Search Results for: appeal against the NCLAT order

Prevalence of IBC over the SARFAESI Act

The Adjudicating Authorities have affirmed the IBC’s goals through a series of judgments and further proved its prevalence over the other laws of land.

THE INSOLVENCY AND BANKRUPTCY CODE, 2016: AN OVERVIEW

IBC was introduced to reorganise, restructure or to consolidate the existing framework into a single law for the purpose of Insolvency and Bankruptcy.

Claims, not part of Resolution Plan, gets exhausted

No further legal action shall be permissible by creditor, whose claim has been rendered unsatisfied as per the resolution plan.

Resolution Plan under IBC

Resolution applicants enter the CIRP and prepare “Resolution Plans,” which are effectively instruments for taking over a corporate debtor, paying its creditors’ debts, and completing its recovery and restructuring.

NCLT has jurisdiction over contractual disputes that arises solely on account of Insolvency

The NCLT and the National Company Law Appellate Tribunal (NCLAT) have to ensure that they do not usurp the legitimate jurisdiction of other courts, tribunals and for when the dispute is one which does not arise solely from or relate to the insolvency of the Corporate Debtor.

The Applicability of Section 10A of IBC would be Retrospective in Nature

The default occurred after the cut-off date, the NCLAT held that the bar imposed under Section 10A was clearly attracted.

Winding up Proceedings will not create any bar for initiation of the Insolvency Proceedings

These two judgements would be of great importance because they have paved a way for the transfer of post-notice winding up petitions pending before the different High Courts.

Supreme Court takes matter into its own hands in Jaypee Infratech Case

The SC has already issued notice and sought a reply from Jaiprakash Associates for the same, due to be heard on 17th October, 2020. The apex court took matters into its own hands and ordered for transfer of cases.

Implications of cheque bounce under Insolvency Laws (IBC)

Cheque bouncing is also the default in making payment of debt, and petition under IBC laws may be admitted

An Operational Creditor with an Arbitral Award can proceed as a Decree Holder

The National Company Law Tribunal has paved the way for operational creditors to revive their debt and proceed as decree holder.

Claim amount towards interest on loan alone cannot be termed as Operational Debt

A pre-existing dispute towards interest on the delayed payments before the issuance of the demand notice and that the alleged claim amount towards interest on loan alone, cannot be termed as an “Operational Debt”.

No issues can be raised before any court or tribunal after resolution plan attained finality

Once the resolution plan is approved and is implemented under IBC, no issue can be raised at a later stage when resolution Process Costs and fees of the Resolution Professional.

Further litigation/alternative remedy cannot be pursued by creditors whose claim is taken into consideration within resolution plan

The Appellants cannot be permitted to pursue alternative remedy of suit/arbitration proceeding even if pending as Resolution Plan is binding on all the stakeholders.

Insolvency Petition can’t be rejected if dispute is raised after Demand Notice

It was held that if the dispute is raised after the time period allowed in the demand notice, then this may not be a ground for rejecting the insolvency petition by operational creditor.

Jurisdiction and Powers of NCLT

National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) were established due to the notification w.e.f. June 01, 2016, published by Ministry of corporate affairs.