Supreme Court Dismisses Builder's Plea To Confine Insolvency Process To Single Real Estate Project
1 day, 16 hours 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 limit the CIRP to the Spaze Arrow project alone. NCLAT's Observations and Ruling The NCLAT noted that the claims filed during the CIRP extended beyond the Spaze Arrow project and encompassed several other projects developed by the corporate debtor. Rejecting the application, the NCLAT refused to confine the CIRP to a single project, given the multi-project nature of the corporate debtor's operations and the broad scope of claims filed by financial creditors.

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History of this topic

No Claim Survives When Unit Holder Is Handed Over Possession And Conveyance Deed Has Been Executed: NCLAT
1 week, 6 days ago

No Claim Survives When Unit Holder Is Handed Over Possession And Conveyance Deed Has Been Executed: NCLAT

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The NCLAT New Delhi bench of Mr. Justice Ashok Bhushan, Mr. Barun Mitra and Mr. Arun Baroka has held that when a unit holder is handed over possession and a Conveyance Deed has also been executed, no claim survives of such unit holders. The Respondents – Financial Creditors in a class being allottee of a Project namely 'Spaze Arrow' located …

Once CoC Approves Resolution Plan Then No Claim Is To Be Entertained: NCLAT
2 weeks, 3 days ago

Once CoC Approves Resolution Plan Then No Claim Is To Be Entertained: NCLAT

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The NCLAT New Delhi bench of Justice Rakesh Kumar Jain, Mr. Barun Mitra and Mr. Indevar Pandey have reiterated that once the Committee of Creditor has approved the resolution plan, then no claim is to be entertained. Counsel for the Respondent stated that IBC is a time-bound process and drew attention to the case of M/s RPS Infrastructure Ltd. vs. …

Decision To Consolidate CIRP Can Be Taken By CoC And Not By Suspended Director Of Corporate Debtors: NCLT Hyderabad
1 month ago

Decision To Consolidate CIRP Can Be Taken By CoC And Not By Suspended Director Of Corporate Debtors: NCLT Hyderabad

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The NCLT Hyderabad bench of Sri Rajeev Bhardwaj and Sri Sanjay Puri has affirmed that the decision to consolidate, or not, rests with the CoCs, who are not only better equipped to make such determinations but also have a vested interest in the outcome, and whose commercial wisdom is paramount in insolvency matters and beyond judicial review Brief Facts This …

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]

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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 …

Section 19(2) Application Can Be Preferred For Effective Conduct Of CIRP Despite Challenge To Admission Of CIRP: NCLAT
1 month, 3 weeks ago

Section 19(2) Application Can Be Preferred For Effective Conduct Of CIRP Despite Challenge To Admission Of CIRP: NCLAT

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The NCLAT, Chennai bench comprising Justice Sharad Kumar Sharma and Jatindranath Swain has held that an application under section 19 of the Insolvency & Bankruptcy Code is maintainable when the Corporate Insolvency Resolution Process is admitted. The Tribunal observed that section 60 will not have a superseding effect to the provisions contained under section 19 read with section 14 for …

CIRP Can Be Initiated Against The Corporate Debtor Despite Principal-Agent Relationship Between CD And Ultimate Client: NCLT Mumbai
7 months, 3 weeks ago

CIRP Can Be Initiated Against The Corporate Debtor Despite Principal-Agent Relationship Between CD And Ultimate Client: NCLT Mumbai

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The National Company Law Tribunal, Mumbai Bench, comprising Mr. Kuldip Kumar Kareer and Mr. Anil Raj Chellan has held that Corporate Insolvency Resolution Process can be initiated against a Corporate Debtor under section 9 of the Insolvency and Bankruptcy Code, 2016 even if the Corporate Debtor had been acting as an agent of an ultimate client or principal. Further, it …

NCLAT New Delhi: No Point In Discussing An Issue, Even If Issue Is Attractive, After The Closure Of CIRP Proceedings
1 year, 2 months ago

NCLAT New Delhi: No Point In Discussing An Issue, Even If Issue Is Attractive, After The Closure Of CIRP Proceedings

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The National Company Law Appellate Tribunal, Principal Bench, New Delhi comprising of Justice Rakesh Kumar Jain and Naresh Salecha, dismissed the appeal filed in State Bank of India vs. Ritesh Prakash Adatiya & Ors. The appeal was filed against the order dated 29.03.2023 passed by the National Company Law Tribunal Kolkata whereby an application by the IRP of McLeod Russel …

Top 10 Insolvency Law Judgements [April To September 2023]
1 year, 2 months ago

Top 10 Insolvency Law Judgements [April To September 2023]

Live Law  

In recent times, several noteworthy judgments have been rendered by the Indian Courts and Tribunals in matters relating to the Insolvency and Bankruptcy Code, 2016. M. Suresh Kumar Reddy v. Canara Bank Supreme Court of India Citation: 2023 LiveLaw 428 The Adjudicating Authority has no option but to admit a petition filed under Section 7 of the Insolvency and Bankruptcy …

NCLT Delhi Initiates Insolvency Process Against Ansal Properties & Infrastructure Ltd.
2 years, 1 month ago

NCLT Delhi Initiates Insolvency Process Against Ansal Properties & Infrastructure Ltd.

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The National Company Law Tribunal, New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das and Shri L.N. v M/s Ansal Properties and Infrastructure Ltd., has initiated Corporate Insolvency Resolution Process against Ansal Properties and Infrastructure Ltd. v M/s Ansal Properties and Infrastructure Ltd., has initiated Corporate Insolvency Resolution Process against Ansal Properties and Infrastructure Ltd. on a Section 7 …

CIRP Can Be Initiated Against Corporate Guarantor Without Proceeding Against Principal Borrower: Supreme Court
2 years, 4 months ago

CIRP Can Be Initiated Against Corporate Guarantor Without Proceeding Against Principal Borrower: Supreme Court

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The Supreme Court held that Corporate Insolvency Resolution Process can be initiated against the Corporate Guarantor without proceeding against the principal borrower.The liability of the guarantor is co-extensive with that of the Principal Borrower, the bench comprising Justices Indira Banerjee and JK Maheshwari observed.In this case, the Adjudicating Authority admitted. The Supreme Court held that Corporate Insolvency Resolution Process can …

Reagitating The Issue Attained Finality, By NCLT And Supreme Court, Is Abuse of process : NCLAT, Principal Bench
2 years, 4 months ago

Reagitating The Issue Attained Finality, By NCLT And Supreme Court, Is Abuse of process : NCLAT, Principal Bench

Live Law  

The Principal Bench of the NCLAT consisting of Justice Ashok Bhushan, Justice M. Satyanarayana Murthy and Barun Mitra in the case of Vikas Dahiya Vs. Arrow Engineering Ltd. held that the doctrine of Res Judicata applies to proceedings under the IBC and challenge to the findings in incidental or collateral proceedings amounts to an abuse of process of the Court. …

Minimum Threshold For Homebuyers' Insolvency Process Against Builder Shields Frivolous & Avoidable Applications : Supreme Court
3 years, 11 months ago

Minimum Threshold For Homebuyers' Insolvency Process Against Builder Shields Frivolous & Avoidable Applications : Supreme Court

Live Law  

The Supreme Court has upheld the threshold limit on homebuyers - introduced by way of Insolvency and Bankruptcy Code Act 2020 - as an attempt to "shield the corporate debtor from avoidable and frivolous applications".A bench comprising Justices R F Nariman, Navin Sinha and KM Joseph upheld Section 3 of the IBC Act 2020 which introduced provisos to Section 7 …

Insolvency Law In Review – October 2020
4 years, 1 month ago

Insolvency Law In Review – October 2020

Live Law  

BY Rahul Sibal, Siddharth Sunil, Akshata Singh, Pranav Narsaria & Karan Sangani The enactment of the Insolvency and Bankruptcy Code 2016 has had significant ramifications on the corporate insolvency landscape. High Courts In Gouri Shankar Chatterjee v. State Bank of India, the Calcutta High Court held that the National Company Law Tribunal did not have the jurisdiction to entertain an …

NCLAT Sets Aside NCLT Order Dismissing Initiation Of CIRP Against Mittal Corp
4 years, 3 months ago

NCLAT Sets Aside NCLT Order Dismissing Initiation Of CIRP Against Mittal Corp

Live Law  

The National Company Law Appellate Tribunal has set aside an order passed by the National Company Law Tribunal, Mumbai bench which had dismissed an application for the initiation of corporate insolvency resolution process against Mittal Corp Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. Member, Ms. Shreesha Merla Member directed the NCLT to reconsider the application and …

SC Stays CIRP Proceedings On Behalf Of Operational Creditor Making Futuristic Claims [Read Order]
4 years, 4 months ago

SC Stays CIRP Proceedings On Behalf Of Operational Creditor Making Futuristic Claims [Read Order]

Live Law  

In a significant order, the Supreme Court has stayed the Corporate Insolvency Resolution Process pending against a Corporate Debtor, in view of the "futuristic claims" made by an Operational Creditor. A three-Judge bench comprised of Justices Arun Mishra, BR Gavai and Krishna Murari has issued notice to the Insolvency Resolution Professional of Era Infra Engineering Ltd. and in the meanwhile, …

Initiation Of Corporate Insolvency Resolution Process [Part- I]
4 years, 8 months ago

Initiation Of Corporate Insolvency Resolution Process [Part- I]

Live Law  

Owing to the presence and simultaneous functioning of multiple parallel legal arrangements, the Ministry of Law and Justice, Government of India chose to provide a coherent and unified framework to resolve the financial distress faced by registered entities as well as individuals. Under Sub-section, the Adjudicating Authority shall then communicate the order passed to the financial creditor and corporate debtor …

CIRP Against Real Estate Company Limited To Project Concerned And Will Not Affect Other Projects : NCLAT [Read Judgment]
4 years, 10 months ago

CIRP Against Real Estate Company Limited To Project Concerned And Will Not Affect Other Projects : NCLAT [Read Judgment]

Live Law  

The National Company Law Appellate Tribunal has held that an insolvency process against a real estate company will impact only the project concerned and not the other projects of the builder-developer. "In CIRP against a real estate, if allottees or financial institutions, banks or operational creditors of one project initiated CIRP against the corporate debtor, it is confined to the. …

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