13/04/2021

If the Resolution Plan contemplates a change in the nature of business of Corporate Debtor to another line when the existing business is obsolete or non-viable, it cannot be construed that the Resolution Plan is not feasible or viable – Next Orbit Ventures Fund Vs. Print House (India) Pvt. Ltd. – NCLAT New Delhi

/ 47 minutes of reading

NCLAT held that merely because the Resolution Plan does not stick to the core printing business, in its truest sense, it cannot be said that the approved Resolution Plan lacks the right vision and proposition specially in the light of the converging market forces and refocused business models. Further, it has been agreed by the Resolution Applicant that the new management will upgrade the skills of the workmen and employees for this business cycle. In Arcelor Mittal India Private Limited [2018] ibclaw.in 31 SC it has been observed by the Hon’ble Apex Court that `if there is a `Resolution Applicant’ who can continue to run the Corporate Debtor as a going concern every effort must be made to try and see if this is possible’. Going concern does not mean that the nature of the business cannot be changed with an objective to add value or create synergy. If it is viewed in this perspective, it would be interpreting the word `going concern’ in a very narrow compass which is not the scope and objective of the Code.

If the Resolution Plan contemplates a change in the nature of business of Corporate Debtor to another line when the existing business is obsolete or non-viable, it cannot be construed that the Resolution Plan is not feasible or viable – Next Orbit Ventures Fund Vs. Print House (India) Pvt. Ltd. – NCLAT New Delhi Read Post »

MSME certificate is required to take benefit of MSME under Section 240A of IBC, the Resolution Professional & AA are not expected to go into accounts and investigate if and in which category an application falls under Section 7 of MSME Act – Ashish Mohan Gupta Vs. The Liquidator of M/s. Hind Motors India Ltd (In Liquidation) – NCLAT New Delhi

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The Learned Counsel for the Appellant accepts that the Appellant does not have memorandum or certificate from the Government authorities showing that the Companies of the Appellant are MSME. It is argued that such certificate or memorandum is not necessary and going by the definitions in the Act and balance sheet, this Tribunal must find if it is Micro, Small or Medium Industry. NCLAT referred Amit Gupta Vs. Yogesh Gupta (2019) ibclaw.in 465 NCLAT where it as held that in the Summary Procedure under IBC, the Resolution Professional and Adjudicating Authority are not expected to go into accounts and investigate if and in which category an application falls under Section 7 examining Notifications under Explanation 2 or Sub-Section 9 of Section 7 of MSME Act.

MSME certificate is required to take benefit of MSME under Section 240A of IBC, the Resolution Professional & AA are not expected to go into accounts and investigate if and in which category an application falls under Section 7 of MSME Act – Ashish Mohan Gupta Vs. The Liquidator of M/s. Hind Motors India Ltd (In Liquidation) – NCLAT New Delhi Read Post »

Whether after approval of Resolution Plan by the AA a creditor including the Government is entitled to initiate any proceedings for recovery of any of the dues from the Corporate Debtor, which are not a part of the Resolution Plan approved by the AA – Ghanashyam Mishra and Sons Pvt. Ltd. Through The Authorized Signatory Vs. Edelweiss Asset Reconstruction Company Ltd. Through The Director & Ors. – Supreme Court

/ 134 minutes of reading

Questions have been answered in this judgment: (i) Whether any creditor including the Central Government, State Government or any local authority is bound by the Resolution Plan once it is approved by an adjudicating authority under sub-section (1) of Section 31 of the Code? (ii)Whether the amendment to Section 31 by Section 7 of Insolvency & Bankruptcy Code (Amendment) Act, 2019 is clarificatory/declaratory or substantive in nature? (iii) Whether after approval of resolution plan by the Adjudicating Authority a creditor including the Central Government, State Government or any local authority is entitled to initiate any proceedings for recovery of any of the dues from the Corporate Debtor, which are not a part of the Resolution Plan approved by the adjudicating authority? (iv) Whether the speech made by the Hon’ble Finance Minister, explaining the reason for the introduction of the Bill could be referred for the purpose of ascertaining the mischief sought to be remedied by the legislation etc.

Whether after approval of Resolution Plan by the AA a creditor including the Government is entitled to initiate any proceedings for recovery of any of the dues from the Corporate Debtor, which are not a part of the Resolution Plan approved by the AA – Ghanashyam Mishra and Sons Pvt. Ltd. Through The Authorized Signatory Vs. Edelweiss Asset Reconstruction Company Ltd. Through The Director & Ors. – Supreme Court Read Post »

In the event of spectrum being subjected to proceedings under IBC, protection would be available to Telecom Licences and spectrum under Section 14(1) of the Code – Union of India Vs. Vijaykumar V. Iyer – NCLAT New Delhi

/ 118 minutes of reading

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In the event of spectrum being subjected to proceedings under IBC, protection would be available to Telecom Licences and spectrum under Section 14(1) of the Code – Union of India Vs. Vijaykumar V. Iyer – NCLAT New Delhi Read Post »

The provision of the section 250 of the Company Act, 2013 is not applicable on the application filed under Section 9 of the Code – Sh. Bhavya Prakash and Anr Vs. M/s DD Motors ltd. – NCLT New Delhi Bench Court-VI

/ 1 minute of reading

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The provision of the section 250 of the Company Act, 2013 is not applicable on the application filed under Section 9 of the Code – Sh. Bhavya Prakash and Anr Vs. M/s DD Motors ltd. – NCLT New Delhi Bench Court-VI Read Post »

Whether the Owner/Lessor of land in actual physical possession of Corporate Debtor can recover the same while moratorium is in effect – V. Karuppiah Vs. V. Mahesh Resolution Professional of M/s. Vasan Health Care Private Limited – NCLT Chennai Bench

/ 5 minutes of reading

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Whether the Owner/Lessor of land in actual physical possession of Corporate Debtor can recover the same while moratorium is in effect – V. Karuppiah Vs. V. Mahesh Resolution Professional of M/s. Vasan Health Care Private Limited – NCLT Chennai Bench Read Post »

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