In the instant case, a Financial Creditor was an NBFC engaged in the business of providing finance to a wide range of customers including small and medium enterprises. The Corporate Debtor carried on the business as a dealer and manufacturer in automobiles, automobile spare parts and components etc.
NCLT Hyderabad held that equity investment is not a loan and doesn’t fall within the meaning of ‘operational debt’ under section 5(21) of the Insolvency and Bankruptcy Code. Accordingly, application u/s. 9 of IBC for initiation of IBC dismissed.
NCLT Ahmedabad held that application u/s. 30(6) of IBC by Resolution Professional not admitted inspite of approval by the sole unsecured financial creditor since it is not in compliance with section 30(2) of the Code, insofar as the dues of the state tax department under GVAT are not considered.
NCLT Kolkata held that application for initiation of Corporate Insolvency Resolution Process u/s. 7 of the Insolvency and Bankruptcy Code by Aditya Birla Finance Limited [Financial Creditors] against Priya Food Products Limited [Corporate Debtor] admitted as default in payment of financial debt established.
NCLT Delhi held that the default occurred after Section 10A of Insolvency and Bankruptcy Code, 2016 [IBC], can very well be made a basis for an application under Section 7 of IBC, 2016. Accordingly, application for CIRP meeting requirement of the provisions of Sec. 7(3) & (5) of IBC is admitted.
NCLT Mumbai held that section 7 application for initiation of Corporate Insolvency Resolution Process [CIRP] against Reliance Home Finance Limited [Corporate Debtor] admitted as default in repayment of debt exceeding Rs. 1 Crore established.
NCLT Mumbai allowed the Stakeholders Committee of Phalcomm Infra Solutions to replace the existing liquidator, appointing Mr. Manish Dawda in place of Mr. Uday Sakrikar, to streamline the liquidation process.
NCLT Allahabad held that application under section 7 of the Insolvency and Bankruptcy Code for initiation of Corporate Insolvency Resolution Process [CIRP] against M/s. LDR Developers Private Limited [Corporate Debtor] admitted as debt and default proved.
Application filed by Canara Bank under Section 7 of the Code read with Rule 4(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating CIRP citing the default payment of a debt amount beyond Rs. 1 Crore as evident from the Form-C and Form-D of the NeSL certificate, from the loan account statement of S.S. Aluminium Private Limited, Corporate Debtor maintained by the Financial Creditor and from the acknowledgement of debt instrument executed by the Respondent was admitted.
NCLT Mumbai held that application u/s. 10 of Insolvency and Bankruptcy Code seeking own Corporate Insolvency Resolution Process [CIRP] is admitted as the Corporate Applicant is in default of a debt due. Accordingly, writ petition allowed.
