NCLT Bengaluru & NCLT Kochi Bench Reconstituted W.E.F. 1st November 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 31.10.2023, intimating the reconstitution of NCLT Bengaluru and NCLT Kochi Bench with effect from 01.11.2023. Shri Khetrabasi Biswal (Judicial Member) has been newly appointed as a Member of the NCLT. In view of his appointment, the following NCLT Benches have been reconstituted: NCLT Bengaluru NCLT Bengaluru Bench (Full Day) (Court No. 1) Shri Khetrabasi Biswal (Judicial Member)Shri Manoj Kumar Dubey...

NCLT Mumbai Approves Liquidation Of TV Products India Private Limited

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising Kuldip Kumar Kareer (Judicial Member) and Anil Raj Chellan (Technical Member) has approved the Liquidation of TV Products India Private Limited. Background Facts TV Products India Private Limited (“Corporate Debtor”) is a Non-govt company, registered at ROC-Mumbai. It was incorporated on 15 September 2008 and is a private unlisted company classified as a 'company limited by shares'. On 23.11.2021 Company...

NCLT Allahabad Allows SBI’s Application For Withdrawal Of Section 7 Petition Against Bajaj Hindustan Sugar

The National Company Law Tribunal (‘NCLT’) Allahabad Bench comprising of Shri Praveen Gupta (Judicial Member) and Shri Ashish Verma (Technical Member) allowed the State Bank of India’s (‘SBI’) application for withdrawal of the Section 7 petition filed under the Insolvency and Bankruptcy Code, 2016 (‘IBC’) against Bajaj Hindusthan Sugar (Corporate Debtor). The SBI had filed the application for withdrawal of the Section 7 petition under IBC as the outstanding amount as fallen due had...

NCLT Mumbai: Mere Mention Of SARFAESI Proceeding Is Not “Sufficient Cause” For The Condonation Of Delay Under Section 5 Of Limitation Act, 1963

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Justice Virendrasingh Bisht (Retd.) (Judicial Member) and Mr Prabhat Kumar (Technical Member) has rejected an application filed under Section 5 Limitation Act, 1963 (“Limitation Act”) and disposed of a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”). NCLT observed that the mere initiation of SARFESI Proceedings wasn't sufficient reason to condone delay in filing a time-barred...

NCLT Kochi: Moratorium U/S 96 And 101 Of IBC Cannot Be Meant To Prohibit The Right To Action U/S 7, 9 Or 10 Of IBC

The National Company Law Tribunal (“NCLT”), Kochi Bench, comprising of Justice T Krishna Valli (Retd.) (Judicial Member) and Shri. Shyam Babu Gautam (Technical Member) dismissed a stay application and has held that the moratorium under sections 96 and 101 of the Insolvency and Bankruptcy Code “(IBC”) cannot be meant to prohibit the right to action under sections 7, 9 or 10 of IBC as it lies against a company or body corporate and not against an individual. The Bench has further...

No NCLT Bench To Deny Hearing Through Hybrid Mode Or Video Conferencing; NCLT Issues Circular

The National Company Law Tribunal (“NCLT”) has issued a Circular dated 31.10.2023, directing that no NCLT Bench will deny access to video conferencing facility or hearing through hybrid mode to any Bar Member or Litigant, who is desirous of availing such facility. Brief Background The Supreme Court of India vide its order dated 15.09.2023 passed in Sarvesh Mathur v Registrar General High Court of Punjab & Haryana, W.P. (CRL) No. 351/2023, had issued directions regarding...

NCLT Ahmedabad: Application U/S 9 Is Not Maintainable If Operational Creditors Return Principal Amount Paid During The Pendency Of The CIRP Application.

The National Company Law Tribunal (“NCLT”), Ahmedabad Bench, comprising of Mr Shammi Khan (Judicial Member) and Mr Kaushalendra Kumar Singh (Technical Member) has allowed an application and held that any application filed under Section 9 of Insolvency and Bankruptcy Code (“IBC”) is not maintainable if Operational Creditors return the principal amount which was paid during proceedings for initiation of Corporate Insolvency Resolution Process (“CIRP”). The Bench further observed that the...

NCLAT New Delhi : Dispute To Be ‘Truly In Existence’ At Time Of Reply Or Section 9 Application For Nullifying CIRP U/S 9 Of IBC

The National Company Law Appellate Tribunal (‘NCLAT’) Principal Bench, New Delhi comprising Mr. Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that the dispute raised must truly exist at the time of filing a reply to the Demand Notice under Section 8(2) of Insolvency Bankruptcy Code, 2016 (‘IBC’) or at the time of filing the Section 9 application for ‘pre-existing dispute’ to be a ground to nullify the Corporate Insolvency Resolution Plan (‘CIRP’) ...

NCLT Bengaluru: Issue Of Fixing EMD And Its Reasonableness In EOI, Is A Matter Which Comes Within The Scope Of CoC And Not NCLT.

The National Company Law Tribunal (“NCLT”), Bengaluru Bench, comprising of T. Krishnavalli (Judicial Member) and Mr Manoj Kumar (Technical Member) has dismissed an application and held that the issue of fixing Earnest Money Deposit (“EMD”) and its reasonableness in Expression of Interest (“EOI”), is a matter that comes within the scope of the "Commercial Wisdom" of the Committee of Creditors (“CoC”) and is not a concern for the National Company Law Tribunal (“NCLT”). Background Facts...

IBC Resolution Plan Can't Ignore Government Dues : Supreme Court Dismisses Review Petitions Against 'Rainbow Papers'

The Supreme Court on Tuesday (October 31) dismissed a batch of review petitions filed against a 2022 judgment which held that the definition of a secured creditor under the Insolvency and Bankruptcy Code (IBC) 2016 included any government or governmental authority and that a resolution plan which ignored dues to the government was liable to be rejected.A bench comprising Justices AS Bopanna and Justice Bela M. Trivedi was considering five review petitions filed against the 2022 judgment in State...

NCLAT New Delhi: Jurisdiction Of NCLT Under IBC Is Summary In Nature, Not Extensive As A Civil Court To Enquire Into Disputes

The National Company Law Appellate Tribunal (‘NCLAT’), Principal Bench, New Delhi comprising of Mr. Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) dismissed an appeal filed by Vistra ITCL (India) Ltd. (Respondent). It held that the scope and jurisdiction of National Company Law Tribunal (‘NCLT’) under the Insolvency and Bankruptcy Code, 2016 (‘IBC’) being summary in nature is distinctly not as extensive as that of a civil court to enquire into disputes arising...

NCLT Bengaluru Condones Delay Of 1191 Days In Submission Of Proof Of Claim By SEBI Before Liquidator

The National Company Law Tribunal (NCLT), Bengaluru Bench, comprising of Shri P. Mohan Raj (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), has condoned the delay of 1191 days in submission of proof of claim by Securities and Exchange Board of India (“SEBI”) before the Liquidator of Corporate Debtor. The Liquidator has been directed to consider the belated claim since the Liquidation process is ongoing. Background Facts M/s Falcon Tyres Ltd. (“Corporate Debtor”) was...