RP, Liquidator Cannot Deal With Third-Party Assets Under IBC Even If In Corporate Debtor's Name: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has reiterated that the powers of a Resolution Professional and Liquidator under the Insolvency and Bankruptcy Code, 2016 (“IBC”) are confined strictly to assets owned by the Corporate Debtor, and do not extend to properties belonging to third parties even if such assets are reflected in the Corporate Debtor's records. The Bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar observed, "It is trite that the powers...

NCLT New Delhi Admits CIRP Against Madhuvan Tieup, Rejects Corporate Debtor's NBFC Claim

The New Delhi National Company Law Tribunal (NCLT), on 6 April admitted the Corporate Insolvency Resolution Process (CIRP) of Madhuvan Tieup Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, for a default of approximately Rs 80.78 crore. A Bench comprising Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri rejected the Corporate Debtor's claim that it was a Non-Banking Financial Company (NBFC), holding that it did not engage in financial services as...

Breach Of Interim Orders Cannot Trigger Fresh Contempt After Final Order In Insolvency Case: NCLT Kochi

The National Company Law Tribunal at Kochi has held that once a final order is passed in a matter, all acts and issues arising during the pendency of the proceedings stand merged in that order, and any alleged breach of interim directions cannot later be used to initiate contempt proceedings for past acts.A Bench of Judicial Member Vinay Goel observed:“Upon finalisation of the proceedings, all acts and matters arising during the pendency of the proceedings stand merged in the final order. Any...

NCLT Mumbai Admits Insolvency Plea Against Videocon Guarantor Venugopal Dhoot Over ₹6,157 Crore Default

The National Company Law Tribunal at Mumbai has admitted a personal insolvency application filed by State Bank of India against Venugopal Nandlal Dhoot, promoter of the Videocon Group and personal guarantor to Videocon Industries Limited and Videocon Telecommunications Limited, involving a default of Rs 6,157 crore. A Bench of Judicial Member Nilesh Sharma and Technical Member Charanjeet Singh Gulati admitted the application filed under Sections 95 and 97 of the Insolvency and Bankruptcy Code,...

NCLT Indore Dismisses ₹2.56 Crore Insolvency Plea Against Bari Foods Pvt. Ltd. Over Pre-Existing Dispute

The National Company Law Tribunal (NCLT) at Inodre has rejected a Rs 2.56 crore insolvency plea by ADM Agro Industries Kota & Akola Pvt. Ltd. against Bari Foods Pvt. Ltd., holding that disputes over contract formation, resale of goods and quantification of losses constitute a genuine pre-existing dispute beyond the scope of summary proceedings under the Insolvency and Bankruptcy Code. The bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta said the issues...

No New Claims Maintainable After CIRP Settled In White Water Hospitality Case: NCLT Chandigarh

The National Company Law Tribunal at Chndigarh has held that in the case of a company whose insolvency process was set aside by the Supreme Court and whose dues to the initiating financial creditor were paid, the insolvency process comes to an end and all steps taken during it lose their legal basis.The order was passed by a coram of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal while deciding pleas filed by Bharat Food and Agro Products and its partner, Kamal Kant Dewan...

Financial Creditor Who Initiated CIRP Must Bear Costs When Proceedings Are Set Aside: NCLT Chandigarh

The National Company Law Tribunal (NCLT) at Chandigarh has held that in the present case, where a corporate insolvency process was set aside and the parties settled their dispute, the costs incurred during the process must be borne by the financial creditor that initiated it. A coram of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal said, “It can be seen that once the admission of CIRP itself is set aside and the dispute is settled between the initiating Financial...

NCLT Indore Rejects Homebuyer's Claim Filed 1.5 Years After Resolution Plan Approval In JSM Devcons CIRP

The Indore bench of the National Company Law Tribunal (NCLT) has rejected a homebuyer's plea for possession of a flat, holding that a claim filed nearly eighteen months after approval of the resolution plan cannot be entertained. Observing that permitting such belated claims would disrupt the resolution process, the bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta held,“The Successful Resolution Applicant takes over the Corporate Debtor on the basis of the...

Right To Shelter Part of Right To Life, Homebuyers Cannot Be Prejudiced by Internal Project Transfer: NCLT Indore

The National Company Law Tribunal (NCLT) at Indore has held that homebuyers cannot be prejudiced by an internal transfer of a real estate project, emphasising that their rights are not merely contractual but tied to the right to life. A coram of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta, underlining the constitutional dimension of such claims, observed that such rights cannot be viewed purely as contractual. It said, “The Hon'ble Supreme Court has...

NCLT Kochi Admits CIRP Against Seguro Foundations, Applies ₹1 Lakh Threshold As Claim Pre-Amendment

The National Company Law Tribunal at Kochi has admitted an insolvency plea against Seguro Foundations & Structures Pvt Ltd over unpaid salary dues, making it clear that the earlier Rs 1 lakh threshold will apply as the case was filed before the law was revised. The order was passed by Judicial Member Vinay Goel. The case had been brought by Shaji Mathew, an operational creditor, seeking insolvency proceedings over unpaid salary. Mathew had been appointed as a project manager for a...

Non-Disclosure By Bankrupt Prompts NCLT Kochi To Condone 470-Day Delay In Federal Bank Claim

The National Company Law Tribunal (NCLT) at Kochi has condoned a 470-day delay in filing a claim by Federal Bank in bankruptcy proceedings against personal guarantor Reena Paul, holding that the delay stood sufficiently explained due to non-disclosure and suppression of material facts by the bankrupt. A coram of Judicial Member Vinay Goel passed the order, observing: "…this Adjudicating Authority is of the considered view that although the Applicant is bound by the public announcement, the...

NCLT Mumbai Upholds CoC's Decision To Conduct Second E-Challenge In Future Enterprises' CIRP

The National Company Law Tribunal (NCLT) at Mumbai has recently dismissed Orissa Metaliks Private Limited's challenge to the Committee of Creditors' decision to conduct a second round of the e-challenge mechanism in the CIRP of Future Enterprises Limited. A bench of Judicial Member Lakshmi Gurung and Technical Member Hariharan Neelakanta Iyer held that the CoC's decision to undertake a second challenge process is not in violation of Regulation 39(1A) of the CIRP Regulations, while observing...