23/01/2020

Even without resorting to CIRP against the Principal Borrower it is always open to the Financial Creditor to commence CIRP u/s 7 of the Code against the Corporate Debtor / Guarantor- Bijay Kumar Agarwal vs. State Bank of India and Anr.-NCLAT

NCLAT held that a contract of Guarantee is a contract to perform the promise or discharge the liability of 3rd party, in case of his default. In this connection, it is to be pointed out that it may not be necessary to start CIRP against the Principal Borrower before initiating against the Corporate Debtor. Even without resorting to CIRP against the Principal Borrower it is always open to the Financial Creditor to commence CIRP u/s 7 of the Code against the Corporate Debtor / Guarantor. Further NCLAT held that there is no two opinion of a prime fact  that there is no fetter in the Code for projecting simultaneously two applications u/s 7 of IBC against (i) the Principal Borrower as well as (ii) the Corporate Guarantor(s) or against both the Guarantors but if, for the same set of claim, when an Application filed by the Financial Creditor is admitted against one of the Corporate Debtor/Principal Borrower or Corporate Guarantor, the second application filed by the same Financial Creditor for the same set of claim and default is not to be admitted against the other Corporate Debtor (The Corporate Guarantor(s) or the Principal Borrower.

Even without resorting to CIRP against the Principal Borrower it is always open to the Financial Creditor to commence CIRP u/s 7 of the Code against the Corporate Debtor / Guarantor- Bijay Kumar Agarwal vs. State Bank of India and Anr.-NCLAT Read Post »

Even though the suspended BoD has a right to attend the meeting & may offer any suggestion but they cannot force their decision on their terms to CoC especially when the suspended BoD has no right to vote on the Resolution Plan – M/s Global Business Corporation Vs. Punjab National Bank- NCLAT New Delhi

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Even though the suspended BoD has a right to attend the meeting & may offer any suggestion but they cannot force their decision on their terms to CoC especially when the suspended BoD has no right to vote on the Resolution Plan – M/s Global Business Corporation Vs. Punjab National Bank- NCLAT New Delhi Read Post »

The suspended management as well as the Resolution Professional have no locus to challenge the commercial wisdom and decision of the CoC and held that the entity is an Financial Creditor – Mr. Vikas Tiwari Vs. M/s. Jain Mfg. (India) Pvt. Ltd – NCLT Allahabad Bench

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The suspended management as well as the Resolution Professional have no locus to challenge the commercial wisdom and decision of the CoC and held that the entity is an Financial Creditor – Mr. Vikas Tiwari Vs. M/s. Jain Mfg. (India) Pvt. Ltd – NCLT Allahabad Bench Read Post »

State Tax Officer Office of the Assistant Commissioner of State Tax, Vs. Mr. Chandra Prakash Jain, Resolution Professional M/s. Mekaster Engineering – NCLAT New Delhi

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State Tax Officer Office of the Assistant Commissioner of State Tax, Vs. Mr. Chandra Prakash Jain, Resolution Professional M/s. Mekaster Engineering – NCLAT New Delhi Read Post »

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