Corporate Debtor
NCLT allows liquidation of Go First Airways
“Decision taken by the CoC for liquidation in commercial wisdom of the CoC should not be interfered with by the Adjudicating Authority.”
Strengthening Our Insolvency Regime: The Answer Lies Within
by Arush Khanna* and Swetalana Rout**
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.
Insolvency proceeding under Section 95 IBC can’t be continued against legal heirs after personal guarantor’s death: NCLT
“The term “personal guarantor” is defined under Section 5(22) of the IBC as “personal guarantor” means an individual who is the surety in a contract of guarantee to a corporate debtor.”
[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.
NCLT initiates corporate insolvency proceedings against Himalayan Mineral Water
The application is filed by Jammu and Kashmir Bank against the Himalayan Mineral Waters Private Limited for a total financial debt of Rs. 50,04,38,456/- for the credit facilities availed by Leel Electricals.
Delhi High Court dismisses petition seeking Guidelines for Suspended Insolvency Professionals by IBBI Disciplinary Committee
The Court exonerated the charges of contravention of prescribing non-refundable participation fee levied on Liquidator of Corporate Debtor, however, he was found guilty of paying excess fees to BDO Restructuring Advisory LLP.
Clean Slate Doctrine — Wiggle Room for “Uncrystallised Claims”?
by Yogendra Aldak†, Pranav Mundra†† and Balraaj Singh Chhatwal†††
‘Merely shared management not enough to establish liability’; NCLAT finds claims against Corporate Debtor untenable
The NCLAT warned against manipulating the IBC for debt recovery purposes, as it would defeat the code’s purpose of rehabilitating Corporate Debtors.
IBBI excludes assets in a real estate project that have been handed over to the allottee from liquidation process of the company
IBBI notifies Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024.
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.”
Corporate Debtor’s early denial of liability indicates pre-existing dispute; rejection of the Section 9 application justified: NCLAT
While affirming the impugned order, the NCLAT granted the appellant option to pursue proceedings as per the agreement between the parties before an appropriate forum in accordance with the law.
‘Admitted Claim versus Security Interest’; NCLAT determines how to distribute Corporate Debtor’s assets to Secured Creditors
The NCLAT reiterated that Commercial wisdom of the CoC is crucial in determining the viability and feasibility of a resolution plan.
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.
[Go Airlines] NCLAT allows inspection of leased Aircraft Engines
NCLAT held that the impugned order passed by the Adjudicating Authority is at a prima facie stage and should not be treated as a final expression of opinion.
‘Personal guarantor’s claim of getting right to be heard at belated stage not sufficient’; Delhi High Court dismisses petition, leaves matter open for NCLT
“If in the present case, the petition is entertained, it will eventually subvert the procedure laid down under the Insolvency and Bankruptcy Code, 2016 and the respondent in return will be denied the opportunity to present their case before the concerned NCLT.”
Liquidation| Successful Bidder of sale as going concern can only pray for necessary directions in accordance with the process document: NCLAT
The NCLAT stated that prayers in general or in a very wide term or which is too elaborate as prayed in the applicant’s application may not require any consideration by the Adjudicating Authority.
Transition between the parties should be direct to construe the debt as ‘Financial Debt’ under Section 5(8) of the IBC: NCLAT
Amount taken by the Directors of the Corporate Debtor in their personal capacity cannot be construed as ‘Financial Debt’ under S. 5(8) of the IBC.