Sole Financial Creditor Can't Entertain Request For One-Time Settlement Once CIRP Proceedings Have Commenced: Telangana High Court
1 week, 2 days ago

Sole Financial Creditor Can't Entertain Request For One-Time Settlement Once CIRP Proceedings Have Commenced: Telangana High Court

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Telangana High Court has dismissed a Writ petition filed by Mandava Holdings Private Limited challenging the rejection of the one-time settlement proposal offer made to PTC India Financial Services Limited so as to stop CIRPC proceedings without considering the RBI framework for compromise settlement and technical write-offs. Relying on various Supreme Court judgements the bench further reiterated that the primary object of the IBC is to resolve CIP proceedings in a time-bound manner “Further, the multiple OTS proposals given by the petitioner during pendency of the writ petition may be seen as an attempt to derail the CIRP and defeat realization of the funds through the CIRP.” The second issue that answered, was, whether the RBI regulations could create new rights for the Corporate debtor, which were not contemplated under the IBC code. “Therefore, not having a Board-Approved Policy at the time of rejection of the petitioner's OTS would not undermine the rejection since the rejection itself precluded any compromise settlement between the petitioner and the respondent No.1 after 30.10.2023.” Fourthly, the bench also dwelled on the question of whether a writ petition would be maintainable when an alternate remedy is already provided under the IBC code. “ Coming back to the question of whether a sole financial creditor can entertain an OTS once the corporate debtor enters CRIP, the bench, relying on section 12A of the IBC noted that once CIRP proceeding have been admitted the proceeding is converted into one of in Rem, and that the approval of at least 90% of the CoC would be required.

Financial Court Resolution Settlement Rejection Nclt Proceedings Rbi Bench Code Petitioner Coc Ibc Ots Cirp Creditor Cirp Proceedings Cirp Proceeding Sole Financial Creditor Ptc India Financial Services Limited  financial  resolution  onetime  sole  petitioner  rejection  proceedings  bench  creditor  ots  court  code  settlement  telangana  ibc  request  high  entertain

History of this topic

Annual Digest Of IBC Cases: 2024
1 week ago

Annual Digest Of IBC Cases: 2024

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Supreme Court Case Title: Ansal Crown Heights Flat Buyers Association vs. M/S. : Company Appeal No.231 of 2023 The National Company Law Appellate Tribunal, New Delhi, comprising Justice Ashok Bhushan and Mr. Barun Mitra, has held that the Corporate Debtor cannot be absolved from its liability to discharge its Operational debt by the Insurance Company's payment to the Operational Creditor …

Directing Corporate Debtor To Civil Courts Or Arbitration For Admitted Dues Undermines IBC Objectives: NCLT Mumbai
5 months, 1 week ago

Directing Corporate Debtor To Civil Courts Or Arbitration For Admitted Dues Undermines IBC Objectives: NCLT Mumbai

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The National Company Law Tribunal, Mumbai bench of Kuldip Kumar Kareer and Anil Raj Chellan had held that directing Corporate Debtor to seek resolution through civil courts or arbitration for even admitted dues would undermine the objectives of the Insolvency and Bankruptcy Code. The Corporate Insolvency Resolution Process was initiated against the Corporate Debtor by the National Company Law Tribunal, …

Breach Of Settlement Agreement Not 'Operational Debt' Under Section 5(21) Of IBC: NCLT Kolkata
6 months, 3 weeks ago

Breach Of Settlement Agreement Not 'Operational Debt' Under Section 5(21) Of IBC: NCLT Kolkata

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TheNational Company Law Tribunal Kolkata bench of D. Arvind and Bidisha Banerjee has held that the breach of settlement agreement between the operational creditor and corporate debtor does not fall within the ambit of “Operational Debt” as per Section 5 of the IBC. However, the Petitioner claimed that after the first instalment was paid, the Corporate Debtor failed to make …

Financial Creditor Can Initiate Simultaneous Or Independent Proceedings Against Principle Borrower And Personal Guarantor: NCLT Mumbai
7 months ago

Financial Creditor Can Initiate Simultaneous Or Independent Proceedings Against Principle Borrower And Personal Guarantor: NCLT Mumbai

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The National Company Law Tribunal, Mumbai Bench-VI bench of K. R. Saji Kumar and Sanjiv Dutt has held that the principal debtor and the surety are jointly and severally liable to the creditor which has the right to recover its dues from either or both of them simultaneously. Observations by the NCLT: The NCLT considered the objection raised by the …

IBC Cases Quarterly Digest : January To March 2024
9 months ago

IBC Cases Quarterly Digest : January To March 2024

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Supreme Court Case Title: Ansal Crown Heights Flat Buyers Association V M/S. : Company Appeal No.231 of 2023 The National Company Law Appellate Tribunal, New Delhi, comprising Justice Ashok Bhushan and Mr. Barun Mitra, has held that the Corporate Debtor cannot be absolved from its liability to discharge its Operational debt by the Insurance Company's payment to the Operational Creditor …

Monthly Digest Of IBC Cases: January 2024
11 months ago

Monthly Digest Of IBC Cases: January 2024

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Supreme Court Case Title: Ansal Crown Heights Flat Buyers Association V M/S. : Company Appeal No.231 of 2023 The National Company Law Appellate Tribunal, New Delhi, comprising Justice Ashok Bhushan and Mr. Barun Mitra, has held that the Corporate Debtor cannot be absolved from its liability to discharge its Operational debt by the Insurance Company's payment to the Operational Creditor …

NCLT Mumbai: Financial Creditor Can't Initiate CIRP Against Successful Resolution Applicant On Default Of Payment As Per Resolution Plan
1 year ago

NCLT Mumbai: Financial Creditor Can't Initiate CIRP Against Successful Resolution Applicant On Default Of Payment As Per Resolution Plan

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The National Company Law Tribunal, Mumbai Bench, comprising Shri Kuldip Kumar Kareer and Shri Anil Raj Chellan held that the Financial Creditor cannot initiate a Corporate Insolvency Resolution Process application against the Successful Resolution Applicant on default in payment to Stakeholders/Creditors as per terms of the approved Resolution Plan under Insolvency and Bankruptcy Code, 2016. Where the corporate debtor, any …

IBC Not A Debt Recovery Mechanism, NCLAT Chennai Reiterates
1 year, 3 months ago

IBC Not A Debt Recovery Mechanism, NCLAT Chennai Reiterates

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The National Company Law Appellate Tribunal, Chennai Bench comprising of Justice M. Venugopal and Shreesha Merla, dismissed an appeal filed in Mr. Maulik Kirtibhai Shah vs. United Telecom Limited. against the order of the National Company Law Tribunal Bangalore Bench which had dismissed the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Maulik Kirtibhai Shah seeking …

Dissenting Secured Creditor Can't Be Treated Higher Than Other Creditors U/S 53 Just Because They Enjoy Security Interest: NCLT Kolkata
1 year, 9 months ago

Dissenting Secured Creditor Can't Be Treated Higher Than Other Creditors U/S 53 Just Because They Enjoy Security Interest: NCLT Kolkata

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The National Company Law Tribunal, Kolkata Bench, comprising of Shri Rohit Kapoor and Shri. Balraj Joshi, while adjudicating an Application under Section 60 of Insolvency and Bankruptcy Code, 2016 in ICICI Bank Limited Vs Mr. Pratim Bayal & Anr has reiterated that just because a creditor enjoys security interest, it cannot be treated higher than other creditors who have financed …

Shifting Entire Blame On IRP Not Justified; Creditors Must Also Play Catalytic Role In CIRP: NCLAT Delhi
1 year, 10 months ago

Shifting Entire Blame On IRP Not Justified; Creditors Must Also Play Catalytic Role In CIRP: NCLAT Delhi

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The National Company Law Appellate Tribunal, Principal Bench comprising of Justice Ashok Bhushan and Shri Barun Mitra, while adjudicating an appeal filed in Shri Guru Containers v Jitendra Palande, has held that creditors must not shift the entire blame on the IRP on grounds of non-performance of duty and make him the scapegoat. Background Facts Shri Guru Containers filed an …

No Borrower Has Right To Grant Of One Time Settlement Scheme: Telangana High Court
2 years, 1 month ago

No Borrower Has Right To Grant Of One Time Settlement Scheme: Telangana High Court

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The Telangana High Court relying on decision of Apex Court in Bijnor Urban Cooperative Bank Limited, Bijnor v. Meenal Agarwal, ruled that Banks have the freedom to accept or reject One-Time Settlement proposals as per their commercial wisdom. "No bank can be compelled to accept a lesser amount under the One Time Settlement scheme despite a bank is able to …

IBC Cases Weekly Round Up: 20 June To 26 June, 2022
2 years, 6 months ago

IBC Cases Weekly Round Up: 20 June To 26 June, 2022

Live Law  

NCLAT Case Title: Prashant Agarwal v Vikash Parasprampuria Case No. 690 of 2022 The National Company Law Appellate Tribunal, New Delhi Bench, comprising of Justice M. Venugopal and Shri Kanthi Narahari, has stayed the constitution of the Committee of Creditors in the Corporate Insolvency Resolution Process of Bombay Rayon Fashions Ltd. : CP No.1337/MB/2020 The National Company Law Tribunal, Mumbai …

Monthly Digest Of IBC Cases: April 2022
2 years, 8 months ago

Monthly Digest Of IBC Cases: April 2022

Live Law  

Supreme Court Wages/Salaries Of Only Those Workmen/Employees Who Actually Worked During CIRP Are To Be Included In CIRP Costs: Supreme Court Case title: Sunil Kumar Jain v Sundaresh Bhatt, Civil Appeal No. The National Company Law Appellate Tribunal, Principal Bench, comprising of comprising of Justice Ashok Bhushan, Dr. Alok Srivastava and Ms. Shreesha Merla, has upheld the order dated 06.04.2022 …

Secured Creditor Can't Challenge Resolution Plan Insisting That Higher Amount Should Be Paid Based On Security Interest : Supreme Court
3 years, 6 months ago

Secured Creditor Can't Challenge Resolution Plan Insisting That Higher Amount Should Be Paid Based On Security Interest : Supreme Court

Live Law  

The Supreme Court has held that a dissenting secured creditor cannot challenge a resolution plan approved under the Insolvency and Bankruptcy Code with an argument that higher amount should have been paid to it on the basis of the security interest held by it over the corporate debtor.A division bench comprising Justices Vineet Saran and Dinesh Maheshwari observed that it …

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