AA Empowered To Direct Tenant To Vacate Premises Of Corporate Debtor: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Dr Alok Srivastava (Technical Member) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in M/s. Jhanvi Rajpal Automotive Pvt. Ltd. v R.P. of Rajpal Abhikaran Pvt. Ltd. & Anr., has held that the Adjudicating Authority is empowered under Section 60(5) of IBC to direct a tenant to vacate the property of Corporate Debtor. The NCLAT Bench has...

NCLT Delhi Dismisses Insolvency Plea Against Hindustan Times; “Not A Dispute Redressal Forum”

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in M/s JHS Svendgaard Ltd. v M/s HT Media Ltd., has declined to initiate Corporate Insolvency Resolution Process (CIRP) against Hindustan Times (HT Media Ltd.). The Bench further held that NCLT is not a dispute redressal forum. Background Facts HT Media Ltd. (“Corporate Debtor”) is a...

Re-Constituted Bench Cannot Pass An Order Without Re-Hearing The Parties: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Rakesh Kumar (Judicial Member) and Dr. Ashok Kumar Mishra (Technical Member), while adjudicating an appeal filed in Rajesh Narang v Durha Vitrak Pvt. Ltd., has held that after re-constitution of Bench no order should be passed without re-hearing the matter. Background Facts Durha Vitrak Pvt. Ltd. (“Corporate Debtor”) was running a hospital named Febris Multispeciality and was admitted...

Sabka Vishwas Scheme : Supreme Court Grants Relief To Company Which Missed Deadline Due To IBC Moratorium

No one can be expected to do the impossible, the Supreme Court remarked while granting relief to a company which could not avail the benefit of settlement of tax dues under “Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, due to moratorium imposed on it.Shekhar Resorts Limited was required to pay Rs.1,24,28,500/-. on or before 30.06.2020 for availing the benefit of “Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. It could not make the payment as (a moratorium was imposed under...

Google V Competition Commision: NCLAT Directs Google To Deposit 10% Of Penalty As Interim Measure

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Rakesh Kumar (Judicial Member) and Dr. Alok Srivastava (Technical Member), while adjudicating an appeal filed in Google LLC & Anr. v Competition Commission of India, has admitted Google’s appeal against CCI order dated 20.10.2022, subject to deposit of 10% of penalty amount of Rs. 1337.76 Crores. The Bench has declined to grant any interim relief. The matter is next listed on 03.04.2023 for...

NCLAT Delhi Upholds Dismissal Of Wave Megacity’s Section 10 Application By AA

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in Wave Megacity Centre Private Limited v Rakesh Taneja & Ors., had upheld the dismissal of Section 10 of IBC application on behalf of Wave Megacity Centre by the Adjudicating Authority. The Bench observed that the Adjudicating Authority is not obliged to admit application under Section 10...

Borrowers Enter OTS ; Supreme Court Directs Bank To Re-Consider Decision Of Wilful Default

The Supreme Court Bench comprising of Justice Surya Kant and Justice J.B. Pardiwala, while adjudicating a petition filed in Orbitz Irrigation Pvt. Ltd. & Ors. v Bank of Baroda & Anr., has directed the Bank to re-consider its decision of declaring the Borrowers (Petitioners) as wilful defaulters in light of changed circumstances, as the Bank had subsequently entered into One Time Settlement (OTS) with the Borrowers. The Borrowers have been making payments towards the OTS. The...

“Inappropriate, Almost Bordering On Contempt”: SC Deprecates NCLAT Order Impeding Implementation Of SC Order

The Supreme Court Bench comprising of Justice Sanjay Kishan Kaul and Justice Abhay S. Oka while adjudicating an appeal filed in Indiabulls Housing Finance Ltd. V Iirf India Realty Xii Ltd. & Ors., has set aside a status quo order passed by NCLAT Delhi which impeded the implementation of an order passed by the Supreme Court. The Bench has deprecated the NCLAT order while observing that the same is inappropriate and almost bordering on contempt. Background Facts SREI Equipment...

IBC - Delay In Filing CIRP Application Condonable On Sufficient Reasons : Supreme Court

The Supreme Court observed that delay in initiating Corporate Insolvency Resolution Process (CIRP) is condonable on sufficient grounds.The bench of Justices Ajay Rastogi and C T Ravikumar noted that the Limitation Act, 1963 are applicable to applications filed under Sections 7 and 9 of IBC. It be so, the position is that the period of limitation is three years from the right to apply accrues but the delay is condonable on sufficient grounds, the bench said.In this case, Sabarmati Gas Limited...

NCLT Delhi Rejects Scheme Of Amalgation For Being Non Compliant Of Section 72A(2) Of Income Tax Act

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in Minda TG Rubber Pvt. Ltd. v Toyoda Gosei Minda India Pvt. Ltd., has rejected the Scheme of Amalgamation proposed by Minda TG Rubber Pvt. Ltd. for being non compliant of Section 72A(2) of the Income Tax Act, 1961. Background Facts Minda TG Rubber Pvt. Ltd. (“Transferor Company”) filed...

When COC Approves A Resolution Plan, It Is Presumed To Be Viable And Feasible: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Kanthi Narahari (Judicial Member) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in Rajesh Kumar & Ors. v Rabindra Kumar Mintri & Anr., has held that when the Committee of Creditors (CoC) approves a Resolution Plan in its commercial wisdom, it is presumed that the Resolution Plan is viable and feasible. Background Facts ...

NCLAT Issues Fresh Directions For Computation Of Limitation In Filing Of Appeals, Withdraws Earlier Directions

The National Company Law Appellate Tribunal (“NCLAT”) vide an Order dated 24.12.2022 has issued fresh directions for computation of limitation for filing of appeals before NCLAT. The period of limitation shall be computed from the date of e-filing and hard copy has to be filed within 7 days of e-filing. However, the Competent Authority is at liberty to extend the period of filing hard copy in case of any unforeseen exigency. If hard copy is filed after 7 days, the appeal will be placed...