In a recent decision the NCLAT, in the case of IDBI Trusteeship Services Ltd. vs. Direct Media Distribution Ventures Pvt. Ltd. held that even if the creditor realizes certain amounts after the original date of default / invocation, the date of a subsequent demand notice (for the adjusted amount) cannot be treated as the “date of default” for purposes of the Insolvency and Bankruptcy Code, 2016 (“IBC”).
Brief Facts
On October 3, 2023, the Ministry of Corporate Affairs (“MCA”) issued a notification exempting transactions, arrangements or agreements under the Cape Town Convention (as defined below), relating to aircraft, aircraft engines, airframes and helicopters from moratorium under Section 14(1) of the Insolvency and Bankruptcy Code, 2016 (“IBC”) (“Notification”).
The Ministry of Corporate Affairs (“MCA”) issued a notification on October 03, 2023 under Section 14(3)(a) of the Insolvency and Bankruptcy Code, 2016 (“IBC”), exempting the applicability of moratorium under Section 14(1) of the IBC to transactions, arrangements or agreements under the Cape Town Convention on International Interests in Mobile Equipment (“Convention”) and the Protocol to the Convention on Inte
On October 3rd, 2023, the Ministry of Corporate Affairs (MCA) amended Section 14(1) of the Insolvency and Bankruptcy Code, 2016 thereby exempting the transactions, arrangements, or agreements related to aircraft, aircraft engines, airframes, and helicopters in the aviation industry from the operation of the moratorium imposed upon the admission of an insolvency plea.
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.
INTRODUCTION
One of the biggest changes brought in by the Insolvency and Bankruptcy Code, 2016 (“Code”) was the demarcation between treatment of interest vis-à-vis financial debt and operational debt. Over time, Courts have interpreted the Code with the aim to strengthen the foundation and resolve uncertainties. One such exercise, which has greatly impacted the insolvency regime, is the inclusion of interest in operational debt.
PHASE 1 – EXCLUSION OF INTEREST
I. INTRODUCTION
In the recent case of Uphealth Holdings, Inc. v. Dr. Syed Sabahat Azim, the Calcutta High Court (“CHC”) ruled on the enforceability of moratorium orders from non-reciprocating countries like the United States of America (“US”) in Indian courts.
Introduction
In a case where the Liquidator after issuing the certificate that the appellant had won the auction of the subject property, cancelled the e-auction without giving any justification or reason for such cancellation, the Supreme Court has stated that it is incomprehensible that an administrative authority can take a decision without disclosing the reasons for taking such a decision.