March, 2023 For Private Circulation - Educational & Informational Purpose Only A BRIEFING ON LEGAL MATTERS OF CURRENT INTEREST KEY HIGHLIGHTS ⁎ Delhi High Court: Arbitrator has no jurisdiction to set aside sale notice issued by secured creditor under Section 13(4) of the SARFAESI Act. ⁎ NCLAT: Majority shareholders of a company have the locus to challenge an admission of CIRP against the corporate debtor where the admission took place on account of collusion amongst the creditors. ⁎ NCLAT: The nature and character of financial debt does not change upon breach of consent terms.

The Division Bench of the Delhi High Court (“Delhi HC”) in the case of Tata Steel BSL Limited v. Venus Recruiters Private Limited & Ors., etc. has put to rest the issue on avoidance applications proceedings surviving the conclusion of corporate insolvency resolution process (“CIRP”) under the Insolvency and Bankruptcy Code, 2016 (“IBC”).

January, 2023 For Private Circulation - Educational & Informational Purpose Only Between the lines... A BRIEFING ON LEGAL MATTERS OF CURRENT INTEREST KEY HIGHLIGHTS ⁎ Delhi High Court: Invoking CIRP would not make the dispute non-arbitrable. ⁎ NCLAT: Section 96(1)(b) of the IBC does not stay any future liability or obligation. ⁎ NCLAT: The IBC does not provide for any look-back period on how far back fraudulent transactions can be investigated. ⁎ The changing contours of employment law in India. January, 2023 http://www.vaishlaw.com/ I.

Recently, the Hon'ble High Court of Delhi (“High Court”) caused yet another bend in the meandering interplay between the Insolvency and Bankruptcy Code, 2016 (“IBC”) and the Prevention of Money Laundering Act, 2002 (“PMLA”). The High Court held that a moratorium imposed under Section 14 of the IBC (“Section 14”) will not preclude the Enforcement Directorate (“ED”) from attaching properties under Sections 5 and 8 of the PMLA.

FACTS

In a recent decision, the Delhi High Court ("Delhi HC”) has stayed 2 (two) summary suits against a personal guarantor on the ground that interim moratorium under Section 96 of the Insolvency and Bankruptcy Code, 2016 ("IBC”) arising out of another creditor’s IBC proceedings has the effect of staying all pending legal proceedings in respect of ‘all of the debts’ of the particular guarantor.

Brief Facts

The Hon’ble Delhi High Court vide its order dated May 13, 2022, in Millennium Education Foundation Vs Educomp Infrastructure And School Management Limited, has held that the mere pendency of an insolvency petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 is not a bar for appointment of Arbitrator under the Arbitration and Conciliation Act, 1996.

Between the lines... For Private Circulation-Educational & Information purpose only Vaish Associates Advocates… Distinct. By Experience. I. NCLAT: No possibility negotiating the resolution plan in the intervening period between approval by the CoC, and pending the approval of the NCLT. The Hon’ble National Company Law Appellate Tribunal, New Delhi (“NCLAT”) has in its judgment dated January 27, 2022, in the matter of Union Bank of India v. Kapil Wadhawan and Others [Company Appeal (AT) (Insolvency) No.

Supreme Court: Interest free term loans advanced to a corporate person are not excluded from the purview of a financial debt under Section 5(8) of the Insolvency and Bankruptcy Code, 2016. II. Bombay High Court: A secured debt shall take priority over the ‘Government’ dues/tax dues under the SARFAESI Act. III. NCLAT: Rejects application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 on grounds of collusion between the corporate debtor and the financial creditor. IV.

I. Delhi HC: If the original contract in entirety is put to an end, the arbitration clause, which is a part of it, also perishes along with it The Hon’ble High Court of Delhi (“DHC”) has in its judgement dated October 22, 2020 (“Judgement”) in the matter of Sanjiv Prakash v. Seema Kukreja and Others [ARB. Pet. 4/2020], held that if the contract is superseded by another, the arbitration clause, being a component/part of the earlier contract, falls with it.

​I. Institutional changes