Supreme Court: Ignorance of statutory dues payable will lead to the rejection of Resolution Plan submitted for the Corporate Debtor
A Division Bench of the Hon’ble Supreme Court of India (SC), comprising of Hon’ble Ms. Justice Indira Banerjee and Hon’ble Mr. Justice A.S. Bopanna, dealt with the interplay between the provisions of Section 53 of the IBC and Section 48 of the Gujarat Value Added Tax, 2003 (GVAT Act), in State Tax Officer (1) v. […]
Entries in Corporate Debtor’s financial statements to be treated as acknowledgement of debt
A Division bench of the Hon’ble Supreme Court of India (SC), comprising of Hon’ble Ms. Justice Indira Banerjee and Hon’ble Mr. Justice J.K. Maheshwari, in their judgment dated 01.08.2022 in Asset Reconstruction Company (India) Limited v. Tulip Star Hotels Limited & Ors., held that an application under Section 7 of IBC would not be barred […]
Operational Creditor can initiate Corporate Insolvency Resolution Process for debts arising out of advance payment for supply of goods
A Full bench of the Hon’ble Supreme Court of India (SC), comprising of Hon’ble Dr. Justice D.Y. Chandrachud, Hon’ble Mr. Justice Surya Kant and Hon’ble Mr. Justice Vikram Nath, in their order dated 04.02.2022 in M/s Consolidated Construction Consortium Limited v. M/s Hitro Energy Solutions Private Limited (Civil Appeal No. 2839 of 2020), held that […]
NCLT cannot coerce allottees in real estate projects to enter into settlements with the Developer-Corporate Debtor, rules Supreme Court
The issue which arose for adjudication before the Division bench of the Hon’ble Supreme Court of India (SC), comprising of Dr. Justice DY Chandrachud and Mr. Justice AS Bopanna, in ES Krishnamurthy & Ors. v. Bharath Hi Tech Builders Pvt. Ltd. was whether the Adjudicating Authority can, in terms of the provisions of the IBC, […]
NOC not required from the Income Tax Department, during Voluntary Liquidation process under IBC
The Insolvency and Bankruptcy Board of India (IBBI), vide its Circular No. IBBI/LIQ/45/2021 dated November 15, 2021, issued a clarification regarding the requirement of seeking No Objection Certificate (NOC) / No Dues Certificate (NDC) from the Income Tax department, during Voluntary Liquidation Process under the Insolvency and Bankruptcy Code, 2016 (IBC). Acknowledging the substantial time […]
Supreme Court: Limitation to file Appeal under Section 61 of IBC starts running from the date of pronouncement of Order
A Full bench of the Hon’ble Supreme Court of India (SC), comprising of Dr. Justice DY Chandrachud, Mr. Justice Vikram Nath and Ms. Justice BV Nagarathna, held, in their judgment dated 22.10.2021 in V Nagarajan v. SKS Ispat and Power Ltd.& Ors., that the period of limitation for filing an appeal against an impugned order […]
Supreme Court: No scope for withdrawal of Resolution Plans, once the same has been submitted to the Adjudicating Authority (NCLT)
A Division bench of the Hon’ble Supreme Court of India (SC), comprising of Dr. Justice DY Chandrachud and Mr. Justice MR Shah, in their order dated 13.09.2021 in Ebix Singapore Private Limited v. Committee of Creditors of Educomp Solutions Limited & Anr., held: NCLT (as Adjudicating Authority) cannot exercise its residual powers under Insolvency and […]
Issuance of a Decree or Recovery Certificate constitutes fresh cause of action for proceeding under IBC
A Division bench of the Hon’ble Supreme Court of India (SC), comprising of Ms. Justice Indira Banerjee and Mr. Justice V. Ramasubramanian, in their order dated 04.08.2021 in Dena Bank v. C. Shivakumar Reddy, held: The balance sheets and financial statements of the corporate debtor for 2016-2017 constituted acknowledgement of liability in the present case, […]
Supreme Court: Definition of “Financial Debt” under IBC includes Interest-free Loans advanced to finance the business operations of a corporate body
A Division bench of the Hon’ble Supreme Court of India (SC), comprising of Ms. Justice Indira Banerjee and Mr. Justice V. Ramasubramanian, recently ruled (order dated 26.07.2021) that as the definition of “financial debt” in Section 5(8) of Insolvency and Bankruptcy Code, 2016 (IBC) did not expressly exclude an interest free loan, “financial debt” can […]
Acknowledgement of Debt in the Corporate Debtor’s balance sheet extends the period of limitation, rules Supreme Court
A Full bench of the Hon’ble Supreme Court of India in Asset Reconstruction Company (India) Limited v. Bishal Jaiswal, while addressing the question as to whether an entry made in a balance sheet of a corporate debtor would amount to an acknowledgement of liability under Section 18 of the Limitation Act, held today that the […]
