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IBC | CIRP Need Not Be Set Aside Merely Because S 9 Application Was Filed Fraudulenty : Supreme Court

The Court said that while the Adjudicating Authority can recall the admission of a Section 9 application on the ground of fraudulent jurisdictional facts, the CIRP need not automatically be terminated.

IBC | Failure To Pay Balance Sale Consideration Invites EMD Forfeiture If Auction Terms So Provide : Supreme Court

The Supreme Court on Monday (September 28) ruled that where auction terms provide for it, a successful bidder's failure to pay the balance sale consideration in a liquidation proceeding will result in forfeiture of the Earnest Money Deposit, even though the Liquidation Process Regulations do not expressly provide for such forfeiture.The successful auction bidder, Appellant, relying on...

Supreme Court Seeks Centre's Report On NCLT Benches' Infrastructure Facilities

The Supreme Court on Monday called for a status report from the Centre on the infrastructural facilities available to the National Company Law Tribunal (NCLT) benches.The Court also directed the Union Government to identify the basic amenities urgently required by the National Company Law Tribunal (NCLT) after discussing with the NCLT President.Hearing an application filed by the NCLT...

Litigant Mustn't Suffer When Delay Is Due To E-Filing Technical Glitch : Supreme Court Restores NCLAT Appeal

The Supreme Court has recently held that a litigant cannot be shown the door merely because an appeal was e-filed a day beyond the statutorily condonable period, where the delay was caused solely by a technical glitch in the tribunal's own e-filing portal.A bench of Justice Dipankar Datta and Justice Sheel Nagu held so while setting aside an order of the National Company Law Appellate...

Supreme Court Clears Implementation Of Resolution Plan For Stalled 'Sushant Aquapolis' Project In Ghaziabad

In a relief to home buyers of the Ghaziabad-based housing project 'Sushant Aquapolis,' the Supreme Court recently cleared the path for implementation of the resolution plan of the corporate debtor, M/s Ansal Urban Condominium Private Limited, which had promoted the group housing cluster. A bench of Justice JB Pardiwala and Justice K Vinod Chandran accepted the Successful Resolution...

'Homebuyers Can't Be Penalised For Builders' Default' : Supreme Court Rejects NOIDA's Time-Extension Charges In CIRP

The Supreme Court on Thursday set aside directions treating NOIDA's time-extension charges as insolvency process costs in two delayed high-rise projects, holding that homebuyers and the new resolution applicant cannot be made to pay penalties for the original developer's default.The Court held that homebuyers, who constitute a class of financial creditors in the Corporate Insolvency...

S. 9 IBC | Uncrystallized Damages From Breach Of Contract Not Operational Debt : Supreme Court

The Supreme Court on Wednesday (August 12) held that claims for damages arising from breach of contract cannot be treated as "operational debt" under the Insolvency and Bankruptcy Code, 2016, unless previously adjudicated and crystallized by a competent court. “It is a settled position of law that damages, whether liquidated or unliquidated, cannot be treated as operational debt unless...

IBC | PF Dues Protected, But Uncrystallised Interest & Damages Can Be Excluded From Resolution Plan : Supreme Court

The Supreme Court has held that unadjudicated claims for interest and damages under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, which had not been determined before the commencement of the Corporate Insolvency Resolution Process (CIRP), need not be provided for in a resolution plan approved under the Insolvency and Bankruptcy Code, 2016 (IBC).A bench of Justice...

IBC Moratorium Against Company Doesn't Bar Consumer Complaints Against Promoters, Directors : Supreme Court

The Supreme Court on Monday (July 27) observed that an operation of a moratorium under the Insolvency & Bankruptcy Code, 2016, against a residential project development company would not be a ground to reject the consumer complaints against its promoters/directors. “In the present case, Respondent No.1 alone is the corporate debtor against whom the CIRP has been initiated. No...

Supreme Court Recommends IBC Amendment To Protect MSMEs, Says Small Operational Creditors Need Fairer Repayment Mechanism

While reaffirming the "clean slate" principle under the Insolvency and Bankruptcy Code (IBC), the Supreme Court has called upon the Law Commission and the Legislature to examine amendments to the insolvency framework to better protect Micro, Small and Medium Enterprises (MSMEs) and other small operational creditors, observing that they are significantly disadvantaged under the existing...

Supreme Court Takes Suo Motu Case Over NCLT Appointment Delays & Infrastructure Issues

The Supreme Court has registered a suo motu case over the delays in the appointment of members in National Company Law Tribunals and infrastructure issues.The suo motu case, titled "In Re : Appointment of Judicial and Technical Members and Inadequate Infrastructure in National Company Law Tribunal (NCLT) and Ancillary Issues" was registered on May 19, following the April 29 judgment in...