NCLT Ahmedabad Approves ₹2,775 Crore Inox Neo-Authum Resolution Plan For Wind World India

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has approved the ₹2,775 crore resolution plan submitted by the consortium of Inox Neo Energies Limited and Authum Investment & Infrastructure Limited for Wind World (India) Limited. It held that there was no ground to interfere with the commercial wisdom of the Committee of Creditors (CoC). A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma appriving the plan observed,“..we are of the view that the...

Uncrystallised EPFO Interest, Damages Are Contingent Liabilities Under IBC: Supreme Court

The Supreme Court has recently held that interest and damages on unpaid provident fund dues, if not determined before the commencement of the Corporate Insolvency Resolution Process (CIRP), are contingent liabilities. "Though PF dues are excluded from the liquidation estate under Section 36(4)(iii) of IBC, liability of CD towards interest and damages payable under Section 7Q and 14B of the 1952 Act, if not determined and finalized before CIRP commencement, would fall in the category of a...

NCLT Kochi Allows Second CIRP After Settlement Breach Where Settlement Preserved Creditor's Right

The National Company Law Tribunal (NCLT) at Kochi has recently admitted an insolvency petition against Soura Natural Energy Solutions India Private Limited, holding that an operational creditor is entitled to initiate fresh insolvency proceedings upon breach of a settlement where the settlement itself expressly preserves such a right.A coram of Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy was considering a petition filed by Raychem RPG Private Limited seeking initiation...

NCLT New Delhi Orders Dissolution Of Recruitment And Technology Solutions Provider LIS Studylink India

The New Delhi National Company Law Tribunal (NCLT) on 15 July ordered the dissolution of Lis Studylink India Pvt. Ltd. under Section 59 of the Insolvency and Bankruptcy Code, 2016 (IBC), holding that the company's voluntary liquidation process had been completed and no liabilities remained unsatisfied. A Bench of Judicial Member Bachu Venkat Balaram Das and Technical Member Ravindra Chaturvedi allowed the Liquidator's application seeking dissolution of the company. It held: “In view of the...

NCLAT Dismisses DoT Appeal Against Rolta India Resolution Plan, Cites Its Implementation

The National Company Law Appellate Tribunal (NCLAT) on Thursday dismissed the Department of Telecommunications' (DoT) appeal challenging the National Company Law Tribunal's (NCLT) approval of the ₹900 crore resolution plan for Rolta India Limited.It held that once a resolution plan has been approved and fully implemented, statutory creditors cannot seek to reopen claims they failed to pursue in time.A bench of Judicial Member Justice Yogesh Khanna and Technical Members Barun Mitra and Ajai Das...

Supreme Court Upholds CIRP Against Rana Kapoor-Linked Bliss Companies

The Supreme Court on Friday refused to interfere with the National Company Law Appellate Tribunal's (NCLAT) judgment upholding the initiation of corporate insolvency resolution proceedings (CIRP) against Rana Kapoor-linked Bliss Abode Pvt. Ltd. and Bliss House Pvt. Ltd. It dismissed the appeals filed by suspended director Bindu Kapoor. A bench of Justices Sanjay Kumar and Sanjeev Sachdeva declined to interfere with the NCLAT's decision upholding the admission of Section 7 applications filed by...

NCLT Ahmedabad Rejects Money Lender's CIRP Plea, Says Loan To Repay Existing Bank Debt Is Not Financial Debt

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has held that a money lender who advances funds only to help a corporate debtor clear an existing bank loan cannot, in the facts of the case, claim the status of a financial creditor under the Insolvency and Bankruptcy Code (IBC).It rejected a Section 7 insolvency plea filed by Gujarat-based Mangaldas Finance seeking initiation of the corporate insolvency resolution process against Milano Papers Pvt. Ltd.The bench of Judicial Member...

Operational Creditor Cannot Use Conflicting Debt Documents To Extend Limitation: NCLAT New Delhi

The New Delhi National Company Law Appellate Tribunal (NCLAT) on 29 July held that an operational creditor cannot invoke insolvency proceedings by relying on inconsistent documents regarding the debt claimed and simultaneously seek to treat those documents as an acknowledgement of liability to extend the limitation period under Section 18 of the Limitation Act, 1963. A Bench comprising Judicial Member Justice N Seshasayee and Technical Member Arun Baroka dismissed the appeal filed by Sturdy...

Merits Of Oppression Plea Not To Be Examined While Deciding Waiver Application: NCLT Mumbai

The Mumbai National Company Law Tribunal (NCLT) has held that while considering an application seeking waiver of eligibility requirements under the proviso to Section 244(1) of the Companies Act, 2013 (which prescribes the minimum shareholding threshold to file oppression and mismanagement petitions), the Tribunal need not examine the merits of the proposed petition. A Bench comprising Technical Member Prabhat Kumar and Judicial Member Sushil Mahadeorao Kochey was hearing an application filed...

Easement Right Disputes Affecting Liquidation Fall Within NCLT's Jurisdiction: NCLAT New Delhi

The New Delhi National Company Law Appellate Tribunal (NCLAT) on 29 July held that the National Company Law Tribunal (NCLT) can decide disputes over an easementary right of way under the Insolvency and Bankruptcy Code, 2016 (IBC) where the dispute has a direct connection with the corporate insolvency resolution process or liquidation and affects value maximisation of the corporate debtor's assets. A 2:1 Bench comprising Technical Members Arun Baroka and Indevar Pandey, constituting the...

"Your Callous Attitude Leads To Such Litigations": Supreme Court Pulls Up GDA, UP Govt. Over Delay In Ansal Resolution Plan Implementation

The Supreme Court on Thursday criticised the Ghaziabad Development Authority (GDA) and the Uttar Pradesh government for delaying approvals required to implement the resolution plan for Ansal Urban Condominiums Pvt. Ltd. (AUCPL), saying the authorities' "callous attitude" had forced around 1,600 homebuyers to litigate for nearly two decades. The court was hearing an appeal filed by One City Infrastructure Pvt. Ltd., the successful resolution applicant (SRA) for AUCPL, against the National...

One Workman Cannot Represent Others In IBC Proceedings Without Authorisation: NCLT Kochi

The National Company Law Tribunal (NCLT), Kochi has held that an application filed in the names of multiple workmen cannot be maintained on behalf of those who did not authorise the sole signatory to represent them.“….in the absence of any specific authorisation, authority, or power of attorney in favour of the signatory, the other applicants would not be bound by any action taken by the signatory. Since they may rely on the acts done by the signatory, which would not be binding upon them, it...