pre-existing dispute to justify the rejection of the Section 9 application.
No absolute or unfettered discretion on the part of Liquidator to cancel auction which is otherwise valid: Supreme Court
Supreme Court said that the mere expectation of the Liquidator that a still higher price may be obtained can be no good ground to cancel an otherwise valid auction and go for another round of auction.
