When Does Debt Become Financial Debt & Operational Debt Under IBC? Supreme Court Explains

"Where one party owes a debt to another and when the creditor is claiming under a written agreement/ arrangement providing for rendering 'service', the debt is an operational debt only if the claim subject matter of the debt has some connection or co-relation with the 'service' subject matter of the transaction.", the Bench comprising Justices Abhay S. Oka and Pankaj Mithal said. Read More>>

Process For IBC Offences To Be Issued By Sessions Court Despite Companies Act Amendment Vesting Jurisdiction On Judicial Magistrate: Supreme Court

The Court rejected the contention of the accused contention that the Sessions Judge wasn't empowered to issue process to the accused for the offences punishable up-to two years under the IBC but the judicial magistrate. Read More>>

Weekly Digest Of IBC Cases: 8th To 21st April 2024

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member) and Shri Arun Baroka (Technical Member), has held that amount payable under resolution plan to Operational Creditors in terms of Section 30(2)(b) of IBC, can only be by way of cash and not partly paid Redeemable Preference Shares or equity. Read More>>

Allottee Obligated To Comply With Threshold Under Section 7(1) Of IBC Even After RERA Passes An Order In Its Favour: NCLAT Delhi

The Corporate Debtor failed to develop the Project within stipulated timelines. The Appellants filed complaints under Section 31 read with Section 18 of the Real Estate (Regulation and Development) Act, 2016 (“RERA Act”), seeking refund of amount paid to the Corporate Debtor. Read More>>

Delay In Issuance Of Sale Certificate Due To Restraint Order By NCLT, Auction Purchaser Not Entitled To Interest On Sale Consideration: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has held an Auction Purchaser cannot claim interest on sale consideration from the Liquidator for delayed issuance of Sale Certificate, if the delay has occurred due to a restraint order passed by NCLT. Read More>>

Gujarat High Court Quashes Demand Notice And Assessment Order In Absence Of Any Claim Not Forming Part Of Resolution Plan

The petitioner submitted that, as per clause 12.3(viii) of the resolution plan as approved by the NCLT, the resolution applicant will not be liable in respect of any reassessment, reopening, revision, review, or other proceedings under the direct and indirect statutes. Read More>>