Whether the Resolution Professional has jurisdiction to determine” the claim Filed by Financial Creditor
The National Company Law Appellate Tribunal (NCLAT) in a recent judgment while upholding the Judgment passed by the NCLT, Chennai has held that the ‘Resolution Professional’ have no jurisdiction to “determine” the claim. The Resolution Professional could have only “collated” the claim, based on evidence and the record of the ‘Corporate Debtor’ or as filed by the Financial Creditor.
WHETHER A SOLE PROPRIETOR FIRM ENTITLED TO INITIATE IBC PROCEEDINGS, NCLT ANSWERS IN NEGATIVE
The Adjudicating Authority i.e., National Company Law Tribunal, New Delhi while deciding an Application under Section 9 of the I & B Code has held that a ‘Sole Proprietary Concern’ is not a person within the meaning of Section 3(23) of the Insolvency and Bankruptcy Code, 2016 (I&B Code). Hence, the Adjudicating Authority held that the Proprietary Concern is not entitled to initiate insolvency proceedings before the Adjudicating Authority under the I&B Code.
Whether the suspended board of directors entitled to managerial remuneration while the Company is undergoing CIRP
While the powers of the Board are suspended and the Directors continue to perform their duties, are they entitled to managerial remuneration while the CIRP is under progress? The relevant provision dealing with the directors of the Corporate Debtor which is undergoing CIRP is explained under Section 17 (1)(b) of the Insolvency and Bankruptcy Code
Whether an IRP can dispossess any person from Corporate Debtor's property which is under litigation
The above question of law has been referred by the Bench of NCLT, Mumbai. Ld. Member Judicial, Shri Bhaskara Pantula Mohan while deciding the Application filed by one Pravin Blaggan (who was in occupancy of the Shed) held that the IRP is allowed to take possession of the shed, whereas, Ld. Member Technical, Shri Nallesenapathy held that the IRP was not empowered to dispossess any person in the case in hand, especially when the same is sub judice before a civil court.
Treatment of Expression of Interest Received Outside The Timeline As Mentioned In FORM G -EasyLegalTax
Whether fresh expression of interest can be accepted beyond the last date of receipt of expression of interest as per the Invitation for Expression of Interest (Form G) under Regulation 36A(1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
Moratorium Under Insolvency and Bankruptcy Code -EasyLegalTax
Insolvency and Bankruptcy Code, 2016 (“IBC”) has given new hope to the financial market in India. Before IBC the debt recovery system in India was in a complete clutter, which was affecting the Indian Economy. The IBC has introduced the concept of moratorium under Section of the I & B Code in a Company which undergoes the corporate insolvency resolution process (in short CIRP) as soon as a Petition/Application either filed by a Financial Creditor or an Operational Creditor or a Corporate Applicant is admitted.
Prima Facie View of NCLAT: Enforcement Directorate To Be treated As Operational Creditor
The Hon’ble NCLAT while hearing the appeal filed by the successful Resolution Applicant expressed its prima facie that if the assets seized by the Enforcement Directorate are finally held that the assets were purchased out of the ‘proceeds of crime’ as per the Prevention of Money Laundering Act, in such case, the amount which is generated out of the assets will come under the definition of the ‘Operational Debt’ for which the Enforcement Directorate may file claim in terms of the I&B Code.
Why Home buyers are unsecured creditors under IBC -EasyLegalTax
Indian real estate buyers are witnessing lots of confusion regarding the recovery of their money lying with builders, adding more atrocity to situation now the builders don't have money to pay back, the projects are stucked in middle or with no development. Result fully courts are full with complaints against builders Arrival of new RERA law, adding hopes in the life of home buyers for recovering their hard earn money from builders, but the things hasn't really worked out in its full since the RERA orders moreover remain on papers at this nascent stage of RERA Law.
Obligation under “TAKE OR PAY” agreement:-is it operational Debt under IBC - EasyLegalTax
For filing Complaint for recovery of money under IBC the one should be either financial creditor or operational creditor. To qualify as creditor in either of the category- financial or operational creditor the one must be qualified as per the definition of owing financial debt or operational debt. It is always been and debated issue that weather a particular nature of debt will be termed as d e b t under the IBC law or not.
Functions, Powers and Duties Insolvency Resolution Process -EasyLegalTax
Insolvency Resolution Professional(“IRP”) has been given wide powers under the Insolvency and Bankruptcy Code, 2016 (“I & B Code”) so that he/she can conduct the Corporate Insolvency Resolution Process (“CIRP”) smoothly. Although the IRP is always under the supervision of the Committee of Creditors, Adjudicating Authority and Insolvency and Bankruptcy Board of India.