NCLAT
Late CIRP Bid Can't Be Accepted Without Publishing Provisional List Of Resolution Applicants First: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at New Delhi has held that a belated expression of interest in an insolvency process cannot be accepted unless a provisional list of bidders is first published and objections are invited. The court reiterated that it is a mandatory requirement under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.The ruling came while dismissing appeals filed by the committee of creditors of...
NCLAT Expunges Adverse Remarks Against IL&FS Companies In Wind World Insolvency
The National Company Law Appellate Tribunal (NCLAT) at Delhi has expunged adverse remarks made by the NCLT Ahmedabad against three IL&FS group companies during the insolvency proceedings of Wind World (India) Limited. The appellate tribunal held that the observations were made without evidence and could not be allowed to remain. A bench of Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Indevar Pandey said removing a creditor from the Committee of Creditors is not a...
Credits To Bankrupt's Bank Account Don't Automatically Vest In Bankruptcy Estate: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at New Delhi has ruled that money lying in the bank account of a bankrupt personal guarantor forms part of the bankruptcy estate and can be frozen by the Bankruptcy Trustee. At the same time, it clarified that amounts credited to the account after the start of bankruptcy cannot automatically be taken over unless the Insolvency and Bankruptcy Code procedure is followed. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun...
NCLAT Declines to Interfere In RCI Industries' Resolution Plan After SRA Disclaims Rights Over Disputed Assets
The National Company Law Appellate Tribunal (NCLAT) at New Delhi, has refused to interfere with the approval of a resolution plan for RCI Industries and Technologies Ltd., after the successful resolution applicant undertook not to claim any rights over two disputed properties and the plan was approved by the committee of creditors. A bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra said, “Resolution Plan having been approved by the CoC and SRA having...
NCLAT Issues Notice On REC's ₹37.48 Crore Insolvency Appeal Against Poena Power
The National Company Law Appellate Tribunal (NCLAT) at New Delhi on Thursday issued notice on an appeal by Maharatna PSU REC Limited against an NCLT order that rejected its bid to start insolvency proceedings against Poena Power Development Limited, a subsidiary of RattanIndia Power Limited, over an alleged default of about Rs 37.48 crore. REC has challenged the NCLT's refusal to admit its Section 7 petition, which was dismissed on the ground that no legally enforceable debt had arisen. The...
NCLAT Sets Aside Aman Hospitality CIRP After Suspended Director Undertakes To Pay ₹119 Crore Dues
The National Company Law Appellate Tribunal (NCLAT) on Thursday set aside insolvency proceedings against Aman Hospitality Private Limited after the suspended director undertook to pay Bank of India's dues within three days, overturning an NCLT Delhi order admitting the company into the Corporate Insolvency Resolution Process (CIRP). A bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra allowed the appeal filed by suspended director Raj Singh Gehlot after...
NCLAT Lifts 'Impossible Condition' Of ₹40-Crore Security Imposed On Bankrupt Guarantor For US Travel
The National Company Law Appellate Tribunal (NCLAT) has set aside a condition imposed by the NCLT Ahmedabad requiring a bankrupt personal guarantor to deposit Rs. 40 crore as security for travelling to the United States. The tribunal held that a person already declared bankrupt cannot be expected to arrange such funds. A bench led by Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held that imposing an “impossible condition” amounts to denial of permission to travel. ...
NCLAT Upholds Late Claim In Shivam Continental Insolvency As Debt Was Disclosed In Information Memorandum
The National Company Law Appellate Tribunal (NCLAT) at Delhi has refused to interfere with an order admitting a late claim in an insolvency case. The tribunal said the delay did not, by itself, warrant interference since the liability was already disclosed to bidders during the process. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra noted that the Information Memorandum had flagged the dues. It had also cautioned resolution applicants to make their own...
“Sat Over Our Order”: NCLAT Seeks ISPT India IRP's Reply In Contempt Case
The National Company Law Appellate Tribunal (NCLAT) at Chennai has sought a reply from Anil Kumar Khicha, the Interim Resolution Professional (IRP) of ISPT India Pvt Ltd, in contempt proceedings after the tribunal earlier found that an email issued by him in the insolvency proceedings was contemptuous. A bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain is dealing with the contempt proceedings arising from the insolvency proceedings of ISPT...
NCLAT Upholds Adani Power's ₹4,000 Crore Resolution Plan For Vidarbha Industries
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently upheld Adani Power Limited's Rs 4,000 crore resolution plan for Vidarbha Industries Power Limited, rejecting challenges raised by Western Coalfields Limited, a fuel supplier and operational creditor, and an employee representative. A bench of Chairperson Ashok Bhushan and Technical Member Barun Mitra held that changes made by Adani Power to the acquisition structure after the plan was approved by the committee of...
NCLAT Quashes NCLT Condition Restricting Use of Rs 20 Crore In Carnival Films Resolution Plan
The National Company Law Appellate Tribunal (NCLAT) at New Delhi has set aside an NCLT Indore order that approved Carnival Films Private Limited's resolution plan but barred the use of nearly Rs. 20 crore lying in the company's bank account to pay creditors. A bench of Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Arun Baroka said the NCLT had overstepped its jurisdiction. It noted that the NCLT had first recorded that the plan complied with Section 30(2) of the...
EPFO Cannot Raise Fresh Provident Fund Dues Based on Assessments Conducted During Moratorium: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT) New Delhi has held that no assessment proceedings can be initiated or continued during the moratorium period under Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC) and no claim based on such assessment can be enforced against the Successful Resolution Applicant (SRA) after approval of the Resolution Plan.Section 14 of the IBC introduces a moratorium that halts legal actions against a corporate debtor once insolvency proceedings...