Jet Airways Workmen's PF, Gratuity Dues Must Be Paid, Fall Outside Liquidation Estate: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that provident fund, gratuity and pension dues owed to Jet Airways workmen must be paid as they fall outside the liquidation estate, even if no segregated funds existed on the liquidation commencement date. It also directed the liquidator to exclude the 1,656 days beyond the statutory 330-day Corporate Insolvency Resolution Process (CIRP) period while computing the 24-month look-back period under the Insolvency and...

Anil Ambani Appeals NCLT Order Admitting SBI's Personal Guarantor Insolvency Plea

On Wednesday, Industrialist Anil Ambani approached the Delhi bench of the National Company Law Appellate Tribunal (NCLAT) against the personal insolvency proceedings initiated by the the State Bank of India (SBI).The matter was taken up in the bench of Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Barun Mitra. However, the bench adjourned the matter after a request came from his Counsel. “Having regard to the request made by Ld. Counsel for the appellant, list this matter...

NCLAT Stays Insolvency Proceedings Against Vikram Solar

The National Company Law Appellate Tribunal (NCLAT) on Wednesday stayed the National Company Law Tribunal's (NCLT) order admitting insolvency proceedings against Vikram Solar Ltd. It also directed the company to deposit ₹91.98 lakh pending further hearing. A bench of Judicial Member Mohd Faiz Alam Khan and Technical Member Barun Mitra noted an earlier NCLAT order in Nishant Avinash Fadia v. Raspalfa Services Private Limited, which the Supreme Court did not interfere with. Keeping in view the...

NCLAT Chennai Sets Aside NCLT Kochi Order Archiving Section 9 Plea, Grants One-Time Rectification Window

On 10 June, the Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) allowed an appeal filed by Raychem RPG Pvt Ltd, set aside the order of the National Company Law Tribunal (NCLT), Kochi Bench, and directed grant of a final opportunity to rectify defects, subject to payment of costs of Rs. 50,000. Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain emphasised that procedural defects in filing a Section 9 insolvency petition cannot, by themselves,...

NCLAT Upholds NCLT Order Allowing Liquidator To Challenge JDA, GPA Termination Before Civil Court.

The National Company Law Appellate Tribunal (NCLAT) at Chennai has upheld an order allowing the liquidator of a company under liquidation to approach a civil court to challenge the unilateral termination of a Joint Development Agreement (JDA) and cancellation of a General Power of Attorney (GPA) relating to the Manapakkam project. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain found no error in the National Company Law Tribunal's decision granting...

Non-Production Of Guarantee Deed Not Fatal Where Loan Agreement Establishes Personal Guarantor's Liability: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Chennai has recently held that insolvency proceedings against a personal guarantor cannot be invalidated solely because a separate deed of guarantee has not been placed on record. The tribunal ruled that where the guarantor's status and liability are evident from the loan agreement and other documents, the proceedings can indeed continue. A bench of Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain delivered the ruling...

Insolvency Professional Can Continue Existing Assignments After Attaining Age 70: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Chennai has held that an insolvency professional can continue handling assignments already entrusted to him even after turning 70 years of age, the upper age limit for insolvency professionals, if the Authorisation for Assignment (AFA) expires during the course of those assignments. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain observed: “...where the authorisation of assignment, (AFA)...

NCLAT Upholds NCLT Order Asking CoC To Consider Prior Judicial Observations On RP Before Appointment

The National Company Law Appellate Tribunal (NCLAT) in Chennai has refused to interfere with an order directing the Committee of Creditors (CoC) to consider adverse observations made against an insolvency professional in an earlier proceeding. The observations were to be considered before proceeding with approval of his appointment as Resolution Professional in two corporate insolvency cases. A bench of Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain observed that the...

Going Concern Sale Does Not Transfer Subsidiaries Outside Liquidation Estate: NCLAT

The National Company Law Appellate Tribunal (NCLAT) in Chennai has recently held that a purchaser of a corporate debtor sold as a going concern in liquidation cannot claim rights over its subsidiaries, joint ventures, or associate entities merely because they belong to the same corporate group. The tribunal ruled that such assets fall outside the liquidation estate and do not automatically pass to the successful bidder. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical...

NCLAT Holds Appeal E-Filed At 9 PM On Last Condonable Day Within Limitation

The National Company Law Appellate Tribunal (NCLAT) in Delhi has held that an insolvency appeal filed electronically at 9 PM on the last day of the condonable period cannot be treated as time-barred merely because it was filed after the tribunal's working hours. A bench of Justice Ashok Bhushan and Technical Member Barun Mitra ruled that the Delhi High Court's e-filing rules could not be relied upon to treat the appeals as having been filed on the next day. “There being no Notification by the...

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...