10/07/2019

If the Financial Creditor satisfies all the requirements, the Adjudicating Authority has no discretion to reject the application or defer it unless the Corporate Debtor submits that they intend to settle the claim- Mr. Nakul Bharana Vs. ICICI Bank Ltd.-NCLAT

NCLAT has held that the Adjudicating Authority found that there is a debt and default and the application filed by the Financial Creditor was complete. NCLAT has observed that if the Financial Creditor satisfies all the requirements, the Adjudicating Authority has no discretion to reject the application or defer it unless the Corporate Debtor submits that they intend to settle the claim. Only if such request is made to settle the claim, the Adjudicating Authority may give one opportunity to the Corporate Debtor to do so instead of admitting the application.

If the Financial Creditor satisfies all the requirements, the Adjudicating Authority has no discretion to reject the application or defer it unless the Corporate Debtor submits that they intend to settle the claim- Mr. Nakul Bharana Vs. ICICI Bank Ltd.-NCLAT Read Post »

In absence of any typographical error, it is not open to the Adjudicating Authority to take any recourse of Section 420(2) of the Companies Act, 2013- Mr. Dinesh Goyal Vs. DCB Bank Ltd.-NCLAT

DCB Bank Limited- (Financial Creditor) filed application under Section 7 of the Code against M/s. Fort Biotech Private Limited- (Corporate Debtor) which was admitted on 8th March, 2019. Though no petition on behalf of the Corporate Debtor (M/s. Fort Biotech Private Limited) was maintainable through the suspended Board of Directors having taken over by the IRP on behalf of the Corporate Debtor, an application was filed for review or recall of the order dated 8th March, 2019 on the ground that the Corporate Debtor had not received the notice as there was a dispute between the landlord of premises with the Corporate Debtor. The Adjudicating Authority (NCLT), Jaipur Bench (Rajasthan) by impugned order dated 7th June, 2019 held that it has no power of review nor it can recall the order under Rule 11 of the National Company Law Tribunal Rules, 2016. NCLAT has affirmed the above decision of the NCLT. 

In absence of any typographical error, it is not open to the Adjudicating Authority to take any recourse of Section 420(2) of the Companies Act, 2013- Mr. Dinesh Goyal Vs. DCB Bank Ltd.-NCLAT Read Post »

The definition of financial services as defined in Sec. 3(16) of the Code is not limited to the 9 activities as shown at Clause (a) to (i) of Sec. 3(16)- Housing Development Finance Corporation Ltd Vs. RHC Holding Pvt. Ltd-NCLAT

The definition of “financial service” if read with definition of “financial service provider”, it is clear that it is not necessary that the “financial service providers” must accept the deposits. If any of the activity as defined in Section 3(16) of the Code such as safeguarding and administering assets consisting of financial products belonging to another person, or agreeing to do so; effecting contracts of insurance; Offering, managing or agreeing to manage assets consisting of financial products belonging to another person; rendering or agreeing, for consideration, to render advice on or soliciting for the purposes of- buying, selling or subscribing to, a financial product; availing a financial service etc., they also come within the definition of “financial service provider”.

The definition of financial services as defined in Sec. 3(16) of the Code is not limited to the 9 activities as shown at Clause (a) to (i) of Sec. 3(16)- Housing Development Finance Corporation Ltd Vs. RHC Holding Pvt. Ltd-NCLAT Read Post »

Scroll to Top