NCLT Ahmedabad Admits Fettech Commercial Enterprises' Insolvency Plea Against Mercury Trade Links

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 1 September admitted the insolvency petition filed by Fettech Commercial Enterprises Pvt. Ltd. against Mercury Trade Links Ltd. A Bench comprising Judicial Member Chitra Hankare and Technical Member Dr VG Venkata Chalapathy observed: “...we are satisfied that there exists an operational debt of Rs.2,70,00,000/- and that a default has occurred. The debt is due and payable, the demand notice has been served to the CD and no...

NCLT Indore Rejects Colama Commercial's Intervention Plea In Satiate Agri Insolvency

The Indore Bench of the National Company Law Tribunal (NCLT) on 20 August dismissed an intervention application filed by Colama Commercial Co. Ltd. in the insolvency proceedings initiated by Excellence Finance Pvt. Ltd. against Satiate Agri Ltd. A Bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta held that a financial creditor cannot claim priority in the adjudication of its own insolvency petition or intervene in another creditor's insolvency proceedings...

Expiry Of Lease After Resolution Plan Approval Not Related To Insolvency Process: NCLT Mumbai

The National Company Law Tribunal's (NCLT) Mumbai Bench has held that a dispute over handing over possession after expiry of a lease period does not arise out of or relate to the insolvency resolution of a Corporate Debtor when the lease period expires after approval of its resolution plan."Accordingly, it cannot be said that the issue of handing over on expiry of lease period is arising out of or in relation to the insolvency resolution of the Corporate Debtor. Since, the cause of action has...

Pending Interlocutory Applications Do Not Bar Liquidation Of Corporate Debtor: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench, has held that pending interlocutory applications concerning the affairs of a Corporate Debtor do not prevent liquidation proceedings from commencing. Such applications can instead be pursued by the Liquidator in accordance with law.“Though certain interlocutory applications relating to the affairs of the Corporate Debtor are stated to be pending, the same would not preclude the commencement of liquidation proceedings and may be pursued by...

NCLT Chennai Admits Insolvency Plea Filed By Wootu Nutrition Against Itself

The National Company Law Tribunal at Chennai has admitted an insolvency petition filed by Wootu Nutrition Private Limited, a Chennai-based chain of diet and nutrition clinics, initiating the Corporate Insolvency Resolution Process against the company.A coram of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam held:“This Tribunal is satisfied that there is a default in the repayment of debt which is more than the threshold of Rs. 1.0 Crore and the petition filed under...

NCLT Chennai Dismisses EY's Plea Seeking 1% Success Fee For Relief In GST Proceedings, Asks ICAI To Examine

The National Company Law Tribunal (NCLT) at Chennai has recently dismissed EY's insolvency plea against a company. EY was seeking a 1% success fee for relief obtained in GST proceedings.The tribunal found a genuine dispute over EY's entitlement to the outcome-based fee.It also observed that the nature of EY's professional engagement and the permissibility of the outcome-based fee arrangement may be examined by the Institute of Chartered Accountants of India if the services were rendered through...

NCLT Mumbai Directs Former Directors To Pay ₹344.58 Crore Over Fraudulent Diversion Of DHFL Loan

On 2 September, the National Company Law Tribunal (NCLT), Mumbai directed two former directors of Notion Real Estate Pvt. Ltd. and Kyata Advisors Pvt. Ltd. to jointly and severally contribute Rs. 344.58 crore to the Corporate Debtor's assets over the diversion of a project loan sanctioned by Dewan Housing Finance Limited (DHFL) for development of a project. A Bench comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar allowed the Resolution Professional's...

NCLT Ahmedabad Rejects Kothamangalam Aggregates' Insolvency Plea Against ACC Limited

The Ahmedabad bench of the National Company Law Tribunal has rejected as not maintainable an insolvency plea filed by Kothamangalam Aggregates Prestressed Concrete Industries against ACC Limited over alleged unpaid dues of approximately ₹1.91 crore. It held that most of the claimed dues were barred by limitation. The amount that remained within time was below the minimum required to start the insolvency process.The order was passed by the bench of Judicial Member Chitra Hankare and Technical...

NCLT Ahmedabad Dismisses Insolvency Plea Against Manpasand Beverages After Creditor Ceased To Exist Following Merger

The Ahmedabad Bench of the National Company Law Tribunal has recently dismissed an insolvency petition filed by a manufacturer of PET preforms against Mango Sip manufacturer Manpasand Beverages Limited. The Tribunal held that the petition was defective and not maintainable because the petitioner had ceased to exist as a separate legal entity following its amalgamation with another company. However, the proceedings continued in its name without a timely substitution application.The bench...

NCLT Bengaluru Orders Status Quo After Claims That Byju's Assets Worth ₹150 Crore Were Auctioned for ₹16 Crore

The National Company Law Tribunal, Bengaluru, has recently directed the Resolution Professional of Byju's and the successful bidder to maintain the status quo over auctioned assets. The order came after the Resolution Professional of Byju K3 claimed that assets worth about ₹150 crore had been auctioned for about ₹16 crore despite an ownership dispute. The tribunal found that ownership of some of the assets remained unclear.“Even if part of the auctioned articles actually belonged to TLPL, the...

NCLT Indore Admits Insolvency Plea Against Satiate Agri Over ₹6.27 Crore Default

The Indore Bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition filed by Excellence Finance Pvt Ltd against Satiate Agri Ltd for a default of Rs. 6.27 crore. A Bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta held that a creditor can trigger insolvency proceedings once it establishes the existence of a financial debt and default, irrespective of whether the default was wilful. It observed: “..we are satisfied that the...

NCLT Mumbai Holds RCIL Plan Unimplementable Over ₹16.95 Cr Shortfall, Directs Erstwhile RP To Convene CoC

The National Company Law Tribunal (NCLT), Mumbai on 21 August, held that the approved resolution plan for Reliance Communications Infrastructure Ltd. (RCIL) could not presently be implemented as the available funds were insufficient to meet mandatory payments to dissenting financial creditors (DFCs). A Bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar held: "In view of the peculiar facts of this case, we consider it appropriate to direct the erstwhile RP to...