RECENT NEWS & UPDATES

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NCLAT Chennai Bench To Start Functioning Through Virtual Mode

Posted under IBC, Legal, Top Stories, by Malika Mahajan / 7 hours ago

The Chennai Bench of NCLAT will commence its functioning. A notification issued to this effect further states that all fresh appeals against orders of NCLT having jurisdiction in Karnataka, TN, Kerala, AP and Telangana and UT of Lakshadweep and Puducherry will have to be filed before NCLAT Chennai and filing of interlocutory applications/reply/rejoinder etc. for appeals are also covered under this.

Read more at Bar and Bench

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CARE To Challenge NCLT’s Freeze On SREI Downgrade

Posted under IBC, Regulatory, by Neha Sonker / 13 hours ago

Sensing a ‘dangerous precedent’, credit rating agency CARE will challenge the ruling of the National Company Law Tribunal on the freeze on the downgrade of securities issued by SREI Equipment Finance one of the country’s largest finance companies which along with parent Srei Infrastructure faced a special audit directed by the Reserve Bank of India.

Read more at Economic Times

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Dismissal Of Sec 9 IBC Application On Technical Defect Not Warranted: NCLAT: Reviewed By Parshav Jain

Posted under IBC, Legal, Top Stories, by Malika Mahajan / 2 days ago

NCLAT has held that dismissal of an application under Section 9 IBC as non-maintainable for a technical defect such as incomplete Form 5 is not warranted. The order was passed by three-member Bench of Justices. The appellant had applied to Section 9 of IBC to initiate CIRP against the corporate debtor. The NCLT, Ahmedabad rejected the application for being non-maintainable on account of the existence of defects. The order was assailed before NCLAT, on the ground that the Adjudicating Authority violated the mandate of law in not providing an opportunity to the appellant to rectify the defect. The NCLAT said that in case of any shortcomings regarding the filing of Vakalatnama or making an endorsement regarding the date in the prescribed format, the appellant could be provided with an opportunity in terms of the mandate of proviso under Section 9(5) IBC. The order of the Adjudicating Authority was accordingly set aside.

Read more at Bar and Bench

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RP Can't Decide Legality Or Illegality Of Applicant's Status As Willful Defaulter: Reviewed By Parshav Jain

Posted under IBC, Legal, Top Stories, by Malika Mahajan / 2 days ago

NCLAT has held that RP under IBC cannot go into legality or illegality of resolution applicant's status as willful defaulter when the same is already pending before HC. The order was passed in an appeal u/s 61 IBC challenging liquidation order passed by NCLT, Bengaluru. The appeal was preferred by an erstwhile promoter of corporate debtor (appellant). The corporate debtor and appellant were declared ‘wilful defaulters’ by SBI, Oriental Bank of Commerce, and Travancore. Thereafter, CIRP was initiated against the corporate debtor by respondent u/s 7 of IBC. During CIRP, the appellant submitted its EOI. However, the same was not considered by COC and RP in terms of section 29A(b) IBC on account of the appellant being a ‘wilful defaulter’. NCLAT noted that appellant was declared a wilful defaulter in terms of RBI and thus, it had no locus standi to challenge the order. Finding no legal infirmity in NCLT order, the appeal was dismissed.

Read more at Bar and Bench

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Jet Airways Engineers' Body Files NCLT Application For Quick Resolution: Reviewed By Parshav Jain

Posted under IBC, Legal, Top Stories, by Malika Mahajan / 4 days ago

The JAMEWA has applied with the NCLT to expedite airlines' insolvency process before the end of this month to get 'summer slots'. According to an application filed, "for summer months international slots will be allocated by the end of January 2021. At present, the corporate debtor's slots, both international and domestic, have been temporally allocated to other airlines." The application urged NCLT to hear applications that it deems necessary to complete CIRP, the delay of which will cause further loss to the company and thousands of airline workers. The airline, which ceased all operations in April 2019, owes more than Rs 8,000 crore to banks, with public sector lenders having significant exposure. The NCLT had on June 20, 2019, admitted an insolvency petition against Jet Airways filed by lenders' consortium led by SBI.

Read more at Business Standard

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