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Local Authority has no right to raise a claim against Successful Resolution Applicant (SRA) for the dues pertaining to the period prior to the approval of the Resolution Plan – Mangalam Global Enterprise Ltd. Vs. Kapadwanj Nagar Seva Sadan – NCLT Ahmedabad Bench

In this case, the Successful Resolution Applicant approached Local Authority established under Gujarat Municipalities Act, requesting for change of name in the bills issued by it from the erstwhile Corporate Debtor. Local Authority responded that all past and pending were payable. Dues are in nature of Tax which is to be collected as per provisions of Gujarat Municipalities Act.

NCLT Ahmedabad Bench held that:
(i) It is well settled law that CIRP is a claim driven time bound process.
(ii) The clean slate principle would stand negated if the successful resolution applicant is asked to pay the arrears payable by the corporate debtor.
(iii) Local Authority has no right at this belated stage to raise a claim against the Corporate Debtor/SRA for the dues pertaining to the period prior to the approval of the resolution plan w.r.t. the Corporate Debtor.

Local Authority has no right to raise a claim against Successful Resolution Applicant (SRA) for the dues pertaining to the period prior to the approval of the Resolution Plan – Mangalam Global Enterprise Ltd. Vs. Kapadwanj Nagar Seva Sadan – NCLT Ahmedabad Bench Read Post »

Breach of the terms and conditions of payment according to a Settlement Agreement does not come under the purview of the Operational Debt as defined under the IBC, 2016 and it cannot be a ground to trigger CIRP against the Corporate Debtor – Bajaj Rubber Company Pvt. Ltd. Vs. Saraswati Timber Pvt. Ltd. – NCLT New Delhi Bench Court-II

NCLT held that breach of the terms and conditions of payment according to a Settlement Agreement does not come under the purview of the Operational Debt as defined under the IBC, 2016 and it cannot be a ground to trigger CIRP against the Corporate Debtor.

Breach of the terms and conditions of payment according to a Settlement Agreement does not come under the purview of the Operational Debt as defined under the IBC, 2016 and it cannot be a ground to trigger CIRP against the Corporate Debtor – Bajaj Rubber Company Pvt. Ltd. Vs. Saraswati Timber Pvt. Ltd. – NCLT New Delhi Bench Court-II Read Post »

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