NCLAT Clears Ambiguity Over NCLT's Power To Dispense With The Meetings Of Shareholders & Creditors In A Scheme Of Arrangement/ Amalgamations [Read Judgment]

Case Title: DLF Phase-IV Commercial Developers Limited & Others, Company Appeal (AT) No. 180 of 2019, Judgement Dated: 19th August 2019.In a landmark Judgement, the National Company Law Appellate Tribunal (NCLAT) set aside the order of National Company Law Tribunal (NCLT), Chandigarh Bench, as being per incuriam. This was because it declined the dispensation of certain meetings of shareholders and creditors of Applicant Companies while holding that such dispensations are not permissible...

NCLAT Approves Resolution Plan Of Shell Company Despite SEBI's Objections

In the absence of any material irregularity in exercising the powers by the RP during the CIRP, or regarding provision for payment of insolvency resolution costs in the resolution plan, the appeal was found to be not maintainable by the NCLAT, and was dismissed.

SC Seeks NBCC Response On Completing Stalled Jaypee Group Projects

The Supreme Court on Tuesday sought response from the NBCC on whether it is willing to give a revised proposal to complete the stalled projects of Jaypee group.A bench of justices A M Khanwilkar and Dinesh Maheshwari issued notice to the National Buildings Construction Corporation Limited (NBCC) and sought its reply by Thursday.Additional Solicitor General Madhavi Divan, appearing for the Centre, said the government has held three meetings with various stakeholders and a decision has been taken...

Rs 60,000 Crores Have Been Realized Through Successful Resolution Plans Under IBC : Justice S K Kaul

The central promise of the IBC has been to guarantee a time bound resolution of bad debt, said Justice Sanjay Kishan Kaul, judge of the Supreme Court of India, while giving a talk at the Symposium on 'Recovery and Resolution- Emerging Challenges before Recovery Tribunals & NCLTs' on Saturday at Chennai."The central promise of the IBC has been to guarantee a time bound resolution of bad debt, which, if left unresolved for extensive periods of time, can have a degrading effect on...

NCLAT Dismisses Government's Plea For Recovery From Videocon Industries During Moratorium

The NCLAT agreed with the view taken by NCLT, Mumbai that during the period of 'Moratorium', the Government could neither recover any amount nor issue demand notice to the Videocon through its Resolution Professional.

NCLAT Allows Appeal Filed By ICICI Against RP Of Ruchi Soya Industries; Dismisses Claim Of Preferential Transactions

The NCLAT has allowed an appeal filed by ICICI Bank against the Resolution Professional of Ruchi Soya Industries, setting aside the NCLT order that had upheld the RP's claim of preferential treatment of its claims being done by the Corporate Debtor.The Resolution Professional (RP) of Ruchi Soya Industries had moved an application at NCLT Mumbai under section 43(1) of the Insolvency and Bankruptcy Code, 2016 (IBC), dealing with 'preferential transactions and relevant time', for seeking reversal...

NCLT Initiates Insolvency Proceedings On Homebuyer's Plea Against Builder For Defaulting Payment Of Refund [Read Judgment]

The Tribunal held that the plea cannot be regarded as one for recovery of debt.

NCLT Initiates Insolvency Proceedings Against Builder On Homebuyers' Plea

The NCLT Delhi has admitted an insolvency petition filed by a group of 'homebuyers' against the builder Today Homes Noida India Ltd. The allottees of the flat (homebuyers) had entered into a Flat Buyers Agreement for allotment of flats in a residential project at Noida, with Today Homes during 2011-13, and had paid almost 90% of the purchase value. As per the agreement, the allottees were supposed to get possession in 2016, but till date they had neither received...

Insolvency Proceedings Against Jet Airways in India And Netherlands- NCLAT to Decide The Legality of Dual Proceedings

What should the domestic company law tribunals do when a foreign court has already triggered insolvency proceedings against an Indian entity – this question has popped up before the NCLAT in the Jet Airways insolvency proceedings. In an interesting turn of events, the NCLAT while hearing an appeal filed by the Administrator appointed in the Dutch Bankruptcy Proceedings, has now sought a response from the lenders of Jet Airways on whether they intend to cooperate with the foreign court ...

NCLT Ahmedabad Admits Insolvency Proceedings Against Anil Ambani Group Company

The National Company Law Tribunal bench of Ahmedabad has ordered initiation of insolvency proceedings against 'RMOL Engineering and Offshore Ltd' ( till recently known as 'Reliance Marine Engineering and Offshore Ltd'), belonging to Anil Dirubhai Ambani Group (ADAG). This was done by admitting the insolvency application filed by Industrial Financial Corporation of India Ltd (IFCI), a public sector financial institution. IFCI had advanced a loan of 202 crores to Pipavav Marine and Offshore...

IBC - A Big Game Changer In Banking! (Part II)

In Part I, we have discussed about certain core fundamental competitiveness of IBC over other recovery laws such as Sarfaesi, DRT and Civil Courts. Now, we will dwell further upon other competitive factors which make IBC preferable recovery tool over other recovery measures. IBC – Separation of powers between commercial and judicial domains IBC separates commercial aspects of insolvency and bankruptcy proceedings from judicial aspects. Under IBC, the Adjudicatory...

NCLT Cautions RPs To Look Out For Excess Claims Made By Financial Creditors Against Corporate Debtor

The NCLT Principal Bench at New Delhi, while admitting an insolvency plea, has cautioned RP's to carefully settle the claims made by financial creditors, banks and financial institutions, in excess of what's actually owed to them by the Corporate Debtor. The petitioner (Operational Creditor) in the matter [S.A. Consultants and Forwarders Private Ltd. vs. Cargo Planners Ltd.] had rendered freight forwarding services to Cargo Planners Ltd. (Corporate Debtor) and had not been paid...