IBC
NCLAT Allows Party To Contest Ex-Parte Proceedings, Says Parties Shouldn't Be Penalised For Counsel's Mistakes
The National Company Law Appellate Tribunal (NCLAT), New Delhi, has observed that an advocate's duty extends beyond diligently conducting a case.It includes maintaining regular communication with the client and informing them about the status of proceedings.A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha made the observation while setting aside an NCLT order that had dismissed an application seeking recall of an order setting proceedings...
Fraud Proceedings Under IBC Cannot Be Turned Into 'Battlefield' For Private Disputes: NCLT Kochi
The National Company Law Tribunal (NCLT) at Kochi has recently observed that fraud proceedings under the Insolvency and Bankruptcy Code cannot be turned into a “battlefield” for settling private disputes or creating fresh controversies to prolong adjudication under the Code.The observation came in a case concerning Section 66 of the Insolvency and Bankruptcy Code, which deals with fraudulent trading and transactions, where Resolution Professional K. Parameswaran Nair had alleged fraudulent...
NCLAT Reserves Orders On Ex-Employee's Challenge To Jet Airways Aircraft Sale
The National Company Law Appellate Tribunal (NCLAT) on Thursday reserved orders on an appeal filed by former Jet Airways employee Aman Monga challenging the dismissal of his application seeking to set aside the sale of certain Boeing 777-300ER aircraft assets during the airline's liquidation proceedings. The bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Arun Baroka also granted the parties three days to file written submissions not exceeding two pages.The appeal...
NCLAT Upholds Order Directing Suspended Log 9 Directors To Help Gensol RP Recover Leased EVs
The National Company Law Appellate Tribunal (NCLAT) has upheld directions requiring the suspended directors of electric mobility company Log 9 Mobility Pvt. Ltd. to assist the resolution professional (RP) of EV leasing company Gensol EV Lease Ltd. in identifying and recovering leased electric vehicles. It ruled that the National Company Law Tribunal (NCLT) has wide powers under Section 60(5) of the Insolvency and Bankruptcy Code (IBC) to issue such directions during insolvency proceedings.A...
NCLT Mumbai Rejects Electrical Panel Supplier's Insolvency Plea Against L&T
On August 4, the Mumbai Bench of the National Company Law Tribunal dismissed a Section 9 insolvency application filed by GS Industries against Larsen & Toubro Ltd. (L&T).The tribunal said that the dispute between the parties regarding the quality of electrical panels supplied constituted a pre-existing dispute, thereby barring initiation of the corporate insolvency resolution process (CIRP).A bench of Judicial Member Ashish Kalia and Technical Member Anil Raj Chellan observed that...
NCLT Jaipur Clears ₹288.37 Crore Resolution Plan For Holiday Inn Jaipur City Centre Operator ACCIL
The National Company Law Tribunal at Jaipur has approved the ₹288.37 crore resolution plan submitted by Oriental Structural Engineers Private Limited (OSEPL) for ACCIL Corporation Private Limited, which owns and operates the five-star Holiday Inn Jaipur City Centre.The approved resolution plan has a total value of ₹288.37 crore and was unanimously approved by the Committee of Creditors.A coram of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar passed the order. The application...
NCLT Delhi Dissolves Newgen Payment Gateway After Voluntary Liquidation
The Delhi bench of the National Company Law Tribunal (NCLT) has ordered the dissolution of Newgen Payment Gateway Private Limited, a company that provided payment processing services for credit cards, debit cards and bill payments. The bench found that the company's voluntary liquidation had been completed and all liabilities had been settled. The order was passed by Judicial Member Justice Jyotsna Sharma and Technical Member Anu Jagmohan Singh. Explaining why the company could be...
NCLT Ahmedabad Makes Neesa Leisure Resolution Plan Effective, Ends IBC Moratorium
The Ahmedabad bench of the National Company Law Tribunal (NCLT) has passed a consequential order approving the resolution plan for hospitality company Neesa Leisure Limited, which owns and operates hotels and resorts under the Cambay brandThe tribunal ruled that the plan submitted by Express Resorts and Hotels Limited, already approved by the National Company Law Appellate Tribunal (NCLAT), would now take effect.A bench of Judicial Member Chitra Hankare and Technical Member Dr. Velamur G....
NCLT Ahmedabad Rejects Insolvency Plea Against Sadbhav Engineering, Holds MoU Claims Cannot Trigger IBC
The Ahmedabad National Company Law Tribunal (NCLT) on 29 July held that claims arising solely from a Memorandum of Settlement (MoU) or settlement agreement do not constitute “operational debt” under Section 5(21) of the Insolvency and Bankruptcy Code, 2016 (IBC), as such claims do not arise from the supply of goods or services. A Bench comprising Judicial Member Chitra Hankare and Technical Member Dr V.G. Venkata Chalapathy rejected the insolvency petition filed by N.S. Company against...
Protective Covenants In Finance Documents Do Not Make Financial Creditors 'Related Parties': NCLT Delhi
The New Delhi National Company Law Tribunal (NCLT) has held that protective covenants in financing documents, including escrow arrangements, reserved matter approvals, monitoring rights and inspection mechanisms, do not by themselves make financial creditors “related parties” under the Insolvency and Bankruptcy Code, 2016 (IBC), unless such rights demonstrate actual control over the management or affairs of the corporate debtor. A Bench comprising Judicial Member Mahendra Khandelwal and...
NCLT Delhi Refuses To Recall 4-Year-Old Resolution Plan, Says Inherent Power Can't Revive Time-Barred Appeal
The National Company Law Tribunal (NCLT) at New Delhi has refused to recall a resolution plan approved more than four years ago. It ruled that its limited inherent power of recall under Rule 11 of the NCLT Rules cannot be used as a substitute for a time-barred appeal under the Insolvency and Bankruptcy Code (IBC) or to reopen the Committee of Creditors' (CoC) commercial wisdom. "The limited inherent power of recall preserved under Rule 11 of the NCLT Rules, 2016 cannot be invoked as a substitute...
NCLAT New Delhi Sets Aside Monte Carlo Insolvency Order After Settlement & Prior Dispute Admission
The New Delhi National Company Law Appellate Tribunal (NCLAT) on 3 August held that an insolvency process cannot continue once the operational creditor's claim has been fully settled and the creditor has no objection to setting aside the admission order. A Bench comprising Judicial Member Justice Mohd Faiz Alam Khan with Technical Members Indevar Pandey and Arun Baroke set aside the order passed by the Ahmedabad Bench of the National Company Law Tribunal (NCLT) admitting the Section 9 petition...