Corporate Guarantee Continues Despite Transfer Of Mortgaged Property To New Owner: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai on 24 August held that a Corporate Debtor's liability under a Corporate Guarantee does not end merely because the bank obtains a mortgage from the new owner of the mortgaged property. A Bench comprising Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati admitted Jammu and Kashmir Bank Ltd.'s Section 7 insolvency petition against Essel Infraprojects Limited over a default of Rs. 87.43 crore arising from a Rs. 200 crore credit...

NCLT Mumbai Imposes ₹1 Lakh Costs On Corporate Debtor For 11 Month Delay In Filing Additional Documents

The National Company Law Tribunal (NCLT), Mumbai on 20 August imposed Rs. 1 lakh costs on RAB Enterprises (India) Pvt Ltd for an approximately 11-month delay in seeking to place additional documents on record in an insolvency petition filed by Awfis Space Solutions Ltd. A Bench of Judicial Member Lakshmi Gurung and Technical Member Charanjeet Singh Gulati allowed the company to place the additional documents on record but directed it to deposit Rs. 1 lakh in the Prime Minister's National Relief...

NCLT Indore Admits Hinduja Leyland Finance's ₹117.28 Crore Insolvency Plea Against Owais Metal

The Indore Bench of the National Company Law Tribunal (NCLT) on 13 August admitted an insolvency petition filed by Hinduja Leyland Finance Ltd against Owais Metal & Mineral Processing Ltd for default of Rs. 117.28 crore.A Bench comprising Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta initiated the corporate insolvency resolution process (CIRP), observing:“The mere pendency of the said writ petition, particularly when the Petitioner is not a party thereto and...

NCLT Hyderabad Says IBC Section 7 Default Amount Not A Ceiling On CIRP, Upholds ₹73.98 Cr. Claim

The National Company Law Tribunal (NCLT) at Hyderabad has held that the amount of default stated in a Section 7 application under the Insolvency and Bankruptcy Code, 2016 (IBC) does not cap the claim that a creditor may subsequently submit and the Resolution Professional may admit during the corporate insolvency resolution process (CIRP). A Bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri passed the order on 17 July, upholding the Resolution Professional's...

BREAKING | New 5-Member Bench Of NCLT Delhi Stays Order Approving Subhash Chandra's ₹6.25 Cr Repayment Plan

Today, the freshly constituted Five Member Bench of the National Company Law Tribunal (NCLT) at New Delhi stayed the approval of Dr Subhash Chandra's repayment plan, which offered Rs. 6.25 crore to creditors against admitted claims of Rs. 22,006.57 crore. The Bench comprising NCLT President Justice Anupinder Singh with Judicial Members Bachu Venkat Balara Das and Mahendra Khandelwal, and Technical Members Atul Chaturvedi and Ravindra Chaturvedi, restrained Chandra from alienating his...

NCLT Kochi Waives Meetings For Vallabhdas Kanji's Amalgamation With Three Wholly-Owned Subsidiaries

The National Company Law Tribunal, Kochi (NCLT), on 11 August dispensed with the requirement of convening meetings of shareholders and creditors for a composite Scheme of Arrangement involving the amalgamation of three substantially wholly-owned subsidiaries with their holding company, Vallabhdas Kanji Limited. A Bench comprising Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy passed the order on a joint application filed under Sections 230 to 232 read with Section 66 of...

NCLT Delhi Refers Subhash Chandra's ₹6.5 Cr Plan To 5-Member Bench After No Majority, Hearing Today

At 10:15 am today, a Special Five-Member Bench of the New Delhi National Company Law Tribunal (NCLT) is scheduled to hear the insolvency proceedings involving Essel Group Chairman Dr Subhash Chandra, following a reference after no majority view emerged on the approval and scope of his repayment plan. The Special Bench has been constituted by NCLT President Justice Anupinder Singh and comprises himself, Judicial Members Bachu Venkat Balara Das and Mahendra Khandelwal, and Technical Members...

NCLT Kolkata Admits Planet Infrastructure Into CIRP, Rejects Guarantee Arbitration As Pre-Existing Dispute

The National Company Law Tribunal (NCLT), Kolkata on 10 August admitted Planet Infrastructure Management Private Limited into the Corporate Insolvency Resolution Process (CIRP) on a Section 9 petition filed by Ingram Micro India Private Limited. A Bench comprising Judicial Member Labh Singh and Technical Member Rekha Kantilal Shah held that arbitration proceedings concerning the personal guarantees of the company's directors did not constitute a pre-existing dispute with the Corporate Debtor....

Suspended Directors Cannot Pursue 'Proxy Grievances' On Behalf Of Homebuyers: NCLT Chandigarh

The National Company Law Tribunal (NCLT), Chandigarh, on 13 August held that suspended directors cannot challenge a Corporate Insolvency Resolution Process (CIRP) or a Resolution Plan by raising grievances on behalf of a class of creditors to which they do not belong. A Bench comprising Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal rejected a challenge by the promoters, shareholders and suspended directors of Samar Estates Private Limited against the CIRP and the...

NCLT Chennai Rejects Jyoti Ltd's Insolvency Plea Against Marg Ltd Over Pre-Existing Dispute

The National Company Law Tribunal (NCLT) at Chennai on 7 August dismissed an insolvency application filed by Jyoti Limited against Marg Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), over an operational debt of Rs. 22.67 crore. A Bench comprising Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy held that Marg had raised a genuine pre-existing dispute regarding its liability, which had continued through the arbitral proceedings and...

NCLT New Delhi Orders Liquidation Of Dalmia Life Care After CoC Gets 72.19% Vote

The New Delhi Bench of the National Company Law Tribunal (NCLT) on 19 August ordered the liquidation of Dalmia Life Care Private Limited under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, following a resolution passed by its Committee of Creditors (CoC) with 72.19% voting share. A Bench comprising Judicial Member Justice Jyotsna Singh and Technical Member Anu Jagmohan Singh observed: “In view of the provision of the Section 33(2) of IBC 2016 as stated above and the...

NCLT Ahmedabad Admits Kalahridhaan Trendz Into CIRP Over ₹3.26 Crore Default

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 14 August admitted Kushal Finnovation Capital Pvt. Ltd.'s insolvency petition against Kalahridhaan Trendz Limited over a default of more than Rs. 3.26 crore under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC).Judicial Member Chitra Hankare and Technical Member Dr VG Venakata Chalapathy held that insolvency proceedings can be initiated where a financial debt is due and payable, the default exceeds the threshold...