COVID-19: NCLAT Restricts Functioning To Hear Urgent Matters Till April 1, Interim Orders To Continue [Read Circular]

As a measure to prevent spread of COVID-19 pandemic, the National Company Law Appellate Tribunal has restricted its functioning to hear only urgent matters till April 1. The Tribunal has issued the following slew of directions to contain the pandemic: "(i) With effect from 21st March, 2020 till 1st April, 2020 only urgent matters will be listed for admission upon mentioning as per the roster being issued separately. (ii) Matters listed for hearing during the aforesaid period ...

COVID-19: NCLT Closes Filing Counters At All Its Benches; Issues Instructions For Cases With Limitation Issue [Read Order]

In order to prevent overcrowding in its premises during the prevalent threat of COVID-19, the National Company Law Tribunal on Thursday decided to close the filing counters at all of its benches till March 27. "It is observed that all NCLT Benches have become crowded at filing counters, which may lead to community transmission of Novel Coronavirus (COVID-10) therefore, it is decided to close the filing counters of all the NCLT Benches hereof. Hence, filing counters of all the NCLT...

SARFAESI & DRT Proceedings Will Not Extend Limitation Period Under IBC : NCLAT [Read Order]

The National Company Law Appellate Tribunal reversed the order of the National Company Law Tribunal, Ahemdabad bench, holding that the order of admission of application filed by Bank of India (BOI) as the Financial Creditor, under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) was time barred. Justices Venugopal M, (Judicial), Kanthi Narahari (Technical) and V P Singh, (Technical) relied on the judgment of the Supreme Court in "B.K. Educational Services Pvt. Ltd. Vs...

NCLAT Dismisses Appeals Of IL&FS Auditors Deloitte, KPMG Against Impleadment

The National Company Law Appellate Tribunal (NCLAT) rejected the appeals filed by various Appellants including partners, employees, Directors of 'Deloitte Haskins & Sells LLP' and the KPMG arm of BSR & Associates, where they had contended that they were not related to the case involving the alleged fraud in of IL&FS Financial Services Limited' (IFIN), a subsidiary of Infrastructure Leasing and Financial Services Limited (IL&FS) and thus were not proper and necessary...

NCLAT Rejects Centre's Plea To Supersede 63 Moons Technologies Board [Read Order]

The NCLAT dismissed the appeal filed by the directors of 63 Moons Technologies involving a default of Rs. 5600 crores on the platform of its subsidiary, National Spot Exchange Limited (NSEL). The Appellate body however gave a clean chit to some of the directors of the board as they were appointed as 'Directors' much after the date of mismanagement i.e. 31st July, 2013. Upholding the NCLT Chennai bench order, Chairperson S J Mukhopadhaya and Justice Bansi Lal Bhat however refused the...

Centre Constitutes NCLAT Bench At Chennai [Read Notification]

The Central government has constituted another Bench of the National Company Law Appellate Tribunal (NCLAT) at Chennai, to hear appeals against the orders of the Benches of the National Company Law Tribunal (NCLT) having jurisdiction of Karnataka, TN, Kerala, AP, Telangana, Lakshadweep and Puducherry. A notification issued in that behalf by the Ministry of Corporate Affairs on Friday clarifies that the bench of NCLAT at Delhi will remain as the Principal Bench and will continue to hear...

Centre Notifies Both IBC Amendment Act & Mineral Laws (Amendment) Act [Read Acts]

The Central government on Friday notified the Insolvency and Bankruptcy Code (Amendment) Act, 2020 and the Mineral Laws (Amendment) Act, 2020. Both the Bills were cleared by the Rajya Sabha on March 12, after being passed by the Lok Sabha on March 6. IBC Amendment Act The Bill to amend the IBC Code, 2016 was introduced by Finance Minister Nirmala Sitharaman on December 12 last year, to ease the insolvency resolution process. The Amendment Act makes changes to the Code for the...

NCLAT Dismisses Appeal Against CCI Nod For Walmart Acquisition Of Flipkart [Read Order]

The NCLAT dismissed an appeal filed by Confederation of All India Traders (CAIT) against an August 2018 order of the Competition Commission of India (CCI) approving Walmart's acquistion of Flipkart under Section 31 of the Competition Act, 2002 A two-member NCLAT bench headed by Chairperson Justices SJ Mukhopadhyay and Bansi Lal stated that CAIT had failed to establish its allegations against CCI and held "The Commission specifically and rightly came to a finding in absence of...

Centre Appoints Justice (Retd.) Bansi Lal Bhat As Officiating Chairperson Of NCLAT; Appoints 1 Judicial & 2 Technical Members [Read Notifications]

Pursuant to completion of the term of Justice (Retd) SJ Mukhopadhaya as the Chairperson of the National Company Law Appellate Tribunal (NCLAT), the Central government has appointed Justice (Retd.) Bansi Lal Bhat, Judicial Member of NCLAT, as the officiating Chairperson. He will take charge of the office from March 15 for a period of three months or until a regular Chairperson is appointed, whichever is earlier.The government has also appointed Justice (Retd.) Anant Bijay Singh as a...

Parliament Passes IBC (Amendment) Bill, 2020 [Read Bill]

The Rajya Sabha today passed the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019, by voice vote. Aimed at easing the insolvency resolution process, the Bill was introduced in the house by Finance Minister Nirmala Sitharaman on December 12, last year. After having been scrutinized by the Standing Committee, whose report was received on March 4, the Bill was passed by the Lok Sabha last Friday, on March 6, amidst high tension in the house with the opposition MPs demanding...

NCLT Chennai approves Cochin Shipyard's Resolution Plan To Acquire TSL [Read Order]

The Chennai Bench of NCLT has accepted the Resolution Plan (RP) filed by public sector company Cochin Shipyard Limited (CSL) to acquire Chennai based shipbuilding firm Tebma Shipyards Limited (TSL) under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code, 2016 (IBC).CSL's RP had proposed a paltry sum of Rs 65 crores which amounts to only 9.74% of pay out on admitted debt, as amount payable to all the stakeholders for 'full and final settlement' and discharge...

'Problem Of Delays Starting To Surface Even In IBC Process' : Justice N V Ramana [Read Full Speech]

Supreme Court judge, Justice NV Ramana on Friday said that every organization must adopt the best practice of ensuring survival and that liquidation should be the last resort during insolvency proceedings. This is because, insolvency isn't only a matter of private rights but it also affects various stakeholders. Justice Ramana was speaking at the Colloquium of Members of NCLT and NCLAT on "Judicial Sensitization on Insolvency Law and Associated Best Practices". He pointed out that...