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The court held that a terminated development agreement is not an 'asset' under Section 14(1)(d), and the Adjudicating Authority's jurisdiction under Section 60(5)(c) is confined to disputes arising directly from insolvency. This permits arbitration proceedings initiated by the corporate debtor to continue during CIRP.
An EPF assessment order issued during the CIRP was set aside because the IBC moratorium prevents continuation of such inquiries and the amendment to Section 31(6) extinguishes claims filed before resolution. The ruling limits employees’ provident-fund claims against insolvent companies and guides resolution professionals.
NCLAT quashed the liquidation order of Jeppiaar Cements, revived the corporate insolvency resolution process and permitted withdrawal of the Sec 12A application even though the Committee of Creditors failed to meet the 66 % voting threshold prescribed by Sec 33. The ruling affirms a resolution professional’s discretion to deem a Sec 12A withdrawal viable, protecting creditor interests and keeping restructuring options open for the debtor.
Delhi High Court ruled that an arbitral award not incorporated into an approved IBC resolution plan is legally extinguished, and ordered the return of the petitioner’s security deposit of INR 5.52 crore with accrued interest. The decision clarifies that Section 34 petitions become infructuous when the award is omitted from the resolution plan, impacting parties in corporate insolvency arbitrations.
The Allahabad High Court has ruled that Section 14 of the IBC prohibits all coercive recovery actions against a corporate debtor during CIRP, including the attachment of sugar stock by state authorities. This reinforces that statutory moratoriums override even revenue recovery mechanisms, protecting corporate assets from piecemeal seizure by any creditor, including government agencies.
NCLAT grants exclusion of 87 days from the CIRP timeline due to delays in transitioning Resolution Professionals, emphasizing that liquidation should be a last resort. The ruling reinforces the need to preserve corporate debtors as going concerns, offering relief to stakeholders facing procedural delays under the IBC.