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2 clusters · 3 sources · 1 days · First seen · Last updated
Indian insolvency and bankruptcy legal proceedings
Overview
Legal proceedings regarding the Insolvency and Bankruptcy Code (IBC) have seen activity across various Indian tribunals.
The National Company Law Appellate Tribunal (NCLAT) issued rulings clarifying the scope of insolvency moratoriums. In one instance, the tribunal ruled that a financial bank guarantee could be encashed during a moratorium, noting that a surety’s assets are distinct from those of a corporate debtor. In another case, the NCLAT set aside an insolvency admission against Polycab India Limited, restoring board-led operations after finding a pre-existing payment dispute.
Separately, the National Company Law Tribunal (NCLT) admitted two distinct insolvency petitions. In Chennai, a petition against Karthik Travels Private Limited was admitted despite arguments regarding the COVID-19 moratorium period. In Jaipur, a petition against SBCC Infra Private Limited was admitted following claims of unpaid dues related to railway construction subcontracting.
Entities
Bharat Aluminium Company Limited · Asier Metals Private Limited · National Company Law Appellate Tribunal · India · Polycab India Limited
Timeline
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[BUSINESS] 2 sourcesNCLT admits separate insolvency petitions in India
The NCLT has admitted two insolvency petitions in India: one by Shriram Finance against Karthik Travels and another by Parmod Sharma Contractors against SBCC Infra.
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[BUSINESS] 2 sourcesNCLAT issues rulings on insolvency moratoriums and board control
The NCLAT has ruled that financial bank guarantees can be encashed during insolvency moratoriums and set aside an insolvency order against Polycab India Limited.
Sources
econoTimes.com · taxguru.in · taxscan.in