Forensic Audit Report Alone Cannot Prove Fraudulent Trading Under IBC Section 66: NCLT Ahmedabad

The Ahmedabad National Company Law Tribunal (NCLT) on 13 July held that a forensic audit report cannot, by itself, establish fraudulent trading under Section 66 of the Insolvency and Bankruptcy Code, 2016 (IBC), unless the Resolution Professional independently examines the transactions and forms the statutory opinion required under Regulation 35A of the CIRP Regulations. A Bench of Judicial Member Chitra Hankare and Technical Member Dr VG Venkata Chalapathy rejected the liquidator's application...

NCLT Ahmedabad Holds Consortium Lender Cannot Defeat Co-Creditor's Charge, Rejects SBI's Mortgage Release

The Ahmedabad National Company Law Tribunal (NCLT) on 13 July held that a consortium lender cannot unilaterally release a mortgaged property under a One Time Settlement (OTS) if such release prejudices the pari passu security interest of another secured creditor. A Bench comprising Judicial Member Chitra Hankare and Technical Member Dr. V.G. Venkata Chalapathy allowed the application and directed the suspended management of Baid Industries to restore Rs. 5,14,24,288 along with 12% simple...

Separate Corporate Debtors' Defaults Cannot Be Combined To Meet ₹1 Crore IBC Threshold: NCLT Mumbai

The Mumbai National Company Law Tribunal (NCLT) on 7 July held that a financial creditor cannot aggregate defaults owed by different corporate debtors to meet the minimum default threshold under Section 4 of the Insolvency and Bankruptcy Code, 2016 (IBC), even if the entities belong to the same corporate group. A Bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar dismissed an insolvency application filed by Mr. R. Srikant Ayyer against Neogreen Agriculture LLP after...

NCLT Delhi Rejects Elite Design's ₹1.43 Cr Insolvency Plea Against Colorbar Over Pre-Existing Dispute

The New Delhi National Company Law Tribunal (NCLT) on 21 July held that an insolvency petition cannot be admitted when the Corporate Debtor establishes a genuine pre-existing dispute supported by substantial material. A Bench comprising Judicial Member Ashok Kumar Bhardwaj and Technical Member Banwari Lal Meena dismissed the insolvency petition filed by Elite Design Private Limited against Colorbar Cosmetics Private Limited, holding that the dispute raised by the latter was not a sham defence....

NCLT Ahmedabad Dismisses Jindal's Insolvency Plea Against Kunal Structure For Failing IBC Threshold

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 17 July dismissed the insolvency application filed by Jindal (India) Limited against Kunal Structure (India) Private Limited, holding that disputes regarding short-weight and LC charges reduced the undisputed claim below the statutory threshold of 1 crore. A Bench comprising Judicial Member Chithra Hankare and Technical Member Dr VG Venkata Chalapathy held: “The matter of dispute being marginal, it falls below the threshold...

Impleadment Plea Can't Be Rejected Because Locus Standi Was Challenged Before It: NCLT Bengaluru

The National Company Law Tribunal (NCLT), Bengaluru Bench, has held that an impleadment application cannot be rejected merely because it was filed after an objection to the petitioner's locus standi. "The scope of consideration in an application under Order I Rule 10(2) CPC is not confined to examining whether a party strengthens the case of the Applicant but for the tribunal to assess whether the presence of such party is necessary for complete, effective and final adjudication of the...

NCLT Delhi Rejects APS Infra Resolution Plan, Says Resolution Applicant Can't Retain PUFE Recoveries

The Delhi bench of the National Company Law Tribunal (NCLT) has held that a resolution plan allowing the Successful Resolution Applicant (SRA) to retain recoveries from avoidance (PUFE) transactions is contrary to the CIRP Regulations. Rejecting the resolution plan submitted by SPG Infra Projects Pvt. Ltd. for APS Infra Engineers Pvt. Ltd., the bench ordered the company's liquidation. "When we talk of distribution, the understanding would be that the same should be distributed amongst the...

IRP, RP Cannot Authorise Recovery Barred By IBC Moratorium: NCLT Indore

Holding so, the court directed Bank of India to refund ₹16.49 crore recovered from Bhatia Global Trading Ltd.'s cash credit account during CIRP

Defects In Board Resolution Authorising CIRP Plea Don't Invalidate Otherwise Valid Proceedings: NCLT Jaipur

The National Company Law Tribunal (NCLT) at Jaipur has held that alleged defects in the certified copy of a Board Resolution, including objections that it did not disclose the date of the Board meeting or carried mechanically reproduced signatures, do not invalidate an insolvency application where the Operational Creditor has, in substance, authorized the initiation of proceedings. A coram of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar was considering an interlocutory...

NCLT Chandigarh Upholds Rejection Of ARCIL's ₹3,482 Crore Claim Against JCT Limited As Time-Barred

The National Company Law Tribunal (NCLT) in Chandigarh has recently refused to admit Asset Reconstruction Company (India) Limited's claim of ₹3,482 crore in the insolvency process of JCT Limited. Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal ruled the debt was time‑barred.“The claim, even if computed from the original invocation in January 2002 or the subsequent default in April 2011, is barred by limitation,” the bench said.ARCIL, acting as trustee of Arcil‑JCT III...

NCLT Mumbai Dispenses With JSW Steel Unsecured Creditors' Meeting In Piombino Steel Merger

The National Company Law Tribunal (NCLT), Mumbai, has recently dispensed with the meeting of unsecured creditors of JSW Steel Limited in its proposed amalgamation with its subsidiary, Piombino Steel Limited. It, however, directed the company to issue notices to unsecured creditors with outstanding balances exceeding ₹50 lakh, informing them that they may file objections before the Tribunal within 30 days.The order was passed by Judicial Member Sushil Mahadeorao Kochey and Technical Member...

NCLT Chandigarh Rejects Department's ₹975.56 Cr Claim Filed 1305 Days Late In Gupta Builders CIRP

The Chandigarh National Company Law Tribunal (NCLT) on 10 July held that the Income Tax Department cannot seek condonation of an extraordinary delay to introduce claims after approval of a Resolution Plan, as such belated claims would disturb the finality of the Corporate Insolvency Resolution Process (CIRP). A Bench comprising Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal dismissed the application filed by the Deputy Commissioner of Income Tax seeking condonation of a...