Update from NCLT/IBC Cases by INSOLVENCY PROFESSIONAL RAJNISH BANSAL

The National Company Law Appellate Tribunal (NCLAT) allowed an appeal filed by Sushil Ansal, former Director and shareholder of Ansal Properties and Infrastructure Limited (Ansals) setting aside the National Company Law Tribunal (NCLT), Delhi bench March 17 order for the initiation of insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). NCLT had allowed the appointment of an interim resolution professional and the company was placed under moratorium replacing the board of Ansals. 

Justices Bansi Lal Bhat, Acting Chairperson, Anant Bijay Singh, Member (Judicial), Dr. Ashok Kumar Mishra, Member (Technical) relying on the judgment of G. Eswara Rao vs. Stressed Assets Stabilisation Fund and Ors.- MANU/NL/0092/2020 observed that a home buyer cannot file an application under IBC for the execution of a decree and held –

"We are of the considered view that the impugned order dated 17th March,2020 initiating Corporate Insolvency Resolution Process against Corporate Debtor cannot be sustained The Adjudicating Authority has landed in grave error in admitting the application of Respondent Nos.1 and 2 under Section 7 who claimed to be the 'Financial Creditors' in their capacity as 'decree-holders' against the Corporate Debtor on account of non-payment of the amount due under the Recovery Certificate dated 10th August, 2019 issued by the 'UP RERA' while execution of decree/ recovery of amount due under Recovery Certificate would not justify triggering of Corporate Insolvency Resolution Process. We are also of the firm view that the application of Respondent Nos. 1 and 2 was moved for execution/ recovery of the amount due under the Recovery Certificate and not for insolvency resolution of the Corporate Debtor. The impugned order suffers from grave legal infirmity and cannot be supported."

The Respondents, who are two house allottees, had paid advance money for two flats in Sushant Golf City, Lucknow. However, as per the clauses of the two agreements between them, Ansals had undertaken to complete the same within two years from the date of commencement of construction on receipt of sanction plan from the authority in 2015. The real estate giant had failed to complete the project by 2017 following which, both allottees approached the Uttar Pradesh Real Estate Regulatory Authority (RERA), where they were awarded a decree in their favour for ₹73 lakh. A decree is generally, an official order issued by an authority concerned. RERA had also issued a recovery certificate against Ansals. The Respondents then took recourse under IBC to recover their dues.

👉 The Insolvency and Bankruptcy Board of India (IBBI), in collaboration with MyGov.in, conducted a ‘National Online Quiz on Insolvency and Bankruptcy Code, 2016’ from 1st July to 31st July, 2020 to promote awareness and understanding of the Code among various stakeholders across the country. The Quiz was open for all Indian citizens above 18 years of age, except for individuals working in IBBI, service providers registered with IBBI, and also their immediate family members.

The Quiz received overwhelming response with 1,25,781 (One lakh twenty-five thousand seven hundred and eighty-one) participants. There were participants from every State and every Union Territory. Uttar Pradesh accounted for the highest participation with 15.7% of total participants, followed by Maharashtra with 11.7% and Delhi with 6.9%.

In terms of the Guidelines on the Quiz, top 10% of the participants, as per their performance, are entitled to receive ‘Certificates of Merit’. The names of these top 10% of participants are available.

The ‘Certificates of Merit’ are being emailed to these meritorious participants by 10th September, 2020.

Among the top 10% participants, Maharashtra returned the highest number, accounting for 15% of them, followed by Delhi with 11.7% and Uttar Pradesh with 11.4%. About 51% of the top 10% participants are in the age group of 18 to 25 and more than 82% of them are in the age group of 18 to 35. 5. The Quiz received interest from a wide range of stakeholders, including students, professionals, and employees. About 29% of the top 10% performers are students or members of chartered accountancy, 9% are students or members of company secretaryship, and 7% are employees of banks and financial institutions.

👉 You may send me any queries related to: ipcarajnish@gmail.com.

IP CA. RAJNISH BANSAL

B.Com, FCA, DISA, CISA, I.P.

INSOLVENCY PROFESSIONAL

FORENSIC AUDITOR &

SYSTEM AUDITOR

M. 9999925301, 9899400108

E: rkbansalca@gmail.com

Add: B-4/281-282, 

Sector-7, Rohini

New Delhi- 110085

Date – 02/09/2020