YAWAR USMANI

The Supreme Court dismissed GTL Limited's appeal against an NCLAT order. The NCLAT had remanded the case back to the NCLT for reconsideration. The NCLT initially dismissed Canara Bank's insolvency petition against GTL, but the NCLAT overturned this decision, citing GTL's acknowledged debt and default, allowing the bank to pursue remedies under the Insolvency and Bankruptcy Code. Read more at: https://lnkd.in/eZ2waSas #ETLegalWorld

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📢 NCLAT Ruling: Related Party Unsecured Financial Creditor Gets Priority Over Operational Creditor In a key judgment, i.e. Times Innovative Media Ltd. Vs. Pawan Kumar Aggarwal (Liquidator) & Anr dated 19.09.2024, the NCLAT has ruled that related party unsecured financial creditors (FCs) have priority over operational creditors (OCs) during liquidation under Section 53 of the IBC. 🔑 Key Ruling: The hon’ble NCLAT held that Section 53 does not distinguish between related and unrelated unsecured FCs, granting both higher priority over OCs in the liquidation distribution. This ruling reaffirms that financial debts take precedence over operational debts, even for related parties. #IBC #NCLAT #InsolvencyLaw #FinancialCreditors #CorporateLaw #Liquidation

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ASSETS OF THE PARTNERSHIP FIRM NOT THE PROPERTY OF PERSONAL GUARANTOR In a recent ruling the NCLAT has held that partnership firm assets cannot be subjected to interim moratorium under IBC merely because a Section 95 application is filed against a partner. The case involved an attempt by a personal guarantor to shield partnership assets through strategic dissolution during SARFAESI proceedings. However, the Tribunal saw through this, terming it "tainted with malafide." Drawing from the Supreme Court's Rajendra Bajoria judgment, NCLAT reaffirmed that partners are entitled only to profits and post-dissolution surplus - not the underlying assets themselves. This judgment effectively prevents personal guarantors from using IBC provisions as a shield for partnership assets. A welcome clarity for secured creditors! #InsolvencyLaw #NCLAT #LegalUpdates #CorporateLaw #IBC #Banking

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Debt Collection Agencies (DCA) are mostly confused with other companies. Well, let’s clarify. - DCSs are not Law Firms - DCSs are not Credit Insurance Companies - DCSs are not Asset Management Companies It is a consultancy service that resolves cases by reconciliation in pre-legal process. #DebtCollectioninTurkiye #collectionagency #PreLegal #DebtRecovery #debtcollectionagency

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The Ministry of Corporate affairs (MCA) has suggested that the Operational Creditors of a company should explore the possibility of Mediation as an alternative dispute redressal mechanism. This suggestion comes in light when there is an excessive burden on the National Company Law Tribunal (NCLT) and is suggested to ease the burden on NCLT. By diverting smaller claims and operational disputes from the tribunal, mediation can enhance efficiency in handling insolvency cases. This initiative seeks to promote quicker and cost-effective resolution of claims, reducing litigation timelines and enabling amicable settlements. Implementing it effectively  could strengthen creditor-debtor relationships while preserving NCLT's resources for more complex corporate cases. https://lnkd.in/grfU4fuR #DisputeResolution #NCLT #MCA #Mediation #ADR #LegalUpdates #LegalInsights #LawSquare

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⚖️IBBI Proposes Pre-Institution Mediation for Operational Creditors 📕 In a significant move towards streamlining insolvency proceedings, the Insolvency and Bankruptcy Board of India (IBBI) has suggested allowing mediation between operational creditors (OCs) and corporate debtors (CDs) before insolvency proceedings begin. The IBBI’s recent paper points out that OCs often seek repayment rather than full resolution of a corporate debtor, and many cases settle even before admission to NCLT. This pre-institution mediation proposal, inspired by the Commercial Courts Act, aims to reduce the NCLT backlog and facilitate faster case admissions. 📝 Public comments are open until November 24. #ibc #insolvency #ibbi #law #disputeresolution

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Our Senior Partner, Manoj Singh shared his insights on Business Standard's story titled "Key question on Enforcement Directorate powers before SC's larger Bench". He observed that the Enforcement Directorate (ED) frequently cites Section 19 in arrest briefs without justifying the necessity of detaining the individual, particularly in document-based money laundering cases. Read more at: https://shorturl.at/1mLsy #EnforcementDirectorate #MoneyLaundering #Section19 #LegalProcedure #ArrestJustification #LexPanaceaLLP #DocumentBasedCases

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Understanding the Corporate Insolvency Resolution Process (#CIRP) under the IBC, 2016, presents a complex maze of challenges for Resolution Applicants (#RAs). While the intent of the #IBC is to ensure timely and effective resolution, practical obstacles often deter capable applicants and hamper the process. #RAs face significant challenges while submitting resolution plans under the #CIRP outlined in the IBC, 2016. Key issues include 1. incomplete Information Memorandums (#IMs), 2. delays in timelines due to legal disputes or valuation complexities, and fear of inheriting undisclosed liabilities. 3. Rigid #compliance requirements, 4. ongoing #litigations, and lack of adequate support further complicate the process, often discouraging genuine participants. To address these issues, reforms are necessary to enhance transparency by ensuring standardized and audited IMs, streamline #dispute resolution through dedicated insolvency benches, and provide clarity on post-#resolution liabilities. Simplifying compliance procedures, offering incentives like reduced upfront payments, leveraging digital tools for efficiency, and conducting capacity-building workshops for #stakeholders can significantly improve the ecosystem. These #measures will not only encourage greater participation but also ensure that the #insolvency framework achieves its ultimate goal of timely and sustainable #resolutions.

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Are the proposed changes by the IBBI to grievance redressal and AFA timelines a timely step? Most certainly, says Bhuta Shah & Co. The proposed changes are much-needed for addressing key operational issues and procedural issues in the insolvency framework. For instance, relaxing the AFA timelines is crucial, as the current 45-day window does not account for the extensive compliance requirements. Furthermore, implementing digital tracking systems for compliance will help minimize administrative delays while boosting transparency and efficiency. #IBBIReforms #InsolvencyFramework #AFAChanges #GrievanceRedressal #DigitalCompliance #TransparencyInInsolvency #OperationalEfficiency #InsolvencyReforms #TimelyReforms #CorporateGovernance

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Misuse of Interim Moratorium: NCLAT Upholds Dismissal of Repeated Personal Insolvency Applications Background: The appeals stem from the dismissal of applications filed under Section 94 of the Insolvency and Bankruptcy Code (IBC) by the personal guarantors of a corporate debtor, M/s Ram Harbi Motors Pvt. Ltd. Key Events: 1. September 24, 2020: The appellants initially filed applications under Section 94 of the IBC. 2. February 1, 2024: The NCLT dismissed the original applications for non-compliance with previous orders. 3. February 28, 2024: The NCLT allowed withdrawal of a restoration application with liberty to re-file "as per law." 4. February 29, 2024: The appellants filed fresh applications under Section 94. 5. May 17, 2024: The NCLT dismissed the new applications as not maintainable. Issues: 1. Whether the NCLT erred in dismissing the fresh applications filed under Section 94 of the IBC as not maintainable. 2. Whether the liberty granted to re-file on February 28, 2024, allowed the appellants to file a fresh application despite the earlier dismissal order. Decision: NCLAT dismissed both appeals, upholding the NCLT's order dated May 17, 2024. Key Observations and Reasoning: 1. The NCLAT noted that the appellants had been "misusing the Interim Moratorium under Section 96 of the IBC for the last four years" which prevented banks from initiating recovery proceedings. 2. The NCLT's order dated February 1, 2024, dismissing the original application, highlighted that the appellants had failed to comply with directions given on May 6, 2022, "for a prolonged period of more than one year and nine months." 3. The NCLAT clarified that the order dated February 28, 2024, allowing withdrawal of the restoration application with liberty to re-file, was limited. The court stated: "At best the order can be read that re-filing was permitted as per law." 4. The NCLAT agreed with the NCLT's reasoning that "this Adjudicating Authority is sufficiently empowered to examine maintainability of an Application." It found that the new application was "based on the same facts and for the same cause of action" as the previously dismissed one. 5. The NCLAT emphasized that the order dated February 1, 2024, dismissing the original application, had become final as it was not challenged. The court stated: "Liberty by withdrawing the restoration application cannot be treated to be liberty to file fresh application under Section 94(1) wiping out the earlier order dated 01.02.2024." Case Name: Gursev Singh, Personal Guarantor Vs. IDBI Bank & Anr. Case No: Company Appeal (AT) (Insolvency) No. 1146 of 2024 Tribunal: NCLAT Principal Bench Judge: [Justice Ashok Bhushan] Chairperson [Barun Mitra] Member (Technical) [Arun Baroka] Member (Technical) Citation: [2024] IBCInsights [229] NCLAT (PB) Date:30.08.2024 #IBC2016 #Insolvency #CorporateLaw #LegalUpdates #IBCUpdates #IBCNews #InsolvencyJudgments #NCLATJudgments #IBCLawyer #CIRP #576

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Bombay High Court - Division Bench important judgment - Important judgment on the failure of basic process in adjudicating the dispute, manner of drawing conjectural and arbitrary conclusions amounting to patent illegality by the Ld. Arbitrator against the basic notions of justice and the fundamental policy of Indian Law. #bombayhighcourt #arbitration #arbitralaward #patentillegality #legaldeli https://lnkd.in/dhEM8TJs

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[Op Eds] Groundless Threats of Legal Proceedings: An Analysis under the Trade Marks Act, 1999 by Javvad Shaikh Read Full Article Here- https://lnkd.in/gANUuvrS #OpEd #Advertisements #grossdomesticproduct #GroundlessThreats #legalProceedings #marketplace #PostIndianindependence #TradeandMerchandiseMarksAct #TradeMarksAct #scconline #SCC #legalnews #legalknowledge #scctimes #legalblog #legalupdates #lawstudent #legalresearch #legalstudies #surestwaytolegalresearch #bringingyouthebestlegalnews

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The Insolvency and Bankruptcy Code, 2016 empowers creditors to pursue insolvency proceedings against personal guarantors (PGs) independently of corporate debtors (CDs). Recent Supreme Court rulings have affirmed this, clarifying that Section 60(2) of the IBC mandates such applications to be filed with the NCLT where the CD's insolvency proceedings are pending. Read more for clarity on recent rulings and how they impact creditors' strategies. 🔗 Read the full article https://lnkd.in/d8DqtNjv

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Recently, The Delhi High Court has granted ex-parte ad-interim injunction to SBI Cards pursuant to Section 9 of the Arbitration and Conciliation Act, 1996, to ensure uninterrupted access to and operation of specified licensed software. The bench has directed the Respondents to abstain from any actions or steps that could potentially disrupt SBI Cards' credit card services facilitated by the licensed software. Case Title: SBI Cards And Payment Services Private Limited Vs Kony Inc. & Ors. The full judgement can be accessed at: https://lnkd.in/ga-VbTy4 Read Below to Know More #dsalegal #arbitration #inhousecounsel #corporatelegal #InsolvencyandBankruptcyCode #generalcounsel #litigationdepartment #legalmanager #generalmanager #legalhead #vicepresidentlegal #Trademark #presidentlegal #Delhihighcourt #legalassociate #Consumer #assistantmanagerlegal #chieffinancialofficer #directorlegal #director #managingdirector #boardmember #corporatecounsel #trademark #legalcounsel #legaladvisor #seniorlegalcounsel #associategeneralcounsel

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𝐓𝐡𝐞𝐫𝐞'𝐬 𝐚 𝐬𝐦𝐚𝐥𝐥 𝐡𝐚𝐧𝐝𝐟𝐮𝐥 𝐨𝐟 𝐩𝐥𝐚𝐜𝐞𝐬 𝐚𝐯𝐚𝐢𝐥𝐚𝐛𝐥𝐞 𝐢𝐟 𝐲𝐨𝐮'𝐝 𝐥𝐢𝐤𝐞 𝐭𝐨 𝐚𝐭𝐭𝐞𝐧𝐝 𝐨𝐮𝐫 𝐈𝐧𝐬𝐨𝐥𝐯𝐞𝐧𝐜𝐲 𝐓𝐞𝐚𝐦'𝐬 𝐜𝐨𝐧𝐟𝐞𝐫𝐞𝐧𝐜𝐞 𝐭𝐨𝐦𝐨𝐫𝐫𝐨𝐰. 𝐃𝐞𝐭𝐚𝐢𝐥𝐬 𝐛𝐞𝐥𝐨𝐰. ⬇ When the Supreme Court delivered its long-awaited decision in BTI 2014 LLC v Sequana SA [2022] UKSC 25, many wondered just how the principles outlined in that case might be applied in practice. The recent decisions in the BHS case, Wright v Chappell [2024] EWHC 1417 (Ch) and [2024] EWHC 2166 (Ch), have caused quite a stir in this regard. In this seminar, the issues arising out of this case and what they mean for the future of the Sequana creditor duty will be analysed by a distinguished panel drawn from the Gatehouse Chambers Insolvency Team, consisting of Alaric Watson, Jonathan Titmuss, Charles Raffin, Phillip Patterson, Aileen McErlean, Ryan Hocking, Katrina Mather and Adam Smith-Roberts. The seminar will be followed by a drinks reception at our office in Gray’s Inn. Please email us at [email protected] if you'd like to attend. 𝐏𝐫𝐨𝐠𝐫𝐚𝐦𝐦𝐞 3.45pm – registration 4pm – presentations 4.45pm – refreshments 5pm – presentations 5.45pm – Q&A 6pm – drinks reception #insolvency #restructuring #insolvencylaw #insolvencybarristers #BHS #sequana #directors https://lnkd.in/eTVzxAEM

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HC: REJECTS WRIT BY ESSEL'S AMIT GOENKA CHALLENGING SEBI-ORDER APPOINTING FORENSIC AUDITOR Bombay HC rejects writ petition filed by Mr. Amit Goenka (Petitioner - son of Essel Group Chairman Mr. Subhash Chandra Goenka), challening the SEBI order by which KPMG Assurance and Consulting Services (LLP/Auditor) was appointed as the Forensic Auditor with regard to the financial statements of Shirpur Gold Refinery (an Essel Group Co.), as also KPMG’s submitted Forensic Audit report, holds that the challenge raised to the appointment of the Forensic Auditor was merely for delaying the SEBI proceedings; Petitioner submitted that KPMG was not eligible to be called upon to submit a Forensic Report as it did not satisfy the eligibility criteria prescribed under the tender issued by SEBI, and moreover, appointment of a Forensic Auditor was an administrative order and hence no appeal could be filed for challenging the same, per contra, SEBI argued that the writ petition suffered from delay and laches, the remedy of appeal was available to the Petitioner and the challenge raised to the appointment of the Forensic Auditor was merely for delaying the proceedings; Noting that SEBI’s earlier interim order cum SCN had barred the Petitioner from selling/ disposing of/ diluting his shareholding in the company, for misrepresenting its financial statements and diverting its funds, HC opines that the current writ petition is not liable to be entertained on the ground that a belated challenge has been raised; HC further highlights that SEBI’s interim order has not been challenged till date by availing any statutory remedy by the Petitioner, and remarks that, “...much water has flown after issuance of the communication dated 13th September 2021 appointing KPMG as Forensic Auditor. We do not find any justifiable reason assigned by the Petitioner in the writ petition for the belated challenge being raised to the appointment of KPMG as Forensic Auditor. The submission that inspection of the records was given in September, 2023 and January 2024 by itself would not be of much avail in the present facts as a challenge could have been raised much earlier.”; Lastly, reiterating that the challenge to SEBI’s order has been raised belatedly for which there is no justifiable explanation and coupled with the fact that in the interregnum, an interim order has been already passed by SEBI which has gone unchallenged, HC asserts that it is not inclined to entertain the Petitioner’s challenge, however grants him liberty to pursue the matter before SEBI in accordance with law:HC BOM The order was passed by a Division Bench of Justice Rajesh S. Patil and Justice A.S. Chandurkar.

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An article titled, 'DPDP Act draft rules expected within two weeks; transition period likely to be restricted to 6 months' quoting Firm's Personal Data Protection and Competition Law Partner, Akshayy S Nanda published by Storyboard18. https://lnkd.in/gQwMVySh #DPDP #dataprotection #dataprivacy #digitaldata #sarafandpartners #competitionlaw #leadinglawfirm #toptierlawfirm #legalprofessional #law #legal #lawyer #fullservicelawfirm #fastestgrowinglawfirm #innovativelawfirm #chambersandpartners #legal500 #iflr1000 #asialaw #benchmarklitigation #bwlegalworld #asianlegalbusiness #investindia #alb #indianlaw #toplawfirm #IBLJ #BWlegal #indianlawfirm #bestindianlawfirm #ficci #cii

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Scope of appeals under Section 37 of Arbitration and Conciliation Act 1996 - A case for consistency This article looks at a recent instance of two coordinate Benches of the Supreme Court of India following entirely divergent approaches while examining the scope of appeals under Section 37 of the Arbitration Act. The Author: Ajit Warrier is a Partner at Shardul Amarchand Mangaldas & Co specialising in the Dispute Resolution and Litigation Practice. Read the Viewpoint here: https://lnkd.in/dWtFyvTj #TheViewpoint #SupremeCourtJudgments #Section37ArbitrationAct #ScopeofAppeals #BarandBench

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In a recent landmark judgment, the Sikkim High Court emphasized the necessity of a party's willingness to perform contractual obligations for enforcing specific performance. This case highlights the critical distinction between readiness and willingness in contract law. #ContractLaw #LegalUpdate #SikkimHighCourt #SpecificPerformance #LegalInsights

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