NCLT Ahmedabad Admits Section 95 Petition Against Sonali Exim Guarantor Over Siemens ₹5 Cr Default

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 8 May admitted an application under Section 95 of the Insolvency and Bankruptcy Code, 2016 filed by Siemens Financial Services Pvt. Ltd. against Deepak Agarwal, personal guarantor to Sonali Exim Pvt. Ltd. Judicial Member Chitra Hankare and Technical Member Dr V.G. Venkata Chalapathy initiated the personal insolvency resolution process. Siemens Financial Services sanctioned a term loan facility to Sonali Exim Pvt. Ltd. on 31...

NCLT Delhi Admits Cedar Hospitality Into CIRP, Holds Borrower's OTS Extends Limitation

On 11 May, the Delhi Bench of the National Company Law Tribunal (NCLT) admitted a Section 7 petition filed by Bank of India against Cedar Hospitality Pvt. Ltd. and initiated the Corporate Insolvency Resolution Process (CIRP) over a default of Rs. 140.49 crore. Judicial Member Jyotsna Sharma and Technical Member Anu Jag Mohan Singh appointed Shailesh Chandra Ojha as the Interim Resolution Professional (IRP). The Bench observed: “It is settled law that the acknowledgement of debt made by the...

IBC Court Can't Assume Criminal Court Role For Offences Arising Out Of Insolvency: NCLT Guwahati

The National Company Law Tribunal (NCLT) at Guwahati has recently reiterated that insolvency proceedings are not the proper forum to determine criminal liability for alleged fraudulent removal of a corporate debtor's assets, ruling that such allegations must be pursued before the designated special court.A bench of Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh was dealing with an application originally filed by the Resolution Professional of Shree Sai Rolling Mills...

NCLT Ahmedabad Admits Astron Paper To Insolvency Over Rs 1.77 Crore Dues

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has admitted Astron Paper & Board Mill Limited to insolvency proceedings over a Rs 1.77 crore payment default claimed by an Australian supplier of corrugated waste paper. Judicial Member Chitra Hankare and Technical Member Dr. V.G. Venkata Chalapathy passed the order on May 11. Empire Sony PTY Limited, the operational creditor, said the default arose from supply of corrugated waste paper consignments under sales orders dated...

NCLT Mumbai Orders First Flight Couriers' Liquidation After Creditors Fail To Approve Resolution Plan

The Mumbai bench of the National Company Law Tribunal (NCLT) on Thursday ordered the liquidation of First Flight Couriers Ltd after the Committee of Creditors failed to arrive at a viable resolution plan that fully provided for EPFO dues and later voted to wind up the company. “Despite being granted sufficient time to reassess and amend the resolution plan for compliance, the CoC has not accomplished this. Consequently, the CoC has made a decision to liquidate the Corporate Debtor as no viable...

Separate Loan Agreements, Different Default Dates Do Not Require Separate Insolvency Proceedings: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai On Friday held that a financial creditor is not required to file separate insolvency proceedings merely because separate sanction letters or loan agreements were executed in favour of a corporate debtor, or because defaults occurred on different dates. “Merely because separate sanction letters or loan agreements were executed, or because defaults occurred on different dates, does not require the Financial Creditor to institute separate proceedings...

NCLT Kochi Allows Legal Heirs' Impleadment In Oppression Case As Applicant Was Unaware Of Death At Filing

The Kochi Bench of the National Company Law Tribunal has allowed the legal heirs of a deceased individual named in a company petition to be brought on record. The Tribunal accepted the applicant's claim that he was unaware of the individual's death when the case was filed, observing that “procedural technicalities ought not to be permitted to defeat the ends of justice.” Judicial Member Vinay Goel passed the order while allowing an impleadment application in a company petition concerning Sea...

NCLT Mumbai Refuses To Treat Securities Transactions By A Securities Trading Company As Fraudulent Under IBC

The National Company Law Tribunal (NCLT) Mumbai bench has recently refused to treat a loss-making share transaction by Laxmiramuna Investments Pvt. Ltd. as fraudulent trading. It held that the company was engaged in securities trading as part of its ordinary business and that no intent to defraud creditors had been established. "Indubitably, the corporate debtor is engaged in business of securities sale/purchase, and the transaction auditor has also observed in its report about the business of...

NCLT Mumbai Admits Homebuyers' Insolvency Plea Against Developers Of Stalled Avenue 54 Project

The Mumbai Bench of the National Company Law Tribunal (NCLT) on Friday admitted an insolvency plea by Avenue 54 Welfare Association, representing homebuyers of the stalled Avenue 54 housing project in Santacruz (West), Mumbai, against Sumer Buildcorp Private Limited and Sumer Radius Realty Private Limited. The plea concerns an alleged financial debt of Rs 203.27 crore arising from failure to complete the project and hand over possession. A Bench of Judicial Member Nilesh Sharma and Technical...

NCLT Mumbai Allows Loyal Auto Globe Liquidator To Seek Release Of MPID-Attached Properties

Holding that Loyal Auto Globe Pvt. Ltd.'s liquidation cannot effectively proceed while its properties remain under MPID attachment, the National Company Law Tribunal at Mumbai on May 15 allowed the liquidator to approach the competent Sessions Court for release of the properties. A bench of Judicial Member Nilesh Sharma and Technical Member Charanjeet Singh Gulati said the issue of release of the attachment must be decided by the competent court because the properties form part of the corporate...

NCLT Ahmedabad Approves ₹29 Crore Resolution Plan for Amul Industries, Rejects Workmen's Objections

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 12 May approved the resolution plan submitted by a consortium led by Mr. Sandeep Vadodaria for Amul Industries Pvt. Ltd., holding it compliant with Sections 30(2) and 53 of the Insolvency and Bankruptcy Code, 2016. Judicial Member Chitra Hankare and Technical Member Dr Velamur G. Venkata Chalapathy, approved the plan despite earlier rejection at the NCLT stage and subsequent remand by the National Company Law Appellate Tribunal...

Periyar Agro's ₹14.3 Crore Stock Could Not Have 'Vanished Like Water'; NCLT Kochi Orders Directors To Pay ₹38 Crore

The National Company Law Tribunal (NCLT) at Kochi has recently directed the suspended directors of Periyar Agro Food Industries Private Limited to jointly pay over ₹38 crore to the Corporate Debtor after holding that they had carried on the company's business with intent to defraud creditors. Holding that stock worth ₹14.30 crore could not have “vanished or evaporated like water” without leaving any documentary or financial trail, a coram of Judicial Member Vinay Goel held that the suspended...