In the recent decision of the Anjani Kumar Prashar (Suspended Director of Grandstar Realty Pvt. Limited) v. Manab Dutta1, the National Company Law Appellate Tribunal (“NCLAT”) has held that the auction purchaser would also be a financial creditor vis‐à‐vis the creditors of the entity whose assets were purchased by the auction purchaser.

In the recent decision of Ashok Dattatray Atre & Ors. v. State Bank of India & Ors.1 National Company Law Appellate Tribunal (“NCLAT”) has reiterated that the extension of payment timelines under a resolution plan does not constitute a modification thereof, and the National Company Law Tribunal has the power to grant such extension even without the express concurrence of the committee of creditors (“CoC”).

Brief Facts

The National Company Law Tribunal, Kolkata Bench (“NCLT”), in EPC Constructions India Limited through its Liquidator – Abhijit Guhathkurtha v. M/s Matix Fertilizer and Chemicals Limited has ruled that preference shareholders cannot step into the shoes of a financial creditor unless their preference shares become redeemable.

Brief Facts

In an application filed by Vishram Narayan Panchpor, resolution professional of Blue Frog Media Private Limited (“Corporate Debtor”) in the matter of M/s Blue Frog Media Private Limited¹ for approval of a resolution plan, the Mumbai bench of the National Company Law Tribunal (“NCLT Mumbai”) ruled that the object of Section 29A of the Insolvency and Bankruptcy Code, 2016 (“IBC”) requires a resolution professional to conduct adequate due diligence on a prospective resolution applicant and its related parti

The appeal challenged an order (“Impugned Order“) passed by the Delhi High Court in a writ petition (“Writ“) filed by Singer. Vide the Impugned Order, the Division Bench of the High Court had referred the Writ to a larger bench as it doubted the correctness of the judgment in Continental Carbon India Ltd. v. Modi Rubber Ltd., 2012 (131) DRJ 291 (DB) (“Modi Rubber”).

The Supreme Court of India (‘Supreme Court’) in the case of Kotak Mahindra Bank Limited vs. Girnar Corrugators Pvt. Ltd. and Ors. has held that the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (‘SARFAESI Act’) for recovery of dues payable to a secured creditor will prevail over the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED Act’).

Brief Facts

The Reserve Bank of India (“RBI”) has amended the regulatory framework (“Framework”) for asset reconstruction companies (“ARCs”) on October 11, 2022. Since inception, ARCs have grown in number and size, however their potential for resolving stressed assets is yet to be realised. Accordingly, based on the recommendation of a committee, RBI has reviewed the existing regulatory regime applicable to ARCs and put forth the Framework.

In the recent decision of Somesh Choudhary v. Knight Riders Sports Private Limited & Ors., the National Company Law Appellate Tribunal (“NCLAT”), New Delhi has held that claims arising from the grant of an exclusive right and license to use intellectual property rights falls within the definition of “operational debt” under Section 5(21) of Insolvency and Bankruptcy Code, 2016 (“IBC”).

Background Facts

The 5 (five) judge bench of the National Company Law Appellate Tribunal (“NCLAT”) has recently decided the long- standing issue of whether re-presentation of appeal constitutes a fresh filing before the NCLAT and its implication on the period of limitation. The NCLAT has held, inter alia, that ‘re-filing’ an appeal (after curing defects) beyond the prescribed 7 (seven) days period will not amount to a ‘fresh filing’ for the purposes of the limitation.

Facts

The Supreme Court in its recent judgement Kotak Mahindra Bank Limited v. Kew Precision Parts Private Limited & Others¹, has held that an application to initiate corporate insolvency resolution process (“CIRP”) against a corporate debtor is maintainable in respect of a time barred debt, if the debtor has after the expiry of the limitation period, agreed to repay the same. 

Brief Facts