[Kartikey Sanjeev Bhalotia and Arshit Kapoor are 2nd year students at the National Law University Odisha] While overruling a decision of the National Company Law Appellate Tribunal (NCLAT), the Supreme Court in Maharashtra Seamless Limited v. Padmanabhan Venkatesh (decided on 22 January 2020) accepted the decision of the committee of creditors (CoC) approving the appellant’s resolution plan which...
Safeguarding Promoters’ Interest in Insolvent Companies: Recent Judgments of the NCLAT
[Soham Chakraborty is a II year, BA LLB (Hons.) student at NALSAR University of Law, Hyderabad] A series of judgments of the National Company Law Appellate Tribunal (“NCLAT”), as discussed herein, have led to some important developments regarding the rights of promoters when it comes to regaining control of their company under the Insolvency and Bankruptcy Code, 2016 (“the Code”). These judgments...
NCLAT’s Ruling on Exclusion of Lease and Rental Operational Debt
[Chetan Saxena is a 4th-year student from the Institute of Law, Nirma University, Ahmedabad] The National Company Law Appellate Tribunal (NCLAT) in Ravindranath Reddy v. G. Kishan (17 January 2020) held that rental dues arising out of a lease agreement do not fall under the definition of “operational debt” under section 5(21) of the Insolvency and Bankruptcy Code, 2016 (IBC). The determination of...
The Limits of Comity: Refusal to Recognise Foreign Insolvency Proceedings
[Aditi Mozika is a IV year B.Sc. LL.B. (Hons.) student at Gujarat National Law University] The recent decision of the National Company Law Appellate Tribunal (NCLAT) in the Jet Airways case has ushered in the era of cross border insolvency in India.[1] Accordingly, the Resolution Professional and the Dutch Trustee – the administrator in bankruptcy of Jet Airways appointed by the Dutch...
Applicability of the Limitation Act to the Insolvency and Bankruptcy Code
[Vivek Kumar is a Legal Manager at Alchemist Asset Reconstruction Company Limited and Akshay Sharma a 5th year law student at the National University for Study and Research of Law, Ranchi] The applicability of the Limitation Act, 1963 has been a well-traversed issue since the inception of the Insolvency and Bankruptcy Code, 2016 (IBC). The IBC was introduced as a complete code, with the object of...
Liability of Personal Guarantors vis a vis their Rights under the IBC: A Legal Conundrum
[Pinak Parikh is an Associate at Singhi & Co, Ahmedabad, and is a B.A L.L.B (Corp Hons) graduate (2019) from the Institute of Law, Nirma University] In December 2019, ArcelorMittal India Private Limited (“AMIPL”) paid over Rs. 42,000 crores to the State Bank of India to complete the acquisition of Essar Steel India Private Limited (“Essar Steel”), in what has been one of the biggest...
The Supreme Court Ruling in Pioneer: The Curious Case of Allottees under the IBC
[Saurabh Gupta is a third year student at the National Law School of India University. He is an Editor of the Indian Journal of International Economic Law and Law School Policy Review] The Supreme Court in Pioneer Urban Land and Infrastructure v Union of India [2019 SCC OnLine SC 1005] (“Pioneer”) upheld the constitutional validity of the Insolvency Code (Second Amendment) Act of 2018 (“2018...
Section 32A of the IBC (Second Amendment) Bill, 2019: A Step in the Right Direction?
[Khushi Maheshwari is a 3rd year student at the National Law School of India University, Bangalore and Apoorva Satapathy a 4th year student at the National Law University of Odisha, Cuttack] The Insolvency and Bankruptcy Code, 2016 (“IBC”) has been amended thrice since its introduction in 2016. Each amendment has sought to remove bottlenecks in the corporate insolvency process and streamline the...
Indian Insolvency Proceeding Secures First Recognition under Chapter 15 of the US Bankruptcy Code
[Rahul Kanoujia and Tharun Chowdary are 3rd-year law students at Gujarat National Law University] Chapter 15 of the United States (US) Bankruptcy Code provides a framework through which bankruptcy courts recognize foreign insolvency proceedings. In 2005, the US adopted the Model Law on Cross-Border Insolvency introduced in 1997 by the UNCITRAL to encourage the treatment of multinational...
Limited Period for Winding up Proceedings during Pendency of a Civil Suit
[Aman Saxena is a practicing advocate at the High Court of Chhattisgarh and a 2018 graduate of the National Law School of India University. The author was one of the counsel retained by the petitioners for this matter] In a judgment delivered by a three-judge bench in Jignesh Shah & Anr. v. Union of India, the Supreme Court laid down the law on the applicability of Article 137 of the...
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