LIABILITY OF GUARANTOR AND PRINCIPAL DEBTOR IS CO-EXTENSIVE AND NOT IN ALTERNATIVE

By Richa Saraf (legal@vinodkothari.com)

In the case of Sanjeev Shriya v. State Bank of India & Ors.[1], the Hon’ble Allahabad High Court has barred parallel proceedings in Debt Recovery Tribunal (DRT) and National Company Law Tribunal (NCLT). Below we discuss the implications and analyse the judgment:

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Positive CoC voting – an absolute must in CoC

Supreme Court rules on the power of abstinence

By Nitu Poddar (resolution@vinodkothari.com)

Background

A financial creditor who is present at the CoC meeting but neither says yes, nor says no, and therefore, remains neutral by abstaining to vote, will still hold as much strength as the CoC member who says no. This is emerging from the SC ruling in K.Sashidhar vs Indian Overseas Bank & Ors[1].

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Swiss Ribbons SC ruling: IBC must stay on, the Defaulters paradise is lost

By Resolution Team (resolution@vinodkothari.com)

The following is our quick summary of the ruling of the Apex Court. We may be coming up with detailed write-ups later. Read more

ROLE OF ADJUDICATING AUTHORITY IN APPROVING/ REJECTING A RESOLUTION PLAN

By Richa Saraf and Ananya Raghavendra (resolution@vinodkothari.com)

The insolvency resolution process of Binani Cements have been through various ups- and downs. On 19.11.2018, the Hon’ble Supreme Court in the case of Rajputana Properties Pvt. Ltd. v. UltraTech Cement Ltd. & Ors. dismissed Dalmia Bharat’s plea to seek stay on Ultratech’s bid for Binani Cement, upholding the UltraTech Cement’s bid for Binani Cement sale. Previously, on 14.11.2018, the NCLAT had also held UltraTech’s offer for Binani Cement as valid, stating that Dalmia Bharat’s offer was discriminatory against some creditors[1]. Read more