09/05/2019

The part of the Resolution Plan which relates to closure of the Corporate Debtor/Corporate Applicant being against the scope & intent of the IBC is in violation of Sec. 30(2)(e)- Industrial Services Vs. Burn Standard Company Ltd. & Anr.-NCLAT

/ 17 minutes of reading

If Resolution Plan is against the object of the Code and the application under Section 10 was filed with intent of closure of the Corporate Debtor for a purpose other than for the resolution of insolvency, or liquidation, the part of the Resolution Plan which relates to closure of the Corporate Debtor/Corporate Applicant being against the scope and intent of the‘I&B Code is in violation of Section 30(2)(e) of the I&B Code.

The part of the Resolution Plan which relates to closure of the Corporate Debtor/Corporate Applicant being against the scope & intent of the IBC is in violation of Sec. 30(2)(e)- Industrial Services Vs. Burn Standard Company Ltd. & Anr.-NCLAT Read Post »

Till the period of Moratorium continues, the SEBI cannot recover any amount nor can sell the assets of the Corporate Debtor during the Moratorium period- Mr. Bohar Singh Dhillon Vs. Mr. Rohit Sehgal (Interim Resolution Professional) & Ors. -NCLAT

/ 10 minutes of reading

NCLAT held that that the till the period of Moratorium continues, the SEBI cannot recover any amount nor can sell the assets of the Corporate Debtor during the Moratorium period. The application under Section 7 is maintainable while step has been taken by the SEBI. The Resolution Professional is required to act in terms of Section 17(2) (e) of the Code for complying with the requirements under the SEBI and Regulations framed thereunder as well as the guidelines issued by the Regulatory Authority. It is also made clear that the SEBI is however entitled to take action against individual including the former Directors and Shareholders of the Corporate Debtor.

Till the period of Moratorium continues, the SEBI cannot recover any amount nor can sell the assets of the Corporate Debtor during the Moratorium period- Mr. Bohar Singh Dhillon Vs. Mr. Rohit Sehgal (Interim Resolution Professional) & Ors. -NCLAT Read Post »

Related party in the matter of Aasaan Global Trade Vs. Vasudevan & Ors.-NCLAT

/ 3 minutes of reading

On plain reading of Section 5(24) (h) – ‘related party’ in relation to a corporate debtor, we find that related party is any person on whose advice, directions or instructions, a director, partner or manager of the corporate debtor is accustomed to act. The said provision cannot be made applicable in relation to the 2nd Respondent, who is also a Financial Creditor and in agreement referred to above, he is not supposed to give any advice, directions or instructions to the director or partner or manager of the corporate Debtor. Even if it is accepted that he is an agency of the Corporate Debtor, he has to act on the directions of the Corporate Debtor and not to give advice.

Related party in the matter of Aasaan Global Trade Vs. Vasudevan & Ors.-NCLAT Read Post »

If the members or the CD or creditors approach the company through the liquidator for compromise or arrangement by making proposal of payment to all the creditor(s), the Liquidator on behalf of the company will move an application u/s 230 of the Companies Act, 2013 before the AA – M/s. C. Mahendra International Ltd. Vs. Shri Naren Sheth & Anr.-NCLAT

/ 16 minutes of reading

The liquidator is required to act in terms of directions of the Appellate Tribunal and take steps under Section 230 of the Companies Act. If the members or the ‘Corporate Debtor’ or the ‘creditors’ or a class of creditors like ‘Financial Creditor’ or ‘Operational Creditor’ approach the company through the liquidator for compromise or arrangement by making proposal of payment to all the creditor(s), the Liquidator on behalf of the company will move an application under Section 230 of the Companies Act, 2013 before the Adjudicating Authority i.e. National Company Law Tribunal. On failure, steps should be taken for outright sale of the ‘Corporate Debtor’ so as to enable the employees to continue.

If the members or the CD or creditors approach the company through the liquidator for compromise or arrangement by making proposal of payment to all the creditor(s), the Liquidator on behalf of the company will move an application u/s 230 of the Companies Act, 2013 before the AA – M/s. C. Mahendra International Ltd. Vs. Shri Naren Sheth & Anr.-NCLAT Read Post »

Whether the Managing Director of the Company was empowered to sell the property on her own without taking permission of the General Body – TMT Sulochana Vs. Arunodhaya Enterprises Ltd. and Ors. – Supreme Court

/ 3 minutes of reading

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Whether the Managing Director of the Company was empowered to sell the property on her own without taking permission of the General Body – TMT Sulochana Vs. Arunodhaya Enterprises Ltd. and Ors. – Supreme Court Read Post »

Whether Financial Creditors holding security interest over the assets of the Corporate Debtor being given a higher amount in resolution plan than those who are not holding the security interest or holding security interest which is lower in value, is discriminatory or not – Deccan  Chronicle  Holdings  Ltd Vs. COC Through Kanara – NCLT Hyderabad Bench

/ 2 minutes of reading

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Whether Financial Creditors holding security interest over the assets of the Corporate Debtor being given a higher amount in resolution plan than those who are not holding the security interest or holding security interest which is lower in value, is discriminatory or not – Deccan  Chronicle  Holdings  Ltd Vs. COC Through Kanara – NCLT Hyderabad Bench Read Post »

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