CIRP - right of the creditors for recovery of dues of the ...

Creditors must use civil remedies, not IBC Section 66, to recover debts from third parties in insolvency cases.

May 30, 2023

Case Laws Insolvency and Bankruptcy SC

CIRP - right of the creditors for recovery of dues of the corporate debtors from the third parties - It is for the Resolution Professional or the successful resolution applicant, as the case may be, to take such civil remedies against third party, for recovery of dues payable to corporate debtor, which may be available in law. The remedy against third party, however, is not available under Section 66 of IBC, and the civil remedies which may be available in law, are independent of the said Section. - SC

View Source

← Previous Next →

CIRP - right of the creditors for recovery of dues of the ...

Creditors must use civil remedies, not IBC Section 66, to recover debts from third parties in insolvency cases.

May 30, 2023

Case Laws Insolvency and Bankruptcy SC

You may also like:

Section 53(1) of the Insolvency and Bankruptcy Code (IBC) provides for the order of priority in the distribution of liquidation assets. Financial debts owed to unsecured...

Stay of recovery - recovery of tax from its debtors - Tribunal could not have directed recovery of tax from its debtor, who was not a party to the proceedings before the...

Maintainability of Section 7 application under Insolvency and Bankruptcy Code (IBC) for non-payment of debt analyzed. Financial contract not mandatory for establishing...

Abatement of reference proceedings occurs where secured creditors take measures to recover secured debt under SARFAESI Act. Third proviso to Section 15(1) of SICA...

Initiation of CIRP - Guarantor - Extinguishment of debt - The NCLAT upheld the NCLT's decision, finding that ECL did not act as a guarantor for ESL's debts based on the...

Maintainability of suit before Civil Court - Relegating the parties to continue with the civil suit would thus not be appropriate remedy, considering the manner in which...

Recovery of penalty imposed on the respondent - Validity of insolvency notice issued to the respondent - interpretation of statute - words creditor, debt and debtor as...

The Appellant, a related party unsecured financial creditor, challenged the resolution plan approved by the Committee of Creditors (CoC) and the Adjudicating Authority,...

Admission of a Section 7 application under the Insolvency and Bankruptcy Code, 2016, concerning the classification of a debt as a Financial Debt within the meaning of...

The Appellate Tribunal affirmed the decision to exclude the Appellant and other unsecured Financial Creditors from the Committee of Creditors (CoC). The key issues were...

Initiation of CIRP - Operational Debt or not - Nature of transaction between the parties for taking over the Company - When the Operational Creditor acted in pursuance...

When a Company is unable to pay the debt or refuse to pay the debt, the financial creditor or the operational creditor, as the case may be, can initiate insolvency...

CIRP proceedings - Financial Creditors - Related party - while the default rule under the first proviso to Section 21(2) is that only those financial creditors that are...

The NCLAT upheld the admission of the Section 7 application filed by the Financial Creditor (Respondent No.1) for initiating CIRP against the Corporate Debtor. It held...

Validity of Approval of Resolution Plan - Litigation regarding dispute over land is pending before Civil Court on behalf of third party - Land belong to corporate debtor...

Quick Updates: