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D. Y. CHANDRACHUD, PAMIDIGHANTAM SRI, NARASIMHA, J. B. PARDIWALA
BPTP Spacio Park Serene Flat Allottees Welfare Association (BAWA) – Appellant
Versus
Sudhanshu Tripathi, Director, BPTP Limited – Respondent
| Table of Content |
|---|
| 1. initiation of cirp under ibc (Para 1 , 2 , 3) |
| 2. settlement and appeal status (Para 4 , 5) |
| 3. appellant's grievance on representation (Para 6 , 7) |
| 4. threshold requirements for cirp (Para 8 , 9) |
| 5. disposal of applications and open remedies (Para 10 , 11) |
ORDER :
1. RBCL Projects Private Limited, who was an Operational Creditor of BPTP Limited filed a petition under the Insolvency and Bankruptcy Code 2016[“IBC”]. On 14 November 2022, the National Company Law Tribunal [“NCLT”] initiated the Corporate Insolvency Resolution Process [“CIRP”].
2. The appellant is an association comprised of home buyers aggrieved by the non-delivery of possession of units by the Corporate Debtor. The appellant had instituted a consumer complaint before the National Consumer Disputes Redressal Commission[“NCDRC”] which ended in a consent order dated 22 October 2020. The appellant has instituted execution proceedings for enforcement of the order of the NCDRC.
3. Against the order of the NCLT dated 14 November 2022, both the appellant and the first respondent, who is an erstwhile Director, filed appeals before the National Company Law Appellate Tribunal[“NCLAT”]. The appeal filed by the appellant
The court ruled that the NCLAT erred in approving a settlement without adhering to the procedural requirements of the Insolvency and Bankruptcy Code, emphasizing the collective nature of insolvency p....
The Court ruled that appeals against NCLT orders under the IBC must be filed within 30 days, extendable by 15 days, emphasizing strict adherence to these timelines.
The court affirmed that once debt and default are established under Section 7 of the IBC, admission into CIRP is mandatory, preventing misuse of the process as merely a recovery mechanism.
An operational creditor can only trigger the CIRP process when there is an undisputed debt and a default in payment thereof. If the debt is disputed, the application of the Operational Creditor for i....
Corporate Insolvency Resolution Process (CIRP) – Settlement cannot be stifled before constitution of Committee of Creditors in anticipation of claims against Corporate Debtor from third persons – Wit....
A suit filed against a corporate debtor during the moratorium period under Section 14 of the IBC is invalid.
Unsubstantiated claims of pre-existing disputes do not impede the admission of an application under Section 9 of the IBC.
Corporate Insolvency Resolution Process – Insolvency mechanism cannot be pressed into service as a substitute for ordinary execution or recovery proceedings.
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