No TDS Refund Set Off In Shri Jalaram Rice Industries Liquidation As No Claim Was Filed: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has dismissed an appeal filed by the Principal Commissioner of Income Tax-3, Ahmedabad. It held that in the liquidation of Shri Jalaram Rice Industries Pvt Ltd, the department could not adjust a TDS refund against an earlier tax demand because it had not filed any claim in the liquidation proceedings. “Appellant having not filed any claim question of claiming set off does not arise,” the bench of Chairperson Justice Ashok Bhushan and...

Pre-March 2020 Defaults Not Covered By Section 10A Of IBC: NCLAT Delhi

The National Company Law Appellate Tribunal (NCLAT), Delhi, on 24 February, held that Section 10A of the IBC cannot bar Corporate Insolvency Resolution Process (CIRP) initiation where the debt had fallen due prior to 25 March 2020, clarifying that dishonour of cheques during the COVID-19 suspension period does not alter the original default date. The Principal Bench, comprising Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha, dismissed an appeal filed by...

Project Segregation In CHD-Vann Real Estate Insolvency Justifies 525-Day CIRP Exclusion: NCLAT

Holding that in a real estate insolvency involving multiple projects, the period till segregation of a project from the CIRP was liable to be excluded, the National Company Law Appellate Tribunal (NCLAT) has allowed exclusion of 525 days in the CHD-Vann matter and set aside the NCLT's rejection of the plea. A Bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed that the insolvency pertained to a real estate company with several projects, and different orders had...

120-Day Timeline For Personal Insolvency Resolution Process Is Directory, Not Mandatory: NCLAT Delhi

On 26 February, the National Company Law Appellate Tribunal (NCLAT), New Delhi, held that the 120-day timeline for completing the Personal Insolvency Resolution Process (PIRP) under the Insolvency and Bankruptcy Code (IBC) is directory and not mandatory. A Bench comprising Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey set aside the order of the National Company Law Tribunal (NCLT) Mumbai, which had refused to extend the process beyond the prescribed period. The Tribunal...

NCLAT Dismisses Insolvency Plea, Says Rs 1 Crore Debt Threshold Applies On Filing Date, Not Demand Notice Date

The National Company Law Appellate Tribunal (NCLAT) at Delhi has upheld the dismissal of a Section 9 insolvency plea against SBEC Sugar Limited, holding that the Rs 1 Crore threshold under Section 4 of the Insolvency and Bankruptcy Code must be satisfied on the date of filing the petition and not on the date of issuing the demand notice. A bench of Judicial Member Justice N. Seshasayee and Technical Members Arun Baroka and Indevar Pandey dismissed an appeal filed by Mosco International...

NCLAT Dismisses Dhoot Brothers' Plea, Upholds Insolvency Proceedings As Videocon Guarantors

The National Company Law Appellate Tribunal (NCLAT) has dismissed appeals filed by Rajkumar Nandlal Dhoot and Pradeep Nandlal Dhoot, brothers of Videocon founder Venugopal Dhoot, clearing the way for insolvency proceedings against them in their capacity as personal guarantors to debt-ridden Videocon Industries Ltd. A bench of Justice Ashok Bhushan and Technical Member Barun Mitra held that the applications moved by the State Bank of India under Section 95 of the Insolvency and Bankruptcy Code...

NCLAT Allows AMNS To Replace ArcelorMittal India In ₹1,300 Crore Essar Steel RTU Appeal

The National Company Law Appellate Tribunal (NCLAT) at Delhi has allowed ArcelorMittal Nippon Steel India Private Limited to be transposed as the appellant in a pending appeal arising from the Rs 1,300 crore Right to Use charges dispute linked to the Essar Steel insolvency resolution process. The company will replace ArcelorMittal India Pvt. Ltd., the original successful resolution applicant, in the proceedings. The tribunal clarified that the transposition will be subject to the applicant...

NCLAT Refuses To Condone Delay In Appeal; Limitation Starts From Pronouncement, Not Uploading

The National Company Law Appellate Tribunal (NCLAT) at Delhi has rejected an application seeking condonation of delay in filing an insolvency appeal by the Resolution Professional of Trading Engineers International Ltd., holding that in the facts of the case limitation commenced from the date the order was pronounced in open court and not from the date it was uploaded on the NCLT website. A bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra found that the...

Direct Disbursement To Corporate Debtor Not Mandatory To Qualify As Financial Debt Under IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Tuesday observed that direct disbursement of funds to a corporate debtor is not mandatory for a debt to qualify as a “financial debt” under Section 5(8) of the Insolvency and Bankruptcy Code, 2016. A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha observed, “We carefully observe that the Section does not use the word “to the Corporate Debtor” after word “disbursed”. From the...

NCLAT Directs YG Estates To Hand Over Supertech Ecociti, 34 Pavilion Maintenance To RWAs In 30 Days

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently directed YG Estates Facilities Management Pvt. Ltd. to hand over maintenance of Supertech's Ecociti and 34 Pavilion projects in Noida to their registered apartment owners' associations within 30 days. A bench of Judicial Member Justice Ashok Bhushan and Technical Member Barun Mitra held that since 99 percent of the homebuyers had taken possession and the associations were duly registered under the Uttar Pradesh...

Committee Of Creditors Not Barred From Litigating In Own Name Under IBC: NCLAT In Byju's Parent Insolvency Case

The National Company Law Appellate Tribunal (NCLAT) at Chennai has held that a Committee of Creditors (CoC) can litigate in its own name under the Insolvency and Bankruptcy Code, even though it does not possess juristic personality in the classical sense. The ruling came in proceedings involving Think and Learn Pvt. Ltd., the parent company of edtech firm Byju's. A bench of Judicial Member Justice N Seshasayee and Technical Member Jatindranath Swain observed, “Therefore, since CoC is a...

Rainbow Papers Ruling Not Ground To Reopen Approved Resolution Plan Over Belated Tax Dues: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has observed that the Supreme Court's ruling in Sales Tax Officer v. Rainbow Papers Limited does not permit reopening of an approved resolution plan at the instance of a government department that failed to challenge the rejection of its claim at the appropriate stage. In Rainbow Papers, the Supreme Court had held that statutory government dues could qualify as secured debts and could not be ignored in a resolution plan. Dismissing...