Cyril Amarchand Mangaldas acts as legal counsel for IDFC Limited and IDFC Financial Holding Company Limited
Cyril Amarchand Mangaldas (CAM) advised IDFC Limited (“IDFC”) and IDFC Financial Holding Company Limited (“IDFC FHC”)
NCLT
Buy-Out of one Group by other a preferred remedy to resolve deadlock in equal shareholding companies: NCLT
The instant matter revolved around a deadlock in management caused by alleged financial mismanagement and oppressive actions by the respondents.
Suspension of CIRP for defaults during Pandemic under Section 10-A IBC does not apply to personal guarantors: NCLT
NCLT held that the Resolution Professional followed the principles of Natural Justice and considered relevant documents, therefore, the Personal Insolvency Resolution Process should be initiated.
Money advanced for clearing land title is an investment, not financial debt under Section 5(8) of the IBC: NCLAT
The NCLAT reinforced that not all financial transactions qualify as financial debts under the IBC.
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.”
Inter-Corporate Loans and Deposits: Treatment of Such Debts in Case of Default
by Sidharth Sethi† and Shreya Sircar††
Absence of specific waiver provision indicates Legislative Intent to strictly follow Section 43 of LLP Act: NCLT
“A provision vesting “inherent powers” on a Court or Tribunal are to be used sparingly and should not be used to imply and read in substantive powers where the statue itself does not prescribe such powers.”
NCLT approves replacement of IRP with Insolvency Professional Entity based on CoC’s resolution & IBC’s timeline
The NCLT noted that Form AA, meant for individual Insolvency Professionals, had been modified by the Insolvency Professional Entity to fit its consent as no separate form for IPEs exists.
Insolvency of “Group Companies”
by Anuja Pethia* and Rishabh Govila**
2024 SCC Vol. 6 Part 2
Arbitration — Arbitration and Conciliation Act, 1996 — Ss. 34 and 37 — Arbitral award — Validity of: Law explained on validity
Procedural orders directing consolidation of related petitions not appealable under Section 421 of Companies Act: NCLAT
The NCLAT criticized the appellants for unnecessarily burdening the Tribunal with excessive documentation, voluminous records and citations of little value, thereby wasting Tribunal’s resources and acting contrary to professional ethics.
[Rights Issue] | Parties to maintain status quo; Byju’s to not make share allotment till NCLT reaches a final decision during remand proceedings: Karnataka HC
The Court further directed that the exercise of deciding as per the remand order by Single Judge must be completed expeditiously and before 31-07-2024.
Shardul Amarchand Mangaldas & Co. advises the Committee of Creditors of Metalyst Forgings Limited
Shardul Amarchand Mangaldas & Co. advised the committee of creditors (CoC) in the corporate insolvency resolution process of Metalyst Forgings Limited (Metalyst),
IBC proceedings don’t bar liability under Section 138 of NI Act: MP High Court
The Court held that the proceedings under Section 138 of the Negotiable Instruments Act, 1881 are penal in nature and not akin to civil recovery proceedings.
‘Indemnity obligation on guarantee is not operational debt’; NCLT dismisses CIRP petition due to limitation and Lack of Privity
The NCLT stated that the petitioner neither had a direct contractual relationship with the respondent, nor was the respondent provided with any goods/services, thereby disqualifying them as an operational creditor.
NCLT restrains Byju’s from utilising funds collected on second rights issue until disposal of mismanagement petition
The NCLT ordered the respondents to maintain the status quo regarding existing shareholders and their shareholding.
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.
‘Proceedings still at a nascent stage’; Delhi High Court transfers case for winding up of company to NCLT
The Delhi High Court said that the winding up proceedings which have not progressed to an advanced stage before the High Courts, ought to be transferred to the NCLT.
Delhi High Court directs State Bank of India to provide all documents forming basis of the Show Cause Notices issued to Educomp Solution
The Delhi High Court emphasised that if the relevant documents are not provided to a party, the whole procedure of issuance of Show Cause Notice would be reduced to an empty formality.