The Appellate Tribunal held that once insolvency is initiated by admitting a bank’s default, the suspended director cannot later challenge the validity or limitation of that very claim.
The decision clarifies that the statutory suspension under Section 10A applies only to corporate debtors and does not prevent insolvency proceedings against personal guarantors.
NCLAT Delhi held that repeated application under section 94 of the Insolvency and Bankruptcy Code for taking refuge of moratorium with malafide intention to defeat recovery proceedings initiated under SARFAESI Act is not justifiable. Accordingly, appeal dismissed.
Section 7 application was initiated fraudulently and with malicious intent, in collusion between the Financial Creditor and the Corporate Debtor, for purposes other than genuine insolvency resolution.
NCLAT Delhi held that each and every commercial transaction which has resulted in loss may not be labelled as fraudulent or to have been done to deceive creditors. Accordingly, since ingredients of section 66(2) of IBC is lacking, the transaction cannot be labelled as fraudulent.
The tribunal held that a Section 9 insolvency application filed years after an arbitral award attained finality was barred by limitation. Issuing a demand notice could not revive a time-barred claim.
NCLAT Delhi held that post consent affidavit representing at least 90% of the value of the unsecured creditors, dispensation from convening meeting of unsecured creditors can be granted under section 230(9) of the Companies Act, 2013. Accordingly, the appeal is allowed.
The appellate tribunal quashed orders permitting bankruptcy against personal guarantors after a creditor consented to grant additional time to submit repayment plans under the insolvency framework.
NCLAT held that a rights issue offering proportionate shares to existing shareholders does not by itself dilute a corporate debtor’s stake and refused to restrain the proposed EGM.
The tribunal ruled that unpaid municipal property tax backed by a statutory first charge qualifies as secured debt in liquidation. The key takeaway is that statutory charges under municipal law can confer secured creditor status under the IBC.
