13/05/2024

Resolution Plan cannot and should not have adjudicated the claim on his own, instead of by NCLT – Sheth Developers Pvt. Ltd. Vs. AVM Resolution Professional LLP – NCLT Ahmedabad Bench

Login with GoogleOR Username Password Remember Me     Forgot Password In case you’ve already logged in, click here […]

Resolution Plan cannot and should not have adjudicated the claim on his own, instead of by NCLT – Sheth Developers Pvt. Ltd. Vs. AVM Resolution Professional LLP – NCLT Ahmedabad Bench Read Post »

There is no provision of the IBC, which mandates that the related party should be paid in parity with unrelated party – West Coast Paper Mills Ltd. Vs. Bijay Murmuria, RP of Fort Gloster Industries Ltd. and Ors. – NCLAT New Delhi

Hon’ble NCLAT held that there was no provision of the IBC, which mandates that the related party should be paid in parity with unrelated party. Any prohibition of differential payment to different class of creditors in the resolution plan is ultimately, subject to the commercial wisdom of CoC and no fault can be attached to the resolution plan merely for not making provisions for a related party, so long as provision of the IBC and CIRP regulations are met.

There is no provision of the IBC, which mandates that the related party should be paid in parity with unrelated party – West Coast Paper Mills Ltd. Vs. Bijay Murmuria, RP of Fort Gloster Industries Ltd. and Ors. – NCLAT New Delhi Read Post »

Consent Decree passed by DRT in case of settlement between Financial Creditor and Corporate Debtor does not affect the original date of default for the purpose of Section 10A of IBC – Mr. Maneesh Kumar Singh Vs. State Bank of India and Ors. – NCLAT New Delhi

Hon’ble NCLAT observed that the default was committed by the Corporate Debtor prior to 10A period w.e.f. 08.08.2018, which was date of default mentioned in Section 7 application. Further, although OTS was communicated by the Bank by letter dated 05.09.2020 but the OTS itself contemplates that parties shall jointly file an application before the DRT where original application filed by the Bank was pending and obtain the Consent Decree. Joint Application could be filed on 25.06.2021 and Consent Decree could be passed on 26.04.2022 by DRT. An undertaking was given by the Corporate Debtor on 11.05.2021. When the Joint Application was filed subsequent to 10A period and Consent Decree was obtained only on 26.04.2022, we are unable to accept the submission of the Appellant that application under Section 7 was barred by 10A.

Consent Decree passed by DRT in case of settlement between Financial Creditor and Corporate Debtor does not affect the original date of default for the purpose of Section 10A of IBC – Mr. Maneesh Kumar Singh Vs. State Bank of India and Ors. – NCLAT New Delhi Read Post »

Section 95(1) of IBC permits a creditor to file an application through a Resolution Professional for initiating the insolvency resolution process against Personal Guarantor – Shrenik Ashokbhai Morakhia Vs. Reliance Asset Reconstruction Company Ltd. and Anr. – NCLAT New Delhi

Section 95(1) permits a creditor to file an application through a Resolution Professional for initiating the insolvency resolution process. Thus, the submission of application by the Financial Creditor through Resolution Professional is clearly permitted by Section 95(1). We do not find any defect in the application which was filed by the Financial Creditor through Resolution Professional i.e. Mahesh R. Sureka, who is also submitted his written consent in Form A, which is part of the application. The authorized person of the Financial Creditor has authorized the Resolution Professional to sign the application in NCLT, Ahmedabad Bench on behalf of the Financial Creditor, which document has also been brought on the record along with the appeal.

Section 95(1) of IBC permits a creditor to file an application through a Resolution Professional for initiating the insolvency resolution process against Personal Guarantor – Shrenik Ashokbhai Morakhia Vs. Reliance Asset Reconstruction Company Ltd. and Anr. – NCLAT New Delhi Read Post »

Scroll to Top