NCLT Chennai Allows Winding Up Of Struck-Off Company To Realise Assets, Settle Liabilities

The National Company Law Tribunal (NCLT), Chennai, has ruled that a company struck off from the Register of Companies can still be wound up to realise its assets and settle outstanding liabilities.The tribunal observed that "to ensure that the marketable securities are realized and the liabilities of the Company are settled, it is just and equitable that the Company be wound up under the enactment of the Companies Act 2013 and Rules made thereunder."A coram comprising Judicial Member Sanjiv Jain...

Power To Modify Scheme Can Be Used If Unworkable, Not As 'Lever' To Alter Scheme: NCLT Mumbai In NSEL Case

The National Company Law Tribunal (NCLT) at Mumbai has held that its power to modify a sanctioned scheme under Section 231 of the Companies Act, 2013 can be used where the scheme is unworkable. It cannot be used to extend the scheme's benefits to a defaulter when there is no allegation that the scheme is not being properly implemented.“In our considered view, this provision can be used to seek modification where the scheme seems to be unworkable and not where there was no allegation that the...

NCLT Mumbai Sanctions Demerger Of Guardian's GNC Business To Bella Vita Owner Idam Natural Wellness

The National Company Law Tribunal (NCLT), Mumbai has sanctioned a composite scheme of arrangement providing for the demerger of Guardian Healthcare Services Private Limited's Nutritional Products Division, including its GNC business, into Idam Natural Wellness Private Limited, owner of the 'Bella Vita' brand. The scheme also provides for reduction of Guardian Nutrition & Healthcare Private Limited's share capital by cancelling shares held by shareholders other than Idam.A coram of Judicial...

NCLT Delhi Sanctions Yamaha Motor India Restructuring Scheme

The Principal Bench of the National Company Law Tribunal (NCLT), New Delhi has sanctioned a composite scheme involving Yamaha Motor India Private Limited, Yamaha Motor India Sales Private Limited and India Yamaha Motor Private Limited.The scheme provides for the demerger of the management advisory and consulting business, referred to as the “Planning division”, of Yamaha Motor India into India Yamaha Motor. It also provides for the amalgamation of Yamaha Motor India Sales with India Yamaha...

NCLT Ahmedabad Orders Bosch Home Comfort To Restore Shareholder's Name, Finds No Sufficient Cause

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 28 September directed Bosch Home Comfort India Limited to restore Anoopama Shah's name in its Register of Members in respect of 250 shares after finding that her name had been omitted without sufficient cause. A Bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma allowed Shah's appeal against the company and others. The Tribunal observed: “In view of the aforesaid observations and findings, we are of the...

NCLT Chennai Approves Scheme Merging Dr. Agarwal's Eye Hospital With Dr. Agarwal's Health Care

The National Company Law Tribunal at Chennai has sanctioned the second motion petition seeking approval of the Scheme of Amalgamation between Dr. Agarwal's Eye Hospital Limited and Dr. Agarwal's Health Care Limited. A coram of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam passed the order. The petition was filed after the Tribunal, in the first motion proceedings, had directed the companies to convene meetings of their equity shareholders, secured and unsecured...

Popular Finance Scam: NCLT Kochi Orders Winding Up Of 14 Group Entities

The National Company Law Tribunal at Kochi on Tuesday ordered the winding up of several companies and limited liability partnerships forming part of the Popular Finance Group in winding up proceedings initiated by the Union of India through the Serious Fraud Investigation Office (SFIO).A coram of Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy passed the order. The Tribunal also appointed the Official Liquidator as the Company Liquidator to take further steps in accordance...

Mere Non-Payment Of Money Under Tribunal's Order Not Contempt Without Wilful Disobedience: NCLT Ahmedabad

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has recently held that mere non-payment of an amount directed to be paid under an order does not, by itself, constitute civil contempt unless there is material showing conscious, deliberate and wilful disobedience.The bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed, “However, the remaining unpaid amount, by itself, cannot constitute contempt in the absence of material establishing the requisite...

NCLT Chandigarh Refuses To Recall Scheme Order, Holds Accounting Dispute Insufficient To Establish Fraud

The National Company Law Tribunal (NCLT), Chandigarh, has refused to recall its order dispensing with meetings of unsecured creditors for a Scheme of Demerger and Amalgamation involving Okaya Power Private Limited and three group companies.The tribunal held that the dispute over the dues claimed by two Microtek companies did not establish that Okaya had deliberately concealed an admitted liability or practised fraud to obtain the earlier order. It observed that the dispute essentially concerned...

Company Cannot Deny Deposit Repayment Claim Merely Because Depositor Was Non-Member: NCLT Allahabad

The National Company Law Tribunal (NCLT) at Allahabad has held that a company cannot defeat a non-member's claim for repayment merely by contending that the money was received from someone who was not its member, where the amount falls within the statutory definition of a "deposit."A bench comprising Judicial Member Praveen Gupta and Technical Member Ashish Verma held that a company's alleged non-compliance with the rules governing acceptance of deposits does not give it a right to retain money...

NCLT Chandigarh Allows First Motion In Duet India Hotels-Caspia Hotels Demerger, Dispenses With Meetings

The Chandigarh Bench of the National Company Law Tribunal (NCLT) on 28 September allowed the First Motion application filed jointly by Duet India Hotels (Hyderabad) Private Limited, the Demerged Company, and Caspia Hotels Private Limited, the Resulting Company. Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh dispensed with the meetings of shareholders and creditors for a Scheme of Arrangement after noting the consents obtained from them. The Bench observed: ...

NCLT Mumbai Sanctions Demerger Of GE Power India With JSW Energy, Preserves Income Tax Rights

On 1 October, the Mumbai Bench of the National Company Law Tribunal sanctioned a Scheme of Arrangement providing for the demerger of GE Power India Limited's Durgapur-based business to JSW Energy Limited. A Bench comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar sanctioned the Scheme after considering reports from the Chairperson, Regional Director and Income Tax Department. It noted that the Scheme had received the requisite approval from shareholders and...