NCLT Bengaluru Declares Congress MLC Naseer Ahmed Bankrupt Over ₹1,454 Crore Personal Guarantee Dues

The National Company Law Tribunal (NCLT) at Bengaluru recently ordered Congress MLC Naseer Ahmed bankrupt. The Tribunal noted that he failed to submit any repayment plan during his personal insolvency resolution process. The proceedings relate to dues of ₹1,454.71 crore arising from personal guarantees furnished for credit facilities extended to Scotts Garments Limited. A bench of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada held that the requirements for...

NCLT Hyderabad Directs Reconsideration Of Sarda Agro Scheme After HC Removes Wilful Defaulter Tag

The Hyderabad Bench of the National Company Law Tribunal (NCLT) on 22 May allowed an application filed by Ashok Kumar Sarda, promoter and former director of Sarda Agro Oils Limited, and Vijay Sarda, a shareholder, and directed the liquidator to reconsider their compromise scheme. Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri held that the scheme required reconsideration after the Telangana High Court set aside the wilful defaulter classification that had led to their...

NCLT Mumbai Approves Sunsai Media's Resolution Plan For Vin Semiconductors With ₹5.69 Crore Revival Package

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 8 June approved the resolution plan submitted by Sunsai Media Developers Pvt Ltd for Vin Semiconductors Pvt Ltd, finding that it complied with the Insolvency and Bankruptcy Code and CIRP Regulations. Judicial Member Ashish Kalia and Technical Member Charanjeet Singh Gulati accepted the Committee of Creditors' (CoC) decision, which approved the plan with a 99.43% voting share, paving the way for the company's revival through a...

NCLT Mumbai Admits Canara Bank's ₹282 Crore Insolvency Plea Against Reliance Infra SPV HK Toll Road

The Mumbai Bench of the National Company Law Tribunal (NCLT) has admitted Canara Bank's insolvency petition against HK Toll Road Private Limited. The company is a Reliance Infrastructure-promoted special purpose vehicle executing the Hosur-Krishnagiri six-laning highway project in Tamil Nadu. The admission was over a default of Rs. 282.59 crore. A bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar held that the bank's Section 7 application was complete in all respects. ...

NCLT Mumbai Initiates Personal Guarantor Insolvency Proceedings Against Anil Ambani On SBI Plea

Industrialist Anil Ambani has been admitted to personal insolvency proceedings by the Mumbai Bench of the National Company Law Tribunal on an application filed by State Bank of India over guarantees furnished for loans extended to Reliance Communications Ltd (RCOM) and Reliance Infratel Ltd (RITL), involving a default of ₹853.25 crore. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar admitted SBI's application after accepting the Resolution Professional's...

Secured Creditor Cannot Be Compelled To Issue NOC For Sale Of Secured Assets: NCLT Bengaluru

The National Company Law Tribunal (NCLT) at Bengaluru has recently held that a secured creditor cannot be compelled to issue a No Objection Certificate (NOC) for the sale of secured assets merely because the corporate debtor proposes an alternative mechanism for repayment of its dues. The tribunal dismissed an application filed by Gulam Mustafa Enterprises Pvt Ltd seeking directions to Piramal Finance Ltd to issue NOCs for sale of certain mortgaged assets. A bench of Judicial Member Sunil...

NCLT Ahmedabad Admits CIRP Against Areli Commerce, Rejects Financial Hardship Defence In S.7 Case

On 10 June, the Ahmedabad Bench of the National Company Law Tribunal (NCLT) initiated the Corporate Insolvency Resolution Process (CIRP) against Areli Commerce Pvt. Ltd., holding that financial hardship, liquidity constraints and market conditions cannot be used to defeat a Section 7 petition once debt and default are established. Judicial Member Shammi Khan and Technical Member Sanjeev Sharma rejected the corporate debtor's defence and admitted the petition filed by Standard Capital Markets...

Rejection Of Personal Guarantor's Repayment Plan By CoC Has Same Effect As Tribunal Rejection: NCLT Indore

The Indore bench of the National Company Law Tribunal (NCLT) has observed that rejection of a repayment plan by the Committee of Creditors (CoC) has the same effect as rejection of the plan by the adjudicating authority, while rejecting a personal guarantor's repayment plan after it was voted down by creditors. A bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta observed: “It is pertinent to note that the rejection of the Repayment Plan by the Committee of...

NCLT Chandigarh Admits Primezone Developers To CIRP, Treats Plot Allottee Payments As Financial Debt

On 5 June, the Chandigarh Bench of the National Company Law Tribunal (NCLT) admitted Primezone Developers Pvt. Ltd. to the Corporate Insolvency Resolution Process (CIRP), holding that payments made by plot allottees constitute financial debt under the Insolvency and Bankruptcy Code. Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal admitted the Section 7 petition filed by the allottees and initiated CIRP against the corporate debtor. The Bench held: “The Corporate Debtor...

NCLT Bengaluru Dismisses Netambit's Insolvency Plea Against Flipkart, Finds Pre-Existing Dispute

The National Company Law Tribunal (NCLT) at Bengaluru has dismissed an insolvency petition filed by Netambit Value First Services Pvt Ltd against Flipkart Internet Private Limited, holding that the material on record disclosed the existence of a pre-existing dispute between the parties.A coram of Judicial Member Mahendra Khandelwal and Technical Member Ravindra Chaturvedi observed that the dispute had been raised even before the issuance of the statutory demand notice. The Bench observed:“In our...

NCLT Chandigarh Issues Notice To Gridlogic Games On PhonePe's ₹3.93 Crore Insolvency Plea

The Chandigarh Bench of the National Company Law Tribunal (NCLT) has issued notice to Gridlogic Games Private Limited on an insolvency application filed by PhonePe Limited over alleged unpaid dues of ₹3.93 crore for promotional services rendered on its platform. The order was passed by Judicial Member K. Biswal and Technical Member K.K. Singh. While issuing notice and granting Gridlogic three days to file its reply, the bench declined a request for any further extension of time. In doing so,...

Flipkart Faces Fresh Insolvency Plea Before NCLT Bengaluru Over ₹1.69 Crore Marketing Services Dues

The National Company Law Tribunal at Bengaluru has issued notice to Flipkart Internet Private Limited on a plea filed by Applabs Media Private Limited seeking initiation of insolvency proceedings over an alleged operational debt of ₹1.69 crore.A coram of Judicial Member Mahendra Khandelwal and Technical Member Radhakrishna Sreepada passed the order. According to the operational creditor, the debt arises from three invoices amounting to ₹1.69 crores raised under a Marketing Agreement dated...