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...

SRA Who Failed To Implement Resolution Plan Not Necessary Party To Liquidation Proceedings: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has held that a successful resolution applicant who fails to implement an approved resolution plan is not a necessary party to a liquidation application. The tribunal made the observation while dismissing two appeals filed by Roopya Tradebizz Ltd against orders directing the liquidation of Euphoria Technologies Pvt Ltd. "In so far as submission of the appellant that he was necessary party to the liquidation application, we are of the view...

NCLAT Upholds CIRP Against Parsvnath Developers, Finds Debt And Default Proved Despite Settlement Efforts

The National Company Law Appellate Tribunal (NCLAT) at Delhi has dismissed appeals filed by the suspended directors of Parsvnath Developers Limited and its corporate guarantor, Noida Marketing Pvt. Ltd. It upheld orders admitting both companies into the corporate insolvency resolution process (CIRP), finding that debt and default stood proved. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held,“Default on the part of the corporate debtor is well proved from the...

NCLAT Upholds Eviction Of Suspended Directors' Family From Insolvent Company-Owned Hotel, Says MoU, Award Collusive

The National Company Law Appellate Tribunal (NCLAT) at Delhi has upheld the eviction of occupants from a five-star hotel owned by an insolvent company, holding that an unregistered Memorandum of Understanding (MoU) and a subsequent arbitral award could not confer occupancy rights over the property and appeared to have been created only for the purposes of the case. The ruling came in appeals filed by Raman Khangura and her father-in-law Jagpal Singh Khangura against an order directing them to...

NCLAT Says GNIDA's Challenge To Swati Health Resolution Plan Barred By Res Judicata, Imposes ₹1 Lakh Cost

The National Company Law Appellate Tribunal (NCLAT) at Delhi has imposed costs of ₹1 lakh on the Greater Noida Industrial Development Authority (GNIDA) and dismissed its appeal arising from proceedings concerning implementation of the approved resolution plan of Swati Health and Education Services Pvt. Ltd. The tribunal held that the appeal was barred by res judicata. It observed that the issues raised had already been decided and that the resolution plan had attained finality. A bench of...

No Deed Of Guarantee Or Invocation On Record: NCLAT Sets Aside Insolvency Order Against Alleged Personal Guarantor

The National Company Law Appellate Tribunal (NCLAT) at Delhi has set aside an order initiating insolvency proceedings against Pawan Gupta, holding that the National Company Law Tribunal's order was passed on the basis of misrepresentation of jurisdictional facts after a deed of guarantee and invocation of guarantee were stated to be on record even though no such documents had been placed before it A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey held that the...

NCLAT Upholds Insolvency Proceedings Against Rana Kapoor-Linked Bliss Abode and Bliss House

The National Company Law Appellate Tribunal (NCLAT) in Delhi has upheld insolvency proceedings against two Rana Kapoor-linked companies. It held that the lender was entitled to treat the former Yes Bank promoter's arrest and the ensuing criminal investigations as a "material adverse effect" under the loan agreements, triggering its right to recall loans worth hundreds of crores. The NCLAT upheld orders of the Delhi Bench of the National Company Law Tribunal (NCLT) admitting insolvency petitions...