NCLT Hyderabad Clears Kalburgi Cement's ₹213.41 Crore Merger Deficit Adjustment Against Securities Premium

The National Company Law Tribunal (NCLT) in Hyderabad has approved Kalburgi Cement Private Limited's move to clean up a large merger-related loss, treating it as a legitimate internal corporate decision so long as creditors are safeguarded and the statutory framework is followed. A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri has allowed the company to set off an amalgamation adjustment deficit of Rs 213.41 crore against its securities premium account,...

NCLT Delhi Cancels 9.84 lakh Neel Padam Shares After Finding Company Used Own Funds For Allotment

The National Company Law Tribunal (NCLT) at Delhi has cancelled 9.84 lakh shares and restored promoter control of Neel Padam Builders after finding that the company used its own money to create a false impression of fresh share subscriptions. A coram of Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri held that Neel Padam Builders withdrew Rs 45 lakh from its own bank account in late November 2009 and redeposited the same amount days later to match the consideration...

NCLT Clears Merger Of RedBus India Into MakeMyTrip India

The National Company Law Tribunal (NCLT), Chandigarh Bench, has approved a merger that will bring RedBus India Private Limited into MakeMyTrip (India) Private Limited. The move will allow the MakeMyTrip group to run its main Indian travel and bus ticketing businesses through a single operating company.The order was passed by a coram of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal. The bench noted that shareholders and creditors had already given their consent and...

NCLT Recalls Insolvency Over Forged Documents, Imposes ₹50 Lakh Penalty On Financial Creditor

The National Company Law Tribunal (NCLT), New Delhi, has set aside insolvency proceedings against SLR Techinfra Pvt. Ltd., a real estate and infrastructure development company, and imposed a Rs 50 lakh penalty on Endless Services Pvt. Ltd., a private services firm, for malicious and fraudulent initiation of insolvency proceedings. Recalling its earlier order admitting the Corporate Insolvency Resolution Process (CIRP), a coram of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical...

NCLT Delhi Dismisses Diwan Spirits Insolvency Plea Against Khao Gali Restaurants

The National Company Law Tribunal (NCLT) at New Delhi, has refused to push Khao Gali Restaurants Pvt. Ltd. into insolvency on a plea by liquor wholesaler Diwan Spirits.It held that the dispute between the parties is not a clear case of non-payment but one that turns on reconciliation of accounts under the now scrapped Delhi Excise Policy 2021–22. A bench of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Atul Chaturvedi dismissed Diwan Spirits' application seeking...

Contractor Who Stayed Silent During CIRP and Liquidation Cannot Reclaim Auctioned Machinery: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has recently held that a contractor cannot seek compensation or get back machinery auctioned during liquidation if it remained silent throughout the corporate insolvency resolution process and liquidation. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar dismissed an application filed by Ahluwalia Contracts (India) Ltd., which had sought restitution and compensation for construction machinery auctioned...

NCLT Hyderabad Declares Former Deccan Chronicle Promoter T Venkatram Reddy Bankrupt

The National Company Law Tribunal (NCLT) at Hyderabad has declared Tikkavarapu Venkatram Reddy, former promoter of Deccan Chronicle Holdings Limited, the publisher of the Deccan Chronicle newspaper, bankrupt after he failed to submit a repayment plan as a personal guarantor for the company's borrowings.A bench of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri, while allowing an application filed by L&T Finance Ltd, observed, “Considering the above circumstances, and there...

Merely Mortgaging Property Without Lending Money Does Not Create Financial Debt : NCLT Hyderabad

The National Company Law Tribunal (NCLT) at Hyderabad has held that a person who only mortgages his property as collateral security cannot be treated as a financial creditor of the borrower if he has not advanced any money. A bench of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri said the insolvency law can be invoked only if there is a financial debt, which necessarily involves disbursal of money against consideration for time value. The tribunal observed, “A person who...

GST Amnesty Relief Cannot Be Granted By Tribunal, Parties Must Approach Writ Courts: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has held that it has no jurisdiction to relax conditions or grant benefits under a statutory GST immunity or amnesty scheme. Such relief, it said, can be granted only by constitutional courts exercising writ jurisdiction. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar said the tribunal's powers under the Insolvency and Bankruptcy Code cannot be stretched to override conditions prescribed under tax amnesty...

NCLT Delhi Clears First Stage of Haryana Distillery's Plan to Acquire 10 Companies

The National Company Law Tribunal (NCLT), New Delhi, has cleared the first motion of a composite scheme under which Delhi based-Haryana Distillery Limited proposes to acquire and merge 10 privately held group companies into itself. The tribunal however directed that shareholder meetings must be held even though more than 90% of shareholders had consented to the scheme. A bench of Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri held that while the Companies Act, 2013...

Relinquishment Of Development Rights Does Not Amount To Financial Debt: NCLT Delhi

The National Company Law Tribunal (NCLT) New Delhi, has refused to admit an insolvency plea against real estate firm Vipul Ltd, holding that the surrender of development and land-related rights under a joint development arrangement does not amount to “financial debt” under the Insolvency and Bankruptcy Code.A bench of Judicial Member Ashok Kumar Bhardwaj and Technical Member Ravindra Chaturvedi held that insolvency proceedings under Section 7 of the Code can be initiated only by a financial...

NCLT Mumbai Approves Timezone's Merger Plan To Consolidate Leisure And Entertainment Business

The National Company Law Tribunal (NCLT) at Mumbai on Thursday approved the merger of Leisure and Allied Industries India Private Limited with arcade operator Timezone Entertainment Private Limited, allowing the group to consolidate its family entertainment and leisure business under a single company. A bench of Judicial Member K R Saji Kumar and Technical Member Anil Raj Chellan held that the amalgamation met all legal requirements, observing that the “Scheme appears to be fair and reasonable...