New Phaltan Sugar Works Ltd.

Some minimum entitlement to Operational Creditors may be examined by Government and IBBI, based on the amount realised in the Resolution Plan over and above the liquidation value – Excel Engineering Vs. Mr. Vivek Murlidhar Dabhade RP of New Phaltan Sugar Works Ltd. – NCLAT New Delhi

NCLAT held that it is the final discretion of the Collective Commercial Wisdom in relation to (1) The amount to be paid (2) The quantum of money to be paid, to a certain category or the incidental category of Creditors, balancing the interests of the Stakeholders and the Operational Creditors, as the case may be. The limited judicial review available to Adjudicating Authority lies within the four corners of Section 30(2) of the Code. We are of the earnest view that some minimum entitlement to the Operational Creditors may be examined by the Government and the IBBI, based on the amount realised in the Resolution Plan over and above the liquidation value.

Some minimum entitlement to Operational Creditors may be examined by Government and IBBI, based on the amount realised in the Resolution Plan over and above the liquidation value – Excel Engineering Vs. Mr. Vivek Murlidhar Dabhade RP of New Phaltan Sugar Works Ltd. – NCLAT New Delhi Read Post »

Whether limitation for filing the Appeal u/s 61 of IBC shall commence only when certified copy of the judgment(free of cost) has been provided to appellant? – Central Board of Trustee, Employees’ Provident Fund Organization through The Regional P.F. Commissioner Vs. Shri Dutta India Pvt. Ltd. – NCLAT New Delhi

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Whether limitation for filing the Appeal u/s 61 of IBC shall commence only when certified copy of the judgment(free of cost) has been provided to appellant? – Central Board of Trustee, Employees’ Provident Fund Organization through The Regional P.F. Commissioner Vs. Shri Dutta India Pvt. Ltd. – NCLAT New Delhi Read Post »

The CIRP period was extended by 90 days by the Adjudicating Authority at the instance of Resolution Professional would not clothe the Appellants with a right to claim consideration of their claims which stage admittedly was over – Madanlal Balmukund Karwa Company Vs. New Phaltan Sugar Works Ltd. &Ors. – NCLAT New Delhi

The IRP has rejected the claim of Appellant which was not substantiated by documentary evidence on 21st May, 2019. The Adjudicating Authority passed order extending CIRP period by 90 days on 11th September, 2019. Subsequently, the prayer of Appellant seeking direction from the Adjudicating Authority in the name of Resolution Professional to accept the supporting document in support of the claim came to be turned down in the face of delay and latches on the part of Appellant. NCLAT held that it is manifestly clear that the timelines have not been adhered to in so far as preferring of claims and submitting of proof to establish such claims is concerned. The fact that the CIRP period was extended by 90 days by the Adjudicating Authority at the instance of Resolution Professional would not clothe the Appellants with a right to claim consideration of their claims which stage admittedly was over. Moreover, subsequent rejection of I.As declining to allow proof to be adduced in support of claims at the hugely belated stage leaves no room for contending that opportunity of submitting the claims and adducing proof in support thereof was not provided to the Appellants. Since the CIRP has crossed the culminating point with approval of the Resolution Plan of ‘Shri Dutt India Pvt. Ltd.’, the Appellants cannot be allowed to reopen the CIRP and direct de novo exercise after the CIRP period has come to an end.

The CIRP period was extended by 90 days by the Adjudicating Authority at the instance of Resolution Professional would not clothe the Appellants with a right to claim consideration of their claims which stage admittedly was over – Madanlal Balmukund Karwa Company Vs. New Phaltan Sugar Works Ltd. &Ors. – NCLAT New Delhi Read Post »

The Code has the overriding effect on the provision of Maharashtra Value Added Tax Act, 2002 creating first charge – Sales Tax Department, State of Maharashtra Vs. New Phaltan Sugar Works Ltd. & Anr.  – NCLAT New Delhi

NCLAT referring Essar Steel case and has held that the Resolution Plan approved in terms of the impugned order reducing claim of the Appellant is not open to question even on the ground that the same contravenes the provisions of Maharashtra Value Added Tax Act, 2002. Admittedly, Section 37 of the aforesaid act creating first charge on the property of the assesse/ dealer in regard to any amount of tax, penalty, interest etc. has overriding effect as far as there is a contract to the contrary but the same has been subjected to any provision regarding creation of first charge in any Central Act in force. It is not in controversy that the Code has the overriding effect over other laws as specifically provided under Section 238, thus provisions of the Code shall have effect notwithstanding anything inconsistent therewith contained in any other law.

The Code has the overriding effect on the provision of Maharashtra Value Added Tax Act, 2002 creating first charge – Sales Tax Department, State of Maharashtra Vs. New Phaltan Sugar Works Ltd. & Anr.  – NCLAT New Delhi Read Post »

Whether the Appellant is a secured creditor or not, is a question of fact and it can be decided by the Resolution Professional and any decision further can be taken by the CoC. The NCLT or NCLAT cannot sit over the decision of the Resolution Professional or CoC in this regard – Dhananjay Pralhad Salunkhe Patil Vs. New Phaltan Sugar Works Ltd. – NCLAT New Delhi

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Whether the Appellant is a secured creditor or not, is a question of fact and it can be decided by the Resolution Professional and any decision further can be taken by the CoC. The NCLT or NCLAT cannot sit over the decision of the Resolution Professional or CoC in this regard – Dhananjay Pralhad Salunkhe Patil Vs. New Phaltan Sugar Works Ltd. – NCLAT New Delhi Read Post »

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