In a recent case of Hemalata Hospitals Limited vs. Sh. Siba Kumar Mohapatra RP of Medirad Tech India Limited (“Hemalata Case”),1 the National Company Law Tribunal New Delhi Bench (Court-II) (“NCLT Delhi”) adjudicated on the continuation of related party agreements during the corporate insolvency resolution process (“CIRP”) and upheld the termination of related party agreements by the resolution professional (“RP”) during the CIRP.

In a judgement of the Hyderabad bench of the National Company Law Tribunal (“NCLT”) in the cases of PTC India Financial Services Ltd. v. Vikas Prakash Gupta & Ors.1 and Indo Unique Flame Limited v.

INTRODUCTION:

In a recent judgement of Paschimanchal Vidyut Vitran Nigam Ltd. v. Raman Ispat Private Ltd. and Ors. (being Civil Appeal No.7976 of 2019), the Hon’ble Supreme Court has held that Section 238 of the Insolvency and Bankruptcy Code, 2016 (“IBC/Code”) overrides the provisions of the Electricity Act, 2003, despite the latter containing two specific provisions being Section 173 and 174 which have overriding effect over all other laws.

FACTUAL BACKGROUND:

In the blog post titled ‘Vidarbha Aftermath’, the decision of the Supreme Court of India (“Supreme Court”) in Vidarbha Industries Power Limited v. Axis Bank Limited[1] (“Vidarbha”) was discussed and analysed.

August, 2023 For Private Circulation - Educational & Informational Purpose Only A BRIEFING ON LEGAL MATTERS OF CURRENT INTEREST KEY HIGHLIGHTS * Calcutta High Court: Courts cannot re-appreciate the evidence or substitute its view with that of the arbitrator while considering the issue of enforcement of a foreign award.

The original version of this article was first published in the Trilegal Quarterly Roundup.

Key Developments

1. Supreme Court clarifies the scope of adjudicating authority’s power to decide on a financial creditor’s insolvency application when debt and default have been established

The Honourable Supreme Court, in the matter of Abhishek Singh v.Huhtamaki PPL Ltd. and Ors. recently rendered a significant ruling, establishing that a plea for the withdrawal of the Corporate Insolvency Resolution Process (‘CIRP’) can be allowed by the adjudicating authority even prior to the establishment of the committee of creditors (‘CoC’).

On 17 July 2023, the Hon’ble Supreme Court delivered its judgement in Paschimanchal Vidyut Vitran Nigam Ltd. v. Raman Ispat Private Limited & Ors., 2023 SCC OnLine SC 842 (Raman Ispat). The specific issue of whether Paschimanchal Vidyut Vitran Nigam Ltd. (Appellant) could enforce a security interest created over the assets of Raman Ispat Private Limited (Corporate Debtor) outside of the liquidation proceedings under the Insolvency and Bankruptcy Code, 2016 (Code) was settled in the negative. More importantly, the Hon’ble Supreme Court confined the applicability of State Tax Officer v.

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

Introduction