NCLT Guwahati Refuses To Direct PNB To Accept ₹22.50 Cr. OTS Proposal, Says Tribunal Can't Compel Bank

The National Company Law Tribunal (NCLT), Guwahati, on 10 September refused to direct Punjab National Bank (PNB) to accept a Rs. 22.50 crore One-Time Settlement (OTS) proposal made by Sandeep Kumar Bhagat in relation to three companies undergoing liquidation. A Bench of Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh observed: “Acceptance of an OTS is a matter of commercial consideration, having regard to the financial position, security, recoverability and...

Another Creditor Moves NCLT Delhi Against Bira Beer Maker Over ₹7.24 Crore Default

Another creditor has approached the Delhi bench of the National Company Law Tribunal (NCLT) seeking insolvency proceedings against B9 Beverages Limited, the maker of Bira beer, over an alleged default of ₹7.24 crore. The NCLT, while hearing the petition filed by Cheer Breweries Ltd, noted that 15 insolvency petitions against B9 Beverages were already pending before different benches of the Delhi bench. It directed the Registry to take steps to place all the matters before a single bench. The...

Secured Creditors Cannot Avoid Liquidation Costs Over Unfinalised Expenses: NCLT Chennai

The National Company Law Tribunal (NCLT) at Chennai has ruled that a secured creditor that chooses to realise its security under Section 52 of the Insolvency and Bankruptcy Code (IBC) cannot avoid its obligation to contribute towards liquidation costs merely because the expenses have not been finally determined.“Regulation 21A(2) requires a secured creditor who proceeds to realise its security interest to pay to the Liquidator the amount which it would have shared had it relinquished the...

NCLAT Directs NCLT To Hear RP Replacement Plea Before Resolution Plan In Nimitaya Hotel CIRP

The National Company Law Appellate Tribunal (NCLAT) at Delhi has directed the NCLT to first consider Indian Bank's application seeking replacement of the Resolution Professional (RP) in the insolvency proceedings of Nimitaya Hotel & Resorts Ltd. before taking up the Bank's applications seeking dismissal of the existing resolution plan and permission to issue a fresh Form-G. (expression of interest)The bench of Officiating Chairperson Justice Yogesh Khanna and Technical Members Barun Mitra...

NCLAT Declines To Interfere With Talent Unlimited CIRP, Grants Affle Liberty To Move NCLT

The National Company Law Appellate Tribunal (NCLAT), New Delhi, has declined to interfere with the order admitting Talent Unlimited Online Services Pvt. Ltd. into the Corporate Insolvency Resolution Process (CIRP). It has, however, given Affle 3i Limited liberty to approach the National Company Law Tribunal (NCLT) with a proper application under Section 65 of the Insolvency and Bankruptcy Code (IBC).Section 65 deals with cases where insolvency proceedings are initiated fraudulently or with...

Financial Creditor Can't Seek Premature Redemption Of OCDs When Right Vests With Corporate Debtor: NCLT Kolkata

The National Company Law Tribunal (NCLT) at Kolkata recently held that a financial creditor cannot demand premature redemption of Optionally Convertible Debentures (OCDs) when the contractual terms give the right of early redemption exclusively to the corporate debtor.“Since the right of early redemption of Optionally Convertible Debentures vests exclusively in the Corporate Debtor, the Financial Creditor had no right to seek premature redemption,” the bench observed. “The terms of the...

Kerala High Court Keeps Coercive Proceedings Against KHFL RP In Company-Related Criminal Cases In Abeyance

The Kerala High Court on Tuesday directed authorities to keep coercive proceedings against the Resolution Professional of Kerala Housing Finance Limited (KHFL) in abeyance in cases concerning the company. It, however, clarified that proceedings against the other accused can continue.Justice G. Girish passed the interim order on a petition filed by P.D. Vincent, the Resolution Professional of KHFL, which was admitted into the Corporate Insolvency Resolution Process (CIRP) by the NCLT Kochi in...

Subhash Chandra Repayment Plan Hearing Could Bring NCLT Functioning To “Standstill”: NCLT President, Amid Member Shortage

The Delhi bench of the National Company Law Tribunal (NCLT) at Delhi on Wednesday orally remarked that the tribunal's functioning could come to a “standstill” if it had to hear the repayment plan proposed by Essel Group Chairman Subhash Chandra during regular court hours, amid the need for more Members.“I think we are likely to get more Members; otherwise, if we start hearing this during the Court time, the functioning of NCLT would come to a standstill,” NCLT President Justice Anupinder Singh...

NCLAT Delhi Says Appellant's Past Inaction Can't Influence Merit Adjudication, Restores Company Petition

The Principal Bench of the National Company Law Appellate Tribunal (NCLAT) at New Delhi, has held that a party's past inaction cannot influence adjudication of a matter on merits once the proceedings are being considered on merits. A Bench comprising Judicial Member Justice Sharad Kumar Sharma with Technical Members Arun Baroka and Indevar Pandey set aside the NCLT's order dismissing a company petition for the appellant's failure to produce a family settlement and remitted the matter for fresh...

Subhash Chandra Moves NCLAT Against Restraint On Alienating Assets In Insolvency Case

Essel Group Chairman Dr. Subhash Chandra has moved the National Company Law Appellate Tribunal (NCLAT) against a September 1 order of the Delhi Bench of the National Company Law Tribunal (NCLT) restraining him from alienating his assets in insolvency proceedings initiated against him as a personal guarantor.The appeal was taken up by a three-member NCLAT Bench comprising Officiating Chairperson Justice (retd) Yogesh Khanna and Technical Members Barun Mitra and Ajai Das Mehrotra on Wednesday.The...

NCLT Delhi Issues Notice To CBI In Subhash Chandra's Personal Guarantor Insolvency Case

The Delhi Bench of the National Company Law Tribunal (NCLT) on Wednesday issued notice to the Central Bureau of Investigation (CBI) in proceedings concerning a repayment plan proposed for Essel Group Chairman Emeritus Dr Subhash Chandra in his capacity as a personal guarantor of his group companies. The notice was issued after Solicitor General Tushar Mehta informed the five-member bench that the CBI was investigating a matter that has a bearing on the proceedings.“ We have been...

NCLT Mumbai Rejects SBI's ₹1,759 Crore Insolvency Plea Against Patanjali Foods Guarantor

The National Company Law Tribunal (NCLT), Mumbai, has rejected State Bank of India's insolvency plea against Dinesh Shahra, personal guarantor for Patanjali Foods Ltd., formerly known as Ruchi Soya Industries Ltd. The tribunal held that SBI's petition over a debt of ₹1,759 crore was filed after the limitation period had expired.A coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar held that SBI's March 21, 2023 insolvency petition was not maintainable, as the...