NCLT Ahmedabad Admits Insolvency Plea Against Montecarlo, Rejects 'Pre-Existing Dispute' Defence

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 6 July admitted an insolvency petition against Montecarlo Limited, holding that disputes raised only after receipt of a demand notice cannot be treated as “pre-existing disputes” under the Insolvency and Bankruptcy Code, 2016 (IBC). A Bench comprising Judicial Member Chitra Hankare and Technical Member Dr V.G. Venkata Chalapathy allowed the application filed by Vanshita Transport, noting: “The CD is consistently saying that...

NCLT Mumbai Rejects Canara Bank's ₹742 Cr. Plea Against Frost International's Guarantor As Time Barred

On 8 July, the Mumbai Bench of the National Company Law Tribunal (NCLT) held that a second demand notice cannot revive a time-barred insolvency claim arising from an on-demand corporate guarantee, where limitation had already commenced upon invocation of the guarantee. Judicial Member Nilesh Sharma and Technical Member Sameer Kakar rejected Canara Bank's Section 7 application seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Globiz Exim Pvt Ltd, the corporate...

'Shocking And Bewildering': NCLT Mumbai Bench Rejects VAS Infrastructure Resolution Plan, Orders IBBI Probe Into RP

Describing the Resolution Professional's explanation for wrongly portraying VAS Infrastructure Ltd.'s development rights as ownership rights as "shocking and bewildering," the National Company Law Tribunal rejected a ₹85.05 crore resolution plan for the company. It also directed the Chairman of the Insolvency and Bankruptcy Board of India (IBBI) to investigate the Resolution Professional's conduct and consider disciplinary action. A bench of Judicial Member Ashish Kalia and Technical Member...

NCLT Mumbai Admits Kishore Biyani-Led Future Consumer Into CIRP Over ₹263.77 Crore Default

The Mumbai Bench of the National Company Law Tribunal on Wednesday admitted Kishore Biyani-led Future Consumer Ltd into the Corporate Insolvency Resolution Process (CIRP) on a petition filed by Resurgent India Special Situations Fund. The tribunal found that the company had defaulted on a financial debt, with acknowledged outstanding dues of ₹263.77 crore. A bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar held that the requirements for initiating CIRP had been...

NCLT Mumbai Sets Aside MIDC's Cancellation Of Plot Allotments To Jet Airways, Directs Lease Execution

The tribunal held that Jet Airways' rights under the long-term lease formed part of the liquidation estate and could not be excluded as mere contractual rights to use the land

NCLT Mumbai Rejects ₹4.43 Cr Section 9 Plea, Holds Pre Existing Dispute Over Part Of Debt Sufficient

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 30 June held that a pre existing dispute raised before issuance of a demand notice can defeat a Section 9 application under the Insolvency and Bankruptcy Code (IBC), even if the dispute relates only to a part of the operational debt, unless the disputed amount is wholly insignificant. Judicial Member Nilesh Sharma and Technical Member Sameer Kakar rejected Lumens Technologies Pvt Ltd's Section 9 petition seeking initiation of the...

NCLT Ahmedabad Holds Mere Breach Claims Cannot Defeat CIRP, Admits ₹2.02 Cr. Plea Against Mehsana Dairy

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 26 June held that a corporate debtor cannot defeat an insolvency petition by raising contractual disputes that are unsupported by contemporaneous evidence. Judicial Member Shammi Khan and Technical Member Sanjeev Sharma admitted an insolvency petition filed by Mehsana Food Tradelinkers Pvt. Ltd. against Mehsana Dairy and Food Products Ltd. under the Insolvency and Bankruptcy Code, 2016 (IBC) for an operational debt of Rs. 2.02...

NCLT Kochi Rejects Insolvency Plea Against BPL, Finds It Was Attempt To Recover Arbitral Award Dues

The National Company Law Tribunal (NCLT) at Kochi has recently dismissed an insolvency plea against consumer electronics company BPL Limited. It held that the Insolvency and Bankruptcy Code (IBC) cannot be invoked as an additional or parallel mechanism to recover the balance amount under an arbitral award after a creditor has already pursued execution proceedings. The tribunal observed, "the present proceedings are essentially an attempt to recover the balance amount claimed under the Award...

Cooperative Society's Statutory Charge Survives Liquidation, Enforceable Against Auction Purchaser: NCLT Mumbai

The Mumbai Bench of the National Company Law Tribunal (NCLT) has held that a cooperative society can enforce its statutory first charge over a property against an auction purchaser even after participating in the liquidation process by filing its claim before the liquidator. A bench of Judicial Member Ashish Kalia and Technical Member Charanjeet Singh Gulati observed that participation in the liquidation process does not extinguish the statutory charge created under the Maharashtra Co-operative...

NCLT Mumbai Rejects 4B Networks Resolution Plan Over Clause Giving SRA Exclusive Rights To PUFE Recoveries

The Mumbai Bench of the National Company Law Tribunal has rejected the resolution plan submitted by Armaan Sunil Kothari for 4B Networks Pvt Ltd. It held that the plan wrongly allowed the successful resolution applicant (SRA) to exclusively retain recoveries from pending Preferential, Undervalued, Fraudulent and Extortionate (PUFE) proceedings, including one seeking recovery of about ₹7,349 crore. The tribunal granted liberty to the resolution professional (RP) and the committee of creditors...

Statutory Authorities Not Exempt From CIRP Timelines: NCLT Mumbai Rejects EPFO's Delayed Claim

The Mumbai Bench of the National Company Law Tribunal refused to condone a 400-day delay by the Employees' Provident Fund Organisation (EPFO) in filing its claim in the corporate insolvency resolution process (CIRP) of Sovika Aviation Services Pvt Ltd. The tribunal held that the statutory authority had failed to provide any convincing explanation for the delay. It observed that permitting the claim after the Committee of Creditors (CoC) had approved the resolution plan would unsettle the...

'Shylockian System' Of Lending Cannot Be Permitted To Misuse IBC For Debt Recovery: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi has refused to admit an insolvency plea against NCS Autocars Private Limited, holding that a "shylockian system" of lending involving advance deduction of interest cannot be permitted to misuse the Insolvency and Bankruptcy Code (IBC). The tribunal found that the proceedings bore the characteristics of a debt recovery action rather than a bona fide insolvency proceeding. A coram of Judicial Member Vinay Goel and Technical Member Ravichandran...