Suspended Directors Cannot Operate Company Bank Accounts After CIRP Admission: NCLT Amaravati

The National Company Law Tribunal (NCLT) at Amaravati has held that once a corporate debtor is admitted into the Corporate Insolvency Resolution Process (CIRP), its suspended management has no authority to operate the company's bank accounts or transfer its funds. A coram of Judicial Member Kishore Vemulapalli and Technical Member Umesh Kumar Shukla observed that any operation of the company's bank account or transfer of funds without the Interim Resolution Professional's (IRP) authorisation...

NCLT Delhi Approves Revised Resolution Plan For JNC Constructions After Supreme Court Remand

The Delhi bench of the National Company Law Tribunal (NCLT) has approved the resubmitted resolution plan for JNC Constructions Pvt. Ltd., submitted by Gautam Builders in consortium with Rapid Contracts Pvt. Ltd. The approval comes after the Supreme Court set aside the tribunal's 2020 order and directed the Committee of Creditors (CoC) to reconsider the plan.A coram of Judicial Member Jyotsna Sharma and Technical Member Anu Jagmohan Singh observed that the tribunal's powers while considering a...

NCLT Ahmedabad Approves ₹2,775 Crore Inox Neo-Authum Resolution Plan For Wind World India

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has approved the ₹2,775 crore resolution plan submitted by the consortium of Inox Neo Energies Limited and Authum Investment & Infrastructure Limited for Wind World (India) Limited. It held that there was no ground to interfere with the commercial wisdom of the Committee of Creditors (CoC). A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma appriving the plan observed,“..we are of the view that the...

NCLT Kochi Allows Second CIRP After Settlement Breach Where Settlement Preserved Creditor's Right

The National Company Law Tribunal (NCLT) at Kochi has recently admitted an insolvency petition against Soura Natural Energy Solutions India Private Limited, holding that an operational creditor is entitled to initiate fresh insolvency proceedings upon breach of a settlement where the settlement itself expressly preserves such a right.A coram of Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy was considering a petition filed by Raychem RPG Private Limited seeking initiation...

NCLT New Delhi Orders Dissolution Of Recruitment And Technology Solutions Provider LIS Studylink India

The New Delhi National Company Law Tribunal (NCLT) on 15 July ordered the dissolution of Lis Studylink India Pvt. Ltd. under Section 59 of the Insolvency and Bankruptcy Code, 2016 (IBC), holding that the company's voluntary liquidation process had been completed and no liabilities remained unsatisfied. A Bench of Judicial Member Bachu Venkat Balaram Das and Technical Member Ravindra Chaturvedi allowed the Liquidator's application seeking dissolution of the company. It held: “In view of the...

NCLT Ahmedabad Rejects Money Lender's CIRP Plea, Says Loan To Repay Existing Bank Debt Is Not Financial Debt

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has held that a money lender who advances funds only to help a corporate debtor clear an existing bank loan cannot, in the facts of the case, claim the status of a financial creditor under the Insolvency and Bankruptcy Code (IBC).It rejected a Section 7 insolvency plea filed by Gujarat-based Mangaldas Finance seeking initiation of the corporate insolvency resolution process against Milano Papers Pvt. Ltd.The bench of Judicial Member...

Merits Of Oppression Plea Not To Be Examined While Deciding Waiver Application: NCLT Mumbai

The Mumbai National Company Law Tribunal (NCLT) has held that while considering an application seeking waiver of eligibility requirements under the proviso to Section 244(1) of the Companies Act, 2013 (which prescribes the minimum shareholding threshold to file oppression and mismanagement petitions), the Tribunal need not examine the merits of the proposed petition. A Bench comprising Technical Member Prabhat Kumar and Judicial Member Sushil Mahadeorao Kochey was hearing an application filed...

One Workman Cannot Represent Others In IBC Proceedings Without Authorisation: NCLT Kochi

The National Company Law Tribunal (NCLT), Kochi has held that an application filed in the names of multiple workmen cannot be maintained on behalf of those who did not authorise the sole signatory to represent them.“….in the absence of any specific authorisation, authority, or power of attorney in favour of the signatory, the other applicants would not be bound by any action taken by the signatory. Since they may rely on the acts done by the signatory, which would not be binding upon them, it...

Subsequent Shareholding Changes Cannot Retrospectively Cleanse Related-Party Status: NCLT Chandigarh

The Chandigarh bench of the National Company Law Tribunal (NCLT) has recently ruled that a subsequent change in shareholding or directorship cannot retrospectively erase a company's related-party status for transactions entered into earlier. Dismissing an application filed by Mona Portfolio Ltd., the court held that the company had failed to establish that its claim against Chandigarh Overseas Pvt. Ltd. was a financial debt.The bench of Judicial Member Khetrabasi Biswal and Technical Member...

NCLT Ahmedabad Rejects Insolvency Plea Against Manpasand Beverages Over Time-Barred ₹34.40 Cr Claim

The Ahmedabad National Company Law Tribunal (NCLT) on 14 July dismissed the insolvency application filed by Do Well Moulds against Manpasand Beverages Ltd., holding that the claim was time-barred and involved pre-existing disputes regarding the genuineness of the transactions. A Bench comprising Judicial Member Chitra Hankare and Technical Member Dr. VG Venkata Chalapathy noted that an insolvency application cannot be admitted where the claim is barred by limitation, disputed prior to the...

NCLT Ahmedabad Rejects Machino Polymers' Plea To Revise Claim In Sintex-BAPL Ltd Insolvency Case

The Ahmedabad National Company Law Tribunal (NCLT) on 2 July held that an approved Resolution Plan cannot be modified to revise admitted claims after the conclusion of the Corporate Insolvency Resolution Process (CIRP), as it attains finality and binds all stakeholders. A Bench comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma dismissed an application filed by Machino Polymers Limited seeking revision of its admitted claim against Sintex-BAPL Ltd., holding that no...

NCLT Chennai Admits Insolvency Plea Against Pradhin Limited Over ₹12.98 Crore Default

The National Company Law Tribunal (NCLT) at Chennai has admitted an insolvency petition against Pradhin Limited after finding that the financial creditor had established the existence of a financial debt and default of ₹12.98 crore. The shares of Pradhin Limited are listed on Bombay Stock Exchange Limited. The tribunal initiated the Corporate Insolvency Resolution Process against the company and appointed Rajesh Jasti as the interim resolution professional.A coram of Judicial Member Sanjiv Jain...