NCLAT
Regulation 30A Permits CIRP Withdrawal Without Creditor Notice Prior To CoC Constitution: NCLAT New Delhi
The New Delhi National Company Law Appellate Tribunal (NCLAT) on 25 May held that an application for withdrawal of insolvency proceedings under Regulation 30A of the CIRP Regulations, 2016, filed before constitution of the Committee of Creditors (CoC), does not require issuance of notice to other creditors and remains valid if authorities comply with the prescribed procedure. Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey dismissed two appeals filed by Chandra Prakash...
'Wafer-Thin Majority' Alone No Ground To Reject Insolvency Resolution Plan: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a resolution plan cannot be rejected merely because it was approved by a “wafer-thin majority,” setting aside the NCLT's rejection of Express Resorts and Hotels Ltd's plan for Neesa Leisure Ltd. A bench of Judicial Member Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra said the Ahmedabad bench of the NCLT had rejected the plan on legally unsustainable grounds despite it securing the requisite creditor...
Winding-Up Petitions Transferred From High Courts Must Meet Prevailing Insolvency Threshold: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that winding-up proceedings transferred from High Courts must satisfy the prevailing insolvency threshold applicable at the time they are considered by the tribunal, dismissing appeals filed by Aidem Ventures Pvt. Ltd. against three media companies. A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha held: “The proviso appended with Section 434 of the Companies Act, 2013 is...
NCLAT Sets Aside Order Initiating Insolvency Against Naxnova After NeSL Marks Debt 'Disputed'
The National Company Law Appellate Tribunal (NCLAT) at Delhi has set aside the admission of Lintec India's insolvency plea against Naxnova after finding that the corporate debtor had raised a pre-existing dispute and that the alleged default was also marked as “disputed” on the National E-Governance Services Ltd. (NeSL) information utility portal. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra passed the order on Monday (May 25) “Present is a case where notice of...
NCLAT Dismisses 'BABA' Promoter Dharampal Premchand's Plea To Reopen Trimurti Foodtech Insolvency Plan
The National Company Law Appellate Tribunal (NCLAT) at Delhi has dismissed the challenge by Dharampal Premchand Ltd, the company behind the BABA brand, to reopen Trimurti Foodtech Ltd's approved insolvency resolution plan over the treatment of its disputed ₹6.81 crore claim. A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey held that Dharampal Premchand's claim was never treated as an admitted, crystallised operational debt but was consistently classified as...
Homebuyers' Statutory Rights Cannot Be Negated By Landowner Or Developer: NCLAT In Developer's CIRP
The National Company Law Appellate Tribunal at Delhi has held that homebuyers' statutory rights in a real estate project cannot be defeated by disputes between the landowner and the developer. It dismissed landowner Ishaan Singh's challenge to the inclusion of the unsold inventory and project land of the Spaze Arrow commercial project in Gurugram in the insolvency valuation of Spaze Towers Pvt. Ltd. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra upheld the...
NCLAT Upholds DGVCL's ₹8.3 Crore Pre-Insolvency Deposit Adjustment Towards Sumeet Industries' Electricity Dues
The National Company Law Appellate Tribunal (NCLAT) at Delhi has refused to reopen a dispute involving more than ₹12 crore in electricity dues and security deposit adjustments concerning Sumeet Industries Ltd.It held that disturbing the issue after approval and implementation of the resolution plan would unsettle settled commercial rights. A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey also observed that reopening the dispute after the resolution plan had...
NCLAT New Delhi Rejects Pre-Existing Dispute Defence, Restores Ingram Micro Insolvency Plea
The New Delhi National Company Law Appellate Tribunal (NCLAT) on 21 May held that counterclaims relating to unrelated transactions cannot constitute a genuine pre-existing dispute under the Mobilox test and cannot defeat an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra set aside the National Company Law Tribunal (NCLT), Delhi order rejecting Ingram Micro India Private Limited's Section 9...
NCLAT Upholds Liquidation of Vrundavan Ceramic Pvt. Ltd., Cautions Against Delays In IBC Resolution
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 20 May dismissed two connected appeals filed by Lorenzo Vitrified Tiles Pvt. Ltd. (Successful Resolution Applicant) and Arvind Gaudana (Resolution Professional of Vrundavan Ceramic Pvt. Ltd.) and upheld an Order of the Ahmedabad National Company Law Tribunal (NCLT) directing liquidation of the corporate debtor.Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Ajai Das Mehrotra held that the Insolvency...
Mortgage Created 7 Years After Debenture Deal Is Preferential Transaction In Radius Estate CIRP: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a mortgage created nearly seven years after a financing agreement, and just weeks before the start of insolvency proceedings, amounted to a preferential transaction under the Insolvency and Bankruptcy Code. The tribunal dismissed Suraksha Realty Limited's appeal against the avoidance of its security interest in the corporate insolvency resolution process of Radius Estate Projects Pvt. Ltd The bench of Chairperson...
Only Central Government Can Order SFIO Probes, Not Company Tribunals: NCLAT
The National Company Law Appellate Tribunal (NCLAT) in Delhi has recently reiterated that company tribunals cannot directly order a Serious Fraud Investigation Office probe, ruling that the power to direct such an investigation rests with the Central Government. A bench of Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Naresh Salecha relying on its own earlier decision observed, "The procedure for investigation in the affairs of the company has been provided under Section...