Operational Creditors

Whether Corporate Debtor can raise its defence at the stage of Section 9 application without giving reply to the notice issued under Section 8 of the IBC? – Spik Enviro Management Pvt. Ltd. Vs. Vision Earthcare Pvt. Ltd. – NCLAT New Delhi

Hon’ble NCLAT held that notice under Section 8 is a sine qua non for maintaining an application under Section 9 but if the notice under Section 8 is not replied by the Corporate Debtor for some reason or other it does not debar the Corporate Debtor to contest the application filed under Section 9 of the Code by raising its defence.

Whether Corporate Debtor can raise its defence at the stage of Section 9 application without giving reply to the notice issued under Section 8 of the IBC? – Spik Enviro Management Pvt. Ltd. Vs. Vision Earthcare Pvt. Ltd. – NCLAT New Delhi Read Post »

Can IBC Section 9 application be dismissed on account of pre-existing disputes arising out of police complaints? | Can Civil Suit filed in Commercial Court after filing of Section 9 application be treated as a pre-existing dispute? – Chemical Suppliers India Pvt. Ltd. Vs. GLS Films Industries Pvt. Ltd. – NCLAT New Delhi

The Hon’ble NCLAT held that:

(i) The filing of a police complaint premised on a ground which was no longer in existence cannot be considered as a pre-existing dispute.
(ii) A Civil Suit filed after filing of Section 9 application cannot be used to defeat a Section 9 application.
(iii) The objective of IBC is not to penalise solvent companies. The IBC cannot be a tool to coerce and intimidate the Corporate Debtor to capitulate to the unreasonable demands of the Operational Creditor. However, this cannot also be a broad spectrum shield to knock down a Section 9 application against the Corporate Debtor as long as the debt is due, payable and undisputed and there is incidence of default/failure to repay the dues of an Operational Creditor which is above the threshold level.

Can IBC Section 9 application be dismissed on account of pre-existing disputes arising out of police complaints? | Can Civil Suit filed in Commercial Court after filing of Section 9 application be treated as a pre-existing dispute? – Chemical Suppliers India Pvt. Ltd. Vs. GLS Films Industries Pvt. Ltd. – NCLAT New Delhi Read Post »

The IBC provides for a very strict timeline for filing an appeal – Satvir Singh Gulia Vs. Emaar India Ltd. – NCLAT New Delhi

In this case, the Appellant has taken about 170 days to cure the defects and finally re-file the present appeal. The Appellant seeks condonation of delay on several grounds such as advocate’s clerk had misplaced pages of appeal while filing it, personal difficulty in re-filing, engagement in roka ceremony of the advocate in April, 2024 and thereafter preparation of the marriage of the Advocate and thereafter major surgery of his mother in August and thereafter house shifting. These reasons do not inspire much confidence as they appear to be more of bald and casual statements without really justifying the huge delay of 170 days in refiling.

The IBC provides for a very strict timeline for filing an appeal – Satvir Singh Gulia Vs. Emaar India Ltd. – NCLAT New Delhi Read Post »

When the contract is oral, its enforceability will come into question if there is dispute | Mere fact that a reply to notice under Section 8(1) of IBC having not been given within 10 days or no reply to demand notice having been filed by the Corporate Debtor does not preclude the latter to bring pre-existing dispute before NCLT – German Solar Asia Pte Ltd. Vs. Zytech Solar India Pvt. Ltd. – NCLT Hyderabad Bench

The Hon’ble NCLT Hyderabad Bench held that:
(i) The contract can be either oral or written. When the contract is oral, its enforceability will come into question if there is dispute.
(ii) Mere fact that a reply to notice under Section 8(1) having not been given within 10 days or no reply to demand notice having been filed by the Corporate Debtor does not preclude the latter to bring relevant materials before the adjudicating authority to establish that there is pre-existing dispute which may lead to the rejection of Section 9 application.
(iii) Pre-existing dispute employed under the IBC cannot be equated with even the principle of preponderance of probability which guides a civil court at the stage of finally decreeing a suit.
(iv) The IBC is not intended to be a substitute for a recovery forum.

When the contract is oral, its enforceability will come into question if there is dispute | Mere fact that a reply to notice under Section 8(1) of IBC having not been given within 10 days or no reply to demand notice having been filed by the Corporate Debtor does not preclude the latter to bring pre-existing dispute before NCLT – German Solar Asia Pte Ltd. Vs. Zytech Solar India Pvt. Ltd. – NCLT Hyderabad Bench Read Post »

Stayed on proceedings under Section 138 of the Negotiable Instruments Act, 1881 upon initiation of personal insolvency in view of moratorium under Section 96 of IBC – Rakesh Rajpal Vs. Ashok Kumar Gupta – Madhya Pradesh High Court

Counsel for the petitioner submits that the trial Court as well as Revisional Court have erroneously refused to stay the proceedings under Section 138 of Negotiable Instruments Act. The petitioner is facing proceedings under Insolvency and Bankruptcy Code, 2016 and on his application, an order under Section 96 regarding interim moratorium has been passed and, therefore the proceedings ought to have been stayed. Considering the aforesaid submissions, as an interim measure, it is directed that the further proceedings pending before the concerning trial Court shall remain stayed.

Stayed on proceedings under Section 138 of the Negotiable Instruments Act, 1881 upon initiation of personal insolvency in view of moratorium under Section 96 of IBC – Rakesh Rajpal Vs. Ashok Kumar Gupta – Madhya Pradesh High Court Read Post »

If Applicants are not the members of CoC, they are not entitled to get a copy of the Resolution Plan – Mr. Suresh Kumar Agarwal Vs. Pankaj Kumar Tibrewal, RP – NCLT Kolkata Bench

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If Applicants are not the members of CoC, they are not entitled to get a copy of the Resolution Plan – Mr. Suresh Kumar Agarwal Vs. Pankaj Kumar Tibrewal, RP – NCLT Kolkata Bench Read Post »

Claim of Operation Creditor coming at a stage after the approval of resolution plan are not allowed as the same will delay the CIRP further – Chittaranjan Sah Vs. Pratim Bayal, RP of Purulia Metal Casting Pvt. Ltd. – NCLT Kolkata Bench

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Claim of Operation Creditor coming at a stage after the approval of resolution plan are not allowed as the same will delay the CIRP further – Chittaranjan Sah Vs. Pratim Bayal, RP of Purulia Metal Casting Pvt. Ltd. – NCLT Kolkata Bench Read Post »

A Non-Member of the CoC will not be entitled to get a copy of the Resolution Plan – Makesworth Industries Ltd. Vs. Pankaj Kumar Tibrewal, RP of Incab Industries Ltd. – NCLT Kolkata Bench

The Hon’ble NCLT Kolkata Bench referring judgment in Jet Airways (India) Ltd. (2022) ibclaw.in 66 NCLAT held that the applicant is not a member of the CoC and thus, he will not be entitled to get a copy of the resolution plan.

A Non-Member of the CoC will not be entitled to get a copy of the Resolution Plan – Makesworth Industries Ltd. Vs. Pankaj Kumar Tibrewal, RP of Incab Industries Ltd. – NCLT Kolkata Bench Read Post »

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