Fraud Proceedings Under IBC Cannot Be Turned Into 'Battlefield' For Private Disputes: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi has recently observed that fraud proceedings under the Insolvency and Bankruptcy Code cannot be turned into a “battlefield” for settling private disputes or creating fresh controversies to prolong adjudication under the Code.The observation came in a case concerning Section 66 of the Insolvency and Bankruptcy Code, which deals with fraudulent trading and transactions, where Resolution Professional K. Parameswaran Nair had alleged fraudulent...

NCLT Mumbai Rejects Electrical Panel Supplier's Insolvency Plea Against L&T

On August 4, the Mumbai Bench of the National Company Law Tribunal dismissed a Section 9 insolvency application filed by GS Industries against Larsen & Toubro Ltd. (L&T).The tribunal said that the dispute between the parties regarding the quality of electrical panels supplied constituted a pre-existing dispute, thereby barring initiation of the corporate insolvency resolution process (CIRP).A bench of Judicial Member Ashish Kalia and Technical Member Anil Raj Chellan observed that...

NCLT Jaipur Clears ₹288.37 Crore Resolution Plan For Holiday Inn Jaipur City Centre Operator ACCIL

The National Company Law Tribunal at Jaipur has approved the ₹288.37 crore resolution plan submitted by Oriental Structural Engineers Private Limited (OSEPL) for ACCIL Corporation Private Limited, which owns and operates the five-star Holiday Inn Jaipur City Centre.The approved resolution plan has a total value of ₹288.37 crore and was unanimously approved by the Committee of Creditors.A coram of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar passed the order. The application...

NCLT Delhi Dissolves Newgen Payment Gateway After Voluntary Liquidation

The Delhi bench of the National Company Law Tribunal (NCLT) has ordered the dissolution of Newgen Payment Gateway Private Limited, a company that provided payment processing services for credit cards, debit cards and bill payments. The bench found that the company's voluntary liquidation had been completed and all liabilities had been settled. The order was passed by Judicial Member Justice Jyotsna Sharma and Technical Member Anu Jagmohan Singh. Explaining why the company could be...

NCLT Ahmedabad Makes Neesa Leisure Resolution Plan Effective, Ends IBC Moratorium

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has passed a consequential order approving the resolution plan for hospitality company Neesa Leisure Limited, which owns and operates hotels and resorts under the Cambay brandThe tribunal ruled that the plan submitted by Express Resorts and Hotels Limited, already approved by the National Company Law Appellate Tribunal (NCLAT), would now take effect.A bench of Judicial Member Chitra Hankare and Technical Member Dr. Velamur G....

NCLT Ahmedabad Rejects Insolvency Plea Against Sadbhav Engineering, Holds MoU Claims Cannot Trigger IBC

The Ahmedabad National Company Law Tribunal (NCLT) on 29 July held that claims arising solely from a Memorandum of Settlement (MoU) or settlement agreement do not constitute “operational debt” under Section 5(21) of the Insolvency and Bankruptcy Code, 2016 (IBC), as such claims do not arise from the supply of goods or services. A Bench comprising Judicial Member Chitra Hankare and Technical Member Dr V.G. Venkata Chalapathy rejected the insolvency petition filed by N.S. Company against...

Protective Covenants In Finance Documents Do Not Make Financial Creditors 'Related Parties': NCLT Delhi

The New Delhi National Company Law Tribunal (NCLT) has held that protective covenants in financing documents, including escrow arrangements, reserved matter approvals, monitoring rights and inspection mechanisms, do not by themselves make financial creditors “related parties” under the Insolvency and Bankruptcy Code, 2016 (IBC), unless such rights demonstrate actual control over the management or affairs of the corporate debtor. A Bench comprising Judicial Member Mahendra Khandelwal and...

NCLT Delhi Refuses To Recall 4-Year-Old Resolution Plan, Says Inherent Power Can't Revive Time-Barred Appeal

The National Company Law Tribunal (NCLT) at New Delhi has refused to recall a resolution plan approved more than four years ago. It ruled that its limited inherent power of recall under Rule 11 of the NCLT Rules cannot be used as a substitute for a time-barred appeal under the Insolvency and Bankruptcy Code (IBC) or to reopen the Committee of Creditors' (CoC) commercial wisdom. "The limited inherent power of recall preserved under Rule 11 of the NCLT Rules, 2016 cannot be invoked as a substitute...

NCLT Ahmedabad Rejects Conart Engineers' Insolvency Plea Against Senores Over Pre Existing Dispute

The Ahmedabad National Company Law Tribunal (NCLT) on 30 July held that an insolvency petition cannot be admitted when a pre existing dispute exists between parties over contractual claims, including certification of bills, recoveries and retention money. A Bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma dismissed Conart Engineers Limited's insolvency petition against Senores Pharmaceuticals Limited, holding that a dispute between the parties existed before the demand...

Liquidator Not Entitled To Additional Remuneration For Litigation-Related Delay: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi has recently held that a liquidator cannot claim additional remuneration beyond the fee prescribed under the statutory framework merely because the liquidation process remained pending due to litigation.The tribunal accordingly dismissed an application filed by the liquidator of Raihan Healthcare Private Limited.A coram of Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy was hearing an application filed by the liquidator. He...

NCLT Admits PNB's ₹294.65 Crore Claim Against TV Vision, Holds OTS Proposals Extend Limitation Period

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 30 July admitted Punjab National Bank's insolvency application against TV Vision Ltd under Section 7 of the Insolvency and Bankruptcy Code, 2016, after finding that the loan transaction qualified as a financial debt and that default was established through documentary evidence. A Bench comprising Judicial Member Nilesh Sharma and Technical Member Sameer Kakar noted that repeated one time settlement (OTS) proposals acknowledging...

NCLT Ahmedabad Dismisses Insolvency Plea Against Suzlon Energy

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) has recently rejected an insolvency plea against Suzlon Energy Limited. The plea was rejected after finding that the claim was time-barred and arose out of a pre-existing dispute.The petition was filed by Harri Wind Farms, which sought initiation of insolvency proceedings after claiming Rs 9.70 crore towards land procurement, No Objection Certificates (NOCs), and Power Evacuation (PE) connectivity for a proposed 25 MW wind power...