Legal Kisse Digest on Insolvency & Bankruptcy Code 2016

Part l

Cases of Supreme Court, High Courts, NCLAT and NCLTs

1. Complex legal issues in CIRP, Liquidation and ………………………………………… 1-58
2. Important Supreme Court Case Digest on IBC………………………………………………….. 59-155
3. Important High Courts Case Digest on …………………………………………………… 156-192
4. Important NCLAT Case Digest on IBC………………………………………………………………… 193-483
5. Important NCLT-Delhi Case Digest on IBC…………………………………………………….. 484-535
6. Important NCLT Mumbai Case Digest on IBC……………………………………………….. 536-609
7. Important NCLT Ahmedabad Case Digest on ……………………………………………. 610-619
8. Important NCLT Allahbad Case Digest on IBC………………………………………………. 620-629
9. Important NCLT Amaravati Case Digest on IBC…………………………………………….. 630-637
10. Important NCLT Bengaluru Bench Case Digest on ……………………………….. 638-650
11. Important NCLT Chandigarh Case Digest on IBC…………………………………………. 651-678
12. Important NCLT Chennai Bench Case Digest on IBC…………………………………… 679-699
13. Important NCLT Cuttack Bench Case Digest on ………………………………………… 700-705
14. Important NCLT Guwahati Bench Case Digest on ……………………………………. 706-707
15. Important NCLT Hyderabad Case Digest on ……………………………………………… 708-720
16. Important NCLT Indore Bench Case Digest on ……………………………………… 721-725
17. Important NCLT Jaipur Bench Case Digest on …………………………………………… 726-739
18. Important NCLT Kochi Bench Case Digest on ……………………………………….. 740-748
19. Important NCLT Kolkata Bench Case Digest on IBC…………………………………….. 749-778

Part 2

THE INSOLVENCY AND BANKRUPTCY CODE, 2016………………………………………… 2.1-2.209

DETAILED CONTENTS

Preface.………………………………………………………………………………………………………………………………………… iii

Acknowledgement.………………………………………………………………………………………………………………. cii

T-oreword………………………………………………………………………………………………………………………………………. ix

About Indo Legal Services LLP (ILS)………………………………………………………………………………………. xiii

About the ABfJtors and Team.……………………………………………………………………………………………….. xciii

Disclaimer……………………………………………………………………………………………………………………………… xxi

Part 1

Cases of Supreme Court, High Courts, NCLAT and NCLTs

• Complex legal issues in CIRP, Liquidation and ……………………………………………… l
  • Secured Interest and Complexity around ……………………………………………………… 1
  • Amendment of Pleading under IBC Regime………………………………………………….. 10
  • Information Utility……………………………………………………………………………………………… 15
  • Personal Guarantors…………………………………………………………………………………………… 16
  • PMLA IBC………………………………………………………………………………………………………… 17
  • Jurisdiction of Adjudicating ……………………………………………………………. 21
    25. Power/Authority under Section 20/25……………………………………………………… 21
    26. While analysing resolution plan under Section 30………………………………… 23
    27. Residuary Power under Section 60(5)………………………………………………………… 24
    28. Jurisdiction in case of allegation of fraud/forgery …………………………… 38
  • Approval and Waiver under Resolution ………………………………………………… 39
  • Consolidated/Group CIRP…………………………………………………………………………………. 42
  • Clean Slate ………………………………………………………………………………………….. 43
  • Withdrawal or Modification of the Resolution …………………………………….. 45
  • Disciplinary Proceedings against ……………………………………………………………. 50
  • Reverse CIRP……………………………………………………………………………………………………….. 52
  • Conundrum around Employees dues………………………………………………………………. 52
  • Revival/Restoration of Proceedings………………………………………………………………… 57
• Important Supreme Court Case Digest on IBC…………………………………………………….. 59
  • Section 3: ………………………………………………………………………………………… 61
    1. ………………………………………………………………………………………………………………….. 61
    2. Person………………………………………………………………………………………………………………. 61

1. Secured Interest……………………………………………………………………………………………… 61
2. Date of default……………………………………………………………………………………………….. 61

Section 5: Definitions………………………………………………………………………………………… 62

1. Financial Debt…………………………………………………………………………………………………. 62
2. Insolvency Resolution ………………………………………………………………………… 66
3. Related ………………………………………………………………………………………………….. 67
4. Operational Creditor…………………………………………………………………………………….. 67

Section 7: Initiation of corporate insolvency resolution process by financial creditor 67

• 1. Authorisation to file Petition……………………………………………………………………….. 69
  2. …………………………………………………………………………………………………….. 70
  3. Discretionary Powers……………………………………………………………………………………. 70
  4. Proceedings against the Co-Borrower/Guarantor………………………………….. 72
  5. Proceedings before other forum…………………………………………………………………. 72
• Section 8: Insolvency resolution by operational …………………………. 73
• Section 9: Application for initiation of corporate insolvency resolution process by operational creditor…………………………………………………………………………………………………………………. 73
  1. AA is not a recovery forum………………………………………………………………………….. 74
  2. Pre-existing Dispute………………………………………………………………………………………. 75
• Section 10A: Suspension of initiation of corporate insolvency

resolution process………………………………………………………………………………………………. 76

• Section 11: Persons not entitled to make application………………………………….. 77
• Section 12: Time-limit for completion of insolvency resolution process 77
• Section 12A: Withdrawal of application admitted under

section 7, 9 or 10………………………………………………………………………………………………….. 78

• Section 14: …………………………………………………………………………………… 82
• Section 17: Management of affairs of corporate debtor by interim resolution professional. 86
• Section 15: Public announcement of corporate insolvency resolution process 87
• Section 18: Duties of interim resolution professional………………………………… 87
• Section 21: Committee of ………………………………………………………………. 88
• Section 24: Meeting of committee of …………………………………………… 89
• Section 25: Duties of resolution professional………………………………………………. 90
• Section 29: Preparation of information …………………………… 91
• Section 29A: Persons not eligible to be resolution …………………….. 91
• Section 30: Submission of resolution …………………………………………………… 93
  1. Commercial Wisdom of CoC……………………………………………………………………….. 93
  2. Government/ Statutory Authority Role………………………………………………….. 97
  3. Objection to Resolution Plan……………………………………………………………………….. 98
  4. Treatment of ……………………………………………………………………………….. 101
• Section 31: Approval of resolution plan……………………………………………………… 104
  1. Jurisdiction of AA / NCLAT………………………………………………………………………… 104
  2. Clean Slate Principle…………………………………………………………………………………… 109
  3. Belated ……………………………………………………………………………………………….. 110
  4. prior approval of…………………………………………………………………………………. 111
  5. Withdrawal or modification of the Resolution Plan……………………………. 112
• Section 32A: Liability for prior offences, …………………………………………….. 113
• Section 33: Initiation of liquidation……………………………………………………………… 114
• Section 35: Powers and duties of …………………………………………….. 114
• Section 36: Liquidation ………………………………………………………………………. 117
• Section 40: Admission or rejection of ……………………………………………. 117
• Section 43: Preferential transactions and relevant ……………………….. 117
• Section 44: Orders in case of preferential …………………………… 119
• Section 45: Avoidance of undervalued transacÙons………………………………. 120
• Section 52: Secured creditor in liquidation ………………………… 120
• Section 53: Distribution of assets…………………………………………………………………. 120
• Section 54: Dissolution of corporate debtor………………………………………………. 122
• Section 60: Adjudicating authority for corporate persons……………………… 123
  1. Claim………………………………………………………………………………………………………………. 123
  2. Residuary Jurisdiction……………………………………………………………………………….. 124
  3. Amendment of ……………………………………………………………………………. 129
  4. Personal Guarantor…………………………………………………………………………………….. 130
• Section 61: Appeals and appellate authority……………………………………………… 130
• Section 62: Appeal to supreme court…………………………………………………………… 133
  1. Transfer of Winding Up …………………………………………………………………. 13

• Section 65: Fraudulent or malicious initiation of ……………… 139
• Section 66: Fraudulent trading or wrongful trading………………………………… 140
• Section 81: Application for fresh start order………………………………………………. 141
• Section 96-101……………………………………………………………………………………………………… 141
• Section 231: Bar of …………………………………………………………………….. 145
• Section 236: Trial of offences by special court…………………………………………… 146
• Section 238: Provisions of this code to override other laws……………………. 146
• Section 238A: ……………………………………………………………………………….. 147
  5. Condonation of Delay — Section 5…………………………………………………………………… 147
  6. Exclusion of Period – Section ……………………………………………………………….. 149
  7. Fresh Period of Limitation -Section …………………………………………………… 150
  8. Initiation and period of Limitation…………………………………………………………… 153
  9. Section 240: Power to make regulations…………………………………………………….. 155

2.44. Section 240A: Application of this code to micro, small and medium enterprises.    155

• Important High Courts Case Digest on ……………………………………………………………… 156
  • Section 1: Short title, extent and ……………………………………. 157
  • Section 3: ………………………………………………………………………………………. 157
    1. Security Interest…………………………………………………………………………………………… 157
  • Section 5: ………………………………………………………………………………………. 158
    1. Financial Creditor…………………………………………………………………………………………. 158
    2. Financial Debt……………………………………………………………………………………………….. 158
    3. Operational …………………………………………………………………………………………. 158
    4. Insolvency Resolution Process Cost………………………………………………………… 158
    5. Liquidation …………………………………………………………………………………………… 158
  • Section 7: Initiation of corporate insolvency resolution process by financial creditor 158
  • Section 9: Application for initiation of corporate insolvency resolution process by operational creditor………………………………………………………………………………………………………………. 159
  • Section 10A: Suspension of initiation of corporate insolvency

resolution process…………………………………………………………………………………………….. 159

• Section 12: Time-limit for completion of insolvency resolution

process………………………………………………………………………………………………………………… 159

• Section 14: …………………………………………………………………………………. 160

• Section 15: Public announcement of corporate insolvency resolution process 164
• Section 17: Management of affairs of corporate debtor by interim resolution 164
• Section 18: Duties of interim resolution ……………………………… 164
• Section 21: Committee of …………………………………………………………….. 165
• Section 24: Meeting of committee of …………………………………………. 166
• Section 25: Duties of resolution professional……………………………………………… 166
• Section 26: Application for avoidance of transactions not to affect 167
• Section 29: Preparation of information …………………………… 168
• Section 30: Submission of resolution …………………………………………………. 168
• Section 31: Approval of resolution plan……………………………………………………… 170
  1. Clean Slate Principle:………………………………………………………………………………….. 172
• Section 32A: Liability for prior offences, …………………………………………….. 173
• Section 33: Initiation of liquidation……………………………………………………………… 176
• Section 34: Appointment of liquidator and fee to be ……………………….. 177
• Section 35: Powers and duties of …………………………………………….. 177
• Section 42: Appeal against the decision of …………………………….. 178
• Section 43: Preferential transactions and relevant ……………………….. 178
• Section 52: Secured creditor in liquidation ………………………… 178
• Section 53: Distribution of assets…………………………………………………………………. 178
• Section 54: Dissolution of corporate debtor……………………………………………….. 178
• Section 60: Adjudicating authority for corporate persons………………………. 179
  1. Claim……………………………………………………………………………………………………………….. 181
• Section 61: Appeals and appellate authority………………………………………………. 182
• Section 63: Civil court not to have ………………………………………….. 182
• Section 65: Fraudulent or malicious initiation of ……………… 183
• Section 85: Effect of admission of application…………………………………………… 183
• Section 95: Application by creditor to initiate insolvency resolution process 183
• Section 96: Interim …………………………………………………………………. 184
• Section 99: Submission of report by resolution ……………….. 18
• Section 140: Disqualification of bankrupt…………………………………………………… 186
• Section 196: Powers and functions of board………………………………………………. 186
• Section 200: Principles governing registration of insolvency

professional agency…………………………………………………………………………………………. 187

• Section 206: Enrolled and registered persons to act as insolvency 187
• Section 208: Functions and obligations of insolvency …… 188
• Section 218: Investigation of insolvency professional agency or its member or information utility. 188
• Section 219: Show cause notice to insolvency professional agency

or its member or information utility……………………………………………………………. 188

• Section 220: Appointment of disciplinary …………………………….. 188
• Section 231: Bar of …………………………………………………………………….. 190
• Section 233: Protection of action taken in good ………………………………. 190
• Section 238: Provisions of this code to override other laws……………………. 191
• Section 239: Power to make rules……………………………………………………………….. 191
• Section 240: Power To Make ………………………………………………….. 191
• Section 241: Rules and regulations to be laid before ………….. 192
• Section 255: Amendments of act 18 of ………………………………………………. 192

Important NCLAT Case Digest on IBC………………………………………………………………………. 193

• Section 3: ……………………………………………………………………………………… 197
  1. Corporate Person…………………………………………………………………………………………. 197
  2. Default……………………………………………………………………………………………………………. 197
  3. ………………………………………………………………………………………………………… 200
  4. ……………………………………………………………………………………………………………. 200
  5. Secured Creditor…………………………………………………………………………………………… 200
  6. Security Interest……………………………………………………………………………………………. 202
• Section 4: Application of this part…………………………………………………………………. 203
• Section 5: ……………………………………………………………………………………… 205
  1. Financial debt………………………………………………………………………………………………… 205
  2. Insolvency Resolution ………………………………………………………………………. 217
  3. Liquidation …………………………………………………………………………………………… 218
  4. Operational Debt………………………………………………………………………………………….. 218

1. Related ………………………………………………………………………………………………… 222

• Section 7: Initiation of corporate insolvency resolution process

by financial creditor………………………………………………………………………………………… 224

1. Case of ……………………………………………………………………………………….. 234
2. Homebuyer/ …………………………………………………………………………………. 236
3. Discretionary power of AA/NCLAT…………………………………………………………. 238
4. Financial Service ……………………………………………………………………….. 241
5. Invoice Discounting…………………………………………………………………………………….. 242
6. Non-compliance of other ……………………………………………………………………. 242
7. OTS Non-………………………………………………………………………………… 244
8. Proceedings under other Statute……………………………………………………………… 244
9. Parallel ……………………………………………………………………………………. 247
10. Written Agreement………………………………………………………………………………………. 248

• Section 8: Insolvency resolution by operational ………………………. 248
• Section 9: Application for initiation of corporate insolvency

resolution process by operaÙonal creditor………………………………………………… 251

1. AA cannot be equated with Recovery court…………………………………………… 255
2. Interest as part of the ………………………………………………………………………… 257
3. Application Interest……………………………………………………………………………………… 258
4. Jurisdiction of ………………………………………………………………………………………… 259
5. Limitation………………………………………………………………………………………………………. 264
6. Pre-existing ……………………………………………………………………………………. 264
7. Proceedings pending in other ……………………………………………………. 270
8. Transfer of cases from High ………………………………………………………….. 271

• Section 10: Initiation of corporate insolvency resolution process

by corporate applicant……………………………………………………………………………………. 271

• Section 10A: Suspension of initiation of corporate insolvency

resolution process……………………………………………………………………………………………. 272

• Section llA: Disposal of applications under section 54C and under section 7 or section 9 or section 276
• Section 12: Time-limit for completion of insolvency resolution

process……………………………………………………………………………………………………………….. 277

1. Consolidated CIRP of two or more CDs………………………………………………….. 278
2. Extension and ……………………………………………………………………………. 279

1. Reverse CIRP………………………………………………………………………………………………… 280
2. Termination/Closure of CIRP………………………………………………………………….. 281

• Section 12A: Withdrawal of application admitted under

section 7, 9 or 10………………………………………………………………………………………………. 282

• Section 14: ………………………………………………………………………………… 287
  1. Attachment under other Acts/ ………………………………………… 290
  2. Bank …………………………………………………………………………………………… 292
  3. Immunity from the Moratorium…………………………………………………………….. 293
• Section 17: Management of affairs of corporate debtor by interim resolution 294
• Section 18: Duties of interim resolution professional……………………………… 295
  1. Duties of IRP:………………………………………………………………………………………………… 296
  2. Lease ………………………………………………………………………………………………….. 298
  3. Verification and Collation of Claim…………………………………………………………… 300
• Section 19: Personnel to extend cooperation to interim resolution 302
• Section 21: Committee of …………………………………………………………….. 303
  1. Class of ………………………………………………………………………………………… 305
  2. Composition of the CoC……………………………………………………………………………… 306
• Section 22: Appointment of resolution ……………………………….. 308
• Section 23: Resolution professional to conduct corporate insolvency resolution process 308
• Section 24: Meeting of committee of …………………………………………. 309
• Section 25: Duties of resolution professional…………………………………………….. 309
  1. Verification/Collation of Claim………………………………………………………………… 312
• Section 25A: Rights and duties of authorised representative of

financial creditors……………………………………………………………………………………………. 313

• Section 26: Application for avoidance of transactions not to affect 313
• Section 27: Replacement of resolution professional by committee

of creditors………………………………………………………………………………………………………… 314

• Section 28: Approval of committee of creditors for certain actions…….. 316
• Section 29: Preparation of information …………………………… 317
• Section 29A: Persons not eligible to be resolution …………………. 317

• Section 30: Submission of resolution plan………………………………………………….. 318
  1. Objection on valuation……………………………………………………………………………….. 326
  2. Commercial Wisdom of CoC…………………………………………………………………….. 327
  3. Claim of …………………………………………………………………………………………….. 334
  4. Clean Slate Principle…………………………………………………………………………………… 335
  5. Dissenting …………………………………………………………………………………… 336
  6. Promoter’s/ Shareholder’s Right…………………………………………………………….. 337
  7. Treatment of Creditor and other ……………………………………. 338
  8. Valuation Aspects………………………………………………………………………………………… 345
• Section 31: Approval of resolution plan……………………………………………………… 346
  1. Jurisdiction of the ………………………………………………………………………………… 347
  2. Waivers & Relief to the ………………………………………………………………………. 352
  3. Withdrawal or modification of the Resolution Plan……………………………. 352
• Section 32: ………………………………………………………………………………………….. 355
• Section 32A: Liability for prior offences, …………………………………………….. 356
• Section 33: Initiation of liquidation……………………………………………………………… 356
  1. Moratorium under Section 33(5)…………………………………………………………….. 364
• Section 34: Appointment of liquidator and fee to be ……………………….. 364
  1. Rights of ……………………………………………………………………………………. 364
  2. Removal of Liquidator……………………………………………………………………………….. 365
• Section 35: Powers and duties of …………………………………………….. 366
  1. Auction Process……………………………………………………………………………………………. 366
  2. Conduct of Liquidator……………………………………………………………………………….. 367

c Power of Liquidator…………………………………………………………………………………….. 369

• Section 36: Liquidation ………………………………………………………………………. 370
• Section 38: Consolidation of ……………………………………………………………. 372
• Section 39: Verification of claims………………………………………………………………… 372
• Section 40: Admission or rejection of ……………………………………………. 372
• Section 42: Appeal against the decision of …………………………….. 373
• Section 43: Preferential transactions and relevant ……………………….. 375
• Section 44: Orders in case of preferential …………………………… 379
• Section 45: Avoidance of undervalued transactions……………………………….. 379

• Section 46: Relevant period for avoidable …………………………. 379
• Section 52: Secured creditor in liquidation ………………………… 380
• Section 52: Secured creditor in liquidation ………………………… 381
• Section 53: Distribution of assets…………………………………………………………………. 381
  1. Workmen’s and Employees’ ………………………………………………………….. 383
  2. Distribution on the basis of security ………………………………………… 384
  3. Government ……………………………………………………………………………………….. 384
• Section 54: Dissolution of corporate ………………………………………………. 385
• Section 54C: Application to initiate pre-packaged insolvency

resolution process……………………………………………………………………………………………. 385

• Section 54D: Time-limit for completion of pre-packaged insolvency resolution process 386
• Section 59: Voluntary liquidation of corporate ………………………… 386
• Section 60: Adjudicating authority for corporate persons………………………. 386
  1. Amendment in …………………………………………………………………………….. 388
  2. Claim………………………………………………………………………………………………………………. 389
  3. Discretionary powers of ……………………………………………………………………… 395
  4. Intervention………………………………………………………………………………………………….. 403
  5. Liquidation Process……………………………………………………………………………………… 404
  6. Locus to file the ……………………………………………………………………… 409
  7. Personal Guarantor……………………………………………………………………………………… 410
  8. Post Approval of Resolution Plan…………………………………………………………….. 411
  9. Restoration/Revival / Recall Power of AA………………………………………………. 415
  10. Territorial Jurisdiction………………………………………………………………………………… 417
• Section 61: Appeals and appellate authority………………………………………………. 417
  1. Amendment of …………………………………………………………………………….. 417
  2. Applicability of NaturalJustice on AA ……………………………. 418
  3. Jurisdiction of AA/NCLAT…………………………………………………………………………… 420
  4. Recall /Review/Restore ………………………………………………………………. 424
  5. ……………………………………………………………………………………………………… 426
  6. Locus to file ……………………………………………………………………………………… 439
• Section 62: Appeal to Supreme ………………………………………………………….. 443
• Section 65: Fraudulent or malicious initiation of …………….. 443

• Section 66: Fraudulent trading or wrongful trading……………………………….. 448
• Section 70: Punishment for misconduct in course of corporate

insolvency resolution process………………………………………………………………………. 454

• Section 74: Punishment for contravention of moratorium or

the resolution plan………………………………………………………………………………………….. 455

• Section 94: Application by debtor to initiate insolvency resolution

process……………………………………………………………………………………………………………….. 455

• Section 76: Punishment for non-disclosure of dispute or payment

of debt by operational creditor……………………………………………………………………… 456

• Section 79: …………………………………………………………………………………… 456
• Section 95: Application by creditor to initiate insolvency resolution process 45

Section 96: Interim Moratorium………………………………………………………………….. 461

Section 97-100:………………………………………………………………………………………………… 462

Section 101: Moratorium………………………………………………………………………………. 464

• Section 115: Effect of order of adjudicating authority on repayment

plan……………………………………………………………………………………………………………………… 465

• Section 118: Repayment plan coming to end ……………………. 465
• Section 121: Application for bankruptcy……………………………………………………. 465
• Section 198: Condonation of delay………………………………………………………………. 466
• Section 220: Principles governing registration of insolvency

professional agency…………………………………………………………………………………………. 466

• Section 236: Trial of offences by special court…………………………………………… 466
• Section 238: Provisions of this code to override other laws……………………. 467
• Section 238A: ………………………………………………………………………………. 469
  19. Acknowledgement & Part Payment -Sections 18 & ……………………….. 469
  20. Benefit of Section ………………………………………………………………………………….. 476
  21. Benefit of Sections 5, 4, 12 & ………………………………………………………………… 478
  22. Three Year is the limitation………………………………………………………………………. 479
• Section 240A: Application of this code to micro, small and medium 482
• Section 419………………………………………………………………………………………………………… 483

• Important NCLT-Delhi Case Digest on IBC………………………………………………………………. 484
  • Section 3: ……………………………………………………………………………………… 486

1. Default-………………………………………………………………………………………………………….. 486
2. Secured …………………………………………………………………………………………. 487
3. ……………………………………………………………………………………………………………. 487

• Section 4: Application of this ……………………………………………………………….. 488
• Section 5: ……………………………………………………………………………………… 488
  1. Financial ……………………………………………………………………………………………… 488
  2. Insolvency Resolution Process Cost-……………………………………………………… 491
  3. Operational Debt-………………………………………………………………………………………… 491
  4. Related Party………………………………………………………………………………………………… 492
• Section 7: Initiation of corporate insolvency resolution process by financial creditor 492
  1. Application not for Bonafide Purpose……………………………………………………… 492
  2. Authorization to file ……………………………………………………………………. 493
  3. Discretionary Power of ……………………………………………………………………….. 493
  4. Limitation……………………………………………………………………………………………………… 494
  5. Homebuyers………………………………………………………………………………………………….. 494
  6. Group Insolvency…………………………………………………………………………………………. 496
  7. CIRP against the Financial Service Provider………………………………………….. 496
  8. CIRP proceedings against the Guarantor-……………………………………………….. 496
  9. Non-Compliances /Proceedings under other …………………………… 497
  10. Others………………………………………………………………………………………………………………. 498
• Section 8: Insolvency resolution by operational ………………………. 499
• Section 9: Application for initiation of corporate insolvency

resolution process by operaÙonal creditor…………………………………………………. 499

1. Pre-existing Dispute…………………………………………………………………………………….. 499
2. Allegation of forgery and fabrication……………………………………………………… 503
3. Petition on the basis of Settlement Agreement………………………………………. 504
4. Interest on delayed payment…………………………………………………………………….. 504
5. ……………………………………………………………………………………………………… 506
6. Authorization to file …………………………………………………………………….. 506
7. Basic Ingredients of Section …………………………………………………………………… 506
8. Non-Compliances /Proceedings under other …………………………. 507
9. Others………………………………………………………………………………………………………………. 507

• Section 10: Initiation of corporate insolvency resolution process

by corporate applicant……………………………………………………………………………………. 508

• Section 10A: Suspension of initiaÙon of corporate insolvency

resolution process……………………………………………………………………………………………. 509

• Section llA: Disposal of applications under section 54C and

under section 7 or section 9 or section 10…………………………………………………… 510

• Section 12: Time-limit for completion of insolvency resolution

process……………………………………………………………………………………………………………….. 511

• Section 12A: Withdrawal of application admitted under

section 7, 9 or 10……………………………………………………………………………………………….. 511

• Section 14: ………………………………………………………………………………… 512
• Section 19: Personnel to extend cooperation to interim resolution 513
• Section 21: Committee of …………………………………………………………….. 513
• Section 25A: Rights and duties of authorised representative of

financial creditors……………………………………………………………………………………………. 513

• Section 28: Approval of committee of creditors for certain acÙons…….. 513
• Section 29: Preparation of information …………………………… 514
• Section 29A: Persons not eligible to be resolution …………………. 514
• Section 30: Submission of resolution …………………………………………………. 515
  1. Treatment of …………………………………………………………………………………….. 515
  2. Others…………………………………………………………………………………………………………….. 516
• Section 31: Approval of resolution plan……………………………………………………… 517
  1. Jurisdiction of AA…………………………………………………………………………………………. 517
  2. Modification or withdrawal of the Plan…………………………………………………. 518
• Section 33: Initiation of liquidation……………………………………………………………… 519
• Section 34: Appointment of liquidator and fee to be ……………………….. 520
• Section 35: Powers and duties of …………………………………………….. 521
  1. Sale of Corporate Debtor as a going concern:………………………………………… 521
• Section 36: Liquidation Estate………………………………………………………………………. 521
• Section 42: Appeal against the decision of …………………………….. 521
• Section 43: Preferential transactions and relevant ……………………….. 522
• Section 45: Avoidance of undervalued transacÙons………………………………. 522
• Section 53: Distribution of assets…………………………………………………………………. 523

• Section 54: Dissolution of corporate debtor……………………………………………….. 523
• Section 54A: Corporate debtors eligible for pre-packaged insolvency resolution process 524
• Section 59: Voluntary liquidation of corporate ………………………… 524
• Section 60: Adjudicating Authority for corporate persons…………………….. 525
  1. Amendment in Pleading……………………………………………………………………………… 525
  2. CLAIM…………………………………………………………………………………………………………….. 525
  3. Discretionary powers of ……………………………………………………………………… 526
  4. Impleadment or intervention…………………………………………………………………… 527
  5. Power to protect Corporate Debtor-……………………………………………………….. 528
  6. Resolution Fees……………………………………………………………………………………………… 528
  7. Revival of the CIRP-…………………………………………………………………………………….. 528
  8. Withdrawal of CIRP or Termination of Liquidation-…………………………… 529
• Section 65: Fraudulent or malicious initiation of ……………… 529
• Section 66: Fraudulent trading or wrongful trading………………………………… 530
• Section 95: Application by creditor to initiate insolvency resolution 532
• Section 96: Interim …………………………………………………………………. 532
  1. Interim-Moratorium…………………………………………………………………………………… 532
• Section 215: Procedure for submission, , of financial information… 532
• Section 238: Provisions of this Code to override other ………………….. 532
• Section 238A: ……………………………………………………………………………….. 533
• Section 240A: Application of this Code to micro, small and medium 535

• Important NCLT Mumbai Case Digest on IBC………………………………………………………… 536
  • Section 3: ……………………………………………………………………………………… 538
    1. Default-…………………………………………………………………………………………………………… 538
    2. Secured Creditor-…………………………………………………………………………………………. 541
  • Section 4: Application of this ………………………………………………………………… 542
  • Section 5: ……………………………………………………………………………………… 543
    1. Financial Debt……………………………………………………………………………………………….. 543
    2. Insolvency Resolution Process Cost-………………………………………………………. 546
    3. Operational Debt-………………………………………………………………………………………… 546

• Section 7: Initiation of corporate insolvency resolution process by financial 549
  1. ……………………………………………………………………………………………………… 549
  2. Homebuyers…………………………………………………………………………………………………. 549
  3. Bili Discounting…………………………………………………………………………………………….. 550
  4. CIRP proceedings against the Guarantor-……………………………………………….. 550
  5. Non-Compliances of other statutes…………………………………………………………. 552
  6. Petition filed on the basis of settlement agreement………………………………. 553
  7. Authorization to file ……………………………………………………………………. 553
  8. Injunction at pre-admission stage……………………………………………………………. 554
  9. Discretionary power of the Adjudicating Authority…………………………….. 554
  10. Objection qua Insufficient stamp ……………………………………………………. 555
  11. Proceedings under other Statue……………………………………………………………….. 555
  12. Others………………………………………………………………………………………………………………. 556
• Section 8: Insolvency resolution by operational ………………………. 560
• Section 9: Application for initiation of corporate insolvency

resolution process by operational creditor………………………………………………… 561

1. Dispute:………………………………………………………………………………………………………….. 561
2. Petition on the basis of Settlement Agreement………………………………………. 565
3. NCLT is not recovery forum……………………………………………………………………… 566
4. Limitation……………………………………………………………………………………………………… 567
5. Authorization to file ……………………………………………………………………. 567
6. Joint Application……………………………………………………………………………………………. 568
7. Interest as part of debt………………………………………………………………………………… 568
8. Other ingredients of Section …………………………………………………………………… 569

• Section 10: Initiation of corporate insolvency resolution process

by corporate applicant……………………………………………………………………………………. 573

• Section 10A: Suspension of initiation of corporate insolvency

resolution process……………………………………………………………………………………………. 573

• Section 11: Persons not entitled to make application……………………………….. 574
• Section 12: Time-limit for completion of insolvency resolution

process……………………………………………………………………………………………………………….. 575

• Section 12A: Withdrawal of application admitted under

section 7, 9 or 10……………………………………………………………………………………………….. 575

• Section 14: …………………………………………………………………………………. 576
• Section 17: Management of affairs of corporate debtor by interim resolution 579
• Section 18: Duties of interim resolution professional……………………………… 579
• Sectionl9: Personnel to extend cooperation to interim resolution 579
• Section 21: Committee of …………………………………………………………….. 580
• Section 23: Resolution professional to conduct corporate insolvency resolution 580
• Section 25: Duties of resolution ……………………………………………. 580
• Section 25A: Rights and duties of authorised representative of

financial creditors……………………………………………………………………………………………. 580

• Section 29: Preparation of information …………………………. 581
• Section 29A: Persons not eligible to be resolution ………………….. 581
• Section 30: Submission of resolution plan………………………………………………….. 581
• Section 31: Approval of resolution plan……………………………………………………… 582
  1. Waiver and reliefs……………………………………………………………………………………….. 582
  2. Clean Slate Doctrine……………………………………………………………………………………. 583
  3. Personal guarantees……………………………………………………………………………………. 583
  4. Jurisdiction of AA -……………………………………………………………………………………… 584
  5. Objection to Plan…………………………………………………………………………………………. 585
• Section 32A: Liability for prior offences, …………………………………………….. 585
• Section 33: Initiation of liquidation……………………………………………………………… 585
• Section 35: Powers and duties of …………………………………………….. 586
  1. Sale of Corporate Debtor as a going ………………………………………… 586
• Section 36: Liquidation Estate………………………………………………………………………. 587
• Section 42: Appeal against the decision of ………………………………. 588
• Section 43: Preferential transactions and relevant ……………………….. 589
• Section 45: Avoidance of undervalued transactions……………………………….. 590
• Section 52: Secured creditor in liquidation ………………………… 590
• Section 53: Distribution of assets…………………………………………………………………. 591
• Section 54: Dissolution of corporate debtor……………………………………………….. 592
• Section 54A: Corporate debtors eligible for pre-packaged insolvency resolution process 592

• Section 59: Voluntary liquidation of corporate ………………………… 593
• Section 60: Adjudicating Authority for corporate persons…………………….. 593
  1. Claim……………………………………………………………………………………………………………….. 593
  2. Amendment in Pleading…………………………………………………………………………….. 596
  3. Impleadment or intervention at pre-admission stage-………………………… 597
  4. Discretionary Power of ………………………………………………………………………. 597
  5. Fees of IRP/RP………………………………………………………………………………………………. 598
  6. Post Resolution Approval Process……………………………………………………………. 599
  7. ……………………………………………………………………………………………………………. 599
• Section 65: Fraudulent or malicious initiation of ……………… 600
• Section 66: Fraudulent trading or wrongful trading………………………………… 601
• Section 74: Punishment for contravention of moratorium or the

resolution plan…………………………………………………………………………………………………… 603

• Section 75: Punishment for false information furnished in application . 603
• Section 96: Interim ………………………………………………………………….. 604
• Section 238: Provisions of this Code to override other ………………….. 604
• Section 238A: ……………………………………………………………………………….. 604
• Section 240A: Application of this Code to micro, small and medium 608

• Important NCLT Ahmedabad Case Digest on ………………………………………………….. 610
  • Section 3: ………………………………………………………………………………………. 610
    1. Secured ………………………………………………………………………………………….. 610
  • Section 5: ………………………………………………………………………………………. 611
    1. Financial ………………………………………………………………………………………………. 611
    2. Operational Debt………………………………………………………………………………………….. 611
    3. Related Party…………………………………………………………………………………………………. 611
  • Section 7: Initiation of corporate insolvency resolution process by financial creditor 612
  • Section 8: Insolvency resolution by operational ………………………. 613
  • Section 9: Application for initiation of corporate insolvency

resolution process by operational creditor…………………………………………………. 613

1. Pre-existing Dispute…………………………………………………………………………………….. 614

• Section 14: …………………………………………………………………………………. 614

1. Attachment under other Act………………………………………………………………………. 614

• Section 21: Committee of ……………………………………………………………… 615
• Section 30: Submission of resolution ………………………………………………….. 615
  1. Waivers and Relief……………………………………………………………………………………….. 615
  2. Commercial Wisdom of CoC……………………………………………………………………… 615
  3. JurisdicÙon of AA………………………………………………………………………………………….. 616
• Section 33: Initiation of liquidation………………………………………………………………. 616
• Section 36: Liquidation Estate……………………………………………………………………….. 617
• Section 52: Secured creditor in liquidation …………………………. 617
• Section 60: Adjudicating Authority for corporate persons……………………… 617
  1. Claim……………………………………………………………………………………………………………….. 618
• Section 65: Fraudulent or malicious initiation of ……………… 619
• Section 66: Fraudulent trading or wrongful trading………………………………… 619
• Section 238A: ……………………………………………………………………………….. 619

• Important NCLT Allahbad Case Digest on IBC…………………………………………………….. 620
  • Section 5: ………………………………………………………………………………………. 620
    1. Financial ………………………………………………………………………………………………. 620
    2. Operational Debt………………………………………………………………………………………….. 621
  • Section 7: Initiation of corporate insolvency resolution process by financial creditor 621
  • Section 9: Application for initiation of corporate insolvency

resolution process by operational creditor…………………………………………………. 623

1. Pre-existing Dispute:…………………………………………………………………………………… 624

• Section 10: Initiation of corporate insolvency resolution process by corporate applicant. 625
• Section 10A: Suspension of initiation of corporate insolvency

resolution process…………………………………………………………………………………………….. 625

• Section 14: …………………………………………………………………………………. 626
• Section 30: Submission of resolution ………………………………………………….. 626
• Section 33: Initiation of liquidation………………………………………………………………. 626
• Section 34: Appointment of liquidator and fee to be ………………………… 626
• Section 53: Distribution of assets………………………………………………………………….. 627
• Section 60: Adjudicating Authority for corporate persons……………………… 627

1. Liquidation Process……………………………………………………………………………………… 628

• Section 238: Provisions of this Code to override other ………………….. 628
• Section 238A: ……………………………………………………………………………….. 629

• Important NCLT Amaravati Case Digest on IBC………………………………………………….. 630
  • Section 4: Application of this ………………………………………………………………… 630
  • Section 7: Initiation of corporate insolvency resolution process by financial creditor 631
  • Section 8: Insolvency resolution by operational ………………………. 631
  • Section 9: Application for initiation of corporate insolvency

resolution process by operational creditor…………………………………………………. 631

• Section 12: Time-limit for completion of insolvency resolution

process……………………………………………………………………………………………………………….. 634

• Section 14: …………………………………………………………………………………. 634
• Section 25: Duties of resolution …………………………………………….. 634
• Section 30: Submission of resolution ………………………………………………….. 634
• Section 31: Approval of resolution plan………………………………………………………. 635
• Section 33: Initiation of liquidation………………………………………………………………. 635
• Section 43: Preferential transactions and relevant ………………………… 635
• Section 54: Dissolution of corporate debtor……………………………………………….. 636
• Section 60: Adjudicating Authority for corporate persons……………………… 636
• Section 95: Application by creditor to initiate insolvency resolution process 636
• Section 238: Provisions of this Code to override other ………………….. 637
• Section 238A: ……………………………………………………………………………….. 637

• Important NCLT Bengaluru Bench Case Digest on …………………………………….. 638
  • Section 3: ………………………………………………………………………………………. 639
    1. Corporate Person:………………………………………………………………………………………… 639
    2. Security Interest…………………………………………………………………………………………… 639
  • Section 4: Application of this ……………………………………………………………….. 639
  • Section 5: Definitions……………………………………………………………………………………….. 640
    1. Dispute……………………………………………………………………………………………………………. 640
    2. Operational Debt………………………………………………………………………………………….. 640
  • Section 7: Initiation of corporate insolvency resolution process

by financial creditor………………………………………………………………………………………… 640

• Section 9: Application for initiation of corporate insolvency

resolution process by operational creditor…………………………………………………. 641

1. Interest as part of Debt………………………………………………………………………………… 641

• Section 10: Initiation of corporate insolvency resolution process by corporate applicant. 643
• Section 10A: Suspension of initiation of corporate insolvency

resolution process…………………………………………………………………………………………….. 643

• Section 14: …………………………………………………………………………………. 643
• Section 19: Persorinel to extend cooperation to interim resolution 644
• Section 21: Committee of ……………………………………………………………… 644
• Section 29A: Persons not eligible to be resolution ………………….. 644
• Section 30: Submission of resolution ………………………………………………….. 644
• Section 31: Approval of resolution ………………………………………………………. 645
• Section 33: Initiation of liquidation………………………………………………………………. 646
• Section 35: Powers and duties of ……………………………………………… 646
• Section 36: Liquidation Estate……………………………………………………………………….. 646
• Section 42: Appeal against the decision of ……………………………… 646
• Section 43: Preferential transactions and relevant ………………………… 647
• Section 44: Orders in case of preferential ……………………………. 647
• Section 53: Distribution of assets………………………………………………………………….. 647
• Section 59: Voluntary Liquidation of Corprorate ………………………. 648
• Section 60: Adjudicating Authority for corporate persons……………………… 648
• Section 66: Fraudulent trading or wrongful trading………………………………… 649
• Section 74: Punishment for contravention of moratorium or the

resolution plan…………………………………………………………………………………………………… 649

• Section 101: ………………………………………………………………………………. 649
• Section 238: Provisions of this Code to override other ………………….. 650
• Section 238A: ……………………………………………………………………………….. 650
• Section 240A: Application of this Code to micro, small and medium 650

ll       Important NCLT Chandigarh Case Digest on IBC……………………………………………….. 651

• Section 3: ………………………………………………………………………………………. 652
  1. Person…………………………………………………………………………………………………………….. 652

1. Security Interest………………………………………………………………………………………….. 652

• Section 5: ……………………………………………………………………………………… 653
  1. Insolvency Resolution Process ………………………………………………………. 653
  2. Operational Debt…………………………………………………………………………………………. 653
  3. Financial ……………………………………………………………………………………………… 653
  4. Related ……………………………………………………………………………………………….. 654
• Section 7: Initiation of corporate insolvency resolution process by financial creditor 654
• Section 9: Application for initiation of corporate insolvency

resolution process by operational creditor…………………………………………………. 655

1. Interest outstanding…………………………………………………………………………………….. 655
2. Pre-existing ……………………………………………………………………………………. 655

• Section 10: Initiation of corporate insolvency resolution process by corporate 658
• Section 11: Persons not entitled to make application……………………………….. 658
• Section 12: Time-limit for completion of insolvency resolution

process……………………………………………………………………………………………………………….. 658

• Section 12A: Withdrawal of application admitted under

section 7, 9 or 10……………………………………………………………………………………………….. 659

• Section 14: ………………………………………………………………………………… 659
• Section 18: Duties of interim resolution ……………………………… 660
• Section 19: Personnel to extend cooperation to interim resolution 661
• Section 20: Management of operations of corporate debtor as

going concern……………………………………………………………………………………………………. 661

• Section 21: Committee of ……………………………………………………………… 662
• Section 24: Meeting of committee of …………………………………………. 662
• Section 25: Duties of resolution …………………………………………….. 663
• Section 25A: Rights and duties of authorised representative of

financial creditors……………………………………………………………………………………………. 663

• Section 30: Submission of resolution ………………………………………………….. 663
• Section 31: Approval of resolution plan………………………………………………………. 666
• Section 32A: Liability for prior offences, ……………………………………………… 666
• Section 33: Initiation of liquidation………………………………………………………………. 666
• Section 34: Appointment of liquidator and fee to be ………………………… 667
• Section 36: Liquidation Estate……………………………………………………………………….. 667
• Section 38: Consolidation of …………………………………………………………….. 668
• Section 42: Appeal against the decision of ……………………………… 668
• Section 43: Preferential transactions and relevant ………………………… 669
• Section 53: Distribution of assets………………………………………………………………….. 669
  1. Government ………………………………………………………………………………………… 669
  2. Secured Creditors…………………………………………………………………………………………. 670
• Section 54: Dissolution of corporate debtor……………………………………………….. 670
• Section 60: Adjudicating Authority for corporate persons……………………… 670
  1. Amendment of …………………………………………………………………………….. 670
  2. Delayed Claim……………………………………………………………………………………………….. 671
  3. Direct Dissolution…………………………………………………………………………………………. 672
  4. Impleadment/ …………………………………………………………………….. 673
  5. Jurisdiction of AA…………………………………………………………………………………………. 673
  6. Liquidation …………………………………………………………………………………….. 675
  7. Resolution Plan…………………………………………………………………………………………….. 676
• Section 95: Application by creditor to initiate insolvency resolution process 677
• Section 238: Provisions of this Code to override other ………………….. 677
• Section 238A: ……………………………………………………………………………….. 677

• Important NCLT Chennai Bench Case Digest on IBC…………………………………………. 679
  • Section 4: Application of this ……………………………………………………………….. 680
  • Section 5: ………………………………………………………………………………………. 680
  • Section 7: Initiation of corporate insolvency resolution process by financial creditor 681
  • Section 8: Insolvency resolution by operational ……………………….. 682
  • Section 9: Application for initiation of corporate insolvency

resolution process by operational creditor…………………………………………………. 682

1. Pre-existing Dispute…………………………………………………………………………………….. 683

• Section 10A: Suspension of initiation of corporate insolvency

resolution process…………………………………………………………………………………………….. 684

• Section 12: Time-limit for completion of insolvency resolution

process………………………………………………………………………………………………………………… 684

• Section 12A: Withdrawal of application admitted under

section 7, 9 or 10……………………………………………………………………………………………….. 685

• Section 14: ………………………………………………………………………………… 686
• Section 21: Committee of ……………………………………………………………… 686
• Section 30: Submission of resolution ………………………………………………….. 687
  1. Challenge to Resolution Plan……………………………………………………………………… 687
  2. Commercial Wisdom of CoC……………………………………………………………………… 687
  3. Government / Statutory Dues…………………………………………………………………… 688
  4. Jurisdiction of ………………………………………………………………………………………… 689
• Section 32A: Liability for prior offences, ……………………………………………… 690
• Section 33: Initiation of liquidation………………………………………………………………. 690
• Section 35: Powers and duties of ……………………………………………… 692
• Section 42: Appeal against the decision of ……………………………….. 692
• Section 43: Preferential transactions and relevant ………………………… 693
• Section 52: Secured creditor in liquidation …………………………. 694
• Section 53: Distribution of assets………………………………………………………………….. 694
• Section 54: Dissolution of corporate ………………………………………………. 695
• Section 59: Voluntary liquidation of corporate …………………………. 695
• Section 60: Adjudicating Authority for corporate persons……………………… 695
  1. Commercial Wisdom of CoC……………………………………………………………………… 695
  2. Delayed ………………………………………………………………………………………………. 696
  3. Jurisdiction of AA………………………………………………………………………………………….. 696
  4. Liquidation ……………………………………………………………………………………. 696
  5. Personal/ Corporate ……………………………………………………………….. 697
• Section 66: Fraudulent trading or wrongful trading………………………………… 698
• Section 95: Application by creditor to initiate insolvency resolution process 698
• Section 236: Trial of offences by Special …………………………………………. 698
• Section 238A: Provisions of this Code to override other laws……………….. 698
• Section 240A: Application of this Code to micro, small and medium 699

• Important NCLT Cuttack Bench Case Digest on ……………………………………………… 700
  • Section 4: Application of this ……………………………………………………………….. 700

• Section 7: Initiation of corporate insolvency resolution process by financial creditor 701
• Section 8: Insolvency resolution by operational ………………………. 702
• Section 9: Application for initiation of corporate insolvency

resolution process by operational creditor………………………………………………… 702

• Section 10A: Suspension of initiation of corporate insolvency

resolution process……………………………………………………………………………………………. 702

• Section 30: Submission of resolution …………………………………………………. 703
• Section 31: Approval of resolution plan………………………………………………………. 703
• Section 32A: Liability for prior offences, …………………………………………….. 703
• Section 33: Initiation of liquidation………………………………………………………………. 703
• Section 54: Dissolution of corporate debtor……………………………………………….. 704
• Section 60: Adjudicating Authority for corporate persons…………………….. 704

1. Amendment of Pleading:……………………………………………………………………………. 704

• Section 74: Punishment for contravention of moratorium or the

resolution plan………………………………………………………………………………………………….. 705

• Section 96: Interim …………………………………………………………………. 705
• Section 238A: ……………………………………………………………………………….. 705

• Important NCLT Guwahati Bench Case Digest on …………………………………………. 706
  • Section 9: Application for initiation of corporate insolvency

resolution process by operational creditor………………………………………………… 706

• Section 10: Initiation of corporate insolvency resolution process by corporate 706
• Section 30: Submission of resolution plan…………………………………………………… 706
• Section 33: Initiation of liquidation………………………………………………………………. 707
• Section 60: Adjudicating Authority for corporate persons…………………….. 707

• Important NCLT Hyderabad Case Digest on ……………………………………………………. 708
  • Section 3: ……………………………………………………………………………………… 709
    1. Corporate Person…………………………………………………………………………………………. 709
  • Section 4: Application of this ……………………………………………………………….. 709
  • Section 5: ……………………………………………………………………………………… 710
    1. Financial Debt……………………………………………………………………………………………….. 710
    2. Operation debt……………………………………………………………………………………………… 710

• Section 7: Initiation of corporate insolvency resolution process by financial 710
  1. Discretionary Power to defer……………………………………………………………………. 711
• Section 8: Insolvency resolution by operational ………………………. 711
• Section 9: Application for initiation of corporate insolvency

resolution process by operational creditor………………………………………………… 712

1. Pre-existing Dispute……………………………………………………………………………………. 712
2. Interest as part of the ………………………………………………………………………. 714

• Section 10A: Suspension of initiation of corporate insolvency

resolution process……………………………………………………………………………………………. 714

• Section 14: ………………………………………………………………………………… 714
• Section 29A: Persons not eligible to be resolution …………………. 714
• Section 30: Submission of resolution …………………………………………………. 715
  1. Waiver & ……………………………………………………………………………………………. 715
  2. Jurisdiction of ………………………………………………………………………………………… 715
  3. Commercial Wisdom of …………………………………………………………………….. 715
• Section 31: Approval of resolution plan………………………………………………………. 716
• Section 42: Appeal against the decision of ……………………………….. 716
• Section 43: Preferential transactions and relevant ………………………… 716
• Section 53: Distribution of assets………………………………………………………………….. 716
• Section 54: Dissolution of corporate debtor……………………………………………….. 717
• Section 60: Adjudicating Authority for corporate persons…………………….. 717
  1. Discretionary Powers of ……………………………………………………………………… 717
  2. Resolution Plan/ Commercial Wisdom of CoC…………………………………….. 718
  3. ………………………………………………………………………………………………………………. 719
• Section 61: Appeals and Appellate…………………………………………….. 719
• Section 66: Fraudulent trading or wrongful trading………………………………… 719
• Section 95: Application by creditor to initiate insolvency resolution process 719
• Section 238: Provisions of this Code to override other …………………. 719
• Section 238A: ……………………………………………………………………………….. 719
  18. Acknowledgement of Debt — Section 18……………………………………………….. 720

• Section 240A: Application of this Code to micro, small and medium 720

• Important NCLT Indore Bench Case Digest on …………………………………………… 721
  • Section 5: ……………………………………………………………………………………… 721
    1. Financial ………………………………………………………………………………………………. 721
    2. Operational Debt…………………………………………………………………………………………. 722
  • Section 7: Initiation of corporate insolvency resolution process by financial creditor 722
  • Section 9: Application for initiation of corporate insolvency

resolution process by operational creditor………………………………………………… 722

• Section 30: Submission of resolution …………………………………………………. 723
• Section 31: Approval of resolution plan………………………………………………………. 724
• Section 33: Initiation of liquidation………………………………………………………………. 724
• Section 35: Powers and duties of ……………………………………………… 724
• Section 42: Appeal against the decision of ……………………………….. 724
• Section 54: Dissolution of corporate debtor……………………………………………….. 724
• Section 238: Provisions of this Code to override other …………………. 725
• Section 238A: ……………………………………………………………………………….. 725

• Important NCLT Jaipur Bench Case Digest on ………………………………………………… 726
  • Section 5: ……………………………………………………………………………………… 727
    1. Financial ………………………………………………………………………………………………. 727
  • Section 7: Initiation of corporate insolvency resolution process by financial creditor 727
  • Section 8: Insolvency resolution by operational ………………………. 730
  • Section 9: Application for initiation of corporate insolvency

resolution process by operational creditor………………………………………………… 730

1. AA is not recovery forum…………………………………………………………………………… 730
2. Interest as part of ………………………………………………………………………………. 731
3. Pre-existing Dispute…………………………………………………………………………………….. 731

• Section 10: Initiation of corporate insolvency resolution process by corporate applicant. 732
• Section 12A: Withdrawal of application admitted under

section 7, 9 or 10……………………………………………………………………………………………….. 733

• Section 14: …………………………………………………………………………………. 734

• Section 20: Management of operations of corporate debtor as going concern 734
• Section 27: Replacement of resolution professional by committee

of creditors………………………………………………………………………………………………………… 734

• Section 30: Submission of resolution …………………………………………………. 734
• Section 32A: Liability for prior offences, …………………………………………….. 735
• Section 33: Initiation of liquidation………………………………………………………………. 735
• Section 43: Preferential transactions and relevant ………………………… 735
• Section 54C: Application to initiate pre-packaged insolvency

resolution process……………………………………………………………………………………………. 736

• Section 59: Voluntary liquidation of corporate ………………………… 736
• Section 60: Adjudicating Authority for corporate persons…………………….. 736
  1. Jurisdiction of AA…………………………………………………………………………………………. 736
• Section 66: Fraudulent trading or wrongful trading………………………………… 738
• Section 94: Application by debtor to initiate insolvency resolution

process……………………………………………………………………………………………………………….. 738

• Section 96: Interim …………………………………………………………………. 738
• Section 114: Order of Adjudicating Authority on repayment plan……….. 738
• Section 238A: Provisions of this Code to override other laws……………….. 739

• Important NCLT Kochi Bench Case Digest on ………………………………………………… 740
  • Section 3: ……………………………………………………………………………………… 740
    1. Person…………………………………………………………………………………………………………….. 740
    2. …………………………………………………………………………………………………………… 741
  • Section 5: ……………………………………………………………………………………… 741
    1. Financial Creditor…………………………………………………………………………………………. 741
    2. Operation Debt……………………………………………………………………………………………… 741
  • Section 7: Initiation of corporate insolvency resolution process by financial creditor 741
  • Section 9: Application for initiation of corporate insolvency

resolution process by operational creditor………………………………………………… 743

• Section 10A: Suspension of initiation of corporate insolvency

resolution process……………………………………………………………………………………………. 743

• Section 12: Time-limit for completion of insolvency resolution

process……………………………………………………………………………………………………………….. 743

• Section 14: …………………………………………………………………………………. 744
• Section 18: Duties of interim resolution professional……………………………… 744
• Section 33: Initiation of liquidation………………………………………………………………. 744
• Section 35: Powers and duties of ……………………………………………… 745
• Section 42: Appeal against the decision of ……………………………… 745
• Section 45: Avoidance of undervalued transactions……………………………….. 745
• Section 52: Secured creditor in liquidation …………………………. 746
• Section 54: Dissolution of corporate debtor……………………………………………….. 746
• Section 60: Adjudicating Authority for corporate persons…………………….. 747
• Section 66: Fraudulent trading or wrongful trading………………………………… 747
• Section 95: Application by creditor to initiate insolvency resolution process 748
• Section 236: Trial of offences by Special …………………………………………. 748
• Section 238A: ……………………………………………………………………………….. 748

• Important NCLT Kolkata Bench Case Digest on IBC………………………………………….. 749
  • Section 2: …………………………………………………………………………………….. 750
  • Section 3: ……………………………………………………………………………………… 751
    1. Claim:……………………………………………………………………………………………………………… 751
    2. Corporate Person:……………………………………………………………………………………….. 751
    3. Date of ……………………………………………………………………………………………… 751
    4. Secured Interest…………………………………………………………………………………………… 752
  • Section 4: Application of this ……………………………………………………………….. 752
  • Section 5: ……………………………………………………………………………………… 753
    1. Financial Debt:………………………………………………………………………………………………. 753
    2. Insolvency Resolution Cost……………………………………………………………………….. 753
    3. Operational …………………………………………………………………………………………. 754
    4. Related Party………………………………………………………………………………………………… 754
  • Section 7: Initiation of corporate insolvency resolution process by financial creditor 756
    1. Non-compliance of the other Statue………………………………………………………… 758
    2. Parallel proceedings:…………………………………………………………………………………… 759
    3. Proceedings against Guarantor…………………………………………………………………. 760
    4. Discretionary ………………………………………………………………………………….. 760

1. Limitation………………………………………………………………………………………………………. 761
2. Intervention…………………………………………………………………………………………………… 761

• Section 8: Insolvency resolution by operational ………………………. 761
• Section 9: Application for initiation of corporate insolvency

resolution process by operational creditor………………………………………………… 761

1. Allegation of Forgery and fabrication……………………………………………………… 762
2. Debt arising out of Decree/Award…………………………………………………………… 763
3. Non-compliance of the other ………………………………………………………… 763
4. Limitation……………………………………………………………………………………………………… 763
5. Interest part of Operational …………………………………………………………….. 764
6. Pre-existing …………………………………………………………………………………….. 764

• Section 10: Initiation of corporate insolvency resolution process by corporate 765
• Section 12: Time-limit for completion of insolvency resolution

process……………………………………………………………………………………………………………….. 765

• Section 14: …………………………………………………………………………………. 766
• Section 21: Committee of …………………………………………………………….. 767
• Section 30: Submission of resolution plan…………………………………………………… 767
  1. Waivers and relief………………………………………………………………………………………… 767
  2. Commercial Wisdom of CoC…………………………………………………………………….. 767
  3. Treatment of different class of ……………………………………………….. 768
• Section 31: Approval of resolution plan………………………………………………………. 768
• Section 33: Initiation of liquidation………………………………………………………………. 769
• Section 35: Powers and duties of ……………………………………………… 769
• Section 42: Appeal against the decision of ……………………………….. 770
• Section 43: Preferential transactions and relevant ………………………… 770
• Section 52: Secured creditor in liquidation …………………………. 770
• Section 53: Distribution of assets………………………………………………………………….. 770
• Section 54: Dissolution of corporate debtor……………………………………………….. 771
• Section 59: Voluntary liquidation of corporate ………………………… 772
• Section 60: Adjudicating Authority for corporate persons…………………….. 772
  1. Power of AA………………………………………………………………………………………………….. 772
  2. Amendment of……………………………………………………………………………. 773

1. Jurisdiction during CIRP…………………………………………………………………………….. 773
2. Delayed Claim……………………………………………………………………………………………… 774
3. Jurisdiction during Liquidation………………………………………………………………… 774
4. Direct Dissolution………………………………………………………………………………………… 776

• Section 65: Fraudulent or malicious initiation of …………….. 777
• Section 66: Fraudulent trading or wrongful trading……………………………….. 777
• Section 68: Punishment for concealment of ……………………………. 777
• Section 238A: ………………………………………………………………………………. 777