The Tribunal dismissed the application filed by companies ...

Tribunal rejects intervention plea by unit holders, upholds creditors' rights at pre-admission stage of insolvency case.

Case Laws Companies Law

October 1, 2024

The Tribunal dismissed the application filed by companies holding units in the Corporate Debtor's project, seeking to intervene and proposing a scheme of compromise and arrangement u/s 230 of the Companies Act, 2013. The Tribunal held that there are no provisions in the Insolvency and Bankruptcy Code (IBC) for intervention by a third party at the pre-admission stage. The Tribunal's role is limited to ascertaining the existence of financial debt and its default on an application filed u/s 7 of the IBC. The Financial Creditors had already opposed the issuance of notice in the Intervention Petitions and pressed for dismissal, arguing that the IBC does not allow intervention at the pre-admission stage. The Tribunal concluded that entertaining the application would severely impact and prejudice the rights of the individual allottees who filed the main company petition, leading to unnecessary delay in the proceedings.

View Source

← Previous Next →

The Tribunal dismissed the application filed by companies ...

Tribunal rejects intervention plea by unit holders, upholds creditors' rights at pre-admission stage of insolvency case.

Case Laws Companies Law

October 1, 2024

You may also like:

The Appellate Tribunal dismissed the appeal filed by the Operational Creditor u/s 9 of the Insolvency and Bankruptcy Code, 2016. The application was initially rejected...

Requirement of pre-deposit - The appellant has not made the pre-deposit and has filed an application seeking waiver because of financial constraints and for the reason...

CIRP - Rejection of Section 9 Application on the ground of pre-existing dispute - The dispute stemmed from services provided by the Operational Creditor to the Corporate...

Recovery proceedings of tax dues - preferential right - secured creditors - Income Tax Department’s preferential right to recovery of debts over other creditors is...

CIRP - Classification of the claim - Claim as contingent due to pending litigation - Citing legal precedent, the Tribunal upheld the classification of the claim at a...

The Appellant challenged the admission of the Section 7 application filed by the Financial Creditor, contending no debt was due as the application was premature. The...

Interpretation of Regulation 21A of IBBI (Liquidation Process) Regulations, 2016 regarding secured creditor's obligation to realize security interest within stipulated...

Validity, Viability and Feasibility of Resolution Plan - keeping in mind the payment to all the Operational Creditors, is Nil, there is no aspect of discrimination...

The Appellate Tribunal upheld the Adjudicating Authority's order and dismissed the appeal filed by the Resolution Professional (RP) against the Operational Creditor. The...

Rejection of Section 7 Application filed by the Appellant (homebuyers) on the ground of non-compliance of Section 7, sub-section (1), 2nd Proviso - decree-holder is...

The case involves liquidation of a corporate debtor where a creditor sought refund of an amount with interest paid to prevent invocation of their Bank Guarantee. The...

Dismissal of Section 9 application - pre-existing dispute - The Tribunal examined the evidence, including email correspondences, and concluded that a debtor-creditor...

Disqualification of a director of the financial creditor to sign the Section 7 application was challenged. The application u/s 7, signed by the director of the financial...

Seeking to quash the demand notice for arrears of unpaid electricity charges, the court examined the scope of the Insolvency and Bankruptcy Code (IBC) and the potential...

Imported material diverted to unit other than permitted unit, resulting in contravention of import-export policy provisions. Goods held liable for confiscation u/s 111...

Quick Updates: