NCLT
No Proof Of Technical Glitch: NCLT Delhi Declines To Interfere With Concluded E-Auction
The National Company Law Tribunal at New Delhi has recently refused to set aside a recently concluded e-auction in a bankruptcy matter, finding that the bidder challenging the sale failed to prove any technical glitch and that auction records showed continuous participation even after the time it claimed its system froze. The application had been filed by Marinaindia Traexim Private Limited, which sought to annul the auction of assets belonging to bankrupt debtor Waseem Ahmad Khan. A coram of...
IBC Not A Tool To Erase Third-Party Liabilities, NCLT Jaipur Rejects Resolution Plan for Goenka Diamonds
The National Company Law Tribunal (NCLT) at Jaipur recently observed that the resolution process cannot be used to extinguish liabilities or securities of third parties who have no connection with the corporate debtor. The tribunal rejected the resolution plan submitted for Goenka Diamond and Jewels Limited and ordered liquidation of the company. A bench of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar said the plan attempted to discharge independent guarantees and security...
NCLT Mumbai Orders Insolvency Proceedings Against Carnival Films After ₹71-Crore Default
The National Company Law Tribunal (NCLT) at Mumbai has recently admitted an insolvency plea by JC Flowers Asset Reconstruction Pvt Ltd against film production company Carnival Films Entertainment Pvt Ltd, after finding that it had defaulted on dues of Rs. 71 crore. A subsidiary of the company had owned Carnival Cinemas, the popular multiplex chain that shut its operations after the onset of the Covid-19 pandemic. The bench of Judicial Member KR Saji Kumar and Technical Member Anil Raj Chellan...
NCLT Chennai Clears Scheme For Merger Of TVS Investments With TVS Electronics
The National Company Law Tribunal at Chennai has recently approved a scheme filed by TVS group companies, sanctioning their amalgamation and permitting the merger of TVS Investments into TVS Electronics. The tribunal noted that the scheme was beneficial to the company and its shareholders and found no ground to withhold approval. A bench of Judicial Member Sanjiv Jain and Technical Member Venkatraman Subramaniam noted that the companies had submitted all mandatory documents and statutory...
NCLT Ahmedabad Orders Liquidation of Eskay K'N'IT After CIRP Yields No Resolution Plan
The National Company Law Tribunal (NCLT) at Ahmedabad has recently ordered the liquidation of Eskay K'N'IT (India) Limited and appointed insolvency professional Sunit Jagdishchandra Shah as liquidator, rejecting the Committee of Creditors' recommendation to retain the existing Resolution Professional, Ajit Kumar, as the liquidator. A bench of Judicial Member Chitra Hankare and Technical Member Dr Velamur G Venkata Chalapathy passed the order on November 28 after reviewing the prolonged...
Correctness Of NPA Classification Irrelevant To Initiating CIRP Once Default Is Proven: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has recently held that insolvency proceedings under the Insolvency and Bankruptcy Code depend only on the factual occurrence of default and are not affected by alleged irregularities in declaring an account as a Non Performing Asset or by non compliance with the MSME rehabilitation framework. It ruled that objections to the bank's NPA classification cannot defeat a creditor's right to initiate insolvency once a default is shown. A coram of...
NCLT Mumbai Reaffirms Insolvency Process Can Proceed Against Guarantors Without CIRP Of Corporate Debtor
The National Company Law Tribunal (NCLT) at Mumbai recently reaffirmed that insolvency proceedings against personal guarantors under the Insolvency and Bankruptcy Code can be initiated even if no CIRP is pending against the corporate debtor, relying on the Supreme Court's ruling in State Bank of India v. Mahendra Kumar Jajodia(2022). A coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar reiterated that the tribunal's jurisdiction is independent of any insolvency...
NCLT Mumbai Upholds IL&FS' Power To Raise Price of Its BKC Headquartes, Rejects Chronos' Plea To Enforce ₹1,080-Crore LoI
The National Company Law Tribunal (NCLT) at Mumbai has recently held that IL&FS was contractually empowered to unilaterally amend the Letter of Intent and increase the bid consideration for the sale of its iconic IL&FS Financial Centre in Bandra Kurla Complex, Mumbai refusing to compel execution of the definitive agreement at the originally approved value of Rs 1,080 crore. The ruling effectively permits IL&FS to revise the sale price to Rs 1,481 crore after approvals were granted,...
NCLT Ahmedabad Orders Liquidation of Girdhari International After Finding Collusion With Resolution Applicants
The National Company Law Tribunal at Ahmedabad has held that the resolution plan for Girdhari International Private Limited was a "collusive arrangement" between the resolution applicant and the sole financial creditor, Drip Capital Inc., and refused to approve it, ordering liquidation instead. The tribunal said that “the entire exercise suggests an accommodation or collusive arrangement” designed to secure the corporate debtor the benefits of clean slate under the Code rather than revive the...
Pending Cheque-Bounce Case Not A Bar To Admitting Insolvency Plea: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has recently ruled that the pendency of cheque-bounce proceedings under the Negotiable Instruments Act does not prevent initiation of insolvency proceedings, while admitting an application filed by Rexel India Private Limited seeking to commence the corporate insolvency resolution process against Proto D Industries Private Limited. The coram of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar held that proceedings under the NI...
NCLT Kolkata Pulls Up Insolvency Professional For Appearing In Vest During Virtual Hearing, Issues Contempt Notice
The National Company Law Tribunal at Kolkata has recently issued a criminal contempt show-cause notice to insolvency professional Subrato Ghosh for appearing in a virtual hearing wearing only a vest/baniyan. The incident took place during the insolvency proceedings initiated by SREI Equipment Finance Ltd against Samsara Energy Ltd. A coram of Judicial Member Labh Singh and Technical Member Rekha Kantilal Shah noted that young lawyers, most of whom are women, regularly appear before the Tribunal...
NCLT Delhi Clears ₹3,800-Crore MAHAGENCO–NTPC Plan To Revive Sinnar Thermal Power
The National Company Law Tribunal (NCLT) at Delhi has recently approved a ₹3,800 crore resolution plan jointly submitted by public sector power companies, Maharashtra State Power Generation Company (MAHAGENCO) and National Thermal Power Corporation (NTPC) to revive the defunct Sinnar Thermal Power Limited in Maharashtra, holding that the proposal met all requirements under the Insolvency and Bankruptcy Code (IBC). A coram of Judicial Member Manni Sankariah Shanmuga and Technical Member Atul...