NCLT
PMLA Attachment Does Not Suspend Liquidator's Duty To Preserve Corporate Debtor's Assets: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has recently observed that a liquidator's obligation to preserve and protect assets forming part of the liquidation estate continues despite attachment under the Prevention of Money Laundering Act (PMLA), so long as such assets are not confiscated.A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Sanjiv Dutt was dealing with an application filed by Kohinoor City Office Towers Industrial Estate & Premises Co-operative...
Sole Financial Creditor Can't 'Jump In and Out' Of CIRP; No Claim Withdrawal After CoC Entry: NCLT Mumbai
Holding that a sole secured financial creditor cannot ''jump in and jump out" of the corporate insolvency resolution process (CIRP), the National Company Law Tribunal (NCLT) at Mumbai emphasised that such conduct would undermine the scheme and objectives of the Insolvency and Bankruptcy Code (IBC).A bench of Judicial Member K.R. Saji Kumar and Technical Member Anil Raj Chellan was hearing an application filed by SREI Equipment Finance Ltd. seeking withdrawal of its claim and exit from the...
NCLT Bengaluru Gives Ola Electric 4 Weeks For Objections In ₹9.84 Crore Insolvency Case With Anevolve
On Monday, 6 April, the Bengaluru Bench of the National Company Law Tribunal (NCLT) heard an insolvency petition filed by Anevolve Mando Emobility Pvt Ltd against Ola Electric Technologies Pvt Ltd under Section 9 of the Insolvency and Bankruptcy Code, over an alleged operational debt of Rs. 9.84 crore arising from the supply of motors.Before a Bench comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada, Anevolve stated that it had issued a demand notice under...
NCLT Allahabad Confirms Flat Possession To Renaissance Realty, Orders ₹1 Crore To JAL Insolvency Estate
The Allahabad Bench of the National Company Law Tribunal (NCLT), while deciding an application filed by Renaissance Realty, acknowledged that the applicant had already received possession of a flat in the Jaypee Greens Kalypso Court project. A Bench of Judicial Member Praveen Gupta and Technical Member Ashish Verma also ordered that Rs. 1 crore recovered under RERA proceedings be returned to the insolvency estate of JAL. It observed: “In the circumstances of the present case, since the...
Operational Creditors Cannot Seek Resolution Plan Disclosure At Pre-Approval Stage: NCLT Ahmedabad In JAL CIRP
The Allahabad Bench of the National Company Law Tribunal (NCLT) has recently held that operational creditors cannot seek disclosure of a resolution plan or liquidation value at the pre-approval stage under the Insolvency and Bankruptcy Code while rejecting a plea arising out of the insolvency of JaiPrakash Associates Limited.Notably, The resolution plan for the company was approved on March 17 in separate proceedings and is under challenge before the National Company Law Appellate Tribunal.A...
NCLT Ahmedabad Keeps MAHAGENCO's Termination Of Gensol's ₹292.5 Crore EPC Contract Inoperative During CIRP
The Ahmedabad Bench of the National Company Law Tribunal (NCLT) has held that Maharashtra State Power Generation Company Limited's (MAHAGENCO) termination of Gensol Engineering Limited's Rs 292.5 crore EPC contract will remain inoperative during the company's insolvency process. The order by a bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma came on an application filed by Resolution Professional Keshav Khaneja, who sought to restrain MAHAGENCO from giving effect to the...
Purchaser Cannot Avoid Liabilities Voluntarily Accepted At Auction: NCLT Hyderabad
The Hyderabad Bench of the National Company Law Tribunal (NCLT) on 11 March, held that a purchaser of assets in a liquidation auction cannot resile from liabilities voluntarily accepted at the time of purchase, including outstanding electricity dues. A Bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri dismissed the application filed by Sri Lakshminarasimha Oil Mills Pvt Ltd, and refused to direct the Northern Power Distribution Company of Telangana to grant a...
Abstention Not Consent: NCLT Ahmedabad Rejects Archon Engicon Guarantors' Resolution Plan For Failing 75% Vote
The National Company Law Tribunal (NCLT) at Ahmedabad has recently held that abstention by creditors cannot be treated as consent while voting on a repayment plan under the Insolvency and Bankruptcy Code, 2016, and rejected a proposal submitted by personal guarantors for failing to meet the mandatory voting threshold. A coram of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma found that the plan received only 21.35% votes in favour, while 20.14% voted against, 42.60% of the...
Going Concern Sale Not Same As Resolution Plan, No Automatic Waiver Of Dues: NCLT Ahmedabad
The National Company Law Tribunal (NCLT) at Ahmedabad has held that a purchaser who takes over a corporate debtor as a going concern during liquidation cannot automatically walk away from past liabilities or statutory dues, making it clear that such a transaction does not stand on the same footing as a resolution plan under the Insolvency and Bankruptcy Code. The finding came on an application by the successful auction purchaser of Camerich Papers Private Limited. The company had been sold as a...
Consortium Member Can Independently File CIRP Plea Without Other Lenders' Consent Under IBC: NCLT Kolkata
The National Company Law Tribunal (NCLT) at Kolkata recently held that a financial creditor forming part of a consortium of lenders can independently initiate insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code without requiring consent from other consortium members, admitting a plea by Bank of India against Pallishree Ltd and triggering the corporate insolvency resolution process. A coram of Judicial Member Labh Singh and Technical Member Rekha Kantilal Shah rejected...
SCC's Role In Liquidation Only Consultative, Liquidator Has Final Say: NCLT Bengaluru
The National Company Law Tribunal (NCLT) at Bengaluru has directed the liquidator of an infra company to accept a one-time settlement (OTS) offer of Rs 2 crore to break a prolonged deadlock in the liquidation process, holding that the Stakeholders' Consultation Committee (SCC) is only consultative in nature and the ultimate decision-making authority rests with the liquidator. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada passed the order. Bhuvana...
NCLT Guwahati Directs Suspended Directors Of Sree Bajrang Infracon To Cooperate With Liquidator
The Guwahati Bench of the National Company Law Tribunal (NCLT) on 10 March directed the suspended directors of Sree Bajrang Infracon Pvt Ltd (Corporate Debtor) to fully cooperate with the Liquidator, Purshotam Gaggar, and hand over all records and assets, holding that non-cooperation undermines the time-bound insolvency process under the Insolvency and Bankruptcy Code, 2016. A Bench comprising Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh emphasised that personnel...