NCLAT Seeks Project-Wise Completion Timelines For 16 Supertech Housing Projects

The National Company Law Appellate Tribunal (NCLAT) at Delhi has asked the Apex Court Committee to submit tentative completion dates for each of Supertech Limited's 16 housing projects and disclose the finances available for their completion.The bench of Officiating Chairperson Justice Yogesh Khanna and Technical Members Barun Mitra and Ajai Das Mehrotra sought the project-wise timelines after finding that the committee's affidavit did not specify concrete completion dates.“However, we find from...

NCLT Ahmedabad Rejects Creditor's Claim After Resolution Plan Approval Despite Civil Court Decree

The National Company Law Tribunal (NCLT), Ahmedabad, has rejected a creditor's plea to pursue a ₹14.11 lakh claim against Techno Forge Limited after approval of its resolution plan, despite a civil court decree in the creditor's favour.The tribunal held that the claim could not be condoned or restored after the resolution plan was approved, as the creditor had failed to lodge it during the corporate insolvency resolution process (CIRP).The bench of Judicial Member Chitra Hankare and Technical...

Going-Concern Sale Commences With Liquidation Order, Not Auction Notice: NCLAT

The National Company Law Appellate Tribunal (NCLAT), Delhi, has held that liquidation by sale of a corporate debtor as a going concern commences from the date of the liquidation order when the order directs the liquidator to pursue that mode of sale. The process does not begin only when an auction notice is issued.“Liquidation itself commences on the liquidation commencement date under Section 5(17), that is, when proceedings for liquidation commence under Section 33. Once the liquidation order...

Bankrupt Personal Guarantor Cannot Withdraw Funds After Estate Vests In Trustee: NCLAT New Delhi

On 7 October, the National Company Law Appellate Tribunal (NCLAT) at New Delhi held that a bankrupt personal guarantor cannot withdraw or otherwise deal with funds in a bank account once the bankruptcy estate has vested in the Bankruptcy Trustee. A Bench comprising Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha dismissed appeals filed by Manju Sirohi, personal guarantor of Saha Infratech Pvt. Ltd., against orders directing her to return Rs. 19,17,500 withdrawn...

NCLT Chandigarh Says Mere Directorship Insufficient For Fraud, Dismisses Plea Against 18 Directors

The Chandigarh Bench of the National Company Law Tribunal (NCLT) has held that mere designation as a director or participation in the management of a corporate debtor cannot, by itself, attract personal liability for fraudulent trading under the Insolvency and Bankruptcy Code (IBC). A Bench comprising Technical Member Kaushalendra Kumar Singh and Judicial Member Khetrabasi Biswal dismissed an application filed by Resolution Professional (RP) Darshan Singh Anand in the insolvency proceedings of...

NCLT Ahmedabad Admits ₹2.78 Cr. Insolvency Plea Against Polycab, Rejects 'Provisional Billing' Defence

On 7 October, the Ahmedabad Bench of the National Company Law Tribunal (NCLT) admitted the insolvency petition filed by Asier Metals Pvt. Ltd. against Polycab India Ltd. over an operational debt default of Rs. 2.78 crore.A Bench comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma held that a dispute raised after a demand notice cannot establish a pre-existing dispute to defeat an insolvency petition. It observed: “...the claim before the Tribunal is not founded merely...

NCLT Chennai Allows Winding Up Of Struck-Off Company To Realise Assets, Settle Liabilities

The National Company Law Tribunal (NCLT), Chennai, has ruled that a company struck off from the Register of Companies can still be wound up to realise its assets and settle outstanding liabilities.The tribunal observed that "to ensure that the marketable securities are realized and the liabilities of the Company are settled, it is just and equitable that the Company be wound up under the enactment of the Companies Act 2013 and Rules made thereunder."A coram comprising Judicial Member Sanjiv Jain...

NCLT Ahmedabad Refuses To Recall Withdrawal Order Where Counsel Was Authorised To Withdraw Petition

The National Company Law Tribunal (NCLT), Ahmedabad Bench, has refused to use its inherent powers to recall an order dismissing a contempt petition as withdrawn, holding that the counsel who sought withdrawal was expressly authorised to do so under the Vakalatnama. “In view of the Vakalatnama authorising withdrawal and absence of any ground recognised in law for recall, no case is made out for exercise of the inherent power under Rule 11 of the NCLT Rules, 2016,” the bench of Judicial Member...

Attempt To Transfer Property To Defeat Creditors Not 'Act Of Insolvency' Under Provincial Insolvency Act: Madras HC

The Madras High Court at Madurai recently held that an attempt by a debtor to transfer property to defeat creditors may justify attachment before judgment under Order 38 of the Code of Civil Procedure (CPC). However, such an attempt by itself does not amount to an “act of insolvency” under Section 6 of the Provincial Insolvency Act, 1920.“Attempting to transfer one's property to defeat the interest of the creditors can be a good ground for attaching the property before judgment under Order 38 of...

NCLAT Sets Aside Separate CIRP Against Earth Towne After Supreme Court Restored EIL's Resolution Plan

The National Company Law Appellate Tribunal (NCLAT), New Delhi, has set aside insolvency proceedings against Earth Towne Infrastructure Pvt. Ltd. (ETIPL), holding that a separate Corporate Insolvency Resolution Process (CIRP) could not continue after the Supreme Court restored the resolution plan for Earth Infrastructures Ltd. (EIL) and brought ETIPL's land within that plan.A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha held that, as on June 1,...

Secured Creditor Cannot Participate In Liquidation While Keeping Option To Withdraw Assets Later: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has held that a secured creditor cannot participate in the liquidation process while keeping open an option to later withdraw its secured assets from the liquidation estate.“We further observe that per combined reading of Section 52(2) of the Insolvency and Bankruptcy Code and also Regulations 21A, 31A(2) and 39BA of Liquidation Process Regulations, the Appellant cannot be permitted to simultaneously participate in the liquidation process and...

Rejoinder Material Cannot Be Excluded At Preliminary Stage If It Relates To Debt, Default: NCLT Chandigarh

The National Company Law Tribunal (NCLT), Chandigarh Bench, has declined to remove documents and explanations introduced through a rejoinder from the record of an insolvency proceeding. It held that their relevance to the dispute over debt and default should be examined when the main petition is heard.“The material sought to be excised, being ledger reconciliations, TDS records, and the explanation regarding the disputed payment of Rs. 11,00,000/-, bears directly upon the question of debt and...