Suspended Director Can Flag CIRP Violations But Not Question CoC's Commercial Wisdom: NCLT Chandigarh

The Chandigarh Bench of the National Company Law Tribunal (NCLT) on 1 July held that a suspended director has the locus to bring alleged violations of the Insolvency and Bankruptcy Code, 2016 (IBC) and the Corporate Insolvency Resolution Process (CIRP) Regulations before the NCLT, but cannot question the commercial wisdom of the Committee of Creditors (CoC). A Bench comprising Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal dismissed an application filed by Robin Dahiya,...

NCLT Kochi Holds Kerala Trade Centre Project; Developmental Rights Form Part Of KCCI's CIRP Assets

The National Company Law Tribunal (NCLT), Kochi, has held that the Kerala Trade Centre project and the development and allied rights vested in Kerala Chamber of Commerce and Industries (KCCI) under a Joint Development Agreement (JDA) form part of the company's asset base during its Corporate Insolvency Resolution Process (CIRP). It also directed the landowner, Cherupushpam Films Private Limited, to cooperate in implementing the resolution plan.A coram of Judicial Member Vinay Goel and Technical...

NCLT Indore Holds Resolution Professional Cannot Revive Lease Terminated By CoC

The Indore Bench of the National Company Law Tribunal (NCLT) on 7 July held that an unregistered lease deed cannot create valid rights over the Corporate Debtor's property and that a Resolution Professional (RP) cannot revive a lease arrangement that the Committee of Creditors (CoC) has already decided to terminate. The Bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta directed Vatsal Acharya to vacate the factory premises of Shree Uttam Food Products,...

Rights Of Creditor In CIRP Are Determined By The IBC, Not The Quantum Of Claim: NCLT Chandigarh

The Chandigarh National Company Law Tribunal (NCLT) on 10 July held that a creditor cannot seek disclosure of a resolution plan pending approval merely because it has a substantial claim. The Insolvency and Bankruptcy Code, 2016 (IBC) determines a creditor's rights in a Corporate Insolvency Resolution Process (CIRP), and not the quantum of its dues. A Bench of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal dismissed the application filed by Resolution Professional (RP)...

NCLT Kochi Dismisses Union Bank's Plea To Withdraw CIRP, Says IBC Section 12A Procedure Is Mandatory

On Tuesday, 21 July, the Kochi Bench of the National Company Law Tribunal (NCLT) held that once a corporate insolvency resolution process (CIRP) is admitted, it cannot be withdrawn merely on the basis of a bilateral settlement between the financial creditor and the corporate debtor without following the statutory procedure under the Insolvency and Bankruptcy Code (IBC). A Bench of Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy dismissed Union Bank of India's application...

NCLT Kolkata Rejects Bengal EMTA Coal Mines Resolution Plan Offering ₹86 Lakh Against ₹299 Crore Claims

The Kolkata Bench of the National Company Law Tribunal (NCLT) has recently refused to approve the resolution plan submitted by successful resolution applicant Sarika Maiwall for Bengal EMTA Coal Mines Limited.It found that the plan proposed a payout of just ₹86 lakh against admitted claims of nearly ₹299 crore and appeared to extinguish substantial statutory liabilities despite pending proceedings before the Supreme Court.A coram of Judicial Member Bidisha Banerjee and Technical Member Siddharth...

Withdrawal Of Earlier Insolvency Plea By Personal Guarantor After OTS Not a Bar To Fresh Plea: NCLT Chennai

The National Company Law Tribunal (NCLT) at Chennai has held that a personal guarantor's withdrawal of an earlier insolvency application after securing a One Time Settlement (OTS) for one loan account does not, by itself, bar the filing of a fresh insolvency application in respect of continuing liabilities.A coram of Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy was considering a petition filed by D. Manuel Anand, a personal guarantor to Servo Craft HR Solutions...

NCLT Delhi Orders Dissolution of Cross-Border Payments Company Paysend India

The Delhi Bench of the National Company Law Tribunal (NCLT) has ordered the dissolution of cross-border payments company Paysend India Private Limited after finding that its affairs had been completely wound up and its assets fully liquidatedThe order was passed by the bench of Acting President Bachu Venkat Balaram Das and Technical Member Yogendra Kumar Singh.Paysend India Private Limited was incorporated on July 25, 2022 as a private limited company with its registered office at Nehru Place,...

NCLT Ahmedabad Directs Moeving To Return 124 EVs Owned By Gensol EV Lease During Insolvency Process

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 10 July held that vehicles owned by a Corporate Debtor cannot be retained by a third party merely because they were handed over under a contractual arrangement. A Bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma partly allowed the application filed by the Resolution Professional (RP) of Gensol EV Lease Limited and directed Moeving Urban Technologies Pvt. Ltd. to return 124 electric vehicles,...

NCLT Kochi Recalls Oral Order Minutes After Pronouncement Over Undisclosed Facts

The National Company Law Tribunal (NCLT) at Kochi recently recalled its oral order allowing withdrawal of the corporate insolvency resolution process (CIRP) against Air Travel Enterprises India Limited. The tribunal did so within five minutes of pronouncing the order, after the Resolution Professional (RP) brought to its notice material facts regarding the Committee of Creditors (CoC) that had not been disclosed earlier.A bench of Judicial Member Vinay Goel and Technical Member Ravichandran...

NCLT Amaravati Admits Insolvency Plea Against KGOC Terminals, Says Pre-COVID Loan Default Not Protected

The National Company Law Tribunal (NCLT), Amaravati Bench, has admitted Canara Bank's insolvency plea against KGOC Terminals Private Limited. It held that the company could not rely on the COVID-19 suspension on insolvency filings because it had already defaulted on its loan repayments before that period began. The later classification of the loan account as a non-performing asset (NPA) did not change that position. The bench of Judicial Member Kishore Vemulapalli and Technical Member Umesh...

NCLT Delhi Rejects Kalka Home Developers Resolution Plan Paying Government Dues Below Liquidation Value

The New Delhi Bench of the National Company Law Tribunal (NCLT) on 3 July held that a resolution plan cannot provide an operational creditor, including the government, an amount lower than the liquidation value payable to it under the Insolvency and Bankruptcy Code, 2016 (IBC). Judicial Member Ashok Kumar Bhardwaj and Technical Member Atul Chaturvedi rejected the plan submitted for Kalka Home Developers Pvt. Ltd., observing that the plan failed to comply with Section 30(2)(b) of the IBC, which...