IBC
NCLT Mumbai Directs Former Directors To Pay ₹344.58 Crore Over Fraudulent Diversion Of DHFL Loan
On 2 September, the National Company Law Tribunal (NCLT), Mumbai directed two former directors of Notion Real Estate Pvt. Ltd. and Kyata Advisors Pvt. Ltd. to jointly and severally contribute Rs. 344.58 crore to the Corporate Debtor's assets over the diversion of a project loan sanctioned by Dewan Housing Finance Limited (DHFL) for development of a project. A Bench comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar allowed the Resolution Professional's...
NCLT Ahmedabad Rejects Kothamangalam Aggregates' Insolvency Plea Against ACC Limited
The Ahmedabad bench of the National Company Law Tribunal has rejected as not maintainable an insolvency plea filed by Kothamangalam Aggregates Prestressed Concrete Industries against ACC Limited over alleged unpaid dues of approximately ₹1.91 crore. It held that most of the claimed dues were barred by limitation. The amount that remained within time was below the minimum required to start the insolvency process.The order was passed by the bench of Judicial Member Chitra Hankare and Technical...
NCLT Ahmedabad Dismisses Insolvency Plea Against Manpasand Beverages After Creditor Ceased To Exist Following Merger
The Ahmedabad Bench of the National Company Law Tribunal has recently dismissed an insolvency petition filed by a manufacturer of PET preforms against Mango Sip manufacturer Manpasand Beverages Limited. The Tribunal held that the petition was defective and not maintainable because the petitioner had ceased to exist as a separate legal entity following its amalgamation with another company. However, the proceedings continued in its name without a timely substitution application.The bench...
Delhi High Court Quashes Customs Demand Against JAL After Unfiled Insolvency Claim Stood Extinguished
The Delhi High Court has held that a pre-insolvency customs claim against Jaiprakash Associates Limited stood extinguished after the Customs Department failed to submit it during the company's insolvency process and the resolution plan was approved.The Division Bench of Justices Anil Kshetarpal and Shail Jain observed, “The failure of the Respondents (Customs) to submit their claim cannot…operate to the prejudice of the Corporate Debtor or the Successful Resolution Applicant. The IBC does not...
Termination of Insolvency Process Cannot Be Challenged When Order Also Granted Relief: Supreme Court
The Supreme Court has dismissed a creditor's appeal against the termination of a company's insolvency process, observing that it failed to understand how the order could be challenged when the proceedings had been terminated and relief had also been granted through that termination.“Termination of legal proceedings cannot be a ground for assailing the same particularly when the relief has also granted by such termination of legal proceedings viz., Corporate Insolvency Resolution Process (CIRP)...
NCLT Bengaluru Orders Status Quo After Claims That Byju's Assets Worth ₹150 Crore Were Auctioned for ₹16 Crore
The National Company Law Tribunal, Bengaluru, has recently directed the Resolution Professional of Byju's and the successful bidder to maintain the status quo over auctioned assets. The order came after the Resolution Professional of Byju K3 claimed that assets worth about ₹150 crore had been auctioned for about ₹16 crore despite an ownership dispute. The tribunal found that ownership of some of the assets remained unclear.“Even if part of the auctioned articles actually belonged to TLPL, the...
NCLT Indore Admits Insolvency Plea Against Satiate Agri Over ₹6.27 Crore Default
The Indore Bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition filed by Excellence Finance Pvt Ltd against Satiate Agri Ltd for a default of Rs. 6.27 crore. A Bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta held that a creditor can trigger insolvency proceedings once it establishes the existence of a financial debt and default, irrespective of whether the default was wilful. It observed: “..we are satisfied that the...
NCLT Mumbai Holds RCIL Plan Unimplementable Over ₹16.95 Cr Shortfall, Directs Erstwhile RP To Convene CoC
The National Company Law Tribunal (NCLT), Mumbai on 21 August, held that the approved resolution plan for Reliance Communications Infrastructure Ltd. (RCIL) could not presently be implemented as the available funds were insufficient to meet mandatory payments to dissenting financial creditors (DFCs). A Bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar held: "In view of the peculiar facts of this case, we consider it appropriate to direct the erstwhile RP to...
Corporate Guarantee Continues Despite Transfer Of Mortgaged Property To New Owner: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai on 24 August held that a Corporate Debtor's liability under a Corporate Guarantee does not end merely because the bank obtains a mortgage from the new owner of the mortgaged property. A Bench comprising Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati admitted Jammu and Kashmir Bank Ltd.'s Section 7 insolvency petition against Essel Infraprojects Limited over a default of Rs. 87.43 crore arising from a Rs. 200 crore credit...
NCLT Mumbai Imposes ₹1 Lakh Costs On Corporate Debtor For 11 Month Delay In Filing Additional Documents
The National Company Law Tribunal (NCLT), Mumbai on 20 August imposed Rs. 1 lakh costs on RAB Enterprises (India) Pvt Ltd for an approximately 11-month delay in seeking to place additional documents on record in an insolvency petition filed by Awfis Space Solutions Ltd. A Bench of Judicial Member Lakshmi Gurung and Technical Member Charanjeet Singh Gulati allowed the company to place the additional documents on record but directed it to deposit Rs. 1 lakh in the Prime Minister's National Relief...
NCLAT Delhi Keeps Appeal Against Dr Subhash Chandra's ₹6.5 Cr Repayment Plan Pending, Lists It For Oct 7
Today, the National Company Law Appellate Tribunal (NCLAT), New Delhi, kept appeals filed by financial creditors against the repayment plan of Essel Group Chairman Dr Subhash Chandra pending. A Bench of Officiating Chairperson Justice Yogesh Khanna with Technical Members Ajai Das Mehrotra and Barun Mitra posted the matter for 7 October. Solicitor General Tushar Mehta, appearing for the financial creditors, informed the Bench about the background to the reference made to the President of the...
NCLT Indore Admits Hinduja Leyland Finance's ₹117.28 Crore Insolvency Plea Against Owais Metal
The Indore Bench of the National Company Law Tribunal (NCLT) on 13 August admitted an insolvency petition filed by Hinduja Leyland Finance Ltd against Owais Metal & Mineral Processing Ltd for default of Rs. 117.28 crore.A Bench comprising Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta initiated the corporate insolvency resolution process (CIRP), observing:“The mere pendency of the said writ petition, particularly when the Petitioner is not a party thereto and...