02/06/2023

IBC does not envisage any intervention by Adjudicating Authority in day-to-day running of business operations of Corporate Debtor – M/s International Fresh Farm Products India Ltd. Vs. Mr. Sumat Kumar Gupta, RP – NCLT Chandigarh Bench

The Adjudicating Authority held that the issues that are being agitated by the suspended director which relate to the business operations of the corporate debtor, should have been raised first in the Coc meetings. Nothing in this regard has been stated by either parties during the proceedings. The Code mandates the CoC to take the decision with regard to the running of the business of the corporate debtor as per its commercial wisdom with the object to maximise the value of the corporate debtor. The Code does not envisage any intervention by this Adjudicating Authority in the commercial decisions and day-to-day running of the corporate debtor.

IBC does not envisage any intervention by Adjudicating Authority in day-to-day running of business operations of Corporate Debtor – M/s International Fresh Farm Products India Ltd. Vs. Mr. Sumat Kumar Gupta, RP – NCLT Chandigarh Bench Read Post »

Filing of a claim under a wrong category cannot be a substantial ground for condoning the delay – Mr. Toral Rathod Vs. Mr. Gopalsamy Ganesh Babu (RP of Milan Textile Enterprises Pvt. Ltd.) – NCLAT Chennai

NCLAT held that the ground taken by the Counsel for the Appellant that it was initially filed under Form-B as an Operational Creditor which was rejected, and thereafter the Appellant had resubmitted her Claim under Form-C on 07.08.2022, does not strengthen or substantiate her case as the timelines given under IBC are to be strictly adhered to and any latches on behalf of the Appellant in filing, the claim under a wrong category cannot be a substantial ground for condoning the delay. It is also significant to mention that the Appellant approached the Adjudicating Authority with a further delay of 100 days, and the only reason that was given is that they were seeking legal advise, which the Adjudicating Authority has rightly held is only a bald explanation and does not construe a sufficient cause for the delay.

Filing of a claim under a wrong category cannot be a substantial ground for condoning the delay – Mr. Toral Rathod Vs. Mr. Gopalsamy Ganesh Babu (RP of Milan Textile Enterprises Pvt. Ltd.) – NCLAT Chennai Read Post »

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