Swiss Challenge and Insolvency and Bankruptcy Code – Does the Shoe Fit The Size?
by Swarnendu Chatterjee†, Anwesha Pal†† and Megha Saha†††
Cite as: 2023 SCC OnLine Blog Exp 22
NCLAT
Once Resolution Plan approved and submitted to Adjudicating Authority, it cannot be sent back for re-consideration: NCLAT
In matter related to reconsideration of Resolution Plan after approval, NCLAT held that thought the object of the CIRP is maximisation of value of the Corporate Debtor, but the said maximisation must be achieved within the timeline provided in the scheme.
Top 14 Rulings from Tribunals, Commissions, Regulatory Authorities: Shiv Sena Party Symbol Dispute, Income Tax Act, Medical Negligence and more| February 2023 Roundup
This roundup contains many interesting rulings including the Shiv Sena Party Name and Symbol Dispute, Negligence committed by doctors and Compensation therein, Amendment to Section 178(6) of the Income Tax Act, Initiation of the Corporate Insolvency Resolution Process and more.
NCLAT provides time-bound opportunity to Resolution Professional and CoC to revive Corporate Debtor
In a case related to rejection of Resolution Plan by the Adjudicating Authority, which was once approve the Adjudicating Authority, the Tribunal opined that the Adjudicating Authority was right on non-approval of the Resolution Plan as the Adjudicating Authority’s order was not followed in its true spirit.
NCLAT stays Insolvency proceeding against Zee Entertainment Enterprise Ltd
The NCLAT granted interim relief to Zee Entertainment Enterprises Ltd (ZEEL) by staying bankruptcy proceedings against them, after the NCLT admitted S. 7 application and directed the initiation of CIRP against the Corporate Debtor/ZEEL.
Period of suspension of legal proceedings is excludable in computing limitation period for enforcement of right under Section 22(5), SICA: Supreme Court
Supreme Court held that the period of suspension of legal proceedings is excludable in computing the period of limitation for the enforcement of such right in terms of Section 22(5), SICA. Further, the dismissal of the application under Section 9, IBC on the ground of ‘pre-existing dispute’ cannot be held to be patently illegal or perverse.
In what circumstances and conditions, Adjudicating Authority can send back a Resolution Plan to CoC for carrying out changes? NCLAT Answers
In the instant matter an appeal was preferred before NCLAT challenging the order of the Adjudicating Authority remitting a Resolution Plan back to the CoC for reconsideration in accordance with law.
Whether Corporate Debtor can raise pre-existing dispute in reply to the petition filed under Section 9 IBC in case demand notice issued under Section 8 of IBC is not replied? NCLAT answers
In the instant matter, the petitioner preferred an appeal challenging the order of Adjudicating Authority dismissing application in view of the “pre-existing dispute”. NCLAT held that when the reply to Demand Notice was not filed within 10 days, the Corporate Debtor is not precluded from raising the question of dispute or pleading that there is no amount due and payable.
Debt and default are sine qua non and only condition for admitting S. 7 IBC application: NCLAT
While hearing an appeal challenging an impugned order passed by the Adjudicating Authority dismissing a S. 7 IBC application on the ground that the appellant was not able to establish debt and default, the Tribunal held that it is clear from the facts and circumstances the definition of debt and default is rightly established by the appellant and the Adjudicating Authority has committed a patent error while passing the impugned order.
PF and gratuity dues not part of liquidation estate; cannot be recovered under Section 53 of IBC which provides for waterfall mechanism: Supreme Court
Supreme Court upheld the NCLT order that the provident fund, pension fund and gratuity fund are not part of the liquidation estate, for distribution under Section 53 of the IBC and the same has to be paid to the employees under the stated heads.
Leniency Applicants Beware: NCLAT Rules in the Beer Cartelisation Case Pawan Jagetia v. CCI: A case comment
by Priyam Indurkhya† and Rituraj Singh Parmar††
NCLAT| A mistake in demand notice does not make an application defective unless some prejudice is suffered resulting from such mistake
While deciding the present matter dealing with mistake in demand notice, NCLAT held that “the Corporate Debtor has not and would not be prejudiced by fact that Operational Creditor has mentioned the wrong date of default due to its inadvertence.”
Supreme Court upholds NCLAT order on payment of dues to former employees of Jet Airways
Supreme Court refused to entertain a plea moved by the consortium and upheld the National Company Law Appellate Tribunal’s order directing the consortium to pay the provident fund and gratuity dues of the employees of Jet Airways
National Company Law Appellate Tribunal | Adjudicating Authority cannot direct Resolution Professional to pay lease amount during CIRP
National Company Law Appellate Tribunal held that Adjudicating Authority cannot direct Resolution Professional to pay lease amount under Section 14(1)(d) of Insolvency and Bankruptcy Code, 2016, during CIRP
Nature of Financial Debt does not change on account of breach of consent terms | NCLAT
While upholding the NCLT’s order of admission of fresh application and initiation of CIRP against the Corporate Debtor, the Tribunal held that the nature of financial debt would not change on account of breach of the consent terms.
NCLAT | IBC overrides Limitation Act; Delay beyond period of 45 days cannot be condoned
While adjudicating an appeal file with a delay of 55 days, the Tribunal held that S. 238 IBC overrides S. 12 of the Limitation Act, 1963 and therefore this Tribunal does not have power to condone a delay beyond a period of 45 days.
Tribunal, Regulatory Bodies and Commissions Monthly Roundup | January 2023 | 25+ Legal Stories including no relief in CCI penalty on Google, TDS deduction and interest on securities, high-level committee for Yamuna pollution, no clean chit to DLF, and more
APPELLATE TRIBUNAL FOR ELECTRICITY (ATE) Bureau of Energy Efficiency takes suo motu verification test on a sample refrigerator of Whirlpool India and
NCLAT rejects application for initiation of CIRP for filing with fraudulent and malicious intent
National Company Law Appellate Tribunal held that rejection of application for initiation of Corporate Insolvency Resolution Process is inevitable if it is filed fraudulently and maliciously for purpose other than resolution of insolvency.