Legal News

NCLT Ahmedabad in a recent judgement has held that the Local Authority has no right to raise a claim against successful Resolution Applicant for the dues pertaining to the period prior to the approval of the Resolution Plan.

in a substantive move to reduce litigation, Ministry of Finance , Dept of Revenue has revised the monetary limits for filing departmental appeals before Cestat , High Courts and the Supreme Court. The revised monetary limits are Rs 2 crores for Supreme Court, Rs 1 crore for High Courts and Rs 50 lacs for CESTAT. The withdrawal process in respect of pending appeals as per the revised limits will follow the current practice that is being followed.

“ Fees payable to an arbitrator has to be treated as CIRP costs and are to be considered as preferential payments.
Moratorium under Section 14of IBC does not apply to fees payable to an arbitrator.
EDAC Eng Ltd vs Industrial fans (India) pvt ltd
Madras High Court.

The Hon’ble Supreme Court in a recent judgement has held that if after due deliberation and repeated negotiations, the resolution plan has been approved by COC by a majority vote , its commercial wisdom can not be called into question or casually interfered with. The jurisdiction of the adjudicating authority and the appellate authority can not extend into entering upon the merits of a business decision made by a requisite majority of the COC in its commercial wisdom and there is no residual equity based jurisdiction in the adjudicating or appellate authority to interfere in the decision ,so long it is made in conformity with the provisions of IBC and the regulations made thereunder.
Justice Vikram Nath and Justice Amanullah.
(Ramakrishna Forgings Ltd vs RP of ACIL Ltd.)