Benami property exclusion from the insolvency estate: Benami Act proceedings preclude IBC tribunals from reopening attachments or treating such assets...
Exclusion of limitation period: pandemic suspension plus debtor acknowledgement can extend limitation, requiring fresh factfinding on guarantee invoca...
The sole issue is whether the Tribunal committed jurisdictional error by treating the 10% ceiling in the Third Proviso to Section 19(1) as a mandatory minimum despite finding "undue hardship" and poor financial condition. The Court held that "undue hardship" means a burden disproportionate to the requirement; where an NPA-classified appellant lacks liquid assets a multi-crore deposit is prima facie impossible and would render the statutory right of appeal illusory. The Tribunal ought to have imposed alternative conditions (indemnity bonds, corporate guarantees) under the Second Proviso; appeal allowed. - HC
The sole issue is whether the Tribunal committed jurisdictional error by treating the 10% ceiling in the Third Proviso to Section 19(1) as a mandatory minimum despite finding "undue hardship" and poor financial condition. The Court held that "undue hardship" means a burden disproportionate to the requirement; where an NPA-classified appellant lacks liquid assets a multi-crore deposit is prima facie impossible and would render the statutory right of appeal illusory. The Tribunal ought to have imposed alternative conditions (indemnity bonds, corporate guarantees) under the Second Proviso; appeal allowed. - HC
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