Wrong Excel Upload Administrative, Not Substantive Revision Under Section 131 Companies Act: NCLT Delhi

The New Delhi Bench of the National Company Law Tribunal (NCLT) on 11 March, held that the company's error in uploading an incorrect Excel file while filing Form AOC‑4 XBRL was a clerical mistake amounting to an administrative issue, not a substantive revision under Section 131.A Bench comprising Judicial Member Mahendra Khandelwal and Technical Member Anu Jagmohan Singh dismissed a petition by P & R Infraprojects Limited seeking approval to revise its financial statements for FY...

NCLAT Chennai Holds Share Purchase Rights Forfeited By Delay In Exercising First Option

The National Company Law Appellate Tribunal (NCLAT) at Chennai on 26 February dismissed an appeal by PM Johny challenging an NCLT order that permitted respondents to purchase shares at a higher valuation, holding that the appellant forfeited the right by failing to act at the appropriate stage. A Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain observed: “…the Appellant cannot take an advantage at this stage by carving arguments when the...

NCLT Mumbai Directs Stakeholder Meetings In Merger Of Mandawewala Enterprises With AYM Syntex

On 6 April, the National Company Law Tribunal (NCLT) at Mumbai allowed the first motion application to merge Mandawewala Enterprises Ltd into AYM Syntex Limited and directed the convening of stakeholder meetings. A Bench comprising Judicial Member K.R. Saji Kumar and Technical Member Anil Raj Chellan approved the first motion under Sections 230–232 of the Companies Act. The Tribunal directed: “In view of the facts submitted hereinabove, this Bench directs the convening of the meeting of the...

NCLT Mumbai Approves Nirmal Lifestyle Realty–Oberoi Realty Merger

The National Company Law Tribunal (NCLT) Mumbai on Monday approved the scheme of amalgamation between Nirmal Lifestyle Realty Pvt Ltd and Oberoi Realty Ltd., allowing the merger and granting consequential directions. A bench comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar held that the scheme was fair, reasonable, and not contrary to law or public policy, noting that no objections were received from stakeholders or regulatory authorities. The scheme,...

NCLT Mumbai Clears First Motion For Merger of Jaypore, TG Apparel Into Aditya Birla Fashion

The National Company Law Tribunal's Mumbai Bench on Monday allowed a first motion application in a scheme of amalgamation between Jaypore E-Commerce Pvt Ltd and TG Apparel and Decor Pvt Ltd with Aditya Birla Fashion and Retail Limited, dispensing with meetings of shareholders and creditors in specified cases. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar passed the order under Sections 230 to 232 of the Companies Act. The appointed date for the scheme...

Only NCLT Can Decide Premature Loan Repayment Disputes Under RBI Act: Allahabad High Court

The Allahabad High Court on 31 March held that under Section 45QA of the Reserve Bank of India Act, 1934 read with Section 430 of the Companies Act, 2013, only the National Company Law Tribunal (NCLT) has the jurisdiction to decide disputes regarding premature repayment of a loan. A Single-Judge Bench of Justice Sandeep Jain dismissed the appeal filed by Shivam Traders And Hire Purchase Pvt. Ltd. against Madhusudan Vehicles Pvt. Ltd., holding that the civil court had no jurisdiction over...

NCLT Chennai Allows First Motion In Apollo Hospitals Scheme, Orders Stakeholder Meetings

The National Company Law Tribunal (NCLT) at Chennai has recently directed meetings of equity shareholders as well as secured and unsecured creditors, while dispensing with such meetings in certain cases, in a composite scheme of arrangement involving Apollo group companies. A coram of Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy was dealing with a joint application filed by Apollo Hospitals Enterprise Limited, Apollo Healthco Limited, Keimed Private Limited,...

HSCC MD Not A 'Civil Post' Under Union, CAT Lacks Jurisdiction: Delhi High Court

The Delhi High Court has held that the managing director of HSCC India, a government-owned company, does not hold a civil post under the Union and therefore cannot invoke the jurisdiction of the Central Administrative Tribunal.A bench of Justices Anil Kshetarpal and Amit Mahajan said the position was corporate in nature. “Having meticulously examined the nature of the post held by the Respondent No.1, and upon drawing a clear distinction between an employee of the Union and an employee of an...

Service Of Notice On One Partner Deemed Service On All Under Presidency Towns Insolvency Act: Bombay HC

The Bombay High Court has held that service of an insolvency notice on a firm or any one of its partners amounts to valid service on all partners under the Presidency Towns Insolvency Act, 1909. The court rejected the argument that limitation should be counted from the last date of service on each partner. A single-judge bench of Justice Jitendra Jain was hearing an insolvency petition where the judgment debtors challenged its maintainability under Section 12(1)(c) of the Presidency Towns...

Approved Resolution Plan Binds Shareholders, Section 59 Companies Act Cannot Reopen It: NCLT Ahmedabad

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 6 March held that once a resolution plan under the Insolvency and Bankruptcy Code (IBC) is approved, its consequences are binding on all stakeholders, including shareholders, and cannot be reopened through Section 59 proceedings under the Companies Act. A Bench comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma dismissed an appeal by Titus Babu, a shareholder of Sintex Industries Ltd. The NCLT...

'Company Cannot Fund Director's Bail Under Companies Act': Supreme Court Cancels BIIPL Director's Bail

The Supreme Court on Thursday held that a company cannot grant a loan to its director without special resolution of shareholders and where it is not for its business purposes and cancelled the bail of Satinder Singh Bhasin after finding that the Rs. 50 crore deposit was arranged using company funds in violation of the Companies Act. Bhasin, director of Bhasin Infotech and Infrastructure Pvt Ltd (BIIPL), had been granted bail on November 6, 2019 in connection with multiple FIRs arising out of...

Impleadment Not Allowed Without Pleadings Or Relief Against Proposed Parties: NCLT Kochi

The National Company Law Tribunal (NCLT) Kochi has held that additional parties cannot be impleaded in company law proceedings in the absence of foundational pleadings and specific reliefs against them, underscoring that such a move would impermissibly expand the scope of the dispute. A coram of Judicial Member Vinay Goel said, “this Adjudicating Authority is of the considered opinion that an application for impleadment cannot be allowed in the absence of any proposed amendment to the pleadings...