Finality Of Resolution Plans Under IBC And Pending Legal Proceedings
3 years, 5 months ago

Finality Of Resolution Plans Under IBC And Pending Legal Proceedings

Live Law  

The Supreme Court in its recent decision in Ghanashyam Mishra and Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Company Limited, has interpreted the binding nature of resolution plans on the various stakeholders of a corporate debtor and in Para 95 held as follows: " That once a resolution plan is duly approved by the Adjudicating Authority under sub section of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the Corporate Debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. The ruling would affect pending legal proceedings against the corporate debtor and would impact rights of contingent creditors who are not part of the resolution plan. The Supreme Court, after analysing prior pronouncements under the Code, viz., Committee of Creditors of Essar Steel India Limited v. Satish Kumar, and State Bank of India v. V. Ramakrishnan and by referring to the "Statement of Objects and Reasons" of the IBC Act, 2019, held that the amendment was clarificatory and declaratory and that all dues including statutory dues, which were not part of the resolution plan, stood extinguished, and that no proceedings could be initiated or continued in respect of such claims. Effect on pending proceedings The above ratio could affect the rights of parties whose claims have not attained finality in the following situations: A civil suit or an arbitration proceeding which is filed for a monetary claim or a right to such claim that arises as a consequence of breach of contract against the corporate debtor and which is pending when the resolution plan is approved by the adjudicating authority.

Corporate Court Resolution Claims Right Resolution Plan Plan Proceedings Code Claim Authority Pending Ibc Cirp Operational Creditors Debtor Section 31 Resolution Plans Such Claims Statutory Dues Ghanashyam Mishra  legal  claims  right  claim  plan  pending  corporate  plans  ibc  authority  resolution  debtor  court  proceedings  finality

History of this topic

S. 33 Arbitration Act | Clarification On Award Can Be Issued Even After Arbitral Tribunal Becomes Functus Officio : Supreme Court
1 week ago

S. 33 Arbitration Act | Clarification On Award Can Be Issued Even After Arbitral Tribunal Becomes Functus Officio : Supreme Court

Live Law  

The Supreme Court observed that although the Arbitral Tribunal becomes functus officio after passing an award, it would still retain the limited jurisdiction to clarify or correct errors in an award under Section 33 of the Arbitration and Conciliation Act, 1996. The bench comprising Justices Abhay S. Oka and Ujjal Bhuyan dismissed the appeal filed against the Delhi High Court's …

Section 29A Of Arbitration & Conciliation Act, 1996: Complications More Than Cure
2 weeks, 2 days ago

Section 29A Of Arbitration & Conciliation Act, 1996: Complications More Than Cure

Live Law  

This article is an attempt to highlight the complexities involved under Section 29A of the Arbitration & Conciliation Act, 1996. Ltd. v. General Manager & Anr., reiterated the principle that the extension of mandate under Section 29A shall be only for a “sufficient cause”. In Larsen and Toubro Ltd. v. IIC Limited and Anr., it is held by the Delhi …

All Claims Including Subject Matter Of Ongoing Arbitration Proceedings Stand Extinguished After Approval Of Resolution Plan: NCLT Bengaluru
2 weeks, 6 days ago

All Claims Including Subject Matter Of Ongoing Arbitration Proceedings Stand Extinguished After Approval Of Resolution Plan: NCLT Bengaluru

Live Law  

The NCLT Bengaluru bench of K. Biswal and Shri Manoj Kumar Dubey has held that all claims including subject matter of ongoing arbitration proceedings will stand extinguished after the approval of the Resolution Plan under section 31 of the Code. It was further submitted that any attempt to extinguish ECPWPL's Claim through the resolution plan would be unjust and detrimental …

Arbitration Monthly Digest: November, 2024
3 weeks, 1 day ago

Arbitration Monthly Digest: November, 2024

Live Law  

Supreme Court Government Entity Can't Be Given Differential Treatment While Staying Operation Of Arbitral Award : Supreme Court Case Title: International Seaport Dredging Pvt Ltd Versus Kamarajar Port Limited, Case Number- Civil Appeal No 12097 of 2024 Recently, the Supreme Court disapproved of a High Court's decision to exempt a government entity from depositing other amounts in addition to the …

Delhi HC Allows Invocation Of Arbitration Clause After 10 Yrs, Says That Scope Of S.11(6) Plea Is Limited To Ascertaining Existence Of Agreement
Trending News
3 weeks, 2 days ago

Delhi HC Allows Invocation Of Arbitration Clause After 10 Yrs, Says That Scope Of S.11(6) Plea Is Limited To Ascertaining Existence Of Agreement

Live Law  

The Delhi High Court Bench of Justice Sachin Datta has held that the scope of the present proceedings is confined to ascertaining the existence of the arbitration agreement. Observation of the court: The court held that the scope of the present proceedings is confined to ascertaining the existence of the arbitration agreement. Then, the court held that since the existence …

Mere Possession Over Assets Of Corporate Debtor Under SARFAESI Act Does Not Bar Filing Of Petition U/S 7 Of IBC: NCLT Kolkata
3 weeks, 6 days ago

Mere Possession Over Assets Of Corporate Debtor Under SARFAESI Act Does Not Bar Filing Of Petition U/S 7 Of IBC: NCLT Kolkata

Live Law  

The NCLT Kolkata bench of Ms. Bidisha Banerjee and Shri Arvind Devanathan have held that mere possession over assets of the corporate debtor under the SARFAESI Act does not prevent the financial creditor from preferring an application under section 7 of the IBC. Whether Mere Possession Of Assets Of The Corporate Debtor Under SARFAESI Act Bars Filing Of Petition Under …

Mere Possession Over Assets Of Corporate Debtor Under SARFAESI Act Does Not Bar Filing Of Petition U/S 7 Of IBC: NCLT Kolkata
3 weeks, 6 days ago

Mere Possession Over Assets Of Corporate Debtor Under SARFAESI Act Does Not Bar Filing Of Petition U/S 7 Of IBC: NCLT Kolkata

Live Law  

The NCLT Kolkata bench of Ms. Bidisha Banerjee and Shri Arvind Devanathan have held that mere possession over assets of the corporate debtor under the SARFAESI Act does not prevent the financial creditor from preferring an application under section 7 of the IBC. Whether Mere Possession Of Assets Of The Corporate Debtor Under SARFAESI Act Bars Filing Of Petition Under …

Any Amount Proposed In Settlement Plan U/S 12A Of IBC Cannot Be Refunded If Plan Is Approved: NCLAT
1 month, 1 week ago

Any Amount Proposed In Settlement Plan U/S 12A Of IBC Cannot Be Refunded If Plan Is Approved: NCLAT

Live Law  

The NLCAT New Delhi bench of Justice Ashok Bhushan, Barun Mitra and Arun Baroka held that any amount proposed in the settlement plan under section 12A of the IBC cannot be refunded if the plan is later approved and the CIRP is closed. As per the revised MoU, Corporate Insolvency Resolution Process of the Corporate Debtor as well as related …

De-Jure Ineligibility To Act As Arbitrator U/S 12(5) Of Arbitration Act Can Be Waived Only By Express Agreement In Writing: Delhi High Court
Trending News
1 month, 1 week ago

De-Jure Ineligibility To Act As Arbitrator U/S 12(5) Of Arbitration Act Can Be Waived Only By Express Agreement In Writing: Delhi High Court

Live Law  

The Delhi High Court bench of Justice Sachin Datta affirmed that de jure ineligibility to act as an arbitrator can only be waived, after dispute having arisen, by the parties by an express agreement in writing under proviso to section 12 of the Arbitration Act. The court referred to the Delhi High Court judgment in Reliance Infrastructure Limited v. Madhyanchal …

Extinguishment Of Promoters' Personal Guarantees In Resolution Plan Is Valid If Plan Complies With IBC Provisions: NCLT Mumbai
1 month, 2 weeks ago

Extinguishment Of Promoters' Personal Guarantees In Resolution Plan Is Valid If Plan Complies With IBC Provisions: NCLT Mumbai

Live Law  

The NCLT Mumbai Bench of Justices Anil Raj Chellan and Kuldip Kumar Kareer affirmed that the clause in the resolution plan for extinguishing the personal guarantees of promoters furnished in favour of all financial creditors or the commercial decision of the CoC to approve such release of personal guarantees, including guarantees executed in favour of dissenting financial creditors, will not …

NCLAT Rejects Resolution Plan of Bishwanath Traders & Investment Ltd. under Section 29A of IBC
1 month, 3 weeks ago

NCLAT Rejects Resolution Plan of Bishwanath Traders & Investment Ltd. under Section 29A of IBC

Live Law  

The NCLAT New Delhi Bench of Justices Ashok Bhushan and Barun Mitra held that the eligibility/ineligibility of Successful Resolution Applicant under section 29A of the Insolvency and Bankruptcy Code (IBC) has to be seen on the date of submission of Resolution Plan. The tribunal found that when the Corporate Debtor was registered as MSME on 22.05.2022, the benefit of Section …

Arbitration Cases Monthly Digest: September 2024
2 months, 2 weeks ago

Arbitration Cases Monthly Digest: September 2024

Live Law  

Supreme Court Case Title: COX & KINGS LTD. Delhi High Court Case Title: Apex Buildsys Ltd. Vs Vadera Interiors And Exteriors and connected matter Citation: 2024 LiveLaw 956 The Delhi High Court bench of Justice C. Hari Shankar has held that objections related to the legality of an arbitrator's appointment cannot be raised in a petition seeking an extension of …

Directing Corporate Debtor To Civil Courts Or Arbitration For Admitted Dues Undermines IBC Objectives: NCLT Mumbai
4 months, 3 weeks ago

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

Live Law  

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, …

Arbitration | Referral Courts Must Not Conduct Intricate Enquiry On Whether Claims Are Time-Barred : Supreme Court Clarifies 'Arif Azim' Judgment
5 months ago

Arbitration | Referral Courts Must Not Conduct Intricate Enquiry On Whether Claims Are Time-Barred : Supreme Court Clarifies 'Arif Azim' Judgment

Live Law  

The Supreme Court held that while deciding a Section 11 petition for an appointment of an arbitrator, the referral courts must not conduct an intricate evidentiary enquiry into the question of whether the claims raised by the applicant are time-barred and should leave that question for determination by the arbitrator. The bench comprising CJI DY Chandrachud and Justices JB Pardiwala …

NCLAT Delhi: Section 95(1) Of IBC Permits Creditors To Initiate Insolvency Proceedings Against Personal Guarantors Via A Resolution Professional
6 months ago

NCLAT Delhi: Section 95(1) Of IBC Permits Creditors To Initiate Insolvency Proceedings Against Personal Guarantors Via A Resolution Professional

Live Law  

The National Company Law Appellate Tribunal Delhi bench, comprising Mr. Justice Ashok Bhushan and Mr. Arun Baroka held that Section 95 of Insolvency and Bankruptcy, Code, 2016 allows creditors to initiate insolvency process against a Personal Guarantor through a Resolution Professional. Contention of the Appellant: The Appellant argued that since the default occurred on 04.03.2016, the Section 95 application filed …

IBC Revolutionizes Corporate Insolvency
8 months, 3 weeks 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 …

NCLAT Delhi: Non-Grant Of Reliefs And Concessions By NCLT Does Not Have Any Adverse Effect On The Validity Of The Resolution Plan And Is Not Violative Of The Law
9 months, 2 weeks ago

NCLAT Delhi: Non-Grant Of Reliefs And Concessions By NCLT Does Not Have Any Adverse Effect On The Validity Of The Resolution Plan And Is Not Violative Of The Law

Live Law  

The National Company Law Appellate Tribunal Delhi, comprising Justice Ashok Bhushan and Mr. Barun Mitra held that non-grant of any reliefs and concessions by NCLT does not have any adverse effect on the validity of the Resolution Plan and is not a violation of the law. JAL and Manoj Gaur erstwhile Managing Director and personal guarantor of Corporate Debtor's loan …

IBC- Admitting Claims After Resolution Plan Has Been Accepted By COC Would Make CIRP An Endless Process: Supreme Court
1 year, 3 months ago

IBC- Admitting Claims After Resolution Plan Has Been Accepted By COC Would Make CIRP An Endless Process: Supreme Court

Live Law  

The Supreme Court on Monday said that admitting claims after the Resolution Plan has been accepted by the Committee of Creditors under Insolvency and Bankruptcy Code, 2016 even though the Adjudicating Authority has yet to approve the plan, would make the Corporate Insolvency Resolution Process an endless process. The Apex Court was considering whether the claim pertaining to an arbitral …

Resolution Professional Empowered To Keep Claims In Abeyance: NCLAT Chennai
1 year, 5 months ago

Resolution Professional Empowered To Keep Claims In Abeyance: NCLAT Chennai

Live Law  

The National Company Law Appellate Tribunal, Chennai Bench, comprising of Justice M. Venugopal and Ms. Shreesha Merla, while adjudicating an appeal filed in Anheuser Busch Inbev India Limited v Mr. Pradeep Kumar Sravanam, has held that it is within the power of the Resolution Professional to keep the claim submitted by the creditors in abeyance, for plurality of reasons. The …

Arbitration Cases Weekly Round-Up: 14 To 20 May, 2023
1 year, 7 months ago

Arbitration Cases Weekly Round-Up: 14 To 20 May, 2023

Live Law  

Supreme Court: Referral Court Has Duty To Conclusively Decide Issue Of ‘Existence & Validity Of Arbitration Agreement’ Raised At Pre-Referral Stage: Supreme Court Case Title: Magic Eye Developers Pvt. High Courts: Calcutta High Court: Arbitration: Calcutta High Court Allows S. 11 Application Being Consolidated Claim Under Different Purchase Orders Linked To A Single Main Contract Case Title: Godrej & Boyce …

A Petition Against A Corporate Guarantor Cannot Be Dismissed Simply Because A Resolution Plan For The Corporate Debtor Is Under Consideration: NCLT Mumbai
1 year, 7 months ago

A Petition Against A Corporate Guarantor Cannot Be Dismissed Simply Because A Resolution Plan For The Corporate Debtor Is Under Consideration: NCLT Mumbai

Live Law  

The National Company Law Tribunal, Mumbai Bench, comprising Shri Kuldip Kumar Kareer and Smt. Edelweiss Asset Reconstruction Company Limited vs Sadguru Multitrade Private Limited has held that insolvency proceedings can be initiated against both the Corporate Debtor and Corporate Guarantor simultaneously and a petition against a Corporate Guarantor cannot be dismissed simple on the ground that a Resolution Plan is …

Approval Of Resolution Does Not Absolve Guarantor; NCLT Mumbai Reiterates
1 year, 7 months ago

Approval Of Resolution Does Not Absolve Guarantor; NCLT Mumbai Reiterates

Live Law  

The National Company Law Tribunal, Mumbai Bench, comprising Shri Kuldip Kumar Kareer and Smt. Anuradha Sanjay Bhatia, while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 in Anchor Leasing Private Limited vs Sejal Realty and Infrastructure Limited has reiterated that the liability of the guarantor does not ipso facto come to an end merely with the …

No Ipso Facto Absolvement Of Guarantor’s Liability Upon Approval Of Resolution Plan: Allahabad High Court
1 year, 11 months ago

No Ipso Facto Absolvement Of Guarantor’s Liability Upon Approval Of Resolution Plan: Allahabad High Court

Live Law  

The High Court of Allahabad Bench comprising of Justice Sunita Agarwal and Justice Vipin Chandra Dixit, while adjudicating a petition filed in Narendra Singh Panwar v Pashchimanchal Vidyut Vitran Nigam Limited & Ors., has held that approval of a resolution plan under Section 31 of the IBC, does not ipso facto absolve the surety/guarantor of the Corporate Debtor of his …

AA Shall Either Approve Or Reject The Resolution Plan, No Power To Modify It: NCLAT Delhi
2 years ago

AA Shall Either Approve Or Reject The Resolution Plan, No Power To Modify It: NCLAT Delhi

Live Law  

The National Company Law Appellate Tribunal, Principal Bench, comprising of Justice Rakesh Kumar and Dr. Ashok Kumar Mishra, while adjudicating an appeal filed in Mathuraprasad C Pandey & Ors. v Partiv Parikh & Anr., has held that when a Resolution Plan is presented before the Adjudicating Authority for approval, it is clear mandate of legislation to either approve or to …

Invoking CIRP Would Not Make The Dispute Non-Arbitrable : Delhi High Court
2 years ago

Invoking CIRP Would Not Make The Dispute Non-Arbitrable : Delhi High Court

Live Law  

The High Court of Delhi has held that the dispute would not become non-arbitrable merely because the petitioner, before filing the application for appointment of arbitrator, has filed a corporate insolvency application under Section 9 of the IBC. The Court held that when the respondent has constantly denied its liability to pay, the claimed amount does not transfer into an …

Related Party Of Financial Creditor Not Barred U/S 29A To Submit A Resolution Plan: NCLT Cuttack
2 years, 2 months ago

Related Party Of Financial Creditor Not Barred U/S 29A To Submit A Resolution Plan: NCLT Cuttack

Live Law  

The National Company Law Tribunal, Cuttack Bench, comprising of Shri P. Mohan Raj, while adjudicating an application filed in Trimex Industries Pvt. Sathavahana Ispat Ltd. & Ors., has held that the IBC does not bar a related party of the Financial Creditor from submitting a resolution plan for the Corporate Debtor. Jindal Saw Ltd. had submitted a resolution plan for …

IBC - Approval Of A Resolution In Respect Of One Borrower Cannot Discharge A Co-Borrower : Supreme Court
2 years, 3 months ago

IBC - Approval Of A Resolution In Respect Of One Borrower Cannot Discharge A Co-Borrower : Supreme Court

Live Law  

The Supreme Court observed that approval of a resolution in respect of one borrower cannot discharge a co-borrower.If there are two borrowers or if two corporate bodies fall within the ambit of corporate debtors, there is no reason why proceedings under Section 7 of the IBC cannot be initiated against both the Corporate Debtors, the bench of Justices Indira Banerjee …

RP And COC Can Request Resolution Plan For A Second Time; IBBI Notification
2 years, 3 months ago

RP And COC Can Request Resolution Plan For A Second Time; IBBI Notification

Live Law  

The Insolvency and Bankruptcy Board of India has amended the IBBI Regulations, 2016 for a fourth time and has notified the amendment on 16.09.2022. Changes Brought By The Amendment With the objective to maximise value in resolution, the amendment enables the resolution professional and the Committee of creditors to issue request for resolution plan a second time for sale of …

Resolution Plan Which Ignores Statutory Dues Payable To State Government/Legal Authority Liable To Be Rejected : Supreme Court
2 years, 3 months ago

Resolution Plan Which Ignores Statutory Dues Payable To State Government/Legal Authority Liable To Be Rejected : Supreme Court

Live Law  

The Supreme Court held that a Resolution Plan which ignores the statutory demands payable to any State Government or a legal authority, altogether, is liable to be rejected.The court also held that the Section 48 of the Gujarat Value Added Tax Act is not contrary to or inconsistent with Section 53 or any other provisions of the IBC. Mr. Arnav …

Reverse Corporate Insolvency Resolution Process In Case Of Real Estate Companies
2 years, 4 months ago

Reverse Corporate Insolvency Resolution Process In Case Of Real Estate Companies

Live Law  

Taking a cue from the Supreme Court in the matter of Swiss Ribbons Private Limited and Anr. However, through the reverse corporate insolvency resolution process, the promoters can overcome the bar given in Section 29A of the Code and give a proposal for completing and delivering the projects of the corporate debtor. The reason given by the NCLAT for propounding …

IBC Cases Weekly Round Up: 20 June To 26 June, 2022
2 years, 5 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 …

Proceedings U/S 95 Of The IBC Shall Abate On Death Of The Personal Guarantor: NCLT, New Delhi
2 years, 9 months ago

Proceedings U/S 95 Of The IBC Shall Abate On Death Of The Personal Guarantor: NCLT, New Delhi

Live Law  

NCLT, New Delhi bench consisting of Justice Ramalingam Sudhakar and Sh. Hemant Kumar Sarangi in the case of Alchemist Asset Reconstruction Company v. Mr. Deepak Puri rejected an application filed by the Financial Creditor u/s 95 of the IBC, 2016 against the Personal Guarantor of the Corporate Debtor on the ground that after death of the Personal Guarantor, the proceedings …

Commercial Wisdom of the CoC To Prevail, Unless The Same Is In Contravention Of Any Law, Reiterates NCLAT
2 years, 10 months ago

Commercial Wisdom of the CoC To Prevail, Unless The Same Is In Contravention Of Any Law, Reiterates NCLAT

Live Law  

The NCLAT, Principal Bench consisting of Justice Anant Bijay Singh and Ms. Shreesha Merla in Noida Special Economic Zone Authority v. Mr. Manish Agarwal refused to set aside the order passed by the Adjudicating Authority, which approved the Resolution Plan, reiterating that the commercial wisdom of the CoC with respect to viability and financial decision taken while evaluating the Resolution …

Objections Against Enforcement Of Foreign Arbitral Award Can't Be Filed In A Piecemeal Manner: Delhi High Court Imposes 1 Lakh Cost
2 years, 10 months ago

Objections Against Enforcement Of Foreign Arbitral Award Can't Be Filed In A Piecemeal Manner: Delhi High Court Imposes 1 Lakh Cost

Live Law  

The Delhi High Court has held that a Judgement Debtor cannot be permitted under Section 48 of the Arbitration and Conciliation Act, 1996, to file its objections against enforcement of an arbitral award in a piecemeal manner. Justice Vibhu Bakhru held,"The respondent cannot file its opposition in a piecemeal manner. Sufficient opportunity was granted to the respondent to file its …

Imposition Of Moratorium Under IBC Does Not Bar Complaints Against Natural Persons: Madras High Court
2 years, 10 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 …

After Approval By The Adjudicating Authority, The Resolution Plan Is No More A Confidential Document: NCLAT
2 years, 11 months ago

After Approval By The Adjudicating Authority, The Resolution Plan Is No More A Confidential Document: NCLAT

Live Law  

The NCLAT in a Bench comprising of Justice Ashok Bhushan and Dr. Ashok Kumar Mishra in Association of Aggrieved Workmen of Jet Airways Limited v. Jet Airways Ltd held that after approval of the Resolution Plan, the Plan does not remain a confidential document, so as to deny its perusal to a claimant, who is aggrieved by the Plan 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, 2 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 …

Supreme Court Closes Doors For Withdrawal Or Modification Of Resolution Plans After Acceptance By Committee Of Creditors
3 years, 3 months ago

Supreme Court Closes Doors For Withdrawal Or Modification Of Resolution Plans After Acceptance By Committee Of Creditors

Live Law  

The Supreme Court of India, on 13.09.2021, delivered a landmark judgment which has settled the issue of whether withdrawal or modification of the Resolution Plan by the Resolution Applicant, after acceptance by the Committee of Creditors but before approval of the Adjudicating Authority/NCLT, is permissible or not. Shah while deciding three Appeals filed by Ebix Singapore PTE Limited, Kundan Care …

Money Decree/Certificate Of Recovery In Favour Of Financial Creditor Gives Fresh Cause Of Action To Initiate CIRP U/s 7 IBC: Supreme Court
3 years, 4 months ago

Money Decree/Certificate Of Recovery In Favour Of Financial Creditor Gives Fresh Cause Of Action To Initiate CIRP U/s 7 IBC: Supreme Court

Live Law  

The Supreme Court observed that a judgment and/or decree for money in favour of the Financial Creditor, or the issuance of a Certificate of Recovery in its favour, would give rise to a fresh cause of action for the Financial Creditor, to initiate proceedings under Section 7 of the IBC for initiation of the Corporate Insolvency Resolution Process. The court …

Formation of the Committee Of Creditors under the Insolvency and Bankruptcy Code: A Visible Collusion
3 years, 6 months ago

Formation of the Committee Of Creditors under the Insolvency and Bankruptcy Code: A Visible Collusion

Live Law  

The Insolvency and Bankruptcy Code, with the primary motive of rehabilitation of financially distressed corporates, came into force with effect from 1st December 2016. In State bank of India Vs. Metenere Ltd the NCLAT though upheld the NCLT ruling directing the SBI to substitute its nominee and Ex-OGM of theirs, to act as the Interim Resolution Professional to ensure CIRP …

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 …

Important Supreme Court Judgments On Arbitration Passed Recently
3 years, 7 months ago

Important Supreme Court Judgments On Arbitration Passed Recently

Live Law  

The Supreme Court of India has pronounced numerous judgments in the matters related to the Arbitration and Conciliation Act, 1996, from January, 2021 to May, 2021. Gavai and Hrishikesh Roy held that the object of speedy disposal sought to be achieved under the Arbitration Act and the Commercial Courts Act, for appeals filed under section 37 of the Arbitration Act …

IBC - Approval Of Resolution Plan Does Not By Itself Discharge Liabilities Of Personal Guarantor Of Corporate Debtor: Supreme Court
3 years, 7 months ago

IBC - Approval Of Resolution Plan Does Not By Itself Discharge Liabilities Of Personal Guarantor Of Corporate Debtor: Supreme Court

Live Law  

The Supreme Court has held that the approval of a resolution plan does not ipso facto discharge a personal guarantor of a corporate debtor.The release or discharge of a principal borrower from the debt owed by it to its creditor, by an involuntary process, i.e. The Supreme Court has held that the approval of a resolution plan does not ipso …

Will Arbitral Award-Holder's Claim Be Extinguished On Approval Of Award-Debtor's Resolution Plan Under IBC? Yes, Rules Calcutta High Court
3 years, 7 months ago

Will Arbitral Award-Holder's Claim Be Extinguished On Approval Of Award-Debtor's Resolution Plan Under IBC? Yes, Rules Calcutta High Court

Live Law  

On Friday, the Calcutta High Court settled an important question of arbitration law, viz., whether an arbitral award-holder's claim would stand extinguished upon the approval of a Resolution Plan for the award-debtor's revival, when it was not pressed during the Corporate Insolvency Resolution Process. Relying on Supreme Court rulings from 2020, Justice Moushumi Bhattacharya ruled that the claim would get …

Arbitration Reference Not Maintainable If Filed After Admission Of Insolvency Resolution Petition U/s 7 IBC: Supreme Court
3 years, 8 months ago

Arbitration Reference Not Maintainable If Filed After Admission Of Insolvency Resolution Petition U/s 7 IBC: Supreme Court

Live Law  

The Supreme Court observed that in any proceeding which is pending before the Adjudicating Authority under Section 7 of Insolvency and Bankruptcy Code, if such petition is admitted upon the Adjudicating Authority recording the satisfaction with regard to the default and the debt being due from the corporate debtor, any application seeking reference to arbitration. The Supreme Court observed that …

Adjudicating Authority Cannot Substitute Any Commercial Term Of Resolution Plan Approved By Committee Of Creditors: Supreme Court
3 years, 9 months ago

Adjudicating Authority Cannot Substitute Any Commercial Term Of Resolution Plan Approved By Committee Of Creditors: Supreme Court

Live Law  

The Supreme Court observed that adjudicating authority cannot substitute any commercial term of the resolution plan approved by Committee of Creditors. If, within its limited jurisdiction, the Adjudicating Authority finds any shortcoming in the resolution plan vis-à-vis the specified parameters, it would only send the resolution plan back to the Committee of Creditors, for re-submission,. If, within its limited jurisdiction, …

Litigation delays resolution even outside insolvency code ambit
3 years, 9 months ago

Litigation delays resolution even outside insolvency code ambit

Live Mint  

MUMBAI: Not just in insolvency cases, litigations have also held up recoveries in stressed assets where resolutions are being attempted outside the purview of the Insolvency and Bankruptcy Code. For instance, Bank of Baroda, the lead lender to Reliance Home Finance Ltd moved the Delhi High Court on 3 March against a November 2019 stay order coming in the way …

Proceedings Under Section 34 Of Arbitration Act Also Covered By Moratorium Under Section 14 IBC: Supreme Court
3 years, 9 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 …

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