01/03/2021

A petition either under Section 7 or Section 9 of the IBC is an independent proceeding which is unaffected by winding up proceedings that may be filed qua the same company – A. Navinchandra Steels Private Limited Vs. SREI Equipment Finance Limited & Ors. – Supreme Court

Hon’ble Supreme Court held that it is important to restate a few fundamentals. Given the object of the IBC as delineated in paragraphs 25 to 28 of Swiss Ribbons (P) Ltd. v. Union of India, [2019] ibclaw.in 03 SC, it is clear that the IBC is a special statute dealing with revival of companies that are in the red, winding up only being resorted to in case all attempts of revival fail. Vis-à-vis the Companies Act, which is a general statute dealing with companies, including companies that are in the red, the IBC is not only a special statute which must prevail in the event of conflict, but has a non-obstante clause contained in Section 238, which makes it even clearer that in case of conflict, the provisions of the IBC will prevail.(p14)

A petition either under Section 7 or Section 9 of the IBC is an independent proceeding which is unaffected by winding up proceedings that may be filed qua the same company – A. Navinchandra Steels Private Limited Vs. SREI Equipment Finance Limited & Ors. – Supreme Court Read Post »

COC is empowered to take decision to liquidate the Corporate Debtor any time after its constitution and before the confirmation of Resolution Plan – Mr. Manoharlal Mehta & Ors. Vs. Anil Vrijdas Rajkotia, Resolution Professional of K K Welding Ltd. – NCLAT New Delhi

NCLAT held that the Resolution of COC in regard to sending of Corporate Debtor into liquidation is not amenable to judicial review. The explanation to Section 33(2) by Act No. 26 of 2019 enforced w.e.f. 16th August, 2019 sufficiently makes it clear that the COC is empowered to take decision to liquidate the Corporate Debtor any time after its constitution and before the confirmation of Resolution Plan which, in plain terms, gives a pre-eminent position to the COC in taking such business decision in exercise of their commercial wisdom even when a Resolution Plan duly approved by it with requisite vote share is pending before the Adjudicating Authority for approval.

COC is empowered to take decision to liquidate the Corporate Debtor any time after its constitution and before the confirmation of Resolution Plan – Mr. Manoharlal Mehta & Ors. Vs. Anil Vrijdas Rajkotia, Resolution Professional of K K Welding Ltd. – NCLAT New Delhi Read Post »

Whether the institution or continuation of a proceeding under Section 138/141 of the Negotiable Instruments Act can be said to be covered by the moratorium provision under Section 14 of the IBC – P. Mohanraj & Ors. Vs. M/s. Shah Brothers Ispat Pvt. Ltd. – Supreme Court

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Whether the institution or continuation of a proceeding under Section 138/141 of the Negotiable Instruments Act can be said to be covered by the moratorium provision under Section 14 of the IBC – P. Mohanraj & Ors. Vs. M/s. Shah Brothers Ispat Pvt. Ltd. – Supreme Court Read Post »

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