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

IBC Not A Debt Recovery Mechanism, NCLAT Chennai Reiterates

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The National Company Law Appellate Tribunal, Chennai Bench comprising of Justice M. Venugopal and Shreesha Merla, dismissed an appeal filed in Mr. Maulik Kirtibhai Shah vs. United Telecom Limited. against the order of the National Company Law Tribunal Bangalore Bench which had dismissed the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Maulik Kirtibhai Shah seeking initiation of Corporate Insolvency Resolution Process against United Telecom Limited.. Moreover, the definition of ‘Operational Debt’ cannot be widely interpreted to include any agreement between the parties that does not specifically pertain to the supply of goods or services as such an interpretation would undermine the purpose and scope of the Code. On completion, the Operational Creditor requested the payment, however, the Corporate Debtor induced the Operational Creditor to sign the Settlement Agreement, citing severe cash flow issues.

History of this topic

No Provision In IBC To Issue Multiple Demand Notices Before Filing Petition U/S 9 Of IBC: NCLT New Delhi
1 day, 9 hours ago
NCLAT Sets Aside Admission Of S.7 Application Upon Finding Transaction Was In Nature Of 'Operational Debt'
1 day, 10 hours ago
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1 week ago
IBC Weekly Round Up [2nd December To 8th December, 2024]
2 weeks, 1 day ago
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3 weeks, 3 days ago
Written Agreement Not Mandatory To Prove Financial Debt If It Can Be Proved From Other Materials On Record: NCLAT
3 weeks, 3 days ago
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3 weeks, 5 days ago
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1 month ago
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1 month, 1 week ago
The Insolvency Code’s progress: From deep haircuts to fuller recoveries
1 month, 2 weeks ago
Financial Debt Can Be Proven From Other Relevant Documents, NCLAT New Delhi
2 months ago
Directing Corporate Debtor To Civil Courts Or Arbitration For Admitted Dues Undermines IBC Objectives: NCLT Mumbai
4 months, 3 weeks ago
Budget 2024: Budget proposes tech platform to strength IBC process, to set up more NCLTs
5 months ago
Half Yearly Digest Of IBC Cases : January To June,2024
5 months, 1 week ago
NCLAT Delhi: Section 95(1) Of IBC Permits Creditors To Initiate Insolvency Proceedings Against Personal Guarantors Via A Resolution Professional
6 months ago
Breach Of Settlement Agreement Not 'Operational Debt' Under Section 5(21) Of IBC: NCLT Kolkata
6 months, 1 week ago
Preferential Transaction Under Section 43 Of IBC, Fraudulent Intent Need Not To Be Proved : NCLT Mumbai
6 months, 2 weeks ago
Weekly Digest Of IBC Cases: 13th To 19th May 2024
7 months ago
NCLAT Delhi: Absence Of GST Refund/ITC Claim In Demand Notice Or Form 5 By OC Can't Become Ground Of Default For CIRP U/S 9 Of IBC
7 months, 1 week ago
NCLT Mumbai: Operational Debt Under IBC Does Not Include Penalty Or Liquidated Damages
7 months, 1 week ago
NCLAT Chennai Stays Insolvency proceedings Against Charter Aircraft Service Provider 'Deccan Charters'
8 months, 1 week ago
IBC Cases Quarterly Digest : January To March 2024
8 months, 2 weeks ago
NCLT Kolkata: Any Attachment Of Tainted Assets Of Corporate Debtor Before CIRP Commencement Would Always Be Available To Fulfill The Object Of IBC
8 months, 3 weeks ago
NCLT Kolkata: IBC Prevails Over State Financial Corporation Act, 1951
9 months, 1 week ago
NCLAT Delhi: Section 29A(C) Disqualifies Those Managing And Controlling Corporate Debtor Who Failed To Clear Debts
9 months, 2 weeks ago
IBC resolves 891 cases involving Rs 10 lakh crore loan defaults till Dec '23
10 months ago
Weekly Digest Of IBC Cases: 5th To 11th February 2024
10 months, 1 week ago
NCLAT Delhi: Definition Of Financial Debt U/S 5(8) Does Not Provide Disbursal To Be Made To Corporate Debtor Only
10 months, 1 week ago
Monthly Digest Of IBC Cases: January 2024
10 months, 3 weeks ago
NCLAT Delhi: Security Of Refund Of Advance Amount Can't Change Nature Of Transaction Into Financial Debt
10 months, 3 weeks ago
NCLAT Delhi Terminates Insolvency Proceedings Against Asian Hotels (West) Ltd., Accepts Settlement Proposal By Promoters
11 months ago
NCLAT Delhi: Optionally Convertible Debentures Constitute 'Financial Debt' U/s 5(8)(c) Of IBC
11 months ago
NCLAT Delhi: Non-Stamping Of Agreement Doesn't Render CIRP As Non-Maintainable When Other Material To Prove Default Of Debt Exists
11 months, 2 weeks ago
NCLAT Delhi: Once CIRP Has Stayed, Resolution Professional Can't Be Directed To Hand Over The Charge Of Corporate Debtor To Ex-Management
11 months, 2 weeks ago
NCLT Mumbai: Financial Creditor Can't Initiate CIRP Against Successful Resolution Applicant On Default Of Payment As Per Resolution Plan
11 months, 2 weeks ago
NCLAT Delhi: Decisions To Liquidate Corporate Debtor By CoC U/S 33(2) Of IBC Must Be With Reasons And Cannot Be Done Arbitrarily
11 months, 3 weeks ago
NCLT Hyderabad: Airport Authority Of India Being A Statutory Body Does Not Fall Within Scope Of 'Corporate Person' U/S 3(7) Of IBC
1 year ago
NCLT Kolkata: Explicit Written Agreement Of Loan Compulsory For NBFC To Establish 'Financial Debt'
1 year ago
NCLAT Chennai: Amount Paid As Part Of Business Transfer Agreement, Not A Financial Creditor.
1 year ago
NCLAT Delhi: Scope Of Enquiry By The Adjudicating Authority Under Section 31 Is Confined To Section 30(4) Compliance
1 year, 1 month ago
NCLAT Delhi: Benefit Under Section 17 Of Limitation Act Is Not Available When Fraud Was Played In Creditor Company And Not In Company Of Corporate Debtor
1 year, 1 month 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
1 year, 1 month ago
NCLAT New Delhi: Jurisdiction Of NCLT Under IBC Is Summary In Nature, Not Extensive As A Civil Court To Enquire Into Disputes
1 year, 1 month ago
Mere Statement Of Operational Creditor That No Dispute Exists, Is Not Enough : NCLAT Delhi
1 year, 2 months ago
NCLAT Chennai: FC And OC Can’t Give Additional Facts Not Provided In Application Under Sections 7, 9 Or 10 Of IBC
1 year, 2 months ago
NCLAT New Delhi: Disputes Surrounding Claims And Counter-Claims Cannot Be Adjudicated Or Determined By The Adjudicating Authority Given Their Summary Jurisdiction
1 year, 2 months ago
Weekly Digest Of IBC Cases: 11th To 17th September 2023
1 year, 3 months ago
Why Centre should prioritise IBC's alignment with other laws
1 year, 3 months ago
NCLAT Delhi Reverses The Decision Of NCLT, Upholds CoC’s Decision To Accept Relinquishment Of Personal Guarantee On Payment
1 year, 3 months ago

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