• Sign In/Sign Up
  • Menu
  • +Clients Back

    • Get Free Legal Answers
    • Get Fee Estimates
    • Find Lawyers
  • +Lawyers

    • Case Diary & Office Manager
    • Post News & Artilces
    • Post Jobs & Internships
  • +Law Students

    • Campus Ambassadors
    • Find Jobs & Internships
    • Post News & Articles
    • Resource Sharing
  • +Law Schools

    • Post Admissions
    • Post Opportunities
    • Get Law School Rating

  • Home
  • News/Articles
  • SC sets aside NCLAT order which held that Dissenting Financial Creditor should not be discriminated; in the case of RAHUL JAIN VS RAVE SCANS PVT LTD & ORS

Latest News

Back

SC sets aside NCLAT order which held that Dissenting Financial Creditor should not be discriminated; in the case of RAHUL JAIN VS RAVE SCANS PVT LTD & ORS

Courtesy/By: Kumari Nisha  |  09 Nov 2019     Views:1960

The resolution applicant, in this case, was aggrieved by the decision of the National Company Law Appellate Tribunal (NCLAT) with regard to a change in the resolution plan which was already accepted by the adjudicating authority under the Insolvency and Bankruptcy Code, 2016 (Code) i.e. the National Company Law Tribunal (NCLT).

Corporate Insolvency Resolution Process was initiated against M/s. Rave Scans Pvt. Ltd. (corporate debtor) under section 10 of the Code on January 25th, 2017. The appellant here was the resolution applicant for the corporate debtor. The liquidation amount for the corporate debtor was ascertained to be Rs. 36 crore. Against this amount, the appellant had offered Rs. 54 crore to revive the entity again as per the resolution plan. This resolution plan was then revised and was approved by the NCLT. Hero Fincorp was given a lesser percentage of about 32.34% of the claim admitted by it, whereas other financial creditors were given around 45% of their claim amount. Thereafter, the resolution plan was challenged before the NCLAT by the second respondent which was Hero Fincorp Ltd as being discriminatory on the ground that the secured financial creditors were provided with a higher percentage of their claim amount.

The appellant relied on the Regulation 38(c) of the Insolvency and Bankruptcy Board of India Regulations, 2016 before its amendment in October 2018 which said that the dissenting financial creditor needed to be provided with only the amount ascertained for liquidation. Here the dissenting creditor i.e. Hero Fincorp was being offered Rs. 54 crore which was a fair resolution plan according to the appellant.

However, NCLAT set aside the NCLT order and held that the NCLT should have taken into consideration the amendment to the Regulation which was introduced on October 5th, 2018 as NCLT gave its order on October 5th itself.

The Supreme Court, however, setting aside the NCLAT’s order, held that the question of applying the amended provision was not possible as the resolution process of the corporate debtor was initiated in January 2017. Hence the order of NCLAT requiring the appellant to pay more to the dissenting creditor was not justified and thus, the Supreme Court upheld the order of NCLT.  


Document:


Courtesy/By: Kumari Nisha  |  09 Nov 2019     Views:1960

News Updates

The Legal Framework of Bail Conditions in India: B...
25 Oct 2024     Views:6190
Changing an Arbitrator Mid-Proceeding: Legal Frame...
23 Oct 2024     Views:5605
IMF Retains India's FY25 GDP Growth Forecast at 7%...
22 Oct 2024     Views:5583
The Evolving Landscape of Russian Anti-Suit Injunc...
22 Oct 2024     Views:5380
Hyundai’s IPO vs Competitors: How the Auto Giant...
15 Oct 2024     Views:5403
The Validity of Arbitration Agreements Post Decree...
14 Oct 2024     Views:5054
SEBI Issues Checklist for AIFs, Their Managers, an...
08 Oct 2024     Views:5418
The Siemens v. Russian Railroads Case...
07 Oct 2024     Views:5410
Empowering Minds in Confinement: Bombay HC’s Lan...
03 Oct 2024     Views:5531
The Dynamics of Novation in Contract Law and Its I...
02 Oct 2024     Views:5713
SEBI Establishes Consistent Evaluation Standards f...
01 Oct 2024     Views:5423
Landmark Decision by Austrian Supreme Court on Arb...
30 Sep 2024     Views:5388
Key Considerations for Indian Commercial Claims...
25 Sep 2024     Views:5340
Boom or Bust: Africa’s Oil Giants Face Declining...
23 Sep 2024     Views:5464
The Growing Role of Arbitration in Intellectual Pr...
23 Sep 2024     Views:5414
Supreme Court Greenlights Sub-Classification of SC...
20 Sep 2024     Views:5747
SEBI's Employee Grievances Prompt Formation of Wor...
19 Sep 2024     Views:5573
Environmental Law in India: Challenges and Opportu...
18 Sep 2024     Views:6419
Navigating the New Legal Landscape of Exclusive Ju...
16 Sep 2024     Views:5537
The Anatomy of Joint Venture Breakups in India (an...
31 Jul 2024     Views:5881
The Integration of ESG in India's M&A Landscape...
31 Jul 2024     Views:5781
Future of AI in Legal Systems and Conflict Resolut...
21 Jul 2024     Views:5968
World Health Assembly Revises International Health...
21 Jul 2024     Views:5821
Pokemon GO Fans Concerned Over Restrictive New Ter...
21 Jul 2024     Views:5932
Landmark Judgment on Setting Aside Arbitration Awa...
21 Jul 2024     Views:5724
Understanding the Process of Issuing Summons in In...
11 Jul 2023     Views:9123
Understanding the Unlawful Activities (Prevention)...
10 Jul 2023     Views:7656
Understanding the Mental Health Act in India: A St...
09 Jul 2023     Views:7695
Combating Manual Scavenging in India: A Call for S...
07 Jul 2023     Views:7486
Impleadment in Supreme Court of India: A Comprehen...
05 Jul 2023     Views:8459
Unraveling the Distinction: Culpable Homicide vs. ...
03 Jul 2023     Views:7793
Understanding the Difference between Money Bills a...
02 Jul 2023     Views:6327
Understanding the Civil Procedure Code in India: A...
01 Jul 2023     Views:7113
The Rights of Criminals in India: Upholding Justic...
30 Jun 2023     Views:6372
Exploring the Differences between the US and India...
29 Jun 2023     Views:6377
What to Do If the Police Refuse to Register Your F...
26 Jun 2023     Views:6631
Timeline of Environmental Protocols: A Global Effo...
25 Jun 2023     Views:6323
How to Deal with Cheque Bounce Cases in India...
24 Jun 2023     Views:6305
Pursuing a Lucrative Litigation Career in Indian L...
22 Jun 2023     Views:6352
Understanding the Emergency Provisions of India: S...
21 Jun 2023     Views:6323
Environment Legislation in India: A Comprehensive ...
20 Jun 2023     Views:6677
Understanding the Emergency Powers of the Constitu...
18 Jun 2023     Views:6171
Understanding the Emergency Powers of the Constitu...
17 Jun 2023     Views:6203
Timeline of Same-Sex Laws in India: A Journey Towa...
16 Jun 2023     Views:6649
Sir Creek Dispute and Legal Implications...
15 Jun 2023     Views:6850
Jurisprudence of NDPS Laws in India: A Comprehensi...
14 Jun 2023     Views:6425
Impleadment Proceedings: A Comprehensive Guide to ...
13 Jun 2023     Views:6861
Understanding Continuing Mandamus: A Powerful Judi...
12 Jun 2023     Views:8854
Res Judicata: The Doctrine of Finality in Legal Pr...
10 Jun 2023     Views:6856
Mastering the Art of Legal Drafting: A Comprehensi...
08 Jun 2023     Views:6522
Order 1 Rule 10 of the Code of Civil Procedure (CP...
07 Jun 2023     Views:12186
Understanding the Laws of War: Protecting Humanity...
03 Jun 2023     Views:6236
Understanding the Code of Criminal Procedure (CRPC...
02 Jun 2023     Views:7098
The National Drug and Psychotropic Substances (NDP...
01 Jun 2023     Views:6668
A Step-by-Step Guide: How to File an FIR in India...
31 May 2023     Views:6378
Zero FIR: An Effective Tool for Prompt Criminal Ju...
30 May 2023     Views:6607
Unveiling the Dissent of Judges in Judicial Judgme...
28 May 2023     Views:6242
Environmental Laws in India: Safeguarding Nature f...
25 May 2023     Views:6695
The Recusal of Supreme Court of India Judges from ...
24 May 2023     Views:6362
Understanding the Jurisdiction of the Supreme Cour...
23 May 2023     Views:6807
Article 142 of the Constitution of India: A Compre...
22 May 2023     Views:7028
Landmark Judgments in Arbitration Law in India: A...
21 May 2023     Views:7260
Landmark Cases on Anticipatory Bail in India: A Pa...
20 May 2023     Views:11144
Embracing the Future: How AI is Revolutionizing th...
18 May 2023     Views:6458
Understanding Narcotics Laws in India: A Comprehen...
17 May 2023     Views:6326
Understanding Indian Laws on Cross-Border Transact...
16 May 2023     Views:7464
ADR mechanism of legal adjudication in India...
15 May 2023     Views:6173
Validity of foreign arbitral award in India throug...
14 May 2023     Views:6184
Scope of Section 151 CPC...
13 May 2023     Views:7770
Detailed Overview on Section 482 of Crpc...
11 May 2023     Views:6714
Scope of Decree under CPC...
10 May 2023     Views:6261
Legal development of Arbitration Laws in India....
09 May 2023     Views:6304
Arbitration Laws in India...
07 May 2023     Views:6253
Impact of COVID-19 on Legal Industry...
06 May 2023     Views:8355
Chargesheet not having authority's valid sanction ...
02 May 2023     Views:6538
Same-Sex Marriage in India...
30 Apr 2023     Views:6173
National Commission for Women...
27 Apr 2023     Views:6026
Law making process of India....
26 Apr 2023     Views:7116
Bail Provisions in India...
25 Apr 2023     Views:6050
Life imprisonment in Criminal Law in India...
24 Apr 2023     Views:6470
Contempt of Court...
23 Apr 2023     Views:6306
The collegium system of Judiciary in India....
22 Apr 2023     Views:5991
Remarriage before Expiry of Limitation Period to f...
21 Apr 2023     Views:5982
Need for strict measure of NDPS laws in India....
20 Apr 2023     Views:6148
Nature of Offence under Section 138 of NI Act is Q...
19 Apr 2023     Views:8587
Order VII Rule 11 CPC: Plaint cannot be rejected m...
18 Apr 2023     Views:7195
Mediation: At the Dawn of Golden Age organized at ...
16 Apr 2023     Views:6265
Central Government's motto should be mediate, not ...
15 Apr 2023     Views:5979
Ambedkar Jayanti Celebrations...
14 Apr 2023     Views:6193
Supreme Court of India calls for Preventive Measur...
12 Apr 2023     Views:5750
Pursuing LL.M is not break in Law Practice, Rules ...
11 Apr 2023     Views:5976
Law should take into consideration realities of co...
10 Apr 2023     Views:5803
Delhi High Court said that peeping into public bat...
08 Apr 2023     Views:6407
Delhi High Court denies bails to AAP's Satyendra J...
06 Apr 2023     Views:6528
Supreme Court’s Triple Talaq Judgement Would App...
30 Jan 2023     Views:6254
Article 311(1) | An Order of Removal From Service ...
26 Jan 2023     Views:6728
Leaders shouldn't disrespect the President or Pri...
17 Jan 2023     Views:6036
New bench will hear Ashwini Upadhyay's Supreme Cou...
15 Jan 2023     Views:6175
Person Who Drove Rashly with the Knowledge that it...
12 Jan 2023     Views:6767
The rigours of Section 37 of the NDPS Act cannot b...
11 Jan 2023     Views:6504
FIND A LAWYER




FIND A LAW SCHOOL



Most Read News Articles

  • Sabrimala Verdict (28 sept 2018) - A End of Taboo.
    On 07 Oct 2020    Views:96487
  • Case Analysis: Vellore Citizens Welfare Forum vs Union of India
    On 11 Dec 2020    Views:74070
  • Case Analysis: THE BERUBARI UNION CASE
    On 14 Dec 2020    Views:71483
  • DOCTRINE OF ELECTION UNDER TRANSFER OF PROPERTY ACT, 1882
    On 08 Jul 2020    Views:70622
  • A.K. Gopalan v. State of Madras (1950 AIR 27, 1950 SCR 88)
    On 08 Nov 2020    Views:59991
View all >>

Propertified Propertified Propertified Propertified Propertified Propertified Propertified Propertified Propertified

86540

Lawyers Network

103860

Users

630

Cities Serving

114

Law Schools Network

59824

Law Students Network

About us

  • Company Profile

Indian Major Laws

  • Indian Constitution
  • IPC
  • CrPC
  • CPC
  • Companies Act
  • Indian Evidence Act
  • CGST Act
  • Limitation Act

Policies

  • Terms of Use
  • Privacy Policy
  • Refund & Cancellation

    Ads & Media

  • Resource Sharing
  • Advertiser(Sign Up/Login)
  • Media

    Careers

  • Internships
  • Jobs
  • Student Journalists

    HELP & SUPPORT

  • Contact Us
  • Grievances
  • Test

News

  • Legal News
  • Post Article
  • Post Interview

Legal Library

  • Central Acts
  • Deeds Drafts [1128 ]
  • Legal Maxims

Connect

Lawsisto Direct

 

  •  
  •  
DISCLAIMER
Copyright © Lawsisto Private Limited. All rights reserved.
Unless otherwise indicated, all materials on these pages are copyrighted by Lawsisto Private Limited. All rights reserved. No part of these pages, either text or image may
be used for any purpose. By continuing past this page, you agree to our Terms of Service, Cookie Policy, Privacy Policy and Content Policies.