CIRP-I Initiation-Default & Threshold Limit [Sec. 4 & 3(12)]

What is the reason for default of payment cannot be a ground to reject the application under Section 7, as the Adjudicating Authority is only supposed to see whether the application is complete or not and whether there is any debt or default – Dr. H. N. Nagaraj Vs. Edelweiss Asset Reconstruction Company Ltd. &Anr. – NCLAT New Delhi

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What is the reason for default of payment cannot be a ground to reject the application under Section 7, as the Adjudicating Authority is only supposed to see whether the application is complete or not and whether there is any debt or default – Dr. H. N. Nagaraj Vs. Edelweiss Asset Reconstruction Company Ltd. &Anr. – NCLAT New Delhi Read Post »

Classification of a creditor of a company as secured, unsecured and statutory creditor stands to be replaced by financial or operational creditor of a company in the initiation of an insolvency proceeding of a Company under IBC, 2016- Akshay Jhunjhunwala & Anr. Vs. UOI & Ors.- Calcutta High Court

Financial and operational creditors are defined in IBC, 2016. The definitions of a financial and an operational creditor as obtaining in the Code of 2016 can be said to have certainty and exactitude. The classification made by the Code of 2016 amongst the creditors of a company is on reasonable differential. The differential introduced by the Code in respect of a creditor of a company does not offend any provisions of the Constitution of India. At least the same is not the argument of the parties before Court. What has been argued is that, the differentiation between the two creditors is such that, one of the classified creditors, that is to say, the financial creditor takes precedence over the operational creditor. Whether the treatment of a financial creditor on pedestal higher than an operational creditor and bestowing a higher or better right, so to speak, to a financial creditor is just and proper or whether the same offends any provisions of the Constitution of India requires consideration.

Classification of a creditor of a company as secured, unsecured and statutory creditor stands to be replaced by financial or operational creditor of a company in the initiation of an insolvency proceeding of a Company under IBC, 2016- Akshay Jhunjhunwala & Anr. Vs. UOI & Ors.- Calcutta High Court Read Post »

It is of no matter that the debt is disputed so long as the debt is “due” i.e. payable unless interdicted by some law or has not yet become due in the sense that it is payable at some future date – Mr. Ajay Agarwal Vs. Central Bank of India and State Bank of India – NCLAT New Delhi

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It is of no matter that the debt is disputed so long as the debt is “due” i.e. payable unless interdicted by some law or has not yet become due in the sense that it is payable at some future date – Mr. Ajay Agarwal Vs. Central Bank of India and State Bank of India – NCLAT New Delhi Read Post »

Once an insolvency professional is appointed to manage the company, the erstwhile directors who are no longer in management, obviously cannot maintain an appeal on behalf of the company- Innoventive Industries Ltd. Vs. ICICI Bank & Anr.- Supreme Court

First Landmark judgment of Hon’ble Supreme Court covering all aspects of IBC.

Once an insolvency professional is appointed to manage the company, the erstwhile directors who are no longer in management, obviously cannot maintain an appeal on behalf of the company- Innoventive Industries Ltd. Vs. ICICI Bank & Anr.- Supreme Court Read Post »

Different claim(s) arising out of different agreements or work order, having different amount and different dates of default, cannot be clubbed together for alleged default of debt, the cause of action is being separate – International Road Dynamics South Asia Pvt. Ltd.  Vs. Reliance Infrastructure Ltd. – NCLAT New Delhi

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Different claim(s) arising out of different agreements or work order, having different amount and different dates of default, cannot be clubbed together for alleged default of debt, the cause of action is being separate – International Road Dynamics South Asia Pvt. Ltd.  Vs. Reliance Infrastructure Ltd. – NCLAT New Delhi Read Post »

In the definition of the term Operational Debt under 5(21) the word interest has not been mentioned – M/s Wanbury Ltd. Vs. M/s Panacea Biotech Ltd. – NCLT Chandigarh Bench

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In the definition of the term Operational Debt under 5(21) the word interest has not been mentioned – M/s Wanbury Ltd. Vs. M/s Panacea Biotech Ltd. – NCLT Chandigarh Bench Read Post »

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