The following is a snapshot of the important orders passed by the National Company Law Appellate Tribunal (“NCLAT”), under the Insolvency and Bankruptcy Code, 2016 ("Code”), during the period between March 1, 2023 and March 15, 2023. For ease of reference, the orders have been categorized and dealt with in the following categories i.e., Pre-admission stage, Corporate Insolvency Resolution Process (“CIRP”) stage, the Liquidation stage and Miscellaneous.
The NCLAT, further observed the following:
(i) the highest bidder in the challenge mechanism has no right to claim that its resolution plan be put to vote, without the CoC taking any further steps;
(ii) that a debenture trustee which holds 90% of the voting share in the CoC, is entitled to maintain an appeal against the order of Adjudicating Authority rejecting the CoC’s right to negotiate with the resolution applicants post the conclusion of challenge mechanism even in absence of a specific authorization of the underlying bond holders.
This update has been contributed by Arka Majumdar (Partner) and Juhi Wadhwani (Senior Associate) and Vikram Chaudhuri (Associates).
The update was first published on Bar & Bench.
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