NCLAT
Clerical Mistake In CIRP Form Causing No Impact on Approved Resolution Plan Not Gross Dereliction: NCLAT
Holding so, the appellate tribunal expunged adverse remarks against the resolution professional of Goyal Energy and Steel Private Limited.
Public CIRP Announcement Creates Presumption Of Knowledge Of Moratorium: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that the public announcement of a company's insolvency process, along with the uploading of the admission order on the National Company Law Tribunal website, creates a deemed presumption that the appellant had knowledge of the moratorium imposed on the company.The tribunal made the observation while dismissing an appeal by Moving Pixels Pvt. Ltd. against an order directing it to return ₹80 lakh received from NDS Art World Pvt....
NCLAT Delhi Keeps Appeal Against Dr Subhash Chandra's ₹6.5 Cr Repayment Plan Pending, Lists It For Oct 7
Today, the National Company Law Appellate Tribunal (NCLAT), New Delhi, kept appeals filed by financial creditors against the repayment plan of Essel Group Chairman Dr Subhash Chandra pending. A Bench of Officiating Chairperson Justice Yogesh Khanna with Technical Members Ajai Das Mehrotra and Barun Mitra posted the matter for 7 October. Solicitor General Tushar Mehta, appearing for the financial creditors, informed the Bench about the background to the reference made to the President of the...
NCLAT New Delhi To Hear Appeal Against Subhash Chandra's ₹6.5 Cr Repayment Plan Tomorrow
Today, the National Company Law Appellate Tribunal (NCLAT), New Delhi, agreed to hear at 10:30 am tomorrow, an appeal by creditors against approval of Dr Subhash Chandra's Rs. 6.5 crore repayment. Officiating Chairperson Justice Yogesh Khanna with Technical Members Ajai Das Mehrotra and Barun Mitra noted the reference of the matter to a new five-member Bench of the National Company Law Tribunal (NCLT). Solicitor General Tushar Mehta, appearing for the creditors, told the NCLAT that the NCLT...
NCLAT New Delhi To Hear Creditors' Challenge To NCLT Approval Of Subhash Chandra's ₹6.25 Crore Plan
On Monday, 31 August, the National Company Law Appellate Tribunal (NCLAT), New Delhi will hear creditors' appeal against the National Company Law Tribunal (NCLT), New Delhi Bench's approval of Dr. Subhash Chandra's Rs. 6.25 crore repayment plan against admitted claims of Rs. 22,006.57 crore.A Bench comprising officiating Chairperson Justice Yogesh Khanna with Technical Members Barun Mitra and Ajai Das Mehrotra agreed to hear the appeal urgently after Solicitor General Tushar Mehta, appearing for...
NCLAT Chennai Restores CIRP Of Jeppiaar Cements, Says Fairness Must Prevail In Insolvency Resolution
The Chennai National Company Law Appellate Tribunal (NCLAT) has set aside the liquidation order dated 26 August 2022 against Jeppiaar Cements Pvt. Ltd., while observing that where multiple options exist to resolve a corporate debtor's insolvency, fairness should prevail, including settlement under Section 12A of the Insolvency and Bankruptcy Code (IBC), which permits the withdrawal of the CIRP upon a successful settlement with creditors.A Bench of Judicial Member Justice N. Seshasayee and...
Personal Guarantor Cannot Extend Limitation Through Own OTS Proposals: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT), New Delhi, on 21 August held that a personal guarantor cannot use her own one time settlement (OTS) proposals to extend limitation under Section 18 of the Limitation Act, 1963, while reiterating that limitation for initiating personal insolvency proceedings begins from the date of invocation of the guarantee. A Bench of Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha dismissed an appeal filed by Kanta Gupta,...
NCLAT New Delhi Clarifies Property Inspection For Liquidation Does Not Affect Possessory Rights
The New Delhi National Company Law Appellate Tribunal (NCLAT) on 21 August held that an order directing inspection and measurement of property claimed to form part of a corporate debtor's liquidation estate does not affect disputed ownership or possessory rights when the inspection is limited to identifying and segregating the corporate debtor's property. A Bench of Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha held that the National Company Law Tribunal...
NCLAT New Delhi Upholds Jet Airways Aircraft Sale, Dismisses Ex-Employees' Challenge
On 21 August, the New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) dismissed an appeal filed by former employees of Jet Airways (India) Limited challenging the sale of the airline's aircraft assets during liquidation. Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Arun Baroka held that the former employees, whose dues would be paid under the waterfall mechanism under Section 53 of the Insolvency and Bankruptcy Code (IBC), had no basis to challenge the...
NCLAT New Delhi Holds Reasonable Time Must Be Granted After PIRP Plan Approval, Sets Aside NCLT Order
The New Delhi National Company Law Appellate Tribunal (NCLAT) on 19 August held that where a repayment plan submitted by personal guarantors has been approved in principle by the sole financial creditor, reasonable time must be granted to complete the Personal Insolvency Resolution Process (PIRP), as denying such time would defeat the purpose of the process. A Bench comprising Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha set aside the Ahmedabad Bench of the...
Proponent Choosing To Withdraw After Non‑Acceptance Of Scheme In Liquidation Cannot Be Forced To Pay EMD: NCLAT Chennai
The National Company Law Appellate Tribunal (NCLAT) at Chennai has ruled that a scheme proponent cannot be compelled to forfeit its Earnest Money Deposit (EMD) guarantee after choosing to withdraw once its scheme was not accepted in the liquidation process.The bench of Judicial Member Justice N Seshasayee and Technical Member Jatindranath Swain, set aside the order of the Chennai bench of the National Company Law Tribunal (NCLT) that directed deposit of Rs 2 crore into the liquidation estate....
Homebuyers Seeking Refund Through Arbitration Cannot Claim Financial Creditor Status: NCLAT New Delhi
The New Delhi National Company Law Appellate Tribunal (NCLAT) on 19 August held that homebuyers who invoke arbitration to seek refund of their investment cannot simultaneously claim the status of financial creditors under the Insolvency and Bankruptcy Code (IBC), holding that their conduct amounts to giving up their status as allottees claiming financial debt. A Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Indevar Pandey dismissed connected appeals...