Sona Alloys Pvt. Ltd.

Resolution Professional can reject the claim based on the records and audited books of accounts – M/s. Pani Trading Corporation Vs. Mr. Jagadishchandra B Mistri – NCLT Ahmedabad Bench

/ 2 minutes of reading

The present application is filed against the rejection of the claim of the applicant by the Resolution Professional (RP). There is no written loan agreement between the applicant and the Corporate Debtor. The applicant had explained that the claim was based on ledger account. It has been held by the Hon’ble Supreme Court in the case of Swiss Ribbons Pvt. Ltd. & Another vs. Union of India & Ors. (2019) ibclaw.in 03 SC that Resolution Professional is given administrative as opposed to quasi-judicial powers. Resolution Professional had rejected the claim of the applicant based on the records and audited books of accounts and his action in doing so cannot be faulted with. As sequel to the above discussion, application is rejected and disposed of.

Resolution Professional can reject the claim based on the records and audited books of accounts – M/s. Pani Trading Corporation Vs. Mr. Jagadishchandra B Mistri – NCLT Ahmedabad Bench Read Post »

If Financial Creditors have not been paid in full, Operational Creditors cannot claim a higher amount – M/s. Pani Logistics Vs. Mr. Vikash G Jain, RP, Sona Alloys Pvt. Ltd. – NCLT Ahmedabad Bench

/ 3 minutes of reading

The Adjudicating Authority held that the conjoint reading of Section 30 & Section 53 shows that the order of priority specified is such that the Financial Creditors have preference over Operational Creditors. The Secured Financial Creditors are covered by Section 53(1)(b)(ii) and Unsecured Financial Creditors are covered by Section 53(1)(d). The Operational Creditors are to be considered thereafter having lower priority and are covered by Section 53(1)(f). Since the Financial Creditors have not been paid in full, the Operational Creditors cannot claim a higher amount. No violation of the provisions of the IBC, 2016 and Regulations there under is noticed in the distribution of resolution proceeds to Financial Creditors and Operational Creditors.

If Financial Creditors have not been paid in full, Operational Creditors cannot claim a higher amount – M/s. Pani Logistics Vs. Mr. Vikash G Jain, RP, Sona Alloys Pvt. Ltd. – NCLT Ahmedabad Bench Read Post »

The Code does not provide for any consolidation of CIRP when companies are holding substantial shares in one another – M/s. Pani Logistics Vs. Sona Alloys Private Limited & Ors. – NCLT Ahmedabad Bench

/ 1 minute of reading

The Liquidator filed an application seeking substantive consolidation of the Corporate Debtor and five of the respondents into a single proceeding. NCLT held that though four respondents hold substantial share in the Corporate Debtor, they do not constitute group companies and the Code does not provide for any consolidation of CIRP when companies are holding substantial shares in one another. Dismissing the application, the NCLT held that substantial consolidation as remedy should always be treated as an exception rather than the rule.

The Code does not provide for any consolidation of CIRP when companies are holding substantial shares in one another – M/s. Pani Logistics Vs. Sona Alloys Private Limited & Ors. – NCLT Ahmedabad Bench Read Post »

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