IBC
NCLT Kolkata Allows Homebuyer To Seek Alternative Flat Or Full Refund After Invalid Cancellation
The Kolkata bench of the National Company Law Tribunal (NCLT) has held that a homebuyer's flat allotment could not be treated as cancelled after the developer failed to make the refund linked to the proposed cancellation.Since the flat was subsequently allotted to another person and possession was granted, the tribunal allowed the allottee to either seek an alternative flat with a covered car parking space or opt for a full refund of the amount paid with interest at statutory rates. The bench of...
GNIDA, NOIDA Not Secured Creditors In Shubhkamna Buildtech Insolvency: NCLAT
The National Company Law Appellate Tribunal (NCLAT), New Delhi, has dismissed appeals by the Greater Noida Industrial Development Authority (GNIDA) and New Okhla Industrial Development Authority (NOIDA), holding that their lease deeds did not create a security interest that would make them secured creditors in the insolvency proceedings of Shubhkamna Buildtech Pvt. Ltd.A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha held that the “first charge”...
Complainant Is 'Person Aggrieved,' Can Appeal Against Order In Insolvency Professional Misconduct Case: NCLAT
The National Company Law Appellate Tribunal (NCLAT), Delhi, has recently held that a complainant whose complaint leads to disciplinary proceedings against an Insolvency Professional (IP) can qualify as a “person aggrieved” under Section 220(7) of the Insolvency and Bankruptcy Code, 2016 (IBC).The tribunal held that such a complainant can appeal against a final punitive order passed by the Insolvency and Bankruptcy Board of India's (IBBI) Disciplinary Committee.Judicial Member Justice Mohammad...
NCLAT Dismisses Challenge To Rungta Mines' Resolution Plan For NSL Nagapatnam Power
The National Company Law Appellate Tribunal Member Naresh Salecha has backed dismissal of suspended director Mandava Prabhakar Rao's challenge to Rungta Mines' resolution plan for NSL Nagapatnam Power and Infratech Ltd.He held that Rao's representative was rightly excluded from the 20th Committee of Creditors meeting for lack of written authorisation and a confidentiality undertaking.Salecha's opinion follows a difference of opinion between the Judicial and Technical Members of the original...
NCLT Mumbai Dismisses ₹2,235 Crore Insolvency Plea Against Sumer Radius Realty Amid CBI, ED Probe
The National Company Law Tribunal at Mumbai has dismissed Omkara Assets Reconstruction Private Limited's ₹2,235 crore insolvency petition against Sumer Radius Realty Pvt. Ltd.A coram of Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati said that the financial creditor's inconsistent stands regarding the same transaction attracted the principle of approbate and reprobate, while the underlying transaction was also under investigation by the CBI and Enforcement...
Bank Cannot Retain Margin Money After Bank Guarantees Expire Without Invocation: NCLT Mumbai
The National Company Law Tribunal's Mumbai bench has observed that margin money deposited for Bank Guarantees can be retained by a bank only to the extent necessary for live guarantees and must be released where the guarantees have expired without invocation.The ICICI Bank had retained Rs.1.32 crore deposited by the corporate debtor, DK Infrastructure Pvt Ltd as margin money though only two Bank Guarantees remained live.A coram of Judicial Member Vinay Goel and Technical Member Charanjeet Singh...
Interest-Free Payment Does Not Automatically Become Financial Debt Merely Because Called A Loan: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai, has held that an interest-free payment does not automatically become a financial debt merely because it is described as a loan. The tribunal ruled that the nature and commercial purpose of the transaction, along with the surrounding documentary evidence, must be examined.A coram of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar observed, “An interest-free payment does not automatically become a financial debt merely because it is...
Welfare-Oriented Rehabilitation Policy Cannot Preserve Claims Extinguished Under IBC: Madhya Pradesh High Court
The Madhya Pradesh High Court has held that a rehabilitation policy or agreement with a project-affected person cannot preserve a claim merely because it is welfare-oriented, as the Insolvency and Bankruptcy Code overrides inconsistent laws and policies.Justice Sanjeev S. Kalgaonkar observed, “Thus, Rehabilitation policy or any agreement with project affected (displaced) person cannot facilitate claim as an exception for the reason that it is welfare oriented. Section 238 of IBC gives Insolvency...
NCLT Delhi Directs Bira Beer Maker To Mediate With Creditors Over Insolvency Case Settlement
The Delhi bench of the National Company Law Tribunal (NCLT) has directed B9 Beverages Limited, the company behind the Bira 91 beer brand, its promoters, certain financial creditors, and applicants in connected insolvency proceedings to participate in a mediation meeting.The meeting is aimed at exploring a possible settlement.The order was passed in a Section 7 insolvency petition filed by Unity Small Finance Bank Limited against B9 Beverages.The Special Bench comprising Judicial Member Ashok...
Absence Of Separate Notice Rejecting Claim No Ground To Reopen CIRP Or Alter Resolution Plan: NCLT Kochi
The National Company Law Tribunal (NCLT) at Kochi has ruled that even if a claimant was not separately informed that their claim had not been finally admitted, that alone does not permit the court to reopen a concluded Corporate Insolvency Resolution Process (CIRP) or modify an approved resolution plan.A coram of Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy was dealing with two applications filed by homebuyers of Nucleus Premium Properties Private Limited challenging...
Objection To Demand Notice Served Via FedEx Cannot Defeat Insolvency Plea If Notice Received: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi on Thursday ruled that an objection to service of a demand notice via FedEx cannot defeat insolvency proceedings when the corporate debtor has received the notice and had knowledge of the claim.The bench comprising Judicial Member Justice Sharad Kumar Sharma, Technical Member Arun Baroka and Technical Member Indevar Pandey observed, “Hyper-technical objections cannot be permitted to defeat a proceeding when from the circumstantial...
Financial Hardship Cannot Excuse Repeated Non-Appearance In Insolvency Proceedings: NCLT Mumbai
The National Company Law Tribunal, Mumbai on 4 September held that financial hardship or the fact that an applicant is itself under liquidation cannot substitute the requirement of showing sufficient cause for repeated non-appearance in insolvency proceedings. A Bench comprising Judicial Member Nilesh Sharma and Technical Member Sameer Kakar dismissed liquidator Kairav Anil Trivedi's application seeking restoration of Cogent Engineers Private Limited's insolvency petition against KBK...