01/07/2024

SRA cannot be heard to say that unless the ROC change the status of the Corporate Debtor from ‘under liquidation’ to ‘active’, implementation of Rplan cannot proceed further | When Adjudicating Authority expressly refused to grant any reliefs and concessions, Resolution Plan has to be implemented by Successful Resolution Applicant – PKH Ventures Ltd. Vs. Monitoring Agency of Amar Remedies – NCLAT New Delhi

Hon’ble NCLAT held that:

(i) When the Adjudicating Authority expressly refused to grant any reliefs and concessions, as prayed, the plan was to be implemented by the Successful Resolution Applicant and Appellant cannot be heard to say that unless the Registrar of Companies change the status of the Corporate Debtor into active implementation of plan cannot proceed further.
(ii) When the Resolution Plan has not been implemented by the SRA, there was no option left with the Adjudicating Authority except for direction for liquidation.
(iii) Present is a case where the SRA’s case is that he having not been able to infuse the fund by share capital, the implementation of plan cannot begin. The Appellant is not entitled for any relief. All the appeals are dismissed.

SRA cannot be heard to say that unless the ROC change the status of the Corporate Debtor from ‘under liquidation’ to ‘active’, implementation of Rplan cannot proceed further | When Adjudicating Authority expressly refused to grant any reliefs and concessions, Resolution Plan has to be implemented by Successful Resolution Applicant – PKH Ventures Ltd. Vs. Monitoring Agency of Amar Remedies – NCLAT New Delhi Read Post »

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

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 »

Can CoC fix different eligibility criteria for Association of Allottees as compared to other Resolution Applicant? – Crown Business Park Tower A Buyers Association, Faridabad Vs. Atul Kansal and Ors. – NCLAT New Delhi

In this important judgment, Hon’ble NCLAT held that:

(i) Interference in the Resolution Plan by the Adjudicating Authority is permissible when the Resolution Plan violated the provisions of Section 30(2) and the Plan does not conform to requirements as referred to in Section 30(2).
(ii) Regulation 36A (4) of the CIRP Regulations provides that CoC is empowered to specify eligibility. The expression “specify the criteria for prospective resolution applicants”, cannot be read to mean that criteria for all prospective Resolution Applicants has to be same.
(iii) Criteria cannot be discriminatory but reasonable rational classification is not prohibited.

Can CoC fix different eligibility criteria for Association of Allottees as compared to other Resolution Applicant? – Crown Business Park Tower A Buyers Association, Faridabad Vs. Atul Kansal and Ors. – NCLAT New Delhi Read Post »

There is nothing in the IBC to negate that position of CGST Act being treated as Secured Debt | Operational/Dissenting Financial Creditors cannot be paid NIL value merely the Liquidation Value is NIL for them – Sandip Kumar Kejriwal RP of Indian Mining Works Pvt. Ltd. – NCLT Kolkata Bench

Hon’ble NCLT Kolkata Bench held that:
(i) The legislative intent to provide the word “not less than” in the first line of Section 30(2)(b) of the I&B Code is contemplating a mandatory allocation to the operational creditors and the dissenting financial creditors and the allocation would be the amount provided in the resolution plan or liquidation value whichever is higher.
(ii) The Adjudicating Authority has been established to function as a mere rubber stamp affixing authority to allow all the commercial decisions of the CoC, wherein the irregularities or illegalities committed by the CoC, or the insinuating circumstances are galore.
(iii) A resolution plan that is violative or non-compliant to the provisions of Section 30(2) read with Section 31(1) can be rejected under Section 30(2) of the I&B Code, though the plan has been approved by the CoC under its commercial wisdom.
(iv) The plan also has not allocated any sum to the CGST Department (Government of India) when they are actual creditors in terms of Section 82 of the CGST Act.

There is nothing in the IBC to negate that position of CGST Act being treated as Secured Debt | Operational/Dissenting Financial Creditors cannot be paid NIL value merely the Liquidation Value is NIL for them – Sandip Kumar Kejriwal RP of Indian Mining Works Pvt. Ltd. – NCLT Kolkata Bench Read Post »

Employees’ Provident Fund Organization, Regional Office, Vashi, Navi Mumbai Through Regional PF Commissioner-II (Legal) Vs. CA Amit Gupta, IP/Liquidator of Hindustan Dorr Oliver Ltd. – NCLAT New Delhi

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Employees’ Provident Fund Organization, Regional Office, Vashi, Navi Mumbai Through Regional PF Commissioner-II (Legal) Vs. CA Amit Gupta, IP/Liquidator of Hindustan Dorr Oliver Ltd. – NCLAT New Delhi Read Post »

Whether liability of payment of Provident Fund dues has to be borne by the Successful Resolution Applicant or it has to be deducted from the financial outlay under the Resolution Plan? – Shree Gopal Paper Mill Labour Union (Regd.) Vs. Anuj Jain RP and Ors. – NCLAT New Delhi

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Whether liability of payment of Provident Fund dues has to be borne by the Successful Resolution Applicant or it has to be deducted from the financial outlay under the Resolution Plan? – Shree Gopal Paper Mill Labour Union (Regd.) Vs. Anuj Jain RP and Ors. – NCLAT New Delhi Read Post »

For interim moratorium u/s 96 of IBC, application filing date is relevant, not the date in which registered/ numbered | NCLAT bound by its Own decision | Kerala High Court judgment in Jeny Thankachan v. UoI and Ors. has not noticed the statutory scheme – Ms. Sangita Arora Vs. IFCI Ltd. and Anr. – NCLAT New Delhi

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For interim moratorium u/s 96 of IBC, application filing date is relevant, not the date in which registered/ numbered | NCLAT bound by its Own decision | Kerala High Court judgment in Jeny Thankachan v. UoI and Ors. has not noticed the statutory scheme – Ms. Sangita Arora Vs. IFCI Ltd. and Anr. – NCLAT New Delhi Read Post »

Section 14 of the Insolvency and Bankruptcy Code, 2016 does not create a bar on encashment of PBG during moratorium – Bhuvan Madan IRP of Indrajit Power Pvt. Ltd. Vs. Nominated Authority, Ministry of Coal and Anr. – NCLAT New Delhi

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Section 14 of the Insolvency and Bankruptcy Code, 2016 does not create a bar on encashment of PBG during moratorium – Bhuvan Madan IRP of Indrajit Power Pvt. Ltd. Vs. Nominated Authority, Ministry of Coal and Anr. – NCLAT New Delhi Read Post »

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