CoC of Amtekauto Ltd. Vs. Dinkar T. Venkatsubramanian & Ors.

The approved resolution plan has to be implemented at the earliest and that is the mandate under the IBC – CoC of Amtek Auto Ltd. through Corporation Bank Vs. Dinkar T. Venkatsubramanian and others – Supreme Court

Hon’ble Supreme Court held that the approved resolution plan has to be implemented at the earliest and that is the mandate under the IBC. As per Section 12 of the IBC, subject to sub-section (2), the CIRP shall be completed within a period of 180 days from the date of admission of the application to initiate such process, which can be extended by a further period of 180 days. As per proviso to Section 12 of the IBC, which has been inserted by Act 26 of 2019, the insolvency resolution process shall mandatorily be completed within a period of 330 days from the insolvency commencement date, including any extension of the period of CIRP granted under Section 12 of the IBC and the time taken in legal proceedings in relation to such resolution process of the Corporate Debtor. As per the third proviso to Section 12 of the IBC, which is also inserted by Act 26 of 2019, where the insolvency resolution process of a Corporate Debtor is pending and has not been completed within a period stated hereinabove, i.e., within a period of 330 days, such resolution process shall be completed within a period of 90 days from the date of commencement of the IBC amendment Act, 2019, i.e., 16.08.2019. Thus, the entire resolution process has to be completed within the period stipulated under Section 12 of the IBC and any deviation would defeat the object and purpose of providing such time limit.(p9-10)

The approved resolution plan has to be implemented at the earliest and that is the mandate under the IBC – CoC of Amtek Auto Ltd. through Corporation Bank Vs. Dinkar T. Venkatsubramanian and others – Supreme Court Read Post »

Setting up an untenable plea should not in and by itself invite the penal consequences which emanate from the exercise of the contempt jurisdiction – Committee of Creditors of Amtek Auto Ltd. Through Corporation Bank Vs. Dinkar T. Venkatsubramanian & Ors – Supreme Court

The role of the adjudicating authority under sub-section (1) of Section 31 comes into being upon the approval of the resolution plan by the CoC under sub-section (4) of Section 30. The function which is assigned by the statute to the adjudicating authority is to determine whether the resolution plan which has been approved by the CoC meets the requirements of sub-section (2) of Section 30. Upon being satisfied that the resolution plan meets those requirements, the adjudicating authority “shall by order approve the resolution plan”. Before passing an order of approval the adjudicating authority has to satisfy itself that the resolution plan has provisions for its effective implementation.(p26)

The provisions of the IBC are premised on a time bound process for the resolution of corporate insolvencies.(p37)

Setting up an untenable plea should not in and by itself invite the penal consequences which emanate from the exercise of the contempt jurisdiction – Committee of Creditors of Amtek Auto Ltd. Through Corporation Bank Vs. Dinkar T. Venkatsubramanian & Ors – Supreme Court Read Post »

Whether the Adjudicating Authority has any jurisdiction to pass any order referring the matter to the Central Government or the Insolvency and Bankruptcy Board of India for action under Section 74(3) of the Code or under any of the provisions for punishment as prescribed under Chapter VII of Part II of the Code – CoC of Amtek Auto Ltd. through Corporation Bank Vs. Mr. Dinkar T. Venkatasubramanian & Ors.-NCLAT

I. Case Reference Case Citation : [2019] ibclaw.in 12 NCLAT Case Name : Committee of Creditors of Amtek Auto Ltd.

Whether the Adjudicating Authority has any jurisdiction to pass any order referring the matter to the Central Government or the Insolvency and Bankruptcy Board of India for action under Section 74(3) of the Code or under any of the provisions for punishment as prescribed under Chapter VII of Part II of the Code – CoC of Amtek Auto Ltd. through Corporation Bank Vs. Mr. Dinkar T. Venkatasubramanian & Ors.-NCLAT Read Post »

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