NCLT Mumbai Dismisses Contempt Plea Against Lenders, Advocates In Ornate Spaces Insolvency

The National Company Law Tribunal (NCLT) at Mumbai has dismissed a contempt plea filed by UTI Employees Sai Samruddhi Co-Operative Housing Society Ltd in the Ornate Spaces insolvency case, saying the applicant was attempting to misuse the judicial process to put undue pressure on lenders and their counsel. “Thus, we do not find sufficient initial evidence for interference with the due course of the judicial proceeding. We feel that the Applicant is attempting to misuse the judicial forum by...

NCLT Mumbai Clears First Motion For Demerger Of Guardian's GNC Business To Bella Vita Owner Idam Natural Wellness

The National Company Law Tribunal (NCLT) at Mumbai has allowed a first-motion application for a composite scheme involving Idam Natural Wellness Private Limited, the owner of the Bella Vita brand, and Guardian group entities Guardian Nutrition & Healthcare Private Limited and Guardian Healthcare Services Private Limited. A bench of Judicial Member K.R. Saji Kumar and Technical Member Anil Raj Chellan passed the order, issuing directions for stakeholder meetings and notices to regulators in...

NCLT Mumbai Directs Piramal Finance Shareholder Vote On Merger Of Three Subsidiaries Into It

The Mumbai bench of the National Company Law Tribunal (NCLT) has cleared the first leg of a scheme to merge three Piramal group subsidiaries into Piramal Finance Limited. However, it directed the listed NBFC to convene a meeting of its equity shareholders, saying they should be given an opportunity to consider the implications of the amalgamation after noting that the transferor companies appeared to have negative net worth. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical...

Bombay High Court Pulls Up Petitioner Over Plea To Stay Sir Ratan Tata Trust Board Meeting, Petition Withdrawn

The Bombay High Court on Wednesday disposed of as withdrawn a petition seeking a stay on the May 16 board meeting of the Sir Ratan Tata Trust (SRTT) after expressing serious displeasure over the manner in which the proceedings were instituted.A vacation bench of Justices Advait Sethna and Sandesh Patil expressed shock after noting that petitioner Suresh Patilkhede had sought a stay on the SRTT board meeting based on representations pending before the Charity Commissioner even though those...

NCLT Chennai Dismisses Oppression Plea Against Aum Consultancy, Calls Dispute Contractual

The Chennai Bench of the National Company Law Tribunal (NCLT) on 6 May dismissed a petition filed by H. Ramesh against Aum Consultancy Private Limited alleging oppression and mismanagement in the affairs of the company. Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam held that the disputes raised were contractual in nature and did not disclose any continuing oppressive conduct under Sections 241 and 242 of the Companies Act. The Bench observed: “The requirement under...

NCLAT Rejects Dissenting Creditors' Challenge To NSEL Scheme Clauses On Broker Liability, Claims Assignment

The National Company Law Appellate Tribunal on Tuesday dismissed an appeal by Nirtex Exports & Investment Pvt. Ltd. and other specified creditors challenging the NCLT's approval of a settlement scheme in the 2013 National Spot Exchange Ltd. payment default matter, particularly provisions barring parallel claims against brokers. It held that creditors covered by the scheme cannot continue pursuing the same claims separately against brokers once those claims stand assigned under the...

NCLT Mumbai Allows First Motion Plea In Vidarbha Industries-Adani Power Merger

The National Company Law Tribunal (NCLT) at Mumbai bench on Tuesday (May 12) allowed a first-motion company scheme application for the amalgamation of Vidarbha Industries Power Limited into Adani Power Limited under Sections 230 to 232 of the Companies Act, 2013. A bench of Judicial Member Nilesh Sharma and Technical Member Charanjeet Singh Gulati passed the order. The tribunal noted that Vidarbha Industries Power is a wholly owned subsidiary of Adani Power. It recorded that no shares would be...

NCLT Mumbai Approves Arrka Infosec-Persistent Systems Merger, Says Scheme Fair, Not Against Public Policy

The Mumbai Bench of the National Company Law Tribunal has approved the amalgamation of Arrka Infosec Private Limited, an information technology and IT-enabled services company, with Persistent Systems Limited, a listed technology company. The tribunal observed that the scheme “appears to be fair and reasonable” and is “not contrary to public policy.” The order was passed by a bench of Judicial Member Prabhat Kumar and Technical Member Sushil Mahadeorao Kochey. As a result, Arrka Infosec, a...

NCLT Ahmedabad Allows Ex-Adani Power Director To Compound Companies Act Offences On ₹9.75 Lakh Payment

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has allowed former Adani Power Whole Time Director Vneet S. Jain to compound allegations that included failure to disclose related-party transactions and other accounting irregularities in Adani Power's financial statements. “The material on record does not indicate any direct prejudice to the interests of the shareholders, creditors or the public,” the tribunal observed. Judicial Member Shammi Khan and Technical Member Sanjeev...

NCLT Chennai Sanctions Amalgamation of Sundaram Auto Components With TVS Motor Company

The Chennai Bench of the National Company Law Tribunal (NCLT) on 6 May approved a Scheme of Arrangement providing for the amalgamation of Sundaram Auto Components Limited (transferor company) with its holding company, TVS Motor Company Limited (transferee company). Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam passing the order sanctioning the scheme between the two companies, observed: “In the absence of any other objections having been placed on record before this...

NCLT Chennai Directs Meetings On Dr. Agarwal's Eye Hospital–Health Care Amalgamation Scheme

The Chennai Bench of the National Company Law Tribunal on 5 May allowed the first motion application for the proposed amalgamation of Dr. Agarwal's Eye Hospital Limited (AEHL) with Dr. Agarwal's Health Care Limited (AHCL) and directed convening of meetings of shareholders and creditors of both companies. A Bench comprising Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam passed the order on an application filed by the companies under Sections 230 to 232 of the Companies...

NCLT Kochi Allows MFAR Enterprises To Issue Fresh Preference Shares Under Section 55(3) Companies Act

The National Company Law Tribunal (NCLT) at Kochi on 8 May held that Section 55(3) of the Companies Act, 2013 operates as an independent remedial mechanism where a company is unable to redeem existing preference shares, and permitted issuance of further redeemable preference shares in substitution of unredeemed shares. A Bench of Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy allowed MFAR Enterprises Private Limited's petition seeking permission to issue further...