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ERGO Analysing Developments Impacting Business: A Three Judge Bench of Supreme Court Upholds the Prevailing View that NCLT has Inherent Powers to Recall an Order Approving a Resolution Plan

Introduction

India, Company & Commercial, Insolvency & Restructuring, Litigation, Khaitan & Co, Coronavirus, Insolvency, National Company Law Tribunal
NCLAT Reiterates that a Decree-Holder cannot be treated as a Financial Creditor for triggering CIRP under IBC

The National Company Law Appellate Tribunal, Delhi (NCLAT) in the case of Sh. Sushil Ansal Vs Ashok Tripathi and Ors, has reiterated that a decree-holder though covered under the definition of creditor under Section 3(10) of the Insolvency and Bankruptcy Code (IBC) would not fall within the class of financial creditors and therefore, a decree holder cannot initiate a corporate insolvency resolution process (CIRP) against a corporate debtor with an object to execute a decree.

India, Insolvency & Restructuring, Litigation, Khaitan & Co
NCLT Mumbai orders reference to arbitration in an insolvency petition under the IBC

In a significant judgment dated 9 June 2020 titled ‘Indus Biotech Private Limited v.

India, Arbitration & ADR, Insolvency & Restructuring, Litigation, Khaitan & Co, Private equity, Title 11 of the US Code