Will Moratorium Under Section 14 IBC Always Bar Trial Of Counter-Claim In Suit By Corporate Debtor ? Delhi HC Answers [Read Judgment]
5 years, 5 months ago

Will Moratorium Under Section 14 IBC Always Bar Trial Of Counter-Claim In Suit By Corporate Debtor ? Delhi HC Answers [Read Judgment]

Live Law  

The Delhi High Court has held that moratorium under Section 14 of the Insolvency and Bankruptcy Code will not bar trial of suit by the corporate debtor and a counter-claim in such suit if issues and facts in both are intertwined.The plaintiff company SSMP Industries had instituted the suit against Perkan Food Industries Pvt Ltd for recovery of Rs.1,61,47,336.44. The Delhi High Court has held that moratorium under Section 14 of the Insolvency and Bankruptcy Code will not bar trial of suit by the corporate debtor and a counter-claim in such suit if issues and facts in both are intertwined. The plaintiff company SSMP Industries had instituted the suit against Perkan Food Industries Pvt Ltd for recovery of Rs.1,61,47,336.44. "until and unless the proceeding has the effect of endangering, diminishing, dissipating or adversely impacting the assets of corporate debtor, it would not be prohibited under Section 14 of the Code.

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After Initiation Of Moratorium U/S 14 Of IBC, No Assessment Proceedings Can Be Continued By EPFO: NCLAT
5 days ago

After Initiation Of Moratorium U/S 14 Of IBC, No Assessment Proceedings Can Be Continued By EPFO: NCLAT

Live Law  

The NCLAT New Delhi Bench of Justice Ashok Bhushan, Mr. Barun Mitra and Mr. Arun Baroka has held that after initiation of moratorium under Section 14, sub-section, no assessment proceedings can be continued by the EPFO. On the other hand it is the case of the respondent that no claim was filed by the Appellant before the Plan was approved …

IBC Weekly Round-Up: 16th December -20th December 2024
2 weeks, 2 days ago

IBC Weekly Round-Up: 16th December -20th December 2024

Live Law  

NCLAT The NCLAT New Delhi bench of Justice Ashok Bhushan, Barun Mitra and Arun Baroka has held that Non Fund Based facilities cannot be refused to be disbursed when the approved Resolution Plan contains a clause for their disbursement. 7303, 7304 of 2024 The NCLAT New Delhi bench of Justice Ashok Bhushan, Mr. Barun Mitra and Mr. Arun Baroka has …

IBC | Moratorium Does Not Extinguish Claim : Supreme Court
2 weeks, 5 days ago

IBC | Moratorium Does Not Extinguish Claim : Supreme Court

Live Law  

The Supreme Court has held that a moratorium declared under Section 14 of the Insolvency and Bankruptcy Code, 2016 will not extinguish a claim. The Court stated that Section 14 bars the institution/continuation of legal proceedings against the corporate debtor, transfer of assets, enforcement of security interest etc. "If the argument that the claims of all the creditors of the …

Pendency Of Proceedings Before NCLT For Approval Of Scheme Of Arrangement Does Not Preclude Financial Creditor From Filing Petition U/S 7: NCLAT
3 weeks, 2 days ago

Pendency Of Proceedings Before NCLT For Approval Of Scheme Of Arrangement Does Not Preclude Financial Creditor From Filing Petition U/S 7: NCLAT

Live Law  

The NCLAT New Delhi bench of Justice Ashok Bhushan, Mr. Barun Mitra and Mr. Arun Baroka has held that the pendency of proceedings before the NCLT for approval of the scheme of arrangement does not preclude the Financial Creditor to proceed with Section 7 application. That the very fact that the Corporate Debtor during pendency of Section 7 application has …

IBC Weekly Round-Up [18th November To 24th November 2024]
1 month, 2 weeks ago

IBC Weekly Round-Up [18th November To 24th November 2024]

Live Law  

Nominal Index Siti Networks Ltd. vs. Rajiv Suri NO. Versus Shri Sutanu Sinha Case Reference: Company Appeal No.1927 of 2024 The NLCAT New Delhi bench of Justice Ashok Bhushan and Barun Mitra held that no interest on principal amount can be claimed if there is no clause to this effect in the agreement executed between the parties. The Tribunal further …

Property In Possession Of Corporate Debtor Sold When Petition U/S 7 Of IBC Was In Consideration Cannot Be Excluded From Assets: NCLAT
1 month, 2 weeks ago

Property In Possession Of Corporate Debtor Sold When Petition U/S 7 Of IBC Was In Consideration Cannot Be Excluded From Assets: NCLAT

Live Law  

The NCLAT Chennai bench of Justice Sharad Kumar Sharma and Jatindranath Swain has held that property that is sold which was in possession of the corporate debtor immediately before the judgment in a petition under section 7 of the IBC was reserved cannot be excluded from the purview of the assets of the corporate debtor. An IA was filed by …

NCLAT Rejects Counter Claim by Corporate Debtor: No Threshold Limit Violation
2 months, 3 weeks ago

NCLAT Rejects Counter Claim by Corporate Debtor: No Threshold Limit Violation

Live Law  

The NCLAT held that unilateral entries made by the corporate debtor to make a counter claim cannot be considered. The tribunal noted that the claims of the appellants were acknowledged in the balance sheet of the corporate debtor including for the financial year 2021-2022 therefore they were within limitation. The tribunal further observed that counter claim of the corporate debtor …

Clash Of Jurisdiction: Analysing The IBC-PMLA Conundrum
7 months, 2 weeks ago

Clash Of Jurisdiction: Analysing The IBC-PMLA Conundrum

Live Law  

The Indian Bankruptcy Code 2016 and the Prevention of Money Laundering Act 2002 are two separate laws that operate in their own specific areas. In the case of Rajiv Chakraborty Resolution Professional of EEIL vs Directorate Of Enforcement, the main issue that arose was when the PMLA freeze 74 accounts of the corporate debtor when it was charged under the …

IBC Revolutionizes Corporate Insolvency
9 months ago

IBC Revolutionizes Corporate Insolvency

Deccan Chronicle  

Exactly, 10 years ago, in the run-up to the 2014 Lok Sabha elections, Narendra Modi, who was the BJP’s prime ministerial candidate, had said that traders have more risk-taking capacity than soldiers. Several hundreds of companies and lakhs of employees have benefitted from a relatively easy resolution process devised by IBC.After seven years of IBC’s journey, corporate litigation and disputes …

NCLT Kolkata: Provisional Attachment Order Under PMLA Won't Bar Admission Of CIRP Against Corporate Debtor Under IBC
9 months, 1 week ago

NCLT Kolkata: Provisional Attachment Order Under PMLA Won't Bar Admission Of CIRP Against Corporate Debtor Under IBC

Live Law  

The National Company Law Tribunal Kolkata, comprising Smt. Bidisha Banerjee, and Shri D. Arvind held that the Provisional Attachment Order under PMLA will not bar the admission of Corporate Insolvency Resolution Process proceedings against the Corporate Debtor under the Insolvency and Bankruptcy Code, 2016. NCLT Verdict: The NCLT Kolkata allowed the CIRP application and held that the Provisional Attachment Order …

Weekly Digest Of IBC Cases: 5th To 11th February 2024
10 months, 3 weeks ago

Weekly Digest Of IBC Cases: 5th To 11th February 2024

Live Law  

NCLAT NCLAT Delhi: Adjudicating Authority Should Grant Extension Of Time To Consider Resolution Plan Crucial To Fulfill Object Of IBC Case Title: Nimai Gautam Shah, Resolution Professional of Sintex Plastics Technology Ltd. vs. RBL Bank Ltd. Case No. : Company Appeal No.82 of 2024 The National Company Law Appellate Tribunal New Delhi, comprising Justice Ashok Bhushan, Mr. Barun Mitra, and …

NCLT Kochi: Moratorium U/S 96 And 101 Of IBC Cannot Be Meant To Prohibit The Right To Action U/S 7, 9 Or 10 Of IBC
1 year, 2 months ago

NCLT Kochi: Moratorium U/S 96 And 101 Of IBC Cannot Be Meant To Prohibit The Right To Action U/S 7, 9 Or 10 Of IBC

Live Law  

The National Company Law Tribunal, Kochi Bench, comprising of Justice T Krishna Valli and Shri. Shyam Babu Gautam dismissed a stay application and has held that the moratorium under sections 96 and 101 of the Insolvency and Bankruptcy Code “ cannot be meant to prohibit the right to action under sections 7, 9 or 10 of IBC as it lies …

Applicability Of Section 10A, IBC To Part Default During Suspension Period ;An Analysis
1 year, 8 months ago

Applicability Of Section 10A, IBC To Part Default During Suspension Period ;An Analysis

Live Law  

On 5 June, 2020, the Government of India introduced Section 10A to the Insolvency and Bankruptcy Code, 2016 by the way of an ordinance which barred filing of any application for initiation of CIRP for default occuring during a certain period. Section 10A, IBC And Court’s Interpretation Section 10A of IBC, 2016 states that no application for the initiation of …

Supreme Court Annual Digest 2022 - Insolvency and Bankruptcy Code (IBC) With Parallel Citations
2 years ago

Supreme Court Annual Digest 2022 - Insolvency and Bankruptcy Code (IBC) With Parallel Citations

Live Law  

Insolvency andBankruptcy Code, 2016 - Appealchallenging NCLAT order which reversed the order of the NCLT wherein it hadheld that the application under Section 9 of the Insolvency and BankruptcyCode, 2016 was not time-barred - Allowed - The failure of the NCLAT as thefirst appellate authority to look into a very vital aspect such as this,vitiates its order, especially when NCLT …

Indian Insolvency Yearly Review 2022
2 years ago

Indian Insolvency Yearly Review 2022

Live Law  

In recent years, several noteworthy judgments have been rendered by the Indian Courts in matters pertaining to the law of insolvency in India and in particular the Insolvency and Bankruptcy Code, 2016. The Supreme Court observed that the adjudicating authority is vested with discretionary power under Section 7 of the IBC to accept or reject the financial creditor's application. On …

Moratorium Doesn't Apply On Property Unlawfully In Possession Of Corporate Debtor: NCLT Hyderabad
2 years, 3 months ago

Moratorium Doesn't Apply On Property Unlawfully In Possession Of Corporate Debtor: NCLT Hyderabad

Live Law  

The National Company Law Tribunal, Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula and Shri Veera Brahma Rao Arekapudi, while adjudicating an application filed in State Bank of India v Meenakshi Energy Ltd., has held that moratorium imposed under Section 14 of IBC is not applicable to properties which are in unlawful possession of the Corporate Debtor. APIICL requested …

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 …

Supreme Court Quarterly Digest 2022- IBC (January - March)
2 years, 7 months ago

Supreme Court Quarterly Digest 2022- IBC (January - March)

Live Law  

Insolvency and Bankruptcy Code, 2016 - Appeal challenging NCLAT order which reversed the order of the NCLT wherein it had held that the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was not time-barred - Allowed - The failure of the NCLAT as the first appellate authority to look into a very vital aspect such as this, …

Proceedings Against Personal Guarantor Of Corporate Debtor Can Be Continued Independently - Supreme Court Lifts The Stay
2 years, 7 months ago

Proceedings Against Personal Guarantor Of Corporate Debtor Can Be Continued Independently - Supreme Court Lifts The Stay

Live Law  

Supreme Court bench comprising of Justice S Abdul Nazeer and Justice Vikram Nath vide its order dated 06.05.2021 in the case of Mahendra Kumar Jajodia versus State Bank of India, Civil Appeal No. NCLAT held that even in the absence of any pending Corporate Insolvency Resolution Process or Liquidation proceedings, the application under Section 95 of the Insolvency Bankruptcy Code, …

Insolvency Law In Review – January 2022
2 years, 9 months ago

Insolvency Law In Review – January 2022

Live Law  

The enactment of the Insolvency and Bankruptcy Code 2016 has had significant ramifications on the corporate insolvency landscape. In State Bank of India v. Mahendra Kumar Jajodia, the NCLAT, New Delhi held that the National Company Law Tribunal, Kolkata erred in holding that since no corporate insolvency resolution process or liquidation proceeding of the corporate debtor were pending, the application …

If Excluding Time From CIRP Helps The Corporate Debtor To Revive Its Operations, Such Exclusion Must Be Allowed: NCLAT
2 years, 10 months ago

If Excluding Time From CIRP Helps The Corporate Debtor To Revive Its Operations, Such Exclusion Must Be Allowed: NCLAT

Live Law  

The NCLAT Single Bench consisting of Justice M. Venugopal, Judicial Member in the case of Vinod Tarachand Agarwal held that if exclusion of time of CIRP helps to revive the operations of the Corporate Debtor and thus achieve the objective of the Insolvency and Bankruptcy Code, such exclusion must be allowed. The Appellant filed an appeal against the order of …

Imposition Of Moratorium Under IBC Does Not Bar Complaints Against Natural Persons: Madras High Court
2 years, 11 months ago

Imposition Of Moratorium Under IBC Does Not Bar Complaints Against Natural Persons: Madras High Court

Live Law  

The Madras High Court in a Bench comprising of Justice N. Sathish Kumar in M/s. Muzain Hides held that as long as a moratorium under Section 14 of the Insolvency and Bankruptcy Code is imposed, proceedings under Section 138/141 of the Negotiable Instruments Act cannot be initiated against the Corporate Debtor. The counsel for the Petitioners alleged that since the …

IBC: NCLT Cannot Adjudicate Contractual Dispute If Termination Of Contract Is Based On Grounds Unrelated To Corporate Debtor's Insolvency: Supreme Court
3 years, 1 month ago

IBC: NCLT Cannot Adjudicate Contractual Dispute If Termination Of Contract Is Based On Grounds Unrelated To Corporate Debtor's Insolvency: Supreme Court

Live Law  

The Supreme Court observed that the residuary jurisdiction of the NCLT cannot be invoked to adjudicate contractual dispute if the termination of a contract is based on grounds unrelated to the insolvency of the Corporate Debtor. 7 SCC 209 :: LL 2021 SC 142, it had injuncted a third party from terminating its contract with the corporate debtor because there …

Financial Creditor Has To Prove That Application Filed U/s 7 IBC Is Not Barred By Limitation; But Materials Produced By Corporate Debtor Can Be Examined: Supreme Court
3 years, 3 months ago

Financial Creditor Has To Prove That Application Filed U/s 7 IBC Is Not Barred By Limitation; But Materials Produced By Corporate Debtor Can Be Examined: Supreme Court

Live Law  

The Supreme Court observed that adjudicating authority can examine the material placed on record by the corporate debtor to determine whether an application filed by financial creditor is not beyond the period of limitation.The court clarified that the burden of prima facie proving occurrence of the default and that the application filed under Section 7 of the Insolvency and Bankruptcy …

Proceedings Under Section 34 Of Arbitration Act Also Covered By Moratorium Under Section 14 IBC: Supreme Court
3 years, 10 months ago

Proceedings Under Section 34 Of Arbitration Act Also Covered By Moratorium Under Section 14 IBC: Supreme Court

Live Law  

The Supreme Court observed that an application under Section 34 of the Arbitration and Conciliation Act to set aside an award is covered by moratorium under Section 14 of the Insolvency and Bankruptcy Code.Section 34 proceeding is a proceeding against the corporate debtor in a court of law pertaining to a challenge to an arbitral award and would be covered …

Insolvency Proceedings Maintainable Even If Winding Up Petition Is Pending Against Corporate Debtor: Supreme Court
3 years, 10 months ago

Insolvency Proceedings Maintainable Even If Winding Up Petition Is Pending Against Corporate Debtor: Supreme Court

Live Law  

The Supreme Court held that a petition either under Section 7 or Section 9 of the Insolvency and Bankruptcy Code is an independent proceeding which is unaffected by winding up proceedings that may be filed against the same company.The bench comprising Justices RF Nariman and BR Gavai observed that a secured creditor stands outside the winding up and can realise …

[IBC] Is Moratorium Applicable to Suits Filed By Corporate Debtor?: SC Issues Notice [Read Order]
4 years, 2 months ago

[IBC] Is Moratorium Applicable to Suits Filed By Corporate Debtor?: SC Issues Notice [Read Order]

Live Law  

Is the provision of moratorium in Section 14A of Insolvency and Bankruptcy Code, 2016 only applicable to civil suits filed against the corporate debtor?, the Supreme Court has issued a notice in an SLP which raises this issue.The Special Leave Petition is filed against a Bombay High Court order contending that the High Court erred in its interpretation of Section …

NCLAT May Reconsider Its 5-member Bench Ruling on Debt Acknowledgement for Insolvency Plea
4 years, 3 months ago

NCLAT May Reconsider Its 5-member Bench Ruling on Debt Acknowledgement for Insolvency Plea

News 18  

New Delhi: Appellate tribunal NCLAT may reconsider its own judgement passed by a five-member bench on the acceptability of debt entered in the balance sheet of a company for deciding the time frame for initiating insolvency proceedings. The three-member bench observed that "judgment in V Padmakumar's case requires reconsideration" as a consistent view of the Supreme Court and High Courts …

Delhi HC Issues Notice In Plea Challenging The IBC Ordinance Whereby The Operation of Section 10 Has Been Suspended
4 years, 5 months ago

Delhi HC Issues Notice In Plea Challenging The IBC Ordinance Whereby The Operation of Section 10 Has Been Suspended

Live Law  

Delhi High Court has issued notice in a plea challenging the validity of Insolvency and Bankruptcy Code Ordinance, 2020 whereby the operation of sections 7,9 and 10 of the IBC has been suspended. Filed by Mr Rajiv Suri, the petition claims that the impugned Ordinance suspends the operation of sections 7, 9 and 10 of the IBC, depriving the corporate …

Does Issuance Of Moratorium Under IBC Bar Statutory Proceedings U/S 138 Of Negotiable Instruments Act? SC To Consider [Read Order]
4 years, 10 months ago

Does Issuance Of Moratorium Under IBC Bar Statutory Proceedings U/S 138 Of Negotiable Instruments Act? SC To Consider [Read Order]

Live Law  

A Supreme Court Bench of Justices U.U. Lalit & Aniruddha Bose on Monday issued Notice to Attorney General on a petition seeking a bar on proceedings instituted under section 138 of Negotiable Instruments Act, 1881 towards a Company on account of its declaration of insolvency. Ltd. & Anr., Counsel appearing for the Petitioner submitted that since a Division Bench of …

Acceptance Of Corporate Insolvency Resolution Not A Ground To Quash Case Under Sec 138 NI Act: Madras HC [Read Judgment]
4 years, 11 months ago

Acceptance Of Corporate Insolvency Resolution Not A Ground To Quash Case Under Sec 138 NI Act: Madras HC [Read Judgment]

Live Law  

In a significant ruling, the Madras High Court has held that acceptance of the Corporate Insolvency Resolution Plan under Section 31 of the Insolvency and Bankruptcy Code, 2016 cannot be a ground for quashing the prosecution initiated under Section 138 of the Negotiable Instruments Act, 1881 against the corporate debtor and its officials. "No clause in the Corporate Insolvency Resolution …

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