IRP who had given consent prior to cut off date was not guilty of professional misconduct for acting IRP without AFA

Rajesh Samson, In re - [2021]-(IBBI) 

As per regulation 7A, one of the essential conditions for undertaking any assignment by an Insolvency professional (IP) is tha...

Director/Partner not liable for offences u/s 138 unless involved in day-to-day affairs of company /partnership firm

Ajay Rampal Sarda v. Pankaj - [2021]  (Bombay) 

A person who simply appears to be a director of a company or partner of a partnership firm may not be prosecuted for an offence ...

Directors disqualified prior to May 7, 2018 for non-filing of financials by Cos. can take advantage of ‘CFSS-2020’: HC

TAPASH KUMAR SAMADDAR v. MINISTRY OF CORPORATE AFFAIRS - [2021] (Delhi) 

In the present case, the Delhi High Court stated that directors who were disqualified before May 7, 2018 for...

Liquidator penalised for professional misconduct for accepting assignment without valid AFA after cut-off date

Venkata Sivakumar, In re - [2021] (IBBI) 

The Insolvency and Bankruptcy Board of India issued a notice of "V" for accepting assignment as Liquidator in Corporate In...

Corporate debtor which wasn’t a MSME on date of initiation of CIRP can’t be treated as MSME later: NCLT

POSCO India Pune Processing Center (P.) Ltd. v. Dhaval Jitendrakumar Mistry Resolution Professional of Poggenamp Nagatsheth Powertronics (P.) Ltd.  (NCLT - Ahd.)

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HC upholds conviction of accused u/s 138 of NI Act for non-payment of dues towards fabrics purchase

Rajesh Kumar v. Mehrotra Impex (P.) Ltd. - [2021] (Delhi) 

In the instant case, the petitioner was running a garment factory where he had purchased some fabric materials...

Proceedings under Code are only meant to resolve insolvency issues and not to adjudicate a claim: NCLAT

Vijayalakshmi Enterprises v. Malabar Hotels (P.) Ltd. - [2021] (NCL-AT) 

Initiation of Corporate Insolvency Resolution Process (CIRP) would not be equivalent to adj...

Waiver of pre-deposit for filing appeal before DRAT is not sustainable in law, rules SC

Kotak Mahindra Bank (P.) Ltd. v. Ambuj A. Kasliwal - [2021]  (SC) 

The appellant-Bank filed an appeal before the Supreme Court against the order of the High Co...

Provisional attachment under PMLA after approval of resolution plan is contrary to section 32A, rules HC

Union Bank of India E Andhra Bank v. Union of India 

In the immediate case, the Corporate Insolvency Resolution Process was launched against the corporate debtor, while ...

Bar u/s 10A of IBC against initiation of CIRP of a corporate debtor is retrospective: Apex Court

In the instant case, the Apex Court held that Section 10A of the IBC bars filing for a corporate debtor for arising on or after 25-3-2020. The Bar created is retrospective as a cut-off date has bee...

Donation, delivery or transfer by foreign source of any currency or any security, is a '‘foreign contribution’': HC

In the instant case, an agreement was reached between Kerala project LIFE MISSION and a voluntary humanitarian organization, namely, UAE Red Crescent by which latter agreed to give assistance to re...

Pledge of shares without undertaking to discharge liability will not make entity financial creditor under IBC

The Supreme Court in an important ruling held that pledge of shares will not make an entity financial creditor of the corporate debtor for the purpose of the Insolvency and Bankruptcy Code (IBC). &...

Collusive commercial arrangement between creditors and corporate debtor wouldn't constitute a financial debt, rules SC

In given case, the NCLT had excluded AAA and Spade from Committee of Creditors (CoC) formed in relation to corporate insolvency resolution process (CIRP) initiated against corporate debtor and NCLA...

Petitioner would be financial creditor in respect of amount paid by it to lender of corporate debtor

The Corporate debtor was allotted a plot of land by TSIIC for purpose of setting up a unit for manufacturing bulk drugs, formulations etc. To set up the said unit, the corporate debtor availed loan...

Goal plan can't be dismissed if goal candidate can show plausibility to run organization in future

If a resolution applicant can show the feasibility to run company in the future. The resolution plan cannot be rejected because the corporate debtor is not a worry.  

In the instant case...

Director who was close family members of investors of corporate debtors are ineligible to be goal candidate

In the instant case, the applicants submitted a resolution plan, and the same plan was rejected by the Committee of Creditors (CoC) on grounds that applicants were ineligible to file a resolution p...

Another CIRP couldn’t be maintained against corporate debtor when CIRP against it was already admitted

In the instant case, the Corporate-Debtor Company was involved in real estate activities and the Petitioner-financial creditor, an individual, agreed with corporate debtor to buy residential flat d...

Matter about sections in balance record add up to affirmation of debt for limitation period alluded to a bigger seat

The corporate debtor had availed a loan from the lenders, and it failed to repay dues and banks assigned debt in favour of Asset Reconstruction (the financial creditor). 

    &...

Once resolution has been approved in respect of corporate debtor it becomes binding on all creditors including Govt

In the instant case, pursuant to petition to initiate corporate insolvency proceedings, the appellant-Corporate debtor's resolution plan was approved by the NCLT.  

Thereafter, the marke...

High Court refuses to reopen its own decision regarding eligibility of exemption u/s 58A

In the instant case, the Registrar of Companies complained to petitioners, a non-banking financial company and its officers, under section 58A of the Companies Act, 1956/ Corresponding Section 73 o...

Royalty paid to acquire technical know-how to be used in manufacture is capital expenditure

Assessee paid royalty to Hitachi Construction Machinery Company Private Limited, Japan (HCM). Such an amount was paid for the use of technical know-how and a grant of rights for manufacturing Hitac...

An IP who is more than 70 yrs of age can't make an application for grant of 'Authorization for Assignment'

Regulation 7A of IP regulations requires every Insolvency Professional (IP) to have ‘Authorization for Assignment’ (AFA) before undertaking any assignment after 31-12-2019.Without AFA, an IP is...

NCLT admits ISRO-arm Antrix Corp. supplication to liquidate Devas mixed media for getting contract from Govt. through misrepresentation

In the instant case, the NCLT admitted plea filed by ISRO-arm Antrix Corporation Limited to wind up Devas multimedia under section 271 and Section 272 of Companies Act, 2013 for obtaining contract ...

IBBI confines Insolvency Professional to acknowledge new project for disregarding segment 208

In the instant case, the NCLT admitted application under section 7 of the Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) of corporate debtor.&nbs...

SC protects new owners from liability of prior offences of erstwhile management of corporate debtors

In this landmark ruling, the Supreme Court upheld sections 3, 4, and 10 of the IBC (Amendment) Act, 2020. Section 3 of the Amendment Act amended section 7(1) of the IBC requiring a minimum threshol...

IBBI discards SCN issued to enlisted valuer association for selecting ineligible individuals with an alert

In the instant case, a Show Cause Notice was issued to the Managing Director of ‘PVAI Valuer Professional Organization’ (PVAI-VPO) registered with the Insolvency and Bankruptcy Board of India (...

NCLAT maintains confirmation of appeal u/s 7 on inability to give ownership of granted flats

In the instant case, the Respondent was purchaser of flat in the appellant-corporate debtor's project and booking of flat was made under a Construction linked plan with stipulated period for comple...

Director not associated with everyday affairs isn't liable of misrepresentation in issue of GDRs by Company: SAT

In the issuance of GDR by the company 'M', a bank account was opened with Lisbon Bank, Banco, for purpose of receiving subscription money in respect of GDR and bank was authorized to use subscripti...

A liberated director will be held obligated uniquely in regard of a demonstration by Co. which happened with his assent

updated In the instant case, the Scheme was floated by the company Assurre Agrowtech Limited, and it came to notice by the SEBI that the Scheme was nothing else but a collective investment scheme w...

Prohibition on auditor not economical proof to induce that such auditor acted dishonestly

The appellant was appointed as statutory auditor of a company who issued an auditor report for financial years 2014-15 and 2015-16. Thereafter, inspection of respondent company was ordered based on...

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