Company's Wilful Defaulter Tag Does Not Automatically Disqualify Director: NCLT Bengaluru

The National Company Law Tribunal (NCLT), Bengaluru, on 28 October held that a person cannot be disqualified under Section 29A(b) of the Insolvency and Bankruptcy Code, 2016 (IBC), merely because companies in which he holds directorships have been classified as wilful defaulters. A Bench of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada allowed an application filed by V.V.S.R. Anjaneyulu Vattem, challenging his exclusion from the list of Prospective Resolution...

NCLT Allahabad Admits Insolvency Plea Against Sybly Industries Over Default On ₹1.50 Crore Loan

The Allahabad Bench of the National Company Law Tribunal (NCLT) on 27 October admitted a Section 7 petition filed by Sital Leasing and Finance Limited against Sybly Industries Limited, initiating the corporate insolvency resolution process (CIRP). A Bench comprising Judicial Member Praveen Gupta and Technical Member Ashish Verma observed: “The mere assertion that the Corporate Debtor possesses market receivables or is willing to repay the outstanding dues at a later date cannot, in the...

Collusive Insolvency Proceedings To Frustrate NHAI's Case Attract IBC Section 65: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai, on 5 November held that insolvency proceedings initiated through a collusive arrangement to frustrate pending restitution and contempt proceedings against a corporate debtor amount to malicious initiation under Section 65 of the Insolvency and Bankruptcy Code (IBC), 2016.A Bench of Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati allowed an application filed by the National Highways Authority of India (NHAI) seeking...

NCLT Mumbai Dismisses Manlift India's Insolvency Plea Against Shapoorji Pallonji

The National Company Law Tribunal (NCLT) at Mumbai has recently dismissed Manlift India Private Limited's insolvency petition against Shapoorji Pallonji and Company Private Limited. It found that the undisputed operational debt fell below the ₹1 crore threshold under the Insolvency and Bankruptcy Code (IBC). The tribunal excluded 41 invoices raised in the name of a joint venture and 17 time-barred invoices. It also excluded nine invoices involving a plausible dispute requiring reconciliation....

NCLT Hyderabad Orders Consolidated CIRPs Of Panduranga Energy Systems, GMP Infrastructure

The National Company Law Tribunal (NCLT) at Hyderabad has ordered substantive consolidation of the insolvency resolution processes of Panduranga Energy Systems Private Limited (PESPL) and GMP Infrastructure Private Limited (GMP), finding that their interconnected assets, financial arrangements and business operations make separate resolution impracticable.A bench of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri held that the companies share common control and ownership,...

Settlement With One Creditor Doesn't Prove Ability To Resolve Overall Financial Distress: NCLT Mumbai

The National Company Law Tribunal at Mumbai has refused to permit withdrawal of insolvency proceedings against Dharan Infra-EPC Limited, holding that settlement with one financial creditor does not establish the company's ability to resolve its overall financial distress when substantial dues to other creditors remain unpaid.A Bench of Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati dismissed the Interim Resolution Professional's application seeking withdrawal of the...

NCLT Ahmedabad Allows Accord Industries 30 Days To Recover ₹30.48 Crore From Ex-Promoters

The National Company Law Tribunal (NCLT), Ahmedabad, on 7 October permitted the liquidation proceedings of Accord Industries Limited to continue for 30 days to enable the Liquidator to pursue recovery of Rs. 30.48 crore from the company's erstwhile directors and promoters, whom the Tribunal had held liable for fraudulent and wrongful trading. A Bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma declined the Liquidator's request for a six-month extension, clarifying that...

NCLT Mumbai Declares Videocon Promoter Venugopal Dhoot Bankrupt Over ₹12,668 Cr Default To SBI

The National Company Law Tribunal at Mumbai (NCLT) on Thursday declared former Videocon Industries promoter and director Venugopal Nandlal Dhoot bankrupt over a default of approximately ₹12,668 crore owed to the State Bank of India in his capacity as a personal guarantor to the company's credit facilities.A bench of Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati passed the order while allowing a bankruptcy petition filed by SBI under Section 123 of the Insolvency and...

Auction Buyer Cannot Withhold Balance Payment Over Pending Statutory Permissions: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai, on 16 October held that an auction purchaser cannot indefinitely withhold the balance sale consideration on the ground that statutory permissions for the transfer of auctioned properties remain pending. A Bench comprising Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati considered an application filed by the liquidator of Vindhyavasini Corporation Pvt. Ltd., seeking payment of the balance consideration for two land parcels...

Equity Contribution Cannot Be Treated As Operational Debt Under IBC: NCLT Chennai

The National Company Law Tribunal (NCLT), Chennai, on 7 October held that an unpaid equity contribution does not qualify as operational debt under the Insolvency and Bankruptcy Code (IBC), 2016, and cannot form the basis of a petition under Section 9 of the Code. A Bench of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam dismissed a Section 9 petition filed by ISPT LLC against Indo Shell Mould Limited, holding that the amount claimed was an investment and that the...

NCLT Mumbai Admits West Gujarat Expressway's Voluntary Insolvency Plea Over ₹227.20 Crore Debt

On 2 November, the National Company Law Tribunal (NCLT), Mumbai, admitted a voluntary insolvency petition filed by West Gujarat Expressway Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC), initiating the corporate insolvency resolution process (CIRP).A Bench of Judicial Member Ashish Kalia and Technical Member Banwari Lal Meena held that acknowledgment of debt in audited financial statements can extend limitation under Section 18 of the Limitation Act, 1963, read with...

NCLT Mumbai Directs Barracks Retail India's Former Directors To Contribute ₹16.84 Crore For Fraudulent Trading

The National Company Law Tribunal (NCLT), Mumbai, has directed the former directors of Barracks Retail India Private Limited to contribute a combined ₹16.84 crore to the company's assets. The direction follows findings that the company was involved in fraudulent trading through write-offs of inventory and trade receivables, along with withdrawal of company funds.The bench comprised Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar.The tribunal observed that purchases...