PPIRP-Pre-Packaged Insolvency[Main]

Whether 180 days moratorium period prescribed under Section 101(1) of the IBC is directory or mandatory, and whether it can be extended by Adjudicating Authority or Appellate Tribunal? – Anil Kumar Vs. Mukund Choudhary – NCLAT New Delhi

The Hon’ble NCLAT held that:

(i) Conceding any power to the Adjudicating Authority or this Tribunal to extend the said period shall be plainly against the statutory scheme of Section 101(1).
(ii) When the statutory scheme is clear and unambiguous, there is no role of any interpretive process to find out the jurisdiction of NCLT to extend the period of Moratorium when statute provides a date for cessation of the Moratorium it cannot be extended by the Adjudicating Authority or by this Tribunal against the statutory intendment under Section 101(1).

Whether 180 days moratorium period prescribed under Section 101(1) of the IBC is directory or mandatory, and whether it can be extended by Adjudicating Authority or Appellate Tribunal? – Anil Kumar Vs. Mukund Choudhary – NCLAT New Delhi Read Post »

Whether maximum time period of 120 days provided for completion of PPIRP under Section 54D of IBC is mandatory and on completion of the time period, the PPIRP has to be terminated and if Resolution Plan is not approved, RP has to file an Application for termination of the PPIRP proceeding – Mr. Vikash Gautamchand Jain RP of Kethos Tiles Pvt. Ltd. – NCLAT New Delhi

In this important judgment, Hon’ble NCLAT has answered the following questions:

(i) Can the interpretation of Section 12 of IBC be made applicable to Section 54D of IBC?
(ii) Is Adjudicating Authority free to exercise its statutory discretion while ordering termination of the proceeding?
(iii) Can Adjudicating Authority refuse termination of PPIRP?
(iv) Whether AA can extend the time period of completion of PPIRP under Section 54D even this Section has the words “shall be completed” and “RP shall, on the day after the expiry of such period, file an Application for termination of PPIRP”?

Whether maximum time period of 120 days provided for completion of PPIRP under Section 54D of IBC is mandatory and on completion of the time period, the PPIRP has to be terminated and if Resolution Plan is not approved, RP has to file an Application for termination of the PPIRP proceeding – Mr. Vikash Gautamchand Jain RP of Kethos Tiles Pvt. Ltd. – NCLAT New Delhi Read Post »

Whether an application filed under Section 54C of IBC (PPIRP) shall have the precedence/priority of consideration over and above the application filed under Section 7 is filed much prior of enforcement of the amendment of the Act, 2021, against the same Corporate Debtor – Jaldhara Properties and Trading Pvt. Ltd. Vs. Sudal Industries Ltd. and Anr. – NCLAT New Delhi

Hon’ble NCLAT held that:

(i) Section 11A(4) of the Code says that the provision of this Section i.e. 11A shall not apply where an application under Section 7, 9 or 10 is filed and pending as on the date of the commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2021. Meaning thereby, if the application under Section 7, 9 or 10 is already filed and then the Act of 2021 came into being then the applicant filing the application under Section 54C cannot take the help of this Section.
(ii) The rigours of Section 11A(4) is squarely applied to the controversy at hand and hence the Tribunal has committed a patent error in taking up the application under Section 54C of the Code over and above the application filed much earlier under Section 7 of the Code and decided the same.

Whether an application filed under Section 54C of IBC (PPIRP) shall have the precedence/priority of consideration over and above the application filed under Section 7 is filed much prior of enforcement of the amendment of the Act, 2021, against the same Corporate Debtor – Jaldhara Properties and Trading Pvt. Ltd. Vs. Sudal Industries Ltd. and Anr. – NCLAT New Delhi Read Post »

There is no provision in Insolvency Code for extension of PPIRP Time limit under Section 54D of IBC – Vikash Gautamchand Jain RP of Kethos Tiles Pvt. Ltd. – NCLT Ahmedabad Bench

Hon’ble NCLT Ahmedabad Bench held that a plain reading of Section 54D of IBC reveals that a time period of 120 days from the date of commencement of PPIRP is provided in the Act. As per Section 54D(3), if no Resolution Plan is approved by CoC the RP shall file an Application for Termination of PPIRP. Contrary to the Section Resolution Professional in the present matter has filed an Application seeking extension of time.

There is no provision in Insolvency Code for extension of PPIRP Time limit under Section 54D of IBC – Vikash Gautamchand Jain RP of Kethos Tiles Pvt. Ltd. – NCLT Ahmedabad Bench Read Post »

Base Resolution Plan under Pre-Packaged Insolvency Resolution Process (PPIRP) can be submitted by a Corporate Applicant individually or jointly with any other person | There is no occasion for consideration of Base Resolution Plan at the time of consideration of application under Section 54C of IBC for admission or rejection – Garodia Chemicals Ltd. – NCLAT New Delhi

In the present case, the Adjudicating Authority has rejected 54C Application after entering into the merits of the Base Resolution Plan, which is not contemplated by statutory Scheme.

Hon’ble NCLAT held that:
(i) Base Resolution Plan has been given no finality, nor it is a Resolution Plan, which ultimately is required to be approved. Base Resolution Plan can be rejected by the CoC on valid reasons and fresh Resolution Applicants can be invited and approval of the Resolution Plan by Adjudicating Authority arises only after approval of Plan by the CoC under Section 54K.
(ii) The statutory Scheme, thus, clearly indicates that there is no occasion for consideration of Base Resolution Plan at the time of consideration of Application under Section 54C for admission or rejection.
(iii) Base Resolution Plan can very well be submitted by a Corporate Applicant individually or jointly with any other person.

Base Resolution Plan under Pre-Packaged Insolvency Resolution Process (PPIRP) can be submitted by a Corporate Applicant individually or jointly with any other person | There is no occasion for consideration of Base Resolution Plan at the time of consideration of application under Section 54C of IBC for admission or rejection – Garodia Chemicals Ltd. – NCLAT New Delhi Read Post »

Petition for initiation of Pre-Packaged Insolvency Resolution Process (PPIRP) of Shreemati Fashions Pvt. Ltd. admitted under Section 54C of the IBC – Shreemati Fashions Pvt. Ltd. – NCLT Kolkata Bench

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Petition for initiation of Pre-Packaged Insolvency Resolution Process (PPIRP) of Shreemati Fashions Pvt. Ltd. admitted under Section 54C of the IBC – Shreemati Fashions Pvt. Ltd. – NCLT Kolkata Bench Read Post »

Even the name of Corporate Debtor has been struck off from the Register of Companies (RoC), Pre-Packed Insolvency Resolution Process (PPIRP) petition is maintainable by virtue of the provisions of Companies Act, 2013 and Insolvency and Bankruptcy Code, 2016 – Mudraa Lifespaces Pvt. Ltd. – NCLT Mumbai Bench

In Section 54C petition, NCLT Mumbai Bench held that from the MCA details of Mudraa Life Spaces Pvt. Ltd. that the Corporate Debtor’s status on the website of the Ministry of Corporate affairs is displayed as “Strike Off”. However, the Hon’ble NCLAT, New Delhi, in case of Hemang Phophalia vs. the Greater Bombay Co-operative Bank Ltd. & Anr. [2019] ibclaw.in 149 NCLAT held that the company petition in respect of company whose name has been struck off from the register of companies, is maintainable by virtue of the provisions of Companies Act, 2013 and Insolvency and Bankruptcy Code, 2016.

Even the name of Corporate Debtor has been struck off from the Register of Companies (RoC), Pre-Packed Insolvency Resolution Process (PPIRP) petition is maintainable by virtue of the provisions of Companies Act, 2013 and Insolvency and Bankruptcy Code, 2016 – Mudraa Lifespaces Pvt. Ltd. – NCLT Mumbai Bench Read Post »

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