Apex Buildsys Ltd.

Closure and lockout notice issued by Corporate Debtor under the Uttar Pradesh Industrial Disputes Act, 1947 prior to initiation of the CIRP cannot be adjudicated by the Adjudicating Authority under IBC – Era Labourer Union of Sidcul, Pant Nagar, through its secretary Vs. Apex Buildsys Ltd. – NCLAT New Delhi

Hon’ble NCLAT held that the closure/lockout notice which was issued on 31.07.2017 much prior to initiation of the CIRP and the closure and lockout notice was nothing to do with the CIRP process. Challenge to the closure and lockout notice cannot be raised before the Adjudicating Authority who is not competent to adjudicate the said issue which arises out of the provision of the Uttar Pradesh Industrial Disputes Act, 1947.

Closure and lockout notice issued by Corporate Debtor under the Uttar Pradesh Industrial Disputes Act, 1947 prior to initiation of the CIRP cannot be adjudicated by the Adjudicating Authority under IBC – Era Labourer Union of Sidcul, Pant Nagar, through its secretary Vs. Apex Buildsys Ltd. – NCLAT New Delhi Read Post »

A Successful Bidder of sale as Going Concern can seek access of the Adjudicating Authority and may pray for necessary directions in accord with and in consonance with the process document in the liquidation proceedings – Jasamrit Designers Pvt. Ltd. Vs. Mr. Gian Chand Narang, Liquidator of Apex Buildsys Ltd. – NCLAT New Delhi

NCLAT held that: (i) When the process document clearly contemplated such consequences the said consequences shall ensue on sale as going concern and if any roadblocks come into ways of successful resolution applicant, necessary directions, clarifications can very well be issued by the Adjudicating Authority on an Application filed under Section 60(5)(c) of the Code.
(ii) A successful bidder who is declared as successful bidder of sale as going concern can seek access of the Adjudicating Authority and may pray for necessary directions in accord with and in consonance with the process document in the liquidation proceedings.

A Successful Bidder of sale as Going Concern can seek access of the Adjudicating Authority and may pray for necessary directions in accord with and in consonance with the process document in the liquidation proceedings – Jasamrit Designers Pvt. Ltd. Vs. Mr. Gian Chand Narang, Liquidator of Apex Buildsys Ltd. – NCLAT New Delhi Read Post »

CoC decision for liquidation of the Corporate Debtor is non-justiciable and Adjudicating Authority had no power to reverse the commercial decision – Amit Bharana (Erstwhile Director of Apex Buildsys) Vs. Gian Chand Narang, Resolution Professional – NCLAT New Delhi

NCLAT held that the CoC was empowered to decide to liquidate the Corporate Debtor at any time before confirmation of the Resolution Plan, including any time before the preparation of Information Memorandum. (p34)

It also appears that when CoC noticed that both the Resolution Plans were not feasible and viable, and are being non-compliant which Section 30 of the Code read with Regulation 37 of CIRP Regulation thus. The same could not be considered the Resolution Plans per se within the Code and Regulations’ meaning framed thereunder. Consequently, the CoC decided to propose the liquidation of the Corporate Debtor and on voting the same was passed by a majority of 87.30% of voting share of the Members of CoC. Based on the above discussion, we are of the considered opinion that both the Appeals sans merit hence dismissed—no order as to costs. The interim order passed by this Bench stands vacated. IA also stands disposed of accordingly.(p35-36)

CoC decision for liquidation of the Corporate Debtor is non-justiciable and Adjudicating Authority had no power to reverse the commercial decision – Amit Bharana (Erstwhile Director of Apex Buildsys) Vs. Gian Chand Narang, Resolution Professional – NCLAT New Delhi Read Post »

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