NCLAT
NCLAT New Delhi Orders Fresh Auction In MBSL Case, Holds JFC Finance Excluded Over BAANKNET Glitch
The New Delhi National Company Law Appellate Tribunal (NCLAT) on 29 May allowed the appeal filed by JFC Finance (India) Ltd., holding that the bidder was wrongfully excluded from the e-auction process due to a possible technical glitch on the BAANKNET platform and directing a fresh auction with a reserve price of Rs 54 crore. Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed: “We are of the considered view that merely because the auction platform hinged on automation...
NCLAT Delhi Rules Unregistered Development Agreement Cannot Defeat CIRP Rights Over Ananta Residency
The New Delhi Bench of the National Company Law Appellate Tribunal on 25 May partly allowed a batch of appeals concerning the Ananta Residency project, holding that Halwasiya Developments Pvt. Ltd. could not claim ownership or exclusive rights under an unregistered Development Agreement executed in 2018. Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra noted that the project continued to form part of the Corporate Insolvency Resolution Process (CIRP) despite the 2014 mortgage...
SRA Who Failed To Implement Resolution Plan Not Necessary Party To Liquidation Proceedings: NCLAT
The National Company Law Appellate Tribunal (NCLAT) has held that a successful resolution applicant who fails to implement an approved resolution plan is not a necessary party to a liquidation application. The tribunal made the observation while dismissing two appeals filed by Roopya Tradebizz Ltd against orders directing the liquidation of Euphoria Technologies Pvt Ltd. "In so far as submission of the appellant that he was necessary party to the liquidation application, we are of the view...
NCLAT Upholds CIRP Against Parsvnath Developers, Finds Debt And Default Proved Despite Settlement Efforts
The National Company Law Appellate Tribunal (NCLAT) at Delhi has dismissed appeals filed by the suspended directors of Parsvnath Developers Limited and its corporate guarantor, Noida Marketing Pvt. Ltd. It upheld orders admitting both companies into the corporate insolvency resolution process (CIRP), finding that debt and default stood proved. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held,“Default on the part of the corporate debtor is well proved from the...
NCLAT Upholds Eviction Of Suspended Directors' Family From Insolvent Company-Owned Hotel, Says MoU, Award Collusive
The National Company Law Appellate Tribunal (NCLAT) at Delhi has upheld the eviction of occupants from a five-star hotel owned by an insolvent company, holding that an unregistered Memorandum of Understanding (MoU) and a subsequent arbitral award could not confer occupancy rights over the property and appeared to have been created only for the purposes of the case. The ruling came in appeals filed by Raman Khangura and her father-in-law Jagpal Singh Khangura against an order directing them to...
NCLAT Says GNIDA's Challenge To Swati Health Resolution Plan Barred By Res Judicata, Imposes ₹1 Lakh Cost
The National Company Law Appellate Tribunal (NCLAT) at Delhi has imposed costs of ₹1 lakh on the Greater Noida Industrial Development Authority (GNIDA) and dismissed its appeal arising from proceedings concerning implementation of the approved resolution plan of Swati Health and Education Services Pvt. Ltd. The tribunal held that the appeal was barred by res judicata. It observed that the issues raised had already been decided and that the resolution plan had attained finality. A bench of...
No Deed Of Guarantee Or Invocation On Record: NCLAT Sets Aside Insolvency Order Against Alleged Personal Guarantor
The National Company Law Appellate Tribunal (NCLAT) at Delhi has set aside an order initiating insolvency proceedings against Pawan Gupta, holding that the National Company Law Tribunal's order was passed on the basis of misrepresentation of jurisdictional facts after a deed of guarantee and invocation of guarantee were stated to be on record even though no such documents had been placed before it A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey held that the...
NCLAT Upholds Insolvency Proceedings Against Rana Kapoor-Linked Bliss Abode and Bliss House
The National Company Law Appellate Tribunal (NCLAT) in Delhi has upheld insolvency proceedings against two Rana Kapoor-linked companies. It held that the lender was entitled to treat the former Yes Bank promoter's arrest and the ensuing criminal investigations as a "material adverse effect" under the loan agreements, triggering its right to recall loans worth hundreds of crores. The NCLAT upheld orders of the Delhi Bench of the National Company Law Tribunal (NCLT) admitting insolvency petitions...
IBC Not An 'Expropriatory Statute'; NCLAT Directs RP To Verify Allottee's Claim In Raguleela Builders' CIRP
The National Company Law Appellate Tribunal (NCLAT) has observed that the Insolvency and Bankruptcy Code (IBC) is not an "expropriatory statute." It directed the Resolution Professional (RP) of Raguleela Builders Pvt Ltd to verify whether Mysore Petro Chemicals Ltd had paid consideration to the corporate debtor for a commercial unit and, if so, include its claim. A bench of Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka held that Mysore Petro Chemicals could not maintain...
NCLAT New Delhi Restores Resolution Plan Approval Process For Aldiam Motors, Quashes NCLT Order
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 27 May set aside an order of the National Company Law Tribunal (NCLT), Ahmedabad Bench, which had rejected the resolution plan submitted by Meghdoot Leisure LLP for Aldiam Motors Pvt. Ltd. Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held that the Corporate Insolvency Resolution Process (CIRP) was conducted in accordance with the directions of the Committee of Creditors (CoC) and found no...
NCLAT Sets Aside CIRP Against Ligare Aviation, Says Religare Transactions Were “Round Tripping Of Money”
The National Company Law Appellate Tribunal (NCLAT) at Delhi has set aside the admission of insolvency proceedings against Ligare Aviation Ltd., holding that the transactions relied upon by Religare Enterprises Ltd. were “only round tripping of money” and not “for the purpose of any genuine financial transaction.” A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed,“The present is a case where the amount which was received on 31.03.2009 on the same day was...
NCLAT Says Dispute Over Title To Cotton Bales In Galaxy Cotton Liquidation Lies Before DRAT
The National Company Law Appellate Tribunal (NCLAT) has dismissed appeals filed by two cotton traders seeking exclusion of cotton bales claimed by them from the liquidation estate of Galaxy Cotton & Textiles Pvt. Ltd., after noting that the liquidator had already excluded the disputed stock from the liquidation process and that disputes over title and security interest in the goods were pending before the Debt Recovery Appellate Tribunal (DRAT). The bench of Judicial Member Justice N...