Latest court orders, judgments, and legal developments from Indian courts — AI-curated and summarized.
The NCLT Principal Bench has permitted dissolution of a corporate entity after the assignment of avoidance proceedings along with residual assets during the liquidation process. This ruling clarifies the conditions under which dissolution can be executed when no further assets are available for distribution.
The NCLAT has upheld the Corporate Insolvency Resolution Process (CIRP) in a case involving ₹3.19 crore supply dues between joint venture partners, affirming that such dues constitute operational debt under the IBC.
The NCLT Mumbai has ordered a director to refund diverted rental income obtained through forged lease agreements, mandating return of funds with 12% interest. This ruling emphasizes accountability in corporate governance.
The NCLAT has upheld the Committee of Creditors' (CoC) discretion to favor a feasible resolution plan over a higher net present value (NPV) offer, rejecting Vedanta’s ₹17,926 crore proposal. This reinforces the CoC's commercial wisdom in deciding on plans during insolvency.
The National Company Law Appellate Tribunal (NCLAT) ruled that resolution applicants cannot alter financial proposals through last-minute addendums after the challenge process has begun. This decision reinforces the integrity of the bidding process in corporate insolvency resolution.
NCLAT maintains that supply dues between consortium partners are actionable under IBC, reinforcing the status of such obligations as operational debt. This ruling strengthens the position of suppliers in corporate insolvency processes.
The NCLT Mumbai has ordered a director to refund rental income that was diverted through forged lease agreements, mandating the amount to be returned with 12% interest. This decision highlights the tribunal's stance against fraudulent conduct and its implications for corporate governance.
The Insolvency and Bankruptcy Board of India (IBBI) has imposed a three-year suspension on an insolvency professional for failing to disclose a conflict of interest during the resolution of a RERA-linked scheme. This highlights the regulatory body's commitment to uphold ethical standards in insolvency management.
The National Company Law Appellate Tribunal (NCLAT) has ruled that financial proposals in the Corporate Insolvency Resolution Process (CIRP) cannot be altered after the challenge process begins. This prevents any post-bid modifications that could undermine the resolution process.
The NCLT has rejected Ernst & Young's plea for a 1% success fee related to GST demand reduction, ordering the ICAI to investigate the matter further.
The NCLT has accepted an insolvency plea worth ₹1.65 crore, ruling that unsupported adjustment claims did not establish a genuine pre-existing dispute under Section 9 of the IBC.
The article explores the complexities faced by the Committee of Creditors under the Insolvency and Bankruptcy Code. It analyzes the provisions pertaining to Section 29A and Section 30(5).