NCLT Guwahati Admits IL&FS Insolvency Plea, Holds Pledged Shares Dispute No Defence To Default

The Guwahati National Company Law Tribunal (NCLT) has held that a dispute over the invocation and appropriation of pledged securities cannot defeat an insolvency petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, once the existence of financial debt and default is established. A Bench of Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh made the observation while admitting an insolvency petition filed by IL&FS Financial Services Limited against...

SARFAESI Proceedings, ED Provisional Attachment Do Not Bar CIRP: NCLT Ahmedabad

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has held that ongoing SARFAESI proceedings and provisional attachment of a secured property by the Directorate of Enforcement do not bar initiation of the Corporate Insolvency Resolution Process (CIRP) against Capbridge Venture LLP.“The contention that proceedings under the SARFAESI Act, 2002 bar the present Petition is untenable. The remedies available under the SARFAESI Act and the Insolvency and Bankruptcy Code operate in...

Bank's Internal Policies Cannot Override IBC Or RP Appointment Order: NCLT Guwahati

The Guwahati National Company Law Tribunal (NCLT) on 24 July held that a bank's internal policies cannot override the statutory scheme of the Insolvency and Bankruptcy Code, 2016 (IBC) or the Tribunal's order appointing a Resolution Professional (RP). A Bench comprising Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh made the observation while dismissing an application filed by Indian Bank seeking the replacement of Resolution Professional Sudha Sarma in the...

Suspended Director Status Alone Cannot Justify Harsher Standard For His Resolution Plan: NCLT Kochi

The National Company Law Tribunal (NCLT), Kochi, has recently ruled that a Resolution Plan cannot be subjected to a more onerous standard merely because it has been submitted by a suspended director.A bench of Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy observed that the plan must instead be assessed on whether the applicant is otherwise eligible under the Insolvency and Bankruptcy Code of 2016.“The mere fact that the Applicant is the Suspended Director shall not, by...

SARFAESI Notice Alone Cannot Establish Personal Guarantee Invocation Without Deed: NCLT Chandigarh

The National Company Law Tribunal (NCLT), Chandigarh bench, has ruled that a personal guarantor seeking insolvency resolution must place the underlying Deed of Guarantee on record to establish that status. A SARFAESI demand notice by itself cannot conclusively establish invocation of the guarantee when the deed is absent.A bench of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal observed, “The Deed of Guarantee is the foundational document from which the Applicant's very...

NCLT Mumbai Says ₹5 Crore EMD Cannot Be Forfeited Over Applicant's Eligibility Dispute In Morarjee CIRP

The National Company Law Tribunal (NCLT), Mumbai Bench-I has directed the return of a ₹5 crore Earnest Money Deposit (EMD) Bank Guarantee furnished by Nirmal Ujjwal Credit Co-operative Society Limited during the Corporate Insolvency Resolution Process (CIRP) of Morarjee Textiles Limited. The court held that the guarantee could not be forfeited under the Request for Resolution Plan (RFRP) without any misrepresentation or misleading statement about the society's eligibility.“Accordingly, we are of...

NCLT Mumbai Issues Bailable Warrant Against Personal Guarantor For Failing To Appear Despite Repeated Directions

The National Company Law Tribunal (NCLT), Mumbai Bench, has recently issued a bailable warrant of arrest against a personal guarantor for failing to appear before the tribunal despite clear directions to explain why the Resolution Professional's fees had not been paid.The order was passed by Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar in personal insolvency proceedings against Mahananda Udhavrao Deshkhaire under Section 94(1) of the Insolvency and Bankruptcy Code,...

Defective Or Withdrawn Liquidation Application Cannot End RP's Entitlement To Fees: NCLT Ahmedabad

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has recently held that a liquidation application that is subsequently withdrawn cannot by itself end a Resolution Professional's entitlement to remuneration if the RP continues to discharge statutory duties.The bench said a defective or withdrawn liquidation application that does not culminate in an order of liquidation cannot terminate the RP's entitlement to remuneration when he continues to function under the Insolvency and...

Mere Divergence Between Interim, Final Forensic Audit Reports Does Not Establish Unreliability: NCLT Indore

The National Company Law Tribunal (NCLT) at Indore has ruled that a mere divergence between a forensic auditor's interim and final reports, without any demonstrable infirmity, is not enough to disregard the final report or appoint an alternate auditor.The bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta ruled, “Mere divergence between a preliminary draft and a final report, explained by a materially expanded record, does not by itself establish...

NCLT Ahmedabad Dismisses Ricova International's Insolvency Plea Against Kraft Paper Manufacturer

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has dismissed an insolvency petition filed by Panama-based Ricova International INC against Shree Narayan Kraft Paper Mill LLP.The bench comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma found that there was pre-existing dispute between the parties. Ricova had claimed an operational debt of Rs 3,81,87,186.24 (USD 4,44,192.34) for the alleged supply of waste paper (NDLKC) pursuant to various indents...

NCLT Ahmedabad Rejects Operational Creditor's Insolvency Plea Against Tecso Project, Imposes ₹2 Lakh Cost

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has dismissed Bharati Trading Enterprises Pvt. Ltd.'s insolvency petition against Vadodara-based Tecso Project Ltd. over an alleged ₹18.91 crore operational debt. The tribunal found a plausible pre-existing dispute over contractual interest, computation of the principal amount, ledger entries and supporting documents.Judicial Member Shammi Khan and Technical Member Sanjeev Sharma also imposed a ₹2 lakh penalty on Bharati Trading...

NCLT Launches E-Inspection, E-Certified Copy Services

The National Company Law Tribunal (NCLT) has launched e-Inspection and e-Certified Copy Services to provide advocates, litigants, and other stakeholders with faster and more convenient access to judicial records and certified copies.NCLT President Justice Anupinder Singh Grewal inaugurated the services through video conferencing on Wednesday. The services are part of the tribunal's broader digital transformation, which includes its revamped website and the ongoing e-Courts 2.0...