Non‑Invocation of Personal Guarantee Amounting to Absence of Default: NCLT Dismisses Insolvency Petition Against Guarantor u/s 95–99 of IBC [Read Order]

Bankruptcy

In a recent ruling, the National Company Law Tribunal (NCLT), Mumbai Bench, dismissed an insolvency petition filed by Think Hard India Private Limited against the personal guarantor of Seya Industries Ltd., holding that failure to invoke the personal guarantee meant no default had occurred under the Insolvency and Bankruptcy Code (IBC). In January 2020, corporate debtor Seya Industries Ltd. obtained a…

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Bankruptcy

Please note that by blocking any or all cookies you may not have access to certain features, content or personalization. For more information see our Cookie Policy. To enable cookies, follow the instructions for your browser below. Facebook App: Open links in External Browser There is a specific issue with the Facebook in-app browser intermittently…

Three Quebec electric battery champions that went bust

Bankruptcy

Among the 11 electric battery companies investigated by Quebec’s auditor general, three were high-profile jewels in the province’s quest for green leadership that ended up going bankrupt or being declared insolvent. Northvolt, Lion Electric and Taiga Motors received more than $650 million in provincial funding before failing. Auditor general Christine Roy found the government’s attempts…

Property firm insolvencies hit 10-year high

Bankruptcy

Property businesses are going bust at the fastest rate in a decade, with more than 760 companies becoming insolvent so far this year in a sign of mounting pressure across the property sector. Analysis by City AM of insolvency filings published in the London Gazette found that the total is more than 60% higher than…

Liquidation Cannot Be Allowed to Reward Defaulting Promoters Operating Outside Corporate Debtor Structure: NCLT [Read Order]

Bankruptcy

The National Company Law Tribunal (NCLT), has held that liquidation cannot be permitted where it would effectively benefit defaulting promoters who continue to operate outside the formal structure of the corporate debtor, and consequently recalled the insolvency admission order The RP submitted that despite extensive efforts following his appointment, he was unable to obtain crucial…