19/12/2022

Issue of claim any injunction before High Court during pendency of the Liquidation proceeding – Alliance Broadband Services Pvt. Ltd. Vs. Manthan Broadband Services Pvt. Ltd. – Calcutta High Court

In this case, The Liquidator has refused to recognize the petitioner as secured creditor or to allow the petitioner to sell the pledged shares towards the partial satisfaction of the claim of the petitioner against the respondent. Hon’ble High Court held that as per Section 238 of the IBC, 2016 is having override effect in any other law for the time being in force. In view of my prima facie findings that this Court cannot pass any interim order at this stage. This Court is of the view that the matter in issue in the suit can be more appropriately and effectively decided and adjudicated by the NCLT. In the present case, Section 430 of the Companies Act, 2013 itself provides an additional bar by stating that no injunction shall be granted by any civil court in respect of any action taken or to be taken in pursuance of any power conferred on the NCLT by the Companies Act, 2013.

Issue of claim any injunction before High Court during pendency of the Liquidation proceeding – Alliance Broadband Services Pvt. Ltd. Vs. Manthan Broadband Services Pvt. Ltd. – Calcutta High Court Read Post »

CIRP cannot be initiated against a Corporate Guarantor who is a Financial Service Provider – Nirmal Kumar Agarwal Vs. State Bank of India & Ors. – NCLAT New Delhi

NCLAT observed that the present proceedings have been initiated against Sungrowth as a corporate guarantor. Section 5(5A) defines Corporate Guarantor which means a corporate person. Corporate person would not include a financial service provider. Thus, looking from any angle, Sungrowth having the registration in terms of Section 3(17) as financial service provider by the financial service regulator in terms of Section 3(18) by RBI as on 28.03.2001 which continued up to 09.07.2018/11.07.2018 cannot in any case be called a banking institution. It has to be called a non-baking financial institution and in such scenario the application filed under Section 7 of the Code on 08.06.2018 was not maintainable on that date and therefore, the Adjudicating Authority had no jurisdiction to invoke its power for the purpose of initiation of CIRP proceedings.

CIRP cannot be initiated against a Corporate Guarantor who is a Financial Service Provider – Nirmal Kumar Agarwal Vs. State Bank of India & Ors. – NCLAT New Delhi Read Post »

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