NCLT Mumbai Initiates Insolvency Process Against Sahara India Medical Institute Ltd., A Sahara Group Company

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Mr. Kishore Vemulapalli (Judicial Member) and Mr. Prabhat Kumar (Technical Member), while adjudicating a petition filed in Aprn Enterprises Private Limited v Sahara India medical Institute Limited, has initiated Corporate Insolvency Resolution Process (“CIRP”) against Sahara India Medical Institute Limited, which is a part of the Sahara Group, promoted by Mr. Subrata Roy.Mr. Jayesh Natvarlal Sanghrajka has been appointed as...

Date Of Default To Be Assessed For Each Invoice For At Least 3 Years Preceding The Filing Date; NCLT Mumbai

The National Company Law Tribunal (“NCLT”), Mumbai Bench-IV comprising of Mr. Prabhat Kumar (Technical Member) and Mr. Kishore Vemulapalli (Judicial Member) adjudicating a petition filed in Laxmi Trading Corporation v. Hindustan Construction Company Ltd. dismissed the petition to initiate Corporate Insolvency Resolution Process (CIRP) against Hindustan Construction Company Ltd. (Corporate Debtor). It held that the total debt claimed in default fell below the threshold limit of Rs. 1 Crore...

Monthly Digest Of IBC Cases: August 2023

Supreme Court EPFO Employees Must Comply With IBC Timeline For Filing Claims; Default Officers Must Face Action: Supreme Court Case Title: Employees Provident Fund Organization V. Fanendra Harakchand Munot Citation: 2023 LiveLaw (SC) 734 | CIVIL APPEAL NO. OF 2023 The Supreme Court Bench comprising Justice Sanjiv Khanna and Justice SV Bhatti, has held that the Commissioner and employees of the Employees Provident Fund Organization (EPFO) must ensure that they comply with the...

Section 35 Of IBC | Liquidator Empowered To Recover Arrears Of Rent/Damages From Tenant In Occupation Of Corporate Debtor’s Property: NCLT Hyderabad

The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Charan Singh (Technical Member), while adjudicating a petition filed in LIC Housing Finance Ltd. v M/s. Butta Infrastructure Pvt. Ltd., has held that the NCLT has jurisdiction has to direct a Tenant to pay arrears of rent, who is in possession of the Corporate Debtor’s property and has defaulted in payment of rent. Further, in terms of...

NCLT’s Circular Introducing ‘Mandatory Pre-Requisite’ For Filing Kept In Abeyance Till 15th September 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 01.09.2023, intimating that its previous circular dated 29.08.2023, whereby E-filing system underwent changes through introduction of ‘Mandatory Pre-Requisite’ on filing, has been kept in abeyance till 15.09.2023. The step has been taken in view of a request made from the NCLT Bar Association to the Hon’ble President, NCLT. In the meanwhile, the NCLT will hold a webinar to disseminate information for guidance...

NCLT Hyderabad Initiates Insolvency Proceedings Against Trichy-Thanjavur Expressways Limited

The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Charan Singh (Technical Member), while adjudicating a petition filed in IDBI Bank Limited v M/s. Trichy-Thanjavur Expressways Limited, has initiated Corporate Insolvency Resolution Process (“CIRP”) against M/s. Trichy-Thanjavur Expressways Limited, over a default of Rs. 79,71,45,619.23/- (inclusive of interest). Shri Raghu Babu Gunturu has...

NCLT Can’t Adjudicate Avoidance Application Pursued By Third Party To Whom Debt Was Assigned U/S 43, 45, 50 And 66 Of IBC: NCLT Delhi

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Ashok Kumar Bhardwaj (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in Ritu Tandon v M/s Rain Automotive India Private Limited, has held that in terms of Section 60(5) of IBC, the NCLT has no jurisdiction to adjudicate an Avoidance/PUFE application pursued by a Third Party/Assignee to whom debt was assigned under Section 43, 45, 50 and 66 of IBC, since neither the...

NCLT Issues ‘Mandatory Pre-Requisite’ For Filing, Effective From 4th September 2023

The National Company Law Tribunal (“NCLT”) has introduced instructions named as ‘Mandatory Pre-Requisite’ for filing before NCLT. The NCLT has issued a Circular dated 29.08.2023, requesting the Litigants/Advocates/Parties to follow the ‘Mandatory Pre-Requisite’ on formatting, book marking of pleadings, use of electronic signatures, retention of originals etc., at the time of filing. The ‘Mandatory Pre Requisite’ is effective from 04.09.2023. The PDF version of documents are...

EPFO Employees Must Comply With IBC Timeline For Filing Claims; Default Officers Must Face Action : Supreme Court

The Supreme Court recently held that the Commissioner and employees of the Employees Provident Fund Organization (EPFO) must ensure that they comply with the timelines under the Insolvency and Bankruptcy Code, 2016. The Apex Court also stated that in case of failure to comply with the timelines, action must be taken against erring employees. "..we are of the view that the Commissioner and employees of the EPFO must take steps to ensure that there is compliance with the timelines...

NCLAT Delhi Reverses The Decision Of NCLT, Upholds CoC’s Decision To Accept Relinquishment Of Personal Guarantee On Payment

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in SVA Family Welfare Trust & Anr. v Ujaas Energy Ltd. & Ors., has upheld the decision of Committee of Creditors (CoC) to accept a value for relinquishment of personal guarantees of the Corporate Debtor under the Resolution Plan. The Resolution Plan contained a clause whereby the...

NCLT Jaipur Rejects Application Filed By RP Seeking Recovery Of Amount From Corporate Debtor’s Debtor

The National Company Law Tribunal (“NCLT”), Jaipur Bench, comprising of Shri Deep Chandra Joshi (Judicial Member) and Shri Atul Chaturvedi (Technical Member), while adjudicating a petition filed in M/S Indus Container Lines Pvt. Ltd. V Jadoun International Pvt. Ltd., has rejected an application filed by the Resolution Professional seeking a direction to one of the debtors of the Corporate Debtor to pay its outstanding debts. The Bench opined that the duties imposed upon the Resolution...

Liquidator Assigns ‘Not Readily Realizable Assets’ Of Rs. 26 Crores For Rs. 50,000 During Pendency Of Avoidance Applications: NCLT Delhi Invalidates Assignment

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Ashok Kumar Bhardwaj (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in Ritu Tandon v M/s Rain Automotive India Private Limited, has held that a Resolution Professional or Liquidator cannot assign a debt or Not Readily Realizable Assets (“NRRA”), when the avoidance applications under Sections 43,45, 50 and 66 of IBC are pending adjudication before the NCLT. The...