COMPANY LAW
NCLT Approves Demerger Of Times Group's Non-Publishing Business Into Times Horizon
The National Company Law Tribunal (NCLT) at Mumbai has recently approved the demerger of the non-publishing business undertaking of Bennett, Coleman & Company Ltd (Times Group) into its wholly owned subsidiary, Times Horizon Pvt Ltd. The non-publishing business comprises Bennett Coleman's digital and internet ventures, entertainment and brand capital businesses, and other emerging operations distinct from its core publishing activities. A coram of Judicial Member Sushil Mahadeorao Kochey...
NCLT Ahmedabad Clears JK Paper Group's Composite Scheme To Consolidate Packaging Business
The National Company Law Tribunal (NCLT), Ahmedabad Bench, has sanctioned a Composite Scheme of Arrangement for JK Paper Limited and five group companies, paving the way for consolidation of the group's packaging business. A coram of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma approved the scheme under Sections 230 to 232 of the Companies Act, 2013. The tribunal cleared the restructuring with two Appointed Dates. April 1, 2024 applies to the amalgamation of JKPL Utility...
NCLT Hyderabad Approves Merger Of NCC Infrastructure Holdings With NCC Ltd
The National Company Law Tribunal (NCLT) at Hyderabad has approved the merger of NCC Infrastructure Holdings Ltd, a wholly owned subsidiary, with its parent company NCC Ltd, consolidating the group's infrastructure holdings under a single listed entity.A coram comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri observed that the scheme was fair, reasonable, and not contrary to public policy or any provision of law.“We have heard the Ld. Counsel for the Petitioner Company...
NCLT Mumbai Clears First Motion For Amalgamation Of Overseas Units Into NMDC Data Centre
The National Company Law Tribunal (NCLT) at Mumbai has cleared the first motion in a proposed amalgamation involving NMDC Data Centre Private Limited and two of its overseas group companies. The order was passed by a bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar, which dispensed with the requirement of holding meetings of shareholders and creditors at this stage. The scheme provides for the merger of Dubai-based Infin Data Centre Holdings Limited FZCO and...
NCLT Clears First Motion Of Essar Group Plan To Shift 'Essar' Brand From Abhinand Ventures To Essar Power
The National Company Law Tribunal (NCLT) at Ahmedabad has cleared the first motion in a group restructuring exercise through which the Essar Group proposes to shift ownership of the “Essar” brand from one group company to another. The scheme involves Essar Power Limited and its group company Abhinand Ventures Private Limited. Abhinand Ventures presently holds the Essar brand, which the scheme proposes to transfer to Essar Power. A bench of Judicial Member Shammi Khan and Technical Member...
Tribunal Can Ensure AGM Is Held, Cannot Step Into Post-AGM Issues: NCLT Kochi
The National Company Law Tribunal (NCLT) at Kochi has rejected a plea by Malabar Produce and Rubber Co Ltd, ruling that the tribunal can step in only when an Annual General Meeting is not held, and not to sort out problems that arise after a meeting has already taken place. A bench of Judicial Member Vinay Goel explained that this limited power flows from Section 97 of the Companies Act, 2013. The provision allows the tribunal to direct that an AGM be convened when a company fails to hold one....
Supreme Court Grants Time As Telsonic, Roop Ultrasonix Explore Settlement Over Rights Issue
The Supreme Court on Wednesday granted additional time to the parties in a dispute between Telsonic Holding AG and Roop Ultrasonix Ltd after they informed the court that they were trying to reach an amicable settlement. The court was hearing appeals filed by Telsonic Holding AG challenging a National Company Law Appellate Tribunal (NCLAT) order that had set aside an earlier ruling of the National Company Law Tribunal (NCLT) Mumbai relating to a rights issue by Roop Ultrasonix. A bench of...
Supreme Court Stays Probe Into Exclusive Capital, Allows NCLAT Proceedings To Continue
The Supreme Court on Tuesday stayed the investigation ordered into the affairs of Exclusive Capital Limited, an NBFC, while issuing notice in an appeal filed by the company and its promoters. It, however, clarified that the proceedings pending before the National Company Law Appellate Tribunal have not been stayed and would continue in accordance with law. A bench of Justices Sanjay Kumar and K. Vinod Chandran directed that the investigation initiated pursuant to the order passed by the...
Supreme Court Refuses To Interfere With Delhi High Court Order Quashing SFIO Probe Into Moser Baer
The Supreme Court on Tuesday declined to interfere with the Delhi High Court's decision quashing a Serious Fraud Investigation Office probe into Moser Baer India Limited, holding that the High Court committed no error in setting aside the government's order directing the investigation. A Division Bench of Justice Prashant Kumar Mishra and Justice N.V. Anjaria dismissed the Special Leave Petition filed by Karanartham Viramah Foundation. After hearing the petitioner, the Bench said it was...
NCLT Indore Approves Cistro Telelink's Capital Reduction To Write Off Pandemic Losses
The National Company Law Tribunal (NCLT) at Indore has approved a 40 percent reduction in the share capital of Cistro Telelink Limited, a Madhya Pradesh-based company engaged in software production and cable network distribution, holding that the proposal causes no prejudice to any stakeholder. A coram of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta noted that the reduction complied with Section 66 of the Companies Act and had overwhelming shareholder...
NCLAT Refuses To Interfere With NSEL Spot Exchange Settlement, Says NCLT Did Not Exceed Jurisdiction
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently refused to interfere with an order of the Mumbai bench approving a ₹1,950-crore one-time settlement for traders affected by the 2013 National Spot Exchange Ltd default, holding that the National Company Law Tribunal did not exceed its jurisdiction while sanctioning the scheme. A bench of Judicial Member Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra observed that a plain reading of the impugned order...
Promoter Fund Infusion To Satisfy Bank's Terms Not a 'Deposit' Under Companies Act: NCLT Mumbai
The National Company Law Tribunal at Mumbai (NCLT) has held that unsecured money brought into a company by its promoters to meet a bank's lending condition does not qualify as a deposit under the Companies Act, and that repayment proceedings under the deposit provisions cannot be maintained.A bench of Judicial Member Mohan Prasad Tiwari and Technical Member Charanjeet Singh Gulati passed the order on January 21. The tribunal said, “Once the transaction is covered by the statutory exclusion, the...