Gayatri Projects Ltd. Archives

There is no provision under IBC or Regulations which empowers NCLT to grant post-facto approval the actions of Resolution Professional (RP) directly without prior approval of the CoC – Sai Ramesh Kanuparthy RP of Gayatri Projects Ltd. – NCLT Hyderabad Bench

July 18, 2024

In this case, RP filed an application seeking post-facto approval for the payment of pre-CIRP dues, which were made to avoid work stoppage, termination of contracts, invocation of bank guarantees and to maintain the CD as a going concern.

Hon’ble NCLT Hyderabad Bench held that:
(i) There is no provision under IBC or regulations thereunder which empowers this Authority to ratify the actions of the RP directly without prior approval of the CoC and it is within the domain of the CoC to decide the costs incurred or payments made by the RP during CIRP to keep the CD as a going concern.
(ii) Any payments made by the RP to maintain the CD as a going concern shall be treated as CIRP costs and the same must be decided by the CoC.

There is no provision under IBC or Regulations which empowers NCLT to grant post-facto approval the actions of Resolution Professional (RP) directly without prior approval of the CoC – Sai Ramesh Kanuparthy RP of Gayatri Projects Ltd. – NCLT Hyderabad Bench Read Post »

Assessing Officer cannot adjust the Income Tax Refund with Income Tax Demand during the CIRP – Sai Ramesh Kanuparthi, R.P. of Gayatri Projects Ltd. Vs. Principal Chief Commissioner of Income-tax, Hyderabad – NCLT Hyderabad Bench

July 19, 2023

In this case, the Resolution Professional (Applicant) has given intimation of commencement of the CIRP of the Corporate Debtor and applicability of moratorium u/s 14 of the Code to the Income Tax Department. During the examination of the books of account and other records of the CD, it was noticed that the CD was eligible for the Income Tax Refund of Rs. 56,54,62,472/- in respect of AY 2021-22, which was adjusted by the Income Tax Department against their demands of AY 2016-17, Rs. 44,72,68,582 and demands of AY 2018-19, Rs. 11,81,93,690.

Assessing Officer cannot adjust the Income Tax Refund with Income Tax Demand during the CIRP – Sai Ramesh Kanuparthi, R.P. of Gayatri Projects Ltd. Vs. Principal Chief Commissioner of Income-tax, Hyderabad – NCLT Hyderabad Bench Read Post »

Where the post filing Notice was sent to the Corporate Debtor and if it does not appear before NCLT, CIRP application filed by a Financial Creditor can be determined ex-parte – Mr. T.V. Sandeep Kumar Reddy, Suspended Director, M/s. Gayatri Projects Ltd. Vs. State Bank of India – NCLAT Chennai

January 10, 2023

NCLAT held that the burden of proving, the service of summons, is on the petitioner /1st Respondent /Bank /Financial Creditor. In law, if a registered summons / notice is sent to a Respondent / Defendant, at his / her correct address, the presumption of service, arises, and an ex-parte decree, will not be set aside. An application, under Section 7 of the Code, 2016, is not to be rejected, merely on technical ground. In law, a letter of balance confirmation, extends the period of limitation. A Judicial Discretion, is to be regulated, as per known rules of law, and not on mere impulse or whim of a person, for whom, it is given on the hypothesis that he is circumspect. Any person, who is in law, entitled to stake a claim for payment, has no prohibition, under the Code, 2016, to prefer the same, by means of an application/petition. The prevalent of default, is a sine qua non, for admitting, an application / petition, under the Code, 2016, in respect of the insolvency proceedings.

Where the post filing Notice was sent to the Corporate Debtor and if it does not appear before NCLT, CIRP application filed by a Financial Creditor can be determined ex-parte – Mr. T.V. Sandeep Kumar Reddy, Suspended Director, M/s. Gayatri Projects Ltd. Vs. State Bank of India – NCLAT Chennai Read Post »

Chapter	Topic	Content
CH-2: General & Definitions
		Short Note on Insolvency and Bankruptcy Code, 2016 (IBC, 2016)
		Dispute and Existence of a Dispute
		Operational Debt and Operational Creditor
		Persons who may initiate Corporate Insolvency Resolution Process(CIRP)
		Analysis provisions of Limitation Act, 1963 with respect to Insolvency and Bankruptcy Code, 2016
CH-3: CIRP
	Topic-1 : CIRP Application & Withdrawal
		Analysis of Minimum amount of default under Section 4 of IBC
		Procedure of filing application by Financial Creditor before NCLT under Section 7 of the IBC
		Procedure of filing application by Operational Creditor before NCLT under Section 8 & 9 of the IBC
		Initiation of CIRP by corporate applicant under Section 10 of the IBC
		Analysis of withdrawal of CIRP proceeding pursuant to settlement under Section 12A of Insolvency and Bankruptcy Code, 2016 (IBC)
	Topic-2 : Declaration of moratorium and public announcement
		Declaration of moratorium and public announcement [Section 13, 14 & 15 of the IBC]
		All about the Moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 including judicial pronouncements
	Topic-3 : Appointment and tenure of IRP & RP
		Appointment and tenure of Interim Resolution Professional and Resolution Professional [Section 16, 22 & 27 of the IBC]
		Role of an Interim Resolution Professional and Resolution Professional
	Topic-4 : Management of affairs by IRP
	Topic-5 : Receive and collate all the claims submitted by creditors
	Topic-6 : Committee of creditors and meetings
		Constitution of Committee of Creditors under Section 21 of IBC
		Role of Committee of Creditors & It’s Commercial Wisdom
		Analysis of provisions on Authorised Representative under IBC
		Meetings & Voting of the Committee of Creditors under Section 24 of the IBC
	Topic-7 : RP to conduct the CIRP and manage the operations
		Resolution Professional to conduct the CIRP and manage the operations of the Corporate Debtor
		Insolvency Resolution Process Costs & Essential supplies
		To identify preferential transactions under Sec. 43 of the Code in any CIRP, step to be taken by a Resolution Professional
	Topic-8 : CIRP and Resolution Plan
		Information Memorandum, Expression of Interest, Request for Resolution Plans & Resolution Plans
		Role of the prospective resolution applicant
		Persons not eligible to be Resolution Applicant [Sec. 29A of IBC]
		Submission and approval of the Resolution Plan
		Liability for prior offences under Section 32A of the IBC
CH-4 : Liquidation Process
	Topic-1 : Initiation of Liquidation
	Topic-2 : Appointment & Remuneration of Liquidator
		Appointment & Remuneration of Liquidator under Sec. 34 of IBC
		Powers and duties of Liquidator under Sec. 35, 37 of IBC
	Topic-3: Liquidation Estate
	Topic-4: Public announcement, Preliminary report, Early dissolution and Progress reports under Liquidation
	Topic-5: Claims under Liquidation
	Topic-6: Preferential, undervalued and Extortionate Credit Transactions
		Preferential, Undervalued and Extortionate Credit Transactions under Sec. 43, 44, 45, 46, 47, 48, 49, 50, 51 of IBC
		To identify preferential transactions under Sec. 43 of the Code in any CIRP, step to be taken by a Resolution Professional
	Topic-7: Secured Creditor in Liquidation Proceedings
	Topic-8: Realisation of Assets in Liquidation Proceedings
	Topic-9: Proceeds of Liquidation and Distribution of Proceeds
CH-5 : Personal Guarantor
		Chapter VIII Indemnity and Guarantee of Indian Contract Act, 1872
		All about Personal Guarantor under IBC Part-I
		All about Personal Guarantor under IBC Part-II
		Insolvency Resolution Process Regulation
		Bankruptcy Process for PG Regulation
		IRP Application to AA Rules
		Bankruptcy Process Application to AA Rules