Extinguishment of personal guarantee permissible in a resolution plan under IBC.

The National Company Law Appellate Tribunal, Principal Bench, New Delhi (“NCLAT”) has in the case of SVA Family Welfare Trust & Anr v. Ujaas Energy Limited & Ors inter alia held that a resolution plan can contain a clause which extinguishes security interest, such as personal guarantees, after paying compensation to the financial creditor in whose favour such security interest was created.

Filed under:
India, Insolvency & Restructuring, Litigation, JSA, Insolvency and Bankruptcy Code (India), National Company Law Tribunal
Authors:
Varghese Thomas , Yohaann Limathwalla , Meher J. Mistri
Location:
India
Firm:
JSA
Section 9 of the IBC cannot be invoked to execute an arbitral award during the pendency of an 'appeal' under Section 34 of the Arbitration Act

The National Company Law Appellate Tribunal at Chennai (“NCLAT”) has in M/s. KK Ropeways Limited v. M/s Billion Smiles Hospitality Private Limited1inter alia held that an arbitral award cannot be enforced under Section 9 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) when a challenge under Section 34 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”) has been preferred against such an award.

Brief Facts

Filed under:
India, Arbitration & ADR, Insolvency & Restructuring, Litigation, JSA, Arbitration and Conciliation Act 1996 (India), Insolvency and Bankruptcy Code (India), Delhi High Court, National Company Law Tribunal
Authors:
Farhad Sorabjee , Shanaya Cyrus Irani , Siddhesh S Pradhan , Meher J. Mistri
Location:
India
Firm:
JSA