Limitation Period To Reset When Part-Payment Of Debt Is Made By Personal Guarantor U/S 19 Of Limitation Act: NCLT Delhi

The National Company Law Tribunal (NCLT) Delhi comprising of Justice Subrata Kumar Dash (Member Technical) and Justice Ashok Kumar Bhardwaj (Member Judicial) dismissed an appeal filed by the personal guarantors of the principal debtor M/s VCRM Petrochemicals Pvt. Ltd. stating that the appeal falls within the ambit of limitation period as prescribed under Section 19 of Limitation act, 1963 and that the Liquidator can institute a Section 95(4) proceedings against the personal guarantors. ...

Commercial Wisdom Of CoC In Opting For Liquidation And Rejecting Resolution Plan Of Ineligible Applicant Is “Non-Justiciable”: NCLAT

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi has held that the commercial wisdom of the Committee of Creditors (CoC) in rejecting a resolution plan and opting for liquidation is “non-justiciable”. The Appellant-Director was disqualified under Section 164(2) of the Companies Act, thereby rendering the him ineligible to be a Resolution Applicant under Sections 29A(e) and 29A(j) of Insolvency & Bankruptcy Code, 2016 (IBC). The Tribunal held that the...

Appeal U/S 421 Of Companies Act Not Maintainable Against Interlocutory Order Permitting AGM, No Substantive Rights Affected: NCLAT

The National Company Law Appellate Tribunal has recently held that an appeal under Section 421 of the Companies Act, 2013, against an interlocutory order permitting holding of an Annual General Meeting (AGM) without affecting the substantive rights of the appellants is not maintainable. The Tribunal emphasized that procedural orders which do not determine substantive rights cannot be appealed under Section 421.The NCLAT bench presided over by Justice Sharad Kumar Sharma [Member (Judicial)] and...

NCLAT Upholds Status Of Canara Bank As Financial Creditor For Providing Loans To Homebuyers Of CD, Distinguishes Value Infracon Judgment

The NCLAT New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member) upholds the claims of the Canara Bank for the loans advanced to the corporate debtor on behalf of the Homebuyers on the ground that a specific clause was mentioned in the tripartite agreement executed between the parties that in case of default made by the borrower, the builder was obligated the refund the entire amount to the bank. The tribunal distinguished the Value...

Claims Filed Subsequent To Cut-Off Date Shall Be Dealt With As Per Resolution Plan Approved By Adjudicating Authority: NCLAT

The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that claims filed subsequent to cut off date shall be dealt with as per Resolution Plan approved by the Adjudicating Authority. Brief Facts The Appellant booked an Apartment and a Plot with M/s. Puma Realtors Pvt. Ltd. in the year 2010 in its Project IREO Rise (Gardenia), Mohali, Punjab and the IREO Hamlet Project respectively. The...

Directors Cannot Be Held Liable For Dishonour Of Cheques After Commencement Of CIRP Proceedings: Delhi High Court

The Delhi High Court bench of Justice Amit Mahajan has reiterated that proceedings under Section 138 of the Negotiable Instruments Act, 1881 for dishnonour of cheque cannot continue against individuals once a moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC) is in effect. Brief Facts The petitions seek to quash the summoning order dated 01.04.2022 issued by the Metropolitan Magistrate, Rouse Avenue Court, Delhi, in CC No. 9170/2020, filed under Section...

Eurolife Healthcare Pvt Ltd As Corporate Debtor Retains Absolute Rights Over Disputed Cephalosporin Facility As Part Of Liquidation Estate: NCLAT

The National Company Law Appellate Tribunal bench of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) has held that the Corporate Debtor, Eurolife Healthcare Pvt. Ltd., retained absolute rights over the disputed 13,000 sq. ft. Cephalosporin Facility as part of the liquidation estate. Brief Facts Maharashtra Industrial Development Corporation (MIDC) executed a 95-year lease deed on 08.09.1998 for Plot No. B-15/2 in Waluj Industrial Area, Aurangabad, in favour of...

Workers' Claims For Layoff Period Dues Under Industrial Disputes Act Cannot Be Decided By Adjudicating Authority: NCLAT

The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that non-computation of salary after lay off by the Resolution Professional cannot be faulted with since the Resolution Professional has no adjudicatory jurisdiction and the Adjudicating Authority has rightly observed that whether the Workers are entitled to claim their dues for the layoff period under provisions of Industrial Dispute Act...

Adjudicating Authority While Dismissing Appeal For Non-Prosecution Cannot Add Direction To Dismiss It On Merits As Well: NCLAT

The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that when the appeal is dismissed on the ground of non-prosecution, it cannot be said to be dismissed on merits as well. In this case, the NCLT while dismissing the appeal for non-prosecution added a direction that the appeal is dismissed on merits as well. Brief Facts The present has been filed against an order passed by the NCLT by...

Period From 15.03.2020 To 28.02.2022 Shall Stand Excluded As Per SC Judgment In 'Re:Cognizance For Extension Of Limitation': NCLAT

The NCLAT New Delhi bench of Justice Yogesh Khanna (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member) has held that period from 15.03.2020 to 28.02.2022 shall stand excluded in light of the Supreme Court judgment in In Re: Cognizance for Extension of Limitation for the purpose of calculating the limitation period while filing an application under section 9 of the code. Brief Facts This appeal has been filed against an order passed by an Adjudicating Authority by which...

Eviction Of Tenant From Corporate Debtor's Property Can Be Sought Under Tenancy Law, Not U/S 60(5) Of IBC: NCLAT

The NCLAT New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member) has held that eviction of tenant from the property of corporate debtor can only be sought under the Act in which tenancy was created and such power of eviction cannot be exercised by the Adjudicating Authority under Section 60(5) of the Code. Brief Facts The insolvency proceedings were initiated against the CD on March 17, 2023 and the RP was appointed. Thereafter, the RP...

Unsuccessful Resolution Applicant Has No Locus To Challenge Approval Of Resolution Plan By CoC: NCLT Kolkata

The NCLT Kolkata bench of Justice Bidisha Banerjee (Judicial Member) and D. Arvind (Technical Member) has held that Unsuccessful Resolution Applicant has no locus standi to challenge the approval of Resolution Plan by the Committee of Creditors(CoC). Brief Facts This application has been preferred by Ganga Construction (Consortium) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, for brevity “I&B Code” against Anil Kumar Mittal, Resolution Professional (RP) of...