NCLT
NCLT Rejects Sterling Biotech's Plea To Reclaim Pune Land From Sterling Healthcare
The National Company Law Tribunal (NCLT) at Mumbai on Friday rejected an application filed by Sterling Biotech Ltd (SBL) seeking possession of an industrial plot in Pune leased to Sterling Healthcare Ltd (SHL), which is currently under insolvency proceedings.The dispute related to a 29-year lease executed in 2008 for land located at Village Urse in Pune district. A coram comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar held that SBL could not recover the...
SEBI Has Cleared Modified Demerger Scheme: Vedanta Informs NCLT
Anil Agarwal led Vedanta Limited on Wednesday told the National Company Law Tribunal (NCLT), Mumbai that Securities and Exchange Board of India (SEBI) has cleared its revised demerger plan after earlier warnings on disclosure and compliance issues.Vedanta, a multi-national conglomerate engaged in the business of natural resources exploration intends to split its aluminium, oil and gas, power, and steel busineeses into separate listed entities. A bench of Judicial Member Nilesh Sharma and...
NCLT Orders Liquidation Of Garvit Innovative Promoters Ltd Amidst Non-Cooperation & Absence Of Records
The National Company Law Tribunal (NCLT), Allahabad, comprising Mr. Praveen Gupta (Member-Judicial), has ordered the initiation of liquidation proceedings against M/s Garvit Innovative Promoters Ltd., following an application brought by the Resolution Professional. The present application was filed under section 33(2) read with section 60(5) of the IBC, 2016, by the resolution professional of the corporate debtor, seeking directions for the liquidation of the corporate debtor (M/s...
Investors Who Were Promised Assured Returns Qualify As Financial Creditors U/S 5(7) Of IBC: NCLT Indore
The National Company Law Tribunal (NCLT), Indore Bench, comprising Mr. Mohan P. Tiwari (Member-Judicial) and Mr. Sanjeev Sharma (Member-Technical), has held that the deposit schemes with assured returns amount to financial debt and the investors promised assured returns qualify as the financial creditor under section 5(7) of the IBC, 2016. Background of the Case The financial creditors (125 investors) filed a section 7 IBC petition seeking initiation of CIRP against the Garima Real...
NCLT Rejects Byju's' Plea to Halt Aakash's Proposed Rights Issue
The National Company Law Tribunal (NCLT) at Bengaluru, has recently refused to grant interim relief to insolvent ed-tech Byju's (Think and Learn Pvt Ltd) in its bid to stop Aakash Educational Services Ltd. (AESL) from proceeding with a proposed rights issue.The order, allows AESL to hold its Extraordinary General Meeting (EGM) on October 29 as scheduled.The order was passed by a coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada in an oppression and...
NCLT Cuttack Orders Initiation Of CIRP Against Bhilai Jaypee Cement Limited
The National Company Law Tribunal (NCLT), Cuttack Bench, Deep Chandra Joshi (Member-Judicial) and Banwari Lal Meena Banwari Lal Meena (Member-Technical) has initiated the CIRP against Bhilai Jaypee Cement Limited, a subsidiary of the debt-ridden group Jaiprakash Associates Limited, for a default of Rs 45 crore. The petition under section 9 of the IBC was filed by the operational creditor, Sidhgiri Holdings Pvt Ltd. Bhilai Jaypee Cement Limited used to purchase coal from the...
NCLT Cannot Recall Order Passed On Merits Under Rule 11 Of NCLT Rules 2016: NCLAT Chennai
The National Company Law Appellate Tribunal (NCLAT), Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), has held that an order passed on merits cannot be recalled by the NCLT under rule 11 of the NCLT Rules, 2016. Background The CIRP of the corporate debtor was initiated, and the appellant turned out to be the successful resolution applicant (SRA). Six homebuyers filed applications before the NCLT seeking execution of...
NCLT President Cannot Transfer Cases Beyond Territorial Jurisdiction Of Bench: Gujarat High Court In Essar Steel Insolvency Case
The Gujarat High Court has recently held that the President of the National Company Law Tribunal (NCLT) has no authority to transfer cases from one State to another through administrative orders.The ruling came in proceedings linked to the Essar Steel insolvency process, where the court also found that repeated recusals by NCLT Members in Ahmedabad were neither "legal" nor "justified."A single bench of Justice Niral R Mehta made the finding in a petition filed by Arcelormittal Nippon Steel India...
Corporate Debtor Cannot Escape Liability By Transferring Debt To Holding Company: NCLT New Delhi
The National Company Law Tribunal (NCLT), New Delhi Bench, comprising Shri Manni Sankariah Shanmugha Sundaram (Member-Judicial) and Shri Atul Chaturvedi (Member-Technical), has observed that merely the internal arrangements between the group companies cannot absolve the corporate debtor of its obligation towards third-party creditors. The appellant was engaged in the trade of Kraft paper reels, and it supplied material to the corporate debtor. Out of the total consideration amount of...
Resolution Professional Cannot Suo Moto Reject Claims Once They Have Been Admitted: NCLT Mumbai
The NCLT, Mumbai Bench, comprising Ms. Lakshmi Gurung (Member-Judicial) and Sh. Hariharan Neelakanta Iyer (Member-Technical), has ruled that once the claim of the creditor has been admitted by the resolution professional, it cannot on its own reject it later. The applicant advanced a loan of Rs. 212 Cr. to the corporate debtor, secured by the corporate guarantee and the mortgage deed. The CIRP of the corporate debtor was admitted, and claims were invited. The applicant submitted its...
NCLT Delhi Admits TDT Copper Into Insolvency Over ₹154 Crore Debt
The National Company Law Tribunal (NCLT) at Delhi recently admitted TDT Copper Limited to insolvency proceedings, acting on a plea filed by Bank of India under Section 7 of the Insolvency and Bankruptcy Code (IBC).The public sector lender had approached the Tribunal seeking recovery of dues amounting to Rs 153.98 crore.A coram comprising Judicial Member Mahendra Khandelwal and Technical Member Anu Jagmohan Singh in an order passed on October 16 appointed Shailesh Chandra Ojha as the Interim...
Non-Redemption Of Redeemable Preference Shares In Absence Of Distributable Profits Doesn't Amount To Financial Debt: NCLT New Delhi
The NCLT, New Delhi Bench, comprising Ashok Kumar Bhardwaj (Member-Judicial) and Reena Sinha Puri (Member-Technical), has held that the non-redemption of the redeemable preference shares in the absence of distributable profit doesn't amount to financial debt under section 7 of the IBC. The applicant is a financial institution and a member of a consortium of lenders. It filed the section 7 petition against the corporate debtor for alleged default in redemption of RPS amounting to Rs....