SRA Need Not List All Assets In Resolution Plan; Undisclosed FDRs Belong To Corporate Debtor SPS Steels: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi recently held, in the insolvency of SPS Steels Rolling Mills Ltd, that the successful resolution applicant is not required to specify every asset of the corporate debtor in the resolution plan, and assets not mentioned in the information memorandum do not cease to belong to the corporate debtor after approval of the plan. A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha, after examining...

Mere Non-Reflection Of Funds In Books Not Proof Of Fraud Under IBC: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi has dismissed an application filed by the liquidator of Vysali Pharmaceuticals Ltd against its suspended Managing Director, holding that mere non-reflection of amounts in the books of accounts cannot by itself establish fraudulent diversion of funds under Section 66 of the Insolvency and Bankruptcy Code.A coram of Judicial Member Vinay Goel observed that allegations of fraud must be supported by cogent and credible evidence and cannot be...

NCLT Jaipur Says Only CoC Can Approve CIRP Costs, Dismisses Plea By RP Of Aesthetic Stone Arts As Not Maintainable

The National Company Law Tribunal (NCLT) at Jaipur has dismissed an application filed by the erstwhile Resolution Professional of Aesthetic Stone Arts India Pvt. Ltd. seeking ratification of Corporate Insolvency Resolution Process (CIRP) costs, holding that determination of such costs lies exclusively within the domain of the Committee of Creditors (CoC).A coram of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar also held that no interlocutory application is maintainable...

NCLT Mumbai Admits Personal Insolvency Plea Against Frost International's Guarantor Over Rs 285 Crore Default

The National Company Law Tribunal's Mumbai bench has admitted an insolvency application filed by Indian Bank (erstwhile Allahabad Bank) against Anoop Kumar Wadhera, personal guarantor to Frost International Ltd, in a case involving a default of approximately Rs 285.77 crore. A coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar, while admitting the petition and initiating an insolvency resolution process against Wadhera, observed: “Considering the above facts...

Supreme Court Allows Set-Off Defence Against Ujaas Energy Though Counterclaim Extinguished Under IBC

The Supreme Court on Friday allowed West Bengal Power Development Corporation Ltd. to raise a plea of set-off as a defence in arbitration proceedings against Ujaas Energy Ltd., even though its counterclaim stood extinguished after approval of the resolution plan under the Insolvency and Bankruptcy Code. A bench of Justices Dipankar Datta and Augustine George Masih while granting the relief observed: “Upon a cumulative consideration of all relevant factors, we hold that the...

Breach Of Settlement Gives Fresh Cause Of Action; NCLAT Allows Subham Capital To File Fresh CIRP Plea Against Vedic Realty

The National Company Law Appellate Tribunal (NCLAT) has recently held that Subham Capital Pvt. Ltd. was entitled to file a fresh Section 7 petition against Vedic Realty Pvt. Ltd. after breach of a settlement agreement, ruling that the subsequent default gave rise to a new cause of action and was not barred by res judicata. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed: “The breach of settlement clearly gave rise to a new cause of action in favour of the...

NCLT Mumbai Partly Allows Anil Ambani Access To Pre-CIRP Records Of Reliance Communications To Defend ED-CBI Proceedings

The National Company Law Tribunal (NCLT) at Mumbai has partly allowed an application by former Reliance Communications Ltd director Anil Dhirajlal Ambani seeking access to insolvency records of the company, including documents furnished to the Enforcement Directorate and the Central Bureau of Investigation, holding that a suspended director cannot be denied pre-CIRP records required to defend himself in proceedings based on those materials.Ambani told the tribunal that proceedings have been...

S.7 IBC | Only Financial Creditor And Corporate Debtor Have Vested Right To Be Heard At Pre-Admission Stage: NCLT Bengaluru

The National Company Law Tribunal (NCLT) at Bengaluru has held that no third party has a right to intervene at the pre-admission stage of a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, reiterating that the Tribunal's scope at that stage is limited to examining the existence of financial debt and default. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada was dealing with an interlocutory application seeking permission to intervene...

RBI Circular Cannot Override IBC; Written Agreement Not Mandatory To Prove Financial Debt: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that RBI circulars requiring written loan agreements cannot override the Insolvency and Bankruptcy Code. The tribunal observed that it is “a clear derivative” of its earlier judgments that the RBI circular does not prevail over IBC proceedings and that a written agreement is not mandatory to establish financial debt under the Code. The bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra, while...

In Appeal Against NCLT Order On Adani Plan For JAL, NCLAT Bars Invocation Of Subcontractor's Bank Guarantee For Six Months

The National Company Law Appellate Tribunal (NCLAT) in Delhi on Friday directed that the bank guarantee furnished by Velocity Enterprises, a subcontractor engaged by Jaiprakash Associates Limited (JAL) for erection and maintenance of substations, shall not be invoked for six months beyond its expiry on March 31, 2026. The order came in the first appeal filed after the National Company Law Tribunal approved Adani Group's Rs 15,000-crore resolution plan for the company. The matter was heard by a...

NCLT Bengaluru Admits Insolvency Against BNH Infra Projects On ₹11.3 Crore Loan Default In Canara Bank's Plea

The Bengaluru Bench of the National Company Law Tribunal (NCLT) on March 16 admitted insolvency proceedings against BNH Infra Projects India Pvt. Ltd. over a loan default of about Rs 11.3 crore, after Canara Bank claimed total outstanding dues of over Rs 64 crore. A coram comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada noted that the respondent was proceeded ex parte due to failure to appear and comply with the tribunal's directions, observing that...

Fraud Must Be Clearly 'Found,' Not Presumed To Invoke Fraudulent Trading Under IBC: NCLT Hyderabad

The Hyderabad Bench of the National Company Law Tribunal (NCLT) has held that proceedings under Section 66 of the Insolvency and Bankruptcy Code, which deals with fraudulent and wrongful trading by directors, cannot be sustained on mere suspicion and require a clear finding of intent to defraud supported by cogent evidence. A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri passed the ruling while dismissing an application filed by the Resolution Professional of Kobo...