IBC
NCLT Mumbai Approves Supreme Capinfra's Rs. 96 Crore Plan To Revive C & M Farming
The National Company Law Tribunal (NCLT) at Mumbai has approved a Rs 96.81 crore resolution plan for the revival of C and M Farming Ltd, a poultry business. The tribunal held that once a resolution plan meets the requirements of the Insolvency and Bankruptcy Code, it cannot interfere with the commercial decisions of the Committee of Creditors. A coram comprising Judicial Member Mohan Prasad Tiwari and Technical Member Charanjeet Singh Gulati passed the order on January 9. The bench found the...
Delhi High Court Sets Aside Arbitration Against Bhushan Steel Following Tata Steel Takeover
The Delhi High Court has set aside an arbitral tribunal order that allowed arbitration to continue against Tata Steel, formerly Bhushan Steel, even after its resolution plan under the Insolvency and Bankruptcy Code was approved. A single-judge bench of Justice Amit Sharma allowed Tata Steel's writ petition and quashed the tribunal's October 7, 2020 order. The court said that once a resolution plan is approved, it binds all creditors. “The Resolution Plan had attained finality and would be...
MoU Between Debtor And Creditor Is Only Acknowledgment, Not Proof Of Debt: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has said that a Memorandum of Understanding (MoU) can, at best, show an acknowledgment of debt, but it cannot, by itself, prove that a financial debt exists or that there has been a default. The tribunal said documents showing the original loan and actual disbursal of money are necessary to trigger insolvency proceedings. A coram of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar dismissed a petition filed by Mulraj Mody...
Sale Agreements Do Not Mean Flats Are Held In Trust For Homebuyers During Builder Insolvency: NCLT Kochi
The National Company Law Tribunal (NCLT) at Kochi has ruled that apartments and project land covered only by sale or construction agreements cannot be treated as “assets held in trust” for homebuyers when a builder enters insolvency. The tribunal said such properties continue to belong to the builder during the Corporate Insolvency Resolution Process until sale deeds are executed and registered. A coram of Judicial Member Vinay Goel said the Insolvency and Bankruptcy Code does not permit...
NCLAT Upholds ₹5,000 EPFO Allocation In CIRP of Metistech Fabrication Against ₹18.33 Lakh Claim
The National Company Law Appellate Tribunal (NCLAT) at New Delhi has upheld a resolution plan that allocated only Rs 5,000 towards provident fund dues claimed by the Employees' Provident Fund Organisation. The tribunal held that the bulk of the EPFO's demand was unenforceable, as it was assessed after insolvency proceedings had already begun. A bench of Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka dismissed the EPFO's appeal against the resolution plan approved for...
NCLT Ahmedabad Orders Liquidation of Euphoria Technologies as SRA Defaults On Rs. 7.20 Crore Plan
The National Company Law Tribunal (NCLT) Ahmedabad has ordered the liquidation of Euphoria Technologies Private Limited, a Gujarat-based technology services company, after its successful resolution applicant, Roopyaa Tradebizz Limited, failed to follow the payment schedule under its approved Rs 7.20 crore resolution plan. A coram of Judicial Member Chitra Hankare and Technical Member Velamur G. Venkata Chalapathy held that Roopyaa Tradebizz had clearly breached the terms of the plan and could...
Fraud Claims On Insolvency Admission Must Be Raised In Appeal, Not In Later NCLT Pleas: NCLT Kolkata
The National Company Law Tribunal (NCLT) at Kolkata has recently held that allegations of fraud or collusion in the admission of insolvency proceedings cannot be raised months later through a fresh application and must be pursued through the appellate route provided under the law. A bench of Judicial Member Bidisha Banerjee and Technical Member Siddharth Mishra said former promoters cannot use Section 65 of the Insolvency Code to challenge an admission order they never appealed. “Disputes...
NCLAT Limits Ansal Properties' Insolvency To Sushant Golf City and Rajasthan Projects
The National Company Law Appellate Tribunal (NCLAT) at New Delhi refused to overturn the insolvency proceedings against Ansal Properties and Infrastructure Limited.However, it restricted the process to Sushant Golf City in Lucknow and three Rajasthan projects: Ansal Royal Plaza, Orchid Plaza, and Tulip Plaza. The tribunal said extending the insolvency process to projects not linked to the loan securities was “uncalled for” and would disrupt unrelated real estate projects. A coram of Judicial...
Funding Rival Bids, Using Same IP Proves Bid Rigging, NCLAT Upholds CCI Penalty Against Klassy Enterprises
The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently upheld a Rs 10 lakh penalty imposed by the Competition Commission of India on Klassy Enterprises, holding that paying the tender costs of rival bidders and submitting bids from the same IP address was enough to show bid rigging, even without a written cartel agreement. A bench of Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Naresh Salecha dismissed Klassy Enterprises' appeal against the CCI's...
Calling Guarantor 'Director' In SARFAESI Notice Doesn't Invalidate Invocation Of Guarantee: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently ruled that merely describing a personal guarantor as a “Director” in a SARFAESI demand notice does not invalidate the invocation of the personal guarantee, as long as the notice clearly demands payment of the outstanding dues under the guarantee deed. The tribunal said the real test is not how the person is described, but what the notice actually asks for. The bench of Justice Mohd. Faiz Alam Khan and Naresh Salecha...
Bank Can't Freeze Company's Accounts Solely Over ROC's 'Management Dispute' Tag: Calcutta High Court
The Calcutta High Court has held that a bank cannot freeze a company's accounts merely on the basis of a “management dispute” marking by the Registrar of Companies (ROC), particularly after such marking has been removed on the directions of the Ministry of Corporate Affairs (MCA).Justices Sabyasachi Bhattacharyya and Supratim Bhattacharya made the observation on January 5 while hearing appeals filed by Ravindra Pratap Singh, director of August Agents Limited, challenging the freezing of the...