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The filing of a Certified Copy is not an empty ritualistic formality | There is nothing in the IBC or the Regulation which provides for extension of time, to pay the Liquidation Costs especially when the exercise of right by the Secured Creditor is pressed into service – Essel Finance Advisors and Managers LLP Vs. Mr. Pankaj Srivastava Liquidator for Samruddhi Realty Ltd. and Ors. – NCLAT Chennai

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The filing of a Certified Copy is not an empty ritualistic formality | There is nothing in the IBC or the Regulation which provides for extension of time, to pay the Liquidation Costs especially when the exercise of right by the Secured Creditor is pressed into service – Essel Finance Advisors and Managers LLP Vs. Mr. Pankaj Srivastava Liquidator for Samruddhi Realty Ltd. and Ors. – NCLAT Chennai Read Post »

A complete set of Resolution Plan which is pending before NCLT for approval cannot be allowed to be shared with Operational Creditor – Oceanic Technical Services Vs. Ajay Joshi, RP for Indian Steel Corporation Ltd. – NCLT Mumbai Bench

An IA has been filed by an Operational Creditor under section 60(5) of IBC, 2016 against RP to share a copy of Resolution Plan approved by the Committee of Creditors and a copy of IA filed under Section 31 of IBC, 2016 for approval of Resolution Plan.
The Adjudicating Authority held that the precedent as laid down by the Hon’ble NCLAT in Jet Airways (India) Ltd. (2022) ibclaw.in 66 NCLAT that the resolution plan was not a confidential document, only after approval of the plan by the NCLT which is not the case in the present matter, as approval of the resolution plan by this bench is still pending. Moreover, the Applicant has been made aware of the treatment proposed for the operational creditors of the Corporate Debtor in the resolution plan. In such situation, this Tribunal cannot direct the RP to give a copy of the approved resolution plan submitted by the Respondent before this Tribunal and/or to share a copy of the Interlocutory Application/1562/2022 with the Applicant. In view of the same, we are of the considered opinion that a complete set of Resolution Plan cannot be allowed to be shared with the Applicant.

A complete set of Resolution Plan which is pending before NCLT for approval cannot be allowed to be shared with Operational Creditor – Oceanic Technical Services Vs. Ajay Joshi, RP for Indian Steel Corporation Ltd. – NCLT Mumbai Bench Read Post »

A group of financial creditors can converge and join hands to touch the financial limit of Rs. 1 crore stipulated under Section 7 of IBC so as to initiate a CIRP under the IBC – Vishnu Oil Mill Pvt. Ltd. Vs. Union of India – High Court of Rajasthan High Court

Hon’ble High Court held that on a plain reading of Section 7, it becomes clear that there is no ambiguity in the provision which requires any interpretation other than what is conveyed in its literary sense. The section clearly stipulates that the application for triggering CIRP may be initiated by a financial creditor either individually or jointly with other financial creditors. Previously the threshold default limit for filing the CIRP application was only Rs.1 lakh and it has been drastically increased to Rs.1 crore vide Gazette Notification dated 24.03.2020. It can easily be envisaged that in cases of MSMEs, there may not exist financial creditors whose individual debt is Rs.1 crore or above. If the threshold limit was to be fixed at Rs.1 crore qua each individual financial creditor, then there was no reason whatsoever for allowing joint applications by financial creditors.

A group of financial creditors can converge and join hands to touch the financial limit of Rs. 1 crore stipulated under Section 7 of IBC so as to initiate a CIRP under the IBC – Vishnu Oil Mill Pvt. Ltd. Vs. Union of India – High Court of Rajasthan High Court Read Post »

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