Whether Non-payment Of Rent Would Qualify As An Operational Debt Under IBC? Supreme Court Issues Notice

4 years, 2 months ago

Whether Non-payment Of Rent Would Qualify As An Operational Debt Under IBC? Supreme Court Issues Notice

Live Law

Whether the non-payment of rent would qualify as an operational debt within the meaning of Section 5 of the Insolvency and Bankruptcy Code 2016? The Supreme Court issued notice in an appeal filed against an order passed by National Company Law Appellate Tribunal.In this case, the landlord filed the Application under Section 9 of Insolvency and Bankruptcy Code, 2016, which was dismissed. Kirusa Software Private Limited as reported in 1 SCC 353, in Paragraph 22 of the Judgment, the Hon'ble Supreme Court was reproducing portions from the final report dated November, 15 of Insolvency Law Reforms Committee and Paragraph 5.2.1 which was part of the report of the Committee was reproduced. Such paragraph 5.2.1 of report of Insolvency Law Reforms Committee has been recorded in Paragraph 17 of the Judgment as if it is observation of the Hon'ble Supreme Court in the matter of Anup Shushil Dubey Vs. National Agriculture Co-operative Marketing Federation of India Limited & Ors.

Supreme Court Judgment Court Insolvency Operational Debt Bankruptcy Supreme Limited Nclat Rent Section 5 Operational Debt 521 qualify ibc judgment debt rent nonpayment operational court insolvency limited law notice supreme issues bankruptcy

History of this topic

Performance Pay Does Not Qualify As Operational Debt For Which Proceedings U/S 9 Of IBC Cannot Be Initiated: NCLAT

4 months ago

Performance Pay Does Not Qualify As Operational Debt For Which Proceedings U/S 9 Of IBC Cannot Be Initiated: NCLAT

Live Law

The NCLAT Chennai bench of Justice Sharad Kumar Sharma and Jatindranath Swain has held that a variable claim like performance pay which is not certain and has to be determined based on the performance of the employee will not be an operational debt as it is not the payment due therefore proceedings under section 9 of the IBC cannot be …

Interest On Operational Debt Cannot Be Claimed If There Is No Clause In Agreement For Payment Of Interest: NCLAT

4 months, 1 week ago

Interest On Operational Debt Cannot Be Claimed If There Is No Clause In Agreement For Payment Of Interest: NCLAT

Live Law

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 RP has also filed reply to the Supplementary Affidavit, which was filed by the Appellant, with regard to interest, it was pleaded …

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

9 months, 2 weeks ago

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

Live Law

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 …

NCLT Mumbai: Operational Debt Under IBC Does Not Include Penalty Or Liquidated Damages

10 months, 2 weeks ago

NCLT Mumbai: Operational Debt Under IBC Does Not Include Penalty Or Liquidated Damages

Live Law

The National Company Law Tribunal Mumbai, comprising Shri K.R. NCLT Verdict: The NCLT Mumbai rejected the CIRP petition and held that the operational debt under IBC does not include penalty or liquidated damages. Further, the claim doesn't relate to goods or services provided by the Operational Creditor to the Corporate Debtor but rather pertains to recovering penalties/liquidated damages due to …

Claim Arising Out Of Partnership Business Which Is Not A Mere Claim Of Supply Of Material Is Not An “Operational Debt”: NCLT Mumbai

1 year, 11 months ago

Claim Arising Out Of Partnership Business Which Is Not A Mere Claim Of Supply Of Material Is Not An “Operational Debt”: NCLT Mumbai

Live Law

The National Company Law Tribunal, Mumbai Bench, comprising Shri H.V. Subba Rao and Shri Madhu Sinha, while adjudicating an application under Section 9 of Insolvency and Bankruptcy Code, 2016 in Manoj Stone Infra Private Limited vs Railsys Engineers Private Limited has held that a claim arising out of a mutual business understanding of partnership business, which is not a mere …

Indian Insolvency Yearly Review 2022

2 years, 3 months 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 …

Non-Payment Of License Fee Is An Operational Debt

2 years, 8 months ago

Non-Payment Of License Fee Is An Operational Debt

Live Law

In a recent pronouncement in Jaipur Trade Expocentre Private Limited v. M/s Metro Jet Airways Training Private Limited, a five-member bench of the Hon'ble National Company Law Appellate Tribunal has set aside the decision laid down in Mr. M. Ravindranath Reddy v. Mr. G. Kishan & Ors. and held that the claim of a licensor for payment of license fee …

NCLAT Holds Lease Rental As Operational Debt Under The Insolvency And Bankruptcy Code, 2016

2 years, 8 months ago

NCLAT Holds Lease Rental As Operational Debt Under The Insolvency And Bankruptcy Code, 2016

Live Law

A five judge bench of National Company Law Appellate Tribunal comprising of Justice Ashok bhushan, Justice Rakesh Kumar, Justice Rakesh Jain, Mr. Naresh Salecha and Mr. Barun Mitra held that the lease rental qualifies as an operational debt under the provisions of the Insolvency and Bankruptcy Code, 2016 The five judge bench was constituted after a three judge bench of …

Insolvency Law in Review – February & March 2022

2 years, 10 months ago

Insolvency Law in Review – February & March 2022

Live Law

The enactment of the Insolvency and Bankruptcy Code 2016 has had significant ramifications on the corporate insolvency landscape. In Jet Aircraft Maintenance Engineers Welfare Association v. Shri Ashish Chhawchharia Resolution Professional for Jet Airways Ltd. & Others, the NCLAT, New Delhi held that the provision of moratorium under Section 14 of the Code and the provision of Regulation 29 of …

Salary During Notice Period Does Not Fall Within The Definition Of 'Operational Debt' Under IBC: NCLT, Mumbai

2 years, 10 months ago

Salary During Notice Period Does Not Fall Within The Definition Of 'Operational Debt' Under IBC: NCLT, Mumbai

Live Law

The NCLT, Mumbai Bench comprising of Justice H.V. Subba Rao, Judicial Member and Chandra Bhan Singh, Technical Member in the case of Sandesh Naik v. MT Educare Limited held that salary for purported notice period amounts to specific performance of the appointment letter and does not fall within the definition of 'Operational Debt' as the same was not salary for …

Claim Of Refund Of Advance Payment- Whether An 'Operational Debt' Under The Insolvency & Bankruptcy Code, 2016

3 years, 8 months ago

Claim Of Refund Of Advance Payment- Whether An 'Operational Debt' Under The Insolvency & Bankruptcy Code, 2016

Live Law

CLAIM OF REFUND OF ADVANCE PAYMENT WHETHER AN 'OPERATIONAL DEBT' UNDER THE INSOLVENCY & BANKRUPTCY CODE, 2016 Introduction Ever since the Insolvency and Bankruptcy Code, 2016 has come into effect, many vexed questions of law regarding the interpretation of various provisions of the Code have arisen, many of which have come to be settled by orders passed by the National …

'Default' Of Instalments Under Settlement Agreement Not "Operational Debt" Under IBC: NCLT [Read Order]

4 years, 8 months ago

'Default' Of Instalments Under Settlement Agreement Not "Operational Debt" Under IBC: NCLT [Read Order]

Live Law

Whether 'Default' of instalments under a settlement Agreements is an "Operational Debt" under the Insolvency and Bankruptcy Code, 2016? Besides denying having executed the Account Settlement Agreement dated 15.06.2019 and alleging that the relationship between the Corporate Debtor and the Applicant had already seized in terms of another Settlement Letter dated 19.12.2017, it was, inter alia, argued by the Respondent …

Breaking: IBC-Lawyer Can Issue Demand Notice Of Unpaid Operational Debt On Behalf Of Operational Creditor: SC [Read Judgment]

7 years, 3 months ago

Breaking: IBC-Lawyer Can Issue Demand Notice Of Unpaid Operational Debt On Behalf Of Operational Creditor: SC [Read Judgment]

Live Law

Also holds Section 9 of the Insolvency and Bankruptcy Code is not mandatory for initiating insolvency proceedings.Answering two important issues of the Insolvency and Bankruptcy Code, the Supreme Court, in Macquarie Bank Limited vs Shilpi Cable Technologies Ltd, has held that a lawyer on behalf of the operational creditor can issue a demand notice of an unpaid operational debt. The …

Breaking: IBC-Lawyer Can Issue Demand Notice Of Unpaid Operational Debt On Behalf Of Operational Creditor: SC [Read Judgment]

7 years, 3 months ago

Breaking: IBC-Lawyer Can Issue Demand Notice Of Unpaid Operational Debt On Behalf Of Operational Creditor: SC [Read Judgment]

Live Law

Also holds Section 9 of the Insolvency and Bankruptcy Code is not mandatory for initiating insolvency proceedings.Answering two important issues of the Insolvency and Bankruptcy Code, the Supreme Court, in Macquarie Bank Limited vs Shilpi Cable Technologies Ltd, has held that a lawyer on behalf of the operational creditor can issue a demand notice of an unpaid operational debt. The …

Insolvency & Bankruptcy Code- SC Interprets Scope Of ‘Existence Of Dispute’ Between Operational Creditor And Corporate [Read Judgment]

7 years, 6 months ago

Insolvency & Bankruptcy Code- SC Interprets Scope Of ‘Existence Of Dispute’ Between Operational Creditor And Corporate [Read Judgment]

Live Law

The judgment of the Supreme Court in Mobilox Innovations Pvt.Ltd. The issue was whether the existence of a dispute by itself without the record of initiation of any suit or arbitration proceedings in relation to it is sufficient to make an application for insolvency resolution at the instance of operational creditor unsustainable. In this context, it may be helpful to …

Insolvency & Bankruptcy Code- SC Interprets Scope Of ‘Existence Of Dispute’ Between Operational Creditor And Corporate [Read Judgment]

7 years, 6 months ago

Insolvency & Bankruptcy Code- SC Interprets Scope Of ‘Existence Of Dispute’ Between Operational Creditor And Corporate [Read Judgment]

Live Law

The judgment of the Supreme Court in Mobilox Innovations Pvt.Ltd. The issue was whether the existence of a dispute by itself without the record of initiation of any suit or arbitration proceedings in relation to it is sufficient to make an application for insolvency resolution at the instance of operational creditor unsustainable. In this context, it may be helpful to …

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IBC | Once Resolution Plan Approved, Dues Not Part Of It Get Extinguished : Supreme Court Rejects Post-Resolution Income Tax Demand

1 week, 3 days ago

IBC | Once Resolution Plan Approved, Dues Not Part Of It Get Extinguished : Supreme Court Rejects Post-Resolution Income Tax Demand

Live Law

The Supreme Court today declined a claim raised by the Income Tax Department to include a tax demand in a Resolution Plan after it was approved by the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016.Citing the case of Ghanashyam Mishra and Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Company Ltd. 9 SCC 657, which held that all claims …

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Valuation Under Insolvency And Bankruptcy Code, 2016

1 week, 6 days ago

Valuation Under Insolvency And Bankruptcy Code, 2016

Live Law

Justice Brandeius in Missouri ex rel. To determine the fair value of the inventory and assets of the CD, as per the Internationally accepted valuation standards. During the course of liquidation, a liquidator within seven days of the liquidation commencement date shall appoint two registered valuers to determine the value of the assets of the CD. Regulation 34 of the …

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Rosmerta Digital seeks initiation of insolvency proceedings against Ola Electric's subsidiary

2 weeks ago

Rosmerta Digital seeks initiation of insolvency proceedings against Ola Electric's subsidiary

The Hindu

Ola Electric Mobility Ltd on Saturday said its vehicle registration service provider Rosmerta Digital Services Ltd has sought the initiation of insolvency proceedings against its wholly owned arm Ola Electric Technologies Pvt Ltd. Rosmerta Digital Services Ltd, an operational creditor of Ola Electric Technologies Pvt Ltd." The petition has been submitted before the National Company Law Tribunal's Bengaluru Bench, alleging …

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Penalties U/S 65 Of IBC Can Be Imposed Against Those Who Fraudulently Initiate Insolvency Process: NCLAT

2 weeks, 4 days ago

Penalties U/S 65 Of IBC Can Be Imposed Against Those Who Fraudulently Initiate Insolvency Process: NCLAT

Live Law

The National Company Law Appellate Tribunal, Principal Bench, New Delhi comprising of Justice Ashok Bhushan and Barun Mitra and Arun Baroka disposed an appeal filed by a majority shareholder of the corporate debtor stating that the Section 7 application filed by financial creditors was fraudulently filed in collusion with the corporate debtors' promoters. NCLAT Judgement The National Company Law Appellate …

Corporate Insolvency Tribunal New Delhi Nclt Initiate Creditors

S.36 Income Tax Act | Deduction For Bad Debt Allowed Only If Assessee Lends In Ordinary Course Of Banking/Money Lending Business: Delhi HC

2 weeks, 5 days ago

S.36 Income Tax Act | Deduction For Bad Debt Allowed Only If Assessee Lends In Ordinary Course Of Banking/Money Lending Business: Delhi HC

Live Law

The Delhi High Court has made it clear that allowance in respect of bad debts as an expense under Section 36 of the Income Tax Act, 1961, is permissible only if: the debt was taken into account for computing the income of the assessee in the previous year in which the amount is written off or prior previous years; or …

Business Financial Court Income Tax Debt Delhi Hc Bad

Operational Creditors Cannot Question Approval Of Resolution Plan That Provides Them With More Than Liquidation Value: NCLAT

3 weeks, 3 days ago

Operational Creditors Cannot Question Approval Of Resolution Plan That Provides Them With More Than Liquidation Value: NCLAT

Live Law

The National Company Law Appellate Tribunal New Delhi bench of Justice Ashok Bhushan, Mr. Barun Mitra and Mr. Arun Baroka that Resolution Plan approved by the Adjudicating Authority cannot be questioned by the Operational Creditors when they were provided more than the liquidation value under the Plan as per section 30 of the Insolvency and Bankruptcy Code, 2016. Contentions: The …

Resolution Operational Resolution Plan Tribunal Period Plan Value

Builders can’t use insolvency to evade penalties: Top court

3 weeks, 4 days ago

Builders can’t use insolvency to evade penalties: Top court

Hindustan Times

The Supreme Court on Tuesday ruled that developers cannot evade monetary penalties imposed for consumer rights violations under the guise of insolvency proceedings, underlining that allowing such a practice would erode consumer trust and worsen the already vulnerable position of homebuyers due to possession delays and contract breaches. The ruling came while the court dismissed an appeal filed by Saranga …

Consumer Court Insolvency Regulatory Consumer Rights Penalties Moratorium

IBC Moratorium Does Not Bar Execution Of Penalties Imposed Under Consumer Protection Act : Supreme Court

3 weeks, 5 days ago

IBC Moratorium Does Not Bar Execution Of Penalties Imposed Under Consumer Protection Act : Supreme Court

Live Law

In a significant development, the Supreme Court today ruled that an interim moratorium under Section 96 of the Insolvency & Bankruptcy Code, 2016 does not apply to penalty proceedings under Section 27 of the Consumer Protection Act, 1986. The bench comprising Justices Vikram Nath and Prasanna B. Varale delivered the verdict where the property builder, who faced multiple penalties imposed …

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Interest Free Maintenance Fee Deposited By Allottees Under Conveyance Deed Cannot Be Considered As Financial Debt U/S 5(8) Of IBC: NCLAT

4 weeks, 1 day ago

Interest Free Maintenance Fee Deposited By Allottees Under Conveyance Deed Cannot Be Considered As Financial Debt U/S 5(8) Of IBC: NCLAT

Live Law

The National Company Law Appellate Tribunal New Delhi bench of Justice Ashok Bhushan, Mr. Barun Mitra and Mr. Arun Baroka has held that interest free maintenance fee to be paid by the allottees to the corporate debtor under the Conveyance Deed cannot be considered as financial debt under section 5 of the Insolvency and Bankruptcy Code, 2016. Contentions: The Appellant …

Security Corporate Financial Maintenance Debt Tribunal Held

When Debt Is Not Unequivocally Admitted By Corporate Debtor, Application U/S 9 Of IBC Must Not Be Entertained: NCLAT

1 month ago

When Debt Is Not Unequivocally Admitted By Corporate Debtor, Application U/S 9 Of IBC Must Not Be Entertained: NCLAT

Live Law

The National Company Law Appellate Tribunal New Delhi bench of Justice Ashok Bhushan, Mr. Barun Mitra and Mr. Arun Baroka has held that the application under section 9 of the Insolvency and Bankruptcy Code, 2016 cannot be entertained when the debt is not unequivocally admitted by the Corporate Debtor. The Operational Creditor issued a demand notice under section 8 of …

Corporate Corporate Debtor Operational Creditor Operational Application Debt Tribunal

Adjudicating Authority Is Empowered To Decide Whether Successful Resolution Applicant Is Liable To Pay Pre-CIRP Electricity Dues U/S 60(5) Of IBC: NCLAT

1 month ago

Adjudicating Authority Is Empowered To Decide Whether Successful Resolution Applicant Is Liable To Pay Pre-CIRP Electricity Dues U/S 60(5) Of IBC: NCLAT

Live Law

The National Company Law Appellate Tribunal New Delhi bench of Justice Yogesh Khanna and Mr. Ajai Das Mehrotra has held that the National Company Law Tribunal is empowered to decide an issue whether Successful Resolution Applicant is liable to pay Pre-Corporate Insolvency Resolution Process electricity dues after the approval of the resolution plan and taking over of the corporate debtor …

Electricity Insolvency Corporate Debtor Pay Resolution Plan Tribunal Electricity Act

Pre-Section 10A Default Is Not Extended By Acknowledgment When Partial Payment Is Made For Acknowledged Debt: NCLAT

1 month ago

Pre-Section 10A Default Is Not Extended By Acknowledgment When Partial Payment Is Made For Acknowledged Debt: NCLAT

Live Law

The National Company Law Appellate Tribunal Chennai Bench of Justice Sharad Kumar Sharma and Mr. Jatindranath Swain has held that the default falling in pre-section 10A period cannot be said to be continued when some payments towards the acknowledgement of debt accumulating during the prohibited period is made. Subsequently, the 1st Respondent filed the Application under Section 9 of the …

Corporate Application Debt Tribunal Period Nclt Nclat

IBC Weekly Round-Up [17th February-23rd February 2025]

1 month ago

IBC Weekly Round-Up [17th February-23rd February 2025]

Live Law

Nominal Index: BANK OF BARODA v. FAROOQ ALI KHAN & ORS., CIVIL APPEAL NO. Case Title: Edelweiss Asset Reconstruction Company Ltd. vs. Chirag Rejendrakumar Shah Case Number: Company Appeal No.242 of 2025 The National Company Law Appellate Tribunal New Delhi bench comprising Justice Ashok Bhushan, Barun Mitra and Arun Baroka have re-iterated that that liquidation of the Corporate Debtor should …

Appeal Insolvency Resolution Technical Case Resolution Professional Company

IBC Weekly Round-Up [10th February -16th February 2025]

1 month, 1 week ago

IBC Weekly Round-Up [10th February -16th February 2025]

Live Law

Nominal Index: Global Indian School Education Services Pvt. 5841, 5842, 5843 of 2023 The National Company Law Appellate Tribunal New Delhi bench of Justice Rakesh Kumar Jain, Mr. Naresh Salecha and Mr. Indevar Pandey has held that the security amount deposited under a Memorandum of Understanding without any intention of commercial effect of borrowing and time value of money cannot …

Insolvency Application Technical Case Company Judicial Tribunal

Non-Registration Of “Charge” U/S 77 Of Companies Act Does Not Bar Creditor From Being Treated As “Secured Creditor” Under IBC During CIRP: NCLAT

1 month, 1 week ago

Non-Registration Of “Charge” U/S 77 Of Companies Act Does Not Bar Creditor From Being Treated As “Secured Creditor” Under IBC During CIRP: NCLAT

Live Law

The National Company Law Appellate Tribunal, New Delhi bench comprising Justice Yogesh Khanna and Mr. Arun Baroka have held that non-registration of “charge” in terms of Section 77 of Companies Act, 2013 is not a sine qua non for a Creditor to be treated as a “Secured Creditor” under section 3 of the Insolvency and Bankruptcy Code, 2016 by the …

Companies Act Companies Charge Interest Tribunal Act Appellant

IL&FS group firms initiate payout of ₹5,000 crore under interim distribution

1 month, 1 week ago

IL&FS group firms initiate payout of ₹5,000 crore under interim distribution

The Hindu

IL&FS Group said its companies have initiated an interim distribution of ₹5,000 crore – including ₹3,500 crore of Infrastructure Investment Trust units and ₹1,500 crore in cash – to eligible creditors as part of the group’s ongoing resolution efforts. Post this payout, the aggregate debt discharged across IL&FS Group companies will stand at approximately ₹43,000 crore, accounting for over 70% …

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IBC Weekly Round-Up [2nd February-9th February 2025]

1 month, 2 weeks ago

IBC Weekly Round-Up [2nd February-9th February 2025]

Live Law

Nominal Index: Damodar Valley Corporation vs. Mackeil Ispat & Forging Ltd. & Anr., Company Appeal No. 2316 of 2024' M/s.Isthara Parks Private Limited v M/s.Valmar Projects LLP & Ors., CP No.216/9/IIDB/2023 Aditya Birla Finance Limited vs. Mr. Pankaj Srivastava, IA No. 149/BB/2023 High Court Corporate Debtor Immune From Prosecution Under PMLA Post Approval Of Resolution Plan: Delhi High Court Case …

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Business Arrangement Involving Joint Profit-Sharing, Exclusive Supply Agreement Does Not Establish Creditor-Debtor Relationship Under IBC: NCLT

1 month, 2 weeks ago

Business Arrangement Involving Joint Profit-Sharing, Exclusive Supply Agreement Does Not Establish Creditor-Debtor Relationship Under IBC: NCLT

Live Law

The National Company Law Tribunal, Delhi, has held that a petitioner cannot initiate the Corporate Insolvency Resolution Process under Section 9 of the Insolvency and Bankruptcy Code, 2016 if the business arrangement between the parties involves joint participation and profit-sharing rather than a straightforward operational debt. According to the factual matrix of the case, an application was filed by M/s …

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IBC Monthly Digest: January 2025

1 month, 3 weeks ago

IBC Monthly Digest: January 2025

Live Law

NOMINAL INDEX: Adroit Pharmaceuticals Pvt. Ltd Versus Dharmendra Kumar, Case Number: Company Appeal No.2196 of 2024 The NCLAT New Delhi bench of Justice Ashok Bhushan, Mr. Barun Mitra and Mr. Arun Baroka has held that when the appeal is dismissed on the ground of non-prosecution, it cannot be said to be dismissed on merits as well. Case Title: Indospirit Distribution …

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Corporate Debtor Immune From Prosecution Under PMLA Post Approval Of Resolution Plan: Delhi High Court

Trending News

1 month, 3 weeks ago

Corporate Debtor Immune From Prosecution Under PMLA Post Approval Of Resolution Plan: Delhi High Court

Live Law

The Delhi High Court bench of Justice Manmeet Pritam Singh Arora has held that in accordance with Section 32A of the Insolvency and Bankruptcy Code, 2016, a Corporate Debtor that has successfully undergone a resolution process under Section 31 of the IBC shall not be prosecuted for offences committed prior to the commencement of the CIRP. Arguments Dr. Abhishek Manu …

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Pre-Existing Dispute Between Financial Creditor And Corporate Debtor Doesn't Bar Petition U/S 7 Of IBC: NCLT

1 month, 4 weeks ago

Pre-Existing Dispute Between Financial Creditor And Corporate Debtor Doesn't Bar Petition U/S 7 Of IBC: NCLT

Live Law

The National Company Law Tribunal, New Delhi bench comprising Chief Justice Ramalingam Sudhakar and Avinash K. Srivatava has held that a pre-existing dispute between the Financial Creditor and Corporate Debtor does not bar a petition under section 7 of the Insolvency and Bankruptcy Code, 2016 to be entertained. The Tribunal also held that a claim of the Financial Creditor which …

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Pre-Existing Dispute Between Financial Creditor And Corporate Debtor Doesn't Bar Petition U/S 7 Of IBC: NCLT

1 month, 4 weeks ago

Pre-Existing Dispute Between Financial Creditor And Corporate Debtor Doesn't Bar Petition U/S 7 Of IBC: NCLT

Live Law

The National Company Law Tribunal, New Delhi bench comprising Chief Justice Ramalingam Sudhakar and Avinash K. Srivatava has held that a pre-existing dispute between the Financial Creditor and Corporate Debtor does not bar a petition under section 7 of the Insolvency and Bankruptcy Code, 2016 to be entertained. The Tribunal also held that a claim of the Financial Creditor which …

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Proviso To S.10A Of IBC Doesn't Bar CIRP Applications Where Default Continues Beyond Moratorium Period: Madras High Court

1 month, 4 weeks ago

Proviso To S.10A Of IBC Doesn't Bar CIRP Applications Where Default Continues Beyond Moratorium Period: Madras High Court

Live Law

The Madras High Court bench comprising Justice S.S. Sundar and Justice P. Dhanabal has held that the proviso to Section 10-A of the Insolvency and Bankruptcy Code does not extend to cases where the default continues beyond the moratorium period. Section 10-A bars an application for initiation of CIRP of a Corporate Debtor, for any default arising on or after …

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Economic Survey 2025: IBC nudging companies to resolve their distress early

1 month, 4 weeks ago

Economic Survey 2025: IBC nudging companies to resolve their distress early

Live Mint

The Economic Survey 2024-25 lavished praise on the Insolvency and Bankruptcy Code for transforming the behaviour of distressed companies, highlighting that the law has acted as a deterrent, encouraging many firms to resolve their financial distress early in order to avoid the consequences of a resolution process. they are resolving when default is imminent, on receipt of a notice for …

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Decision To Liquidate Corporate Debtor Cannot Be Faulted When Revival Is Not A Viable Option: NCLAT

2 months ago

Decision To Liquidate Corporate Debtor Cannot Be Faulted When Revival Is Not A Viable Option: NCLAT

Live Law

The NCLAT New Delhi bench of Justice Rakesh Kumar Jain, Mr. Naresh Salecha and Mr. Indevar Pandey has held that when it becomes clear that revival is not a viable option, a decision taken by the CoC to liquidate the corporate debtor cannot be faulted. Thereafter, the Adjudicating Authority ordered the liquidation of the corporate debtor after a decision was …

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NCLT Holds Financial Lease With Transfer Of Ownership & Interest For Default As “Financial Debt”, Admits GDA's Claim As “Financial Creditor”

2 months ago

NCLT Holds Financial Lease With Transfer Of Ownership & Interest For Default As “Financial Debt”, Admits GDA's Claim As “Financial Creditor”

Live Law

The NCLT, New Delhi, Principal bench comprising Justice Ramalingam Sudhakar and Avinash K. Srivastava has allowed the claim of Ghaziabad Development Authority as a financial creditor in the Red Mall case and directed its inclusion in the Committee of Creditors. The claim was rejected by the Resolution Professional who held GDA as an Operational creditor in view of the judgment …

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NCLT rejects Akshay Kumar’s insolvency plea against edtech Cue Learn

Trending News

2 months, 1 week ago

NCLT rejects Akshay Kumar’s insolvency plea against edtech Cue Learn

Live Mint

The National Company Law Tribunal's Delhi bench has dismissed Bollywood actor Akshay Kumar’s plea to initiate insolvency proceedings against ed-tech company Cue Learn Pvt. Kumar had rendered services under the agreement, including an endorsement day on 8 March 2021, with deliverables such as TV commercials used by Cue Learn on its social media platforms. In response, Cue Learn argued that …

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Share Application Money Can't Be Treated As Financial Debt

2 months, 2 weeks ago

Share Application Money Can't Be Treated As Financial Debt

Live Law

The NCLT in the judgment of Rajeev Kumar Jain vs Uno Minda Limited Formerly, defined financial debt, as to entail debt plus interest, if any. According to Black's Law Dictionary, "time value" is the cost related to the amount of time an investor must wait until an investment matures or the related income is earned Recent Developments The NCLAT was …

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$NCLAT Upholds Status Of Canara Bank As Financial Creditor For Providing Loans To Homebuyers Of CD, Distinguishes Value Infracon Judgment$

2 months, 2 weeks ago

NCLAT Upholds Status Of Canara Bank As Financial Creditor For Providing Loans To Homebuyers Of CD, Distinguishes Value Infracon Judgment

Live Law

The NCLAT New Delhi bench of Justice Rakesh Kumar Jain and Mr. Naresh Salecha upholds the claims of the Canara Bank for the loans advanced to the corporate debtor on behalf of the Homebuyers on the ground that a specific clause was mentioned in the tripartite agreement executed between the parties that in case of default made by the borrower, …

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Eviction Of Tenant From Corporate Debtor's Property Can Be Sought Under Tenancy Law, Not U/S 60(5) Of IBC: NCLAT

2 months, 3 weeks ago

Eviction Of Tenant From Corporate Debtor's Property Can Be Sought Under Tenancy Law, Not U/S 60(5) Of IBC: NCLAT

Live Law

The NCLAT New Delhi bench of Justice Rakesh Kumar Jain and Mr. Naresh Salecha has held that eviction of tenant from the property of corporate debtor can only be sought under the Act in which tenancy was created and such power of eviction cannot be exercised by the Adjudicating Authority under Section 60 of the Code. The Tribunal while referring …

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Initiation Of Arbitration Proceedings Before Issuance Of Demand Notice Is Sufficient To Reject Application U/S 9 Of IBC: NCLAT

2 months, 3 weeks ago

Initiation Of Arbitration Proceedings Before Issuance Of Demand Notice Is Sufficient To Reject Application U/S 9 Of IBC: NCLAT

Live Law

The NCLAT New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra has held that initiation of arbitration proceedings before the issuance of demand notice under section 8 of the code evidences a pre-existing dispute which can be a ground to reject application under section 9 of the code. Observations: The tribunal observed that Section 8 of the IBC …

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Supreme Court Dismisses Builder's Plea To Confine Insolvency Process To Single Real Estate Project

2 months, 3 weeks ago

Supreme Court Dismisses Builder's Plea To Confine Insolvency Process To Single Real Estate Project

Live Law

The Supreme Court recently dismissed an appeal seeking to confine Corporate Insolvency Resolution Process of Spaze Towers Pvt. Ltd. was initiated based on a Section 7 application filed by financial creditors in a class, comprising 26 real-estate allottees of the Spaze Arrow project. The appellant filed an application on November 8, 2024, seeking modification of the NCLAT's interim order to …

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Last Payment Made By Corporate Debtor Within Period Of Limitation Amounts To Acknowledgment U/S 19 Of Limitation Act: NCLAT

2 months, 3 weeks ago

Last Payment Made By Corporate Debtor Within Period Of Limitation Amounts To Acknowledgment U/S 19 Of Limitation Act: NCLAT

Live Law

The NCLAT New Delhi Bench of Justice Ashok Bhushan and Mr. Barun Mitra has held that when there is clear acknowledgment by the corporate debtor of last payment made which payment was within the period of three years, the operational creditor was clearly entitled for the benefit of extension of limitation under Section 19 of the Limitation Act and both …

Corporate Corporate Debtor Application Limitation Act Limitation Payment Held

'IBC A Complete Code' : Supreme Court Disapproves Of High Court Exercising Writ Jurisdiction To Interdict CIRP

2 months, 3 weeks ago

'IBC A Complete Code' : Supreme Court Disapproves Of High Court Exercising Writ Jurisdiction To Interdict CIRP

Live Law

Disapproving a High Court's order interdicting a Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, the Supreme Court recently observed that the IBC is a complete code in itself, having sufficient checks and balances, and thus, the exercise of supervisory and judicial review powers by High Courts demands rigorous scrutiny and. Disapproving a High Court's order interdicting a …

Supreme Court High Court Corporate High Courts Insolvency Resolution Writ

Application U/S 95(1) Of IBC Against Personal Guarantor Not Maintainable In Absence Of CIRP Proceedings Against Corporate Debtor: NCLT Kolkata

2 months, 3 weeks ago

Application U/S 95(1) Of IBC Against Personal Guarantor Not Maintainable In Absence Of CIRP Proceedings Against Corporate Debtor: NCLT Kolkata

Live Law

The National Company Law Tribunal Kolkata bench comprising Justice Bidisha Banerjee and Shri Balraj Joshi has held that an application under Section 95 of the Insolvency and Bankruptcy Code for initiating insolvency proceedings against a personal guarantor is not maintainable before the NCLT if no Corporate Insolvency Resolution Process or liquidation proceeding has been initiated or is pending against the …

Personal Corporate Insolvency Corporate Debtor Tribunal Nclt Proceedings

Annual Digest Of IBC Cases: 2024

2 months, 4 weeks ago

Annual Digest Of IBC Cases: 2024

Live Law

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 …

India Justice Delhi Mumbai Supreme Court High Court Corporate

IBC Monthly Digest: December 2024

2 months, 4 weeks ago

IBC Monthly Digest: December 2024

Live Law

SUPREME COURT Case Title : China Development Bank vs Doha Bank OPSC and others Citation : 2024 LiveLaw 1029 The Supreme Court has observed a default is not necessary for a debt to become a financial debt under the Insolvency and Bankruptcy Code, 2016. Case Number: Company Appeal No.1380 of 2024 The NCLAT New Delhi bench of Justice Ashok Bhushan, …

India Justice Insolvency Corporate Debtor Title Technical Resolution Professional

Insolvency & Bankruptcy Code : Important Judgments By Supreme Court In 2024

2 months, 4 weeks ago

Insolvency & Bankruptcy Code : Important Judgments By Supreme Court In 2024

Live Law

As the year 2024 nears its end, LiveLaw brings to you a summary of important Supreme Court judgments of the year rendered in connection with the Insolvency and Bankruptcy Code, 2016. Supreme Court Refers To Larger Bench, Doubts Precedent Case: DBS Bank Ltd Singapore v. Ruchi Soya Industries Ltd and another In this case, a bench comprising Justice Sanjiv Khanna …

Supreme Court Corporate Court Insolvency Corporate Debtor Debt Resolution Plan

Insolvency & Bankruptcy Code : Important Judgments By Supreme Court In 2024

2 months, 4 weeks ago

Insolvency & Bankruptcy Code : Important Judgments By Supreme Court In 2024

Live Law

As the year 2024 nears its end, LiveLaw brings to you a summary of important Supreme Court judgments of the year rendered in connection with the Insolvency and Bankruptcy Code, 2016. Supreme Court Refers To Larger Bench, Doubts Precedent Case: DBS Bank Ltd Singapore v. Ruchi Soya Industries Ltd and another In this case, a bench comprising Justice Sanjiv Khanna …

Supreme Court Corporate Court Insolvency Corporate Debtor Debt Resolution Plan

Decree Holder Is “Financial Creditor” Under IBC, Limitation For Filing Section 7 Petition Is Extendable On Acknowledgment Of Debt: NCLAT

3 months ago

Decree Holder Is “Financial Creditor” Under IBC, Limitation For Filing Section 7 Petition Is Extendable On Acknowledgment Of Debt: NCLAT

Live Law

The National Company Law Appellate Tribunal New Delhi bench comprising Justice Yogesh Khanna and Arun Baroka has held that a decree holder falls within the definition of "Financial Creditor" under Section 5 and Section 5 of the Insolvency and Bankruptcy Code if the decree is based on a financial debt. The Respondent also contended that a a decree holder is …

Financial Debt Limitation Tribunal Respondent Petition Three Years

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

3 months 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 …

Justice Appeal Insolvency Resolution Technical Judicial 2024

No Provision In IBC To Issue Multiple Demand Notices Before Filing Petition U/S 9 Of IBC: NCLT New Delhi

3 months, 1 week ago

No Provision In IBC To Issue Multiple Demand Notices Before Filing Petition U/S 9 Of IBC: NCLT New Delhi

Live Law

The NCLT New Delhi bench of Justice Shri Bachu Venkat Balaram Das and Shri Atul Chaturvedi has held that there is no such provision in the IBC, 2016 and in the Regulation made thereunder that allows the Operational Creditor to issue multiple demand notices to the Corporate Debtor. This fact is itself enough to draw an inference that the Corporate …

Corporate Dispute Corporate Debtor Operational Demand Issue Petition

NCLAT Sets Aside Admission Of S.7 Application Upon Finding Transaction Was In Nature Of 'Operational Debt'

3 months, 1 week ago

NCLAT Sets Aside Admission Of S.7 Application Upon Finding Transaction Was In Nature Of 'Operational Debt'

Live Law

The NCLAT New Delhi bench of Justice Rakesh Kumar Jain, Mr. Barun Mitra and Mr. Indevar Pandey has held that the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, was not maintainable as the transaction in question constituted an 'operational debt' and was not covered under Section 5 but was governed by Section 5 and Section 21 …

Financial Court Corporate Debtor Application Debt Tribunal Code

IBC | Moratorium Does Not Extinguish Claim : Supreme Court

3 months, 1 week 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 …

Court Moratorium Section 14 Claim Supreme

IBC | Financial Creditor Can Submit Claim Even If There Is No Default Of Debt : Supreme Court

Trending News

3 months, 1 week ago

IBC | Financial Creditor Can Submit Claim Even If There Is No Default Of Debt : Supreme Court

Live Law

The Supreme Court has observed a default is not necessary for a debt to become a financial debt under the Insolvency and Bankruptcy Code, 2016. A bench comprising Justice Abhay S Oka and Justice Augustine George Masih held that under Section 5 of the IBC, any person to whom financial debt is owed becomes a Financial Creditor even if there …

Supreme Court Financial Bank Debt Appellants Person Claim

IBC | Financial Creditor Can Submit Claim Even If There Is No Default Of Debt : Supreme Court

Trending News

3 months, 1 week ago

IBC | Financial Creditor Can Submit Claim Even If There Is No Default Of Debt : Supreme Court

Live Law

The Supreme Court has observed a default is not necessary for a debt to become a financial debt under the Insolvency and Bankruptcy Code, 2016. A bench comprising Justice Abhay S Oka and Justice Augustine George Masih held that under Section 5 of the IBC, any person to whom financial debt is owed becomes a Financial Creditor even if there …

Court Bank Appellants Person Claim Default Owed

Date Of Default In Case Of Personal Guarantor Depends On Terms Of Contract Of Guarantee: NCLAT

3 months, 1 week ago

Date Of Default In Case Of Personal Guarantor Depends On Terms Of Contract Of Guarantee: NCLAT

Live Law

The NCLAT New Delhi bench of Justice Ashok Bhushan, Mr. Arun Baroka and Barun Mitra has held that the liability of a borrower and guarantor is co-extensive but the liability of a Guarantor stems from the contract of guarantee and therefore the date of default in the case of the guarantor depends on the terms of contract of guarantee. Since …

Personal Bank Application Respondent Notice Date Demand

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

3 months, 1 week 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 …

Supreme Court Corporate Corporate Debtor Bank Application Debt Tribunal

ED restitutes assets worth ₹4,025 crore in Bhushan Power and Steel case to JSW

3 months, 2 weeks ago

ED restitutes assets worth ₹4,025 crore in Bhushan Power and Steel case to JSW

The Hindu

The Enforcement Directorate has restituted assets worth ₹4,025 crore to JSW, a Successful Resolution Applicant in the matter of the erstwhile Bhushan Power and Steel Limited under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code. The assets were provisionally attached by the ED under Section 5 of Prevention of Money Laundering Act as the erstwhile promoters of …

Properties Assets Crore Banks Ibc Jsw Cirp

Petition U/S 7 Of IBC Cannot Be Barred For Default Committed Prior To S.10A Period: NCLAT

3 months, 2 weeks ago

Petition U/S 7 Of IBC Cannot Be Barred For Default Committed Prior To S.10A Period: NCLAT

Live Law

The NCLAT New Delhi bench of Justice Ashok Bhushan, Barun Mitra and Arun Baroka has held that when default has been committed by the Corporate Debtor prior to Section 10A period, any default committed during the Section 10A period cannot be held to bar the application which is filed on the basis of default prior to Section 10A and subsequent …

Corporate Interest Tribunal Period Date Petition Default