Third Parties Entitled To Certified Copies Of NCLT Orders To File Appeals: NCLAT Chennai

The National Company Law Appellate Tribunal (NCLAT), Chennai, on 27 February, observed that certified copies of NCLT orders must be issued even to third parties who were not part of the original proceedings if they seek to challenge the order in appeal. A Bench of Judicial Member Justice N. Seshasayee and Technical Member Jatindranath Swain was hearing an appeal filed by SA Jhan Mohammed against an order concerning Maan Sarovar Properties Development Pvt Ltd. The Tribunal noted: “We have to...

CoC Has Exclusive Power To Fix Resolution Professional Fees, NCLT Can Interfere Only If Fee Not Proposed: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that the Adjudicating Authority can fix the fees of the Interim Resolution Professional or Resolution Professional only in cases where the applicant initiating the corporate insolvency resolution process (CIRP) has not proposed the fee and that otherwise the power to determine such expenses lies exclusively with the Committee of Creditors (CoC). The tribunal set aside the order of the Mumbai Bench of the National Company Law...

IBC Applies To Multi-State Cooperative Societies Despite MSCS Act Excluding Companies Act: NCLAT

The National Company Law Appellate Tribunal (NCLAT) recently held that proceedings under the Insolvency and Bankruptcy Code, 2016, can be maintained against a multi-state cooperative society. It said the jurisdiction of the insolvency tribunal cannot be excluded by relying on the Multi-State Cooperative Societies Act, 2002, which excludes the applicability of the Companies Act, 2013. The ruling came while the tribunal upheld a direction requiring Mehsana Urban Co-Operative Bank Ltd to refund...

NCLAT Declines To Recall Ruling Holding Cosmic CRF Ineligible As Resolution Applicant In Amzen CIRP

The National Company Law Appellate Tribunal (NCLAT) at Delhi recently refused to recall its earlier judgment declaring Cosmic CRF Limited ineligible to participate as a resolution applicant in the insolvency resolution process of Amzen Transportation Industries Ltd., holding that no error had been shown that would justify the exercise of its recall jurisdiction. A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Arun Baroka observed that the earlier judgment had...

NCLAT Sets Aside NCLT Order, Upholds Auction Sale Confirmed Before CIRP, Says Moratorium Not Applicable

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently set aside an order of the National Company Law Tribunal (NCLT), Kolkata, which had declared the confirmation of an auction sale and the sale certificate in respect of the corporate debtor's share in a mortgaged property as null and void, holding that the same had been issued after commencement of the corporate insolvency resolution process (CIRP) and during the moratorium. The appellate tribunal held that since the...

NCLAT Upholds Insolvency Against Al-Dua, Rejects Plea That Debt Was Transferred To Another Company

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently upheld the admission of insolvency proceedings against Al-Dua Food Processing Pvt. Ltd., rejecting the plea of its ex-promoter Mohd. Zaheer that the company was not liable to pay the operational debt as the liability had been transferred to another entity under a Share Purchase Agreement. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held that the defence of transfer of liability was not...

Liquidator Cannot Appeal His Own Replacement As He Is Not 'Person Aggrieved' Under IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) on Tuesday held that a liquidator cannot maintain an appeal challenging his replacement under the Insolvency and Bankruptcy Code (IBC), ruling that removal from such a statutory assignment does not create a vested entitlement to continue in office.A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey observed, “It is well settled that once the Adjudicating Authority, for reasons recorded, directs replacement of a...

NCLAT Upholds Rejection Of Homebuyer's Claim Filed 4 Days Before CoC Vote On Resolution Plan For Developer

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Tuesday upheld the rejection of a homebuyer's claim filed four days before a Committee of Creditors (CoC) meeting to vote on resolution plan, noting that under the CIRP Regulations, belated claims can be admitted only if they are submitted up to seven days before such meetings. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, "When we look at the above CIRP Regulations, it is amply clear that...

Suspended Management Cannot Order Independent Forensic Audits To Challenge CIRP Claims: NCLAT New Delhi

On Tuesday 10 March, the Principle Bench of the National Company Law Appellate Tribunal (NCLAT) at New Delhi held that a forensic audit report commissioned by suspended management is inadmissible due to bias, conflict of interest, and a breach of the Committee of Creditors (CoC) confidentiality.A Bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra, was hearing an appeal by the suspended management of Chandigarh Overseas Pvt. Ltd. challenging the inadmissibility of...

IBBI Action Against RP In Other CIRPs Cannot Invalidate Claim Verification In Chandigarh Overseas CIRP: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Tuesday observed that disciplinary proceedings initiated by the Insolvency and Bankruptcy Board of India (IBBI) against the Resolution Professional (RP) in other Corporate Insolvency Resolution Processes (CIRPs) cannot be relied upon to invalidate the claim verification exercise undertaken in the CIRP of Chandigarh Overseas Pvt. Ltd. The bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed,...

NCLAT Upholds Rejection Of Reliance Realty's Insolvency Plea Against Altruist Over Pre-Existing Dispute

The National Company Law Appellate Tribunal (NCLAT) at Delhi recently upheld the dismissal of an insolvency plea filed by Reliance Realty Limited against Altruist Customer Management India Pvt. Ltd., holding that the dispute between the parties over rental liability was genuine and could not be resolved through proceedings under the Insolvency and Bankruptcy Code. A bench of Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka observed that the disagreement raised by the...

NCLAT Reaffirms IBC Proceedings Against Personal Guarantor Not Barred By SARFAESI Action

The National Company Law Appellate Tribunal (NCLAT) has reiterated that the pendency of proceedings under the SARFAESI Act does not bar the initiation of personal insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), noting that the Code overrides other laws. A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Ajai Das Mehrotra observed, “As per provisions of Section 238 of IBC, 2016, the Code overrides other laws and there is no bar of filing...