NCLAT
IBC Not An 'Expropriatory Statute'; NCLAT Directs RP To Verify Allottee's Claim In Raguleela Builders' CIRP
The National Company Law Appellate Tribunal (NCLAT) has observed that the Insolvency and Bankruptcy Code (IBC) is not an "expropriatory statute." It directed the Resolution Professional (RP) of Raguleela Builders Pvt Ltd to verify whether Mysore Petro Chemicals Ltd had paid consideration to the corporate debtor for a commercial unit and, if so, include its claim. A bench of Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka held that Mysore Petro Chemicals could not maintain...
NCLAT New Delhi Restores Resolution Plan Approval Process For Aldiam Motors, Quashes NCLT Order
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 27 May set aside an order of the National Company Law Tribunal (NCLT), Ahmedabad Bench, which had rejected the resolution plan submitted by Meghdoot Leisure LLP for Aldiam Motors Pvt. Ltd. Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held that the Corporate Insolvency Resolution Process (CIRP) was conducted in accordance with the directions of the Committee of Creditors (CoC) and found no...
NCLAT Sets Aside CIRP Against Ligare Aviation, Says Religare Transactions Were “Round Tripping Of Money”
The National Company Law Appellate Tribunal (NCLAT) at Delhi has set aside the admission of insolvency proceedings against Ligare Aviation Ltd., holding that the transactions relied upon by Religare Enterprises Ltd. were “only round tripping of money” and not “for the purpose of any genuine financial transaction.” A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed,“The present is a case where the amount which was received on 31.03.2009 on the same day was...
NCLAT Says Dispute Over Title To Cotton Bales In Galaxy Cotton Liquidation Lies Before DRAT
The National Company Law Appellate Tribunal (NCLAT) has dismissed appeals filed by two cotton traders seeking exclusion of cotton bales claimed by them from the liquidation estate of Galaxy Cotton & Textiles Pvt. Ltd., after noting that the liquidator had already excluded the disputed stock from the liquidation process and that disputes over title and security interest in the goods were pending before the Debt Recovery Appellate Tribunal (DRAT). The bench of Judicial Member Justice N...
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...