NCLT Kochi Rejects Bid To Claw Back Periyar Agro's Alleged 'Gift' Transfers To Suspended Directors

The National Company Law Tribunal (NCLT) at Kochi has held that payments made to directors through running business accounts cannot be mechanically treated as “gifts” under the Insolvency and Bankruptcy Code without clear proof that they were gratuitous. Dismissing a Resolution Professional's plea against the suspended directors of Periyar Agro Food Industries Private Limited, the tribunal held that the RP had failed to establish that the transactions qualified as undervalued transactions...

NCLT Ahmedabad Directs Wind World Resolution Plan Correction To Reflect Enercon's €19 Million Admitted Claim

The Ahmedabad bench of the National Company Law Tribunal has partly upheld objections by German wind energy company Enercon GmbH to the resolution plan for Wind World (India) Ltd.It held that the company's admitted claim for components and materials supplied could not be reduced to a notional value of ₹1 merely because related proceedings remained pending before the Supreme Court. “The mere pendency of the Special Leave Petitions before the Hon'ble Supreme Court could not, by itself, justify...

Ahmedabad NCLT Rejects Suwarna Buildcon's CIRP Plea Against Sadbhav Engineering

On 11 May, the Ahmedabad Bench of the National Company Law Tribunal (NCLT) dismissed a Section 9 insolvency petition filed by Suwarna Buildcon Pvt. Ltd. against Sadbhav Engineering Ltd., holding that the claim arose from a substituted contract and fell within the Section 10A embargo under the Insolvency and Bankruptcy Code, 2016 (IBC). Judicial Member Shammi Khan and Technical Member Sanjeev Sharma. It also dismissed the connected amendment application. The Bench observed: “..this Adjudicating...

NCLT Ahmedabad Dismisses Roselabs Voluntary Insolvency Plea, Imposes ₹10 Lakh Costs for Malicious Filing

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 11 May dismissed a voluntary insolvency petition filed by Roselabs Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016. Judicial Member Shammi Khan and Technical Member Sanjeev Sharma held that the proceedings were initiated with malicious intent to stall recovery and regulatory actions rather than for genuine insolvency resolution, and imposed costs of Rs 10 lakh, directing that the amount be deposited with...

NCLT Hyderabad Orders Recovery Of ₹1 Crore Paid By Personal Guarantor To Children As Preferential Transactions

The Hyderabad Bench of the National Company Law Tribunal (NCLT) has held that specific payments made by a personal guarantor to his daughter and son during the relevant look-back period constituted preferential transactions under the Insolvency and Bankruptcy Code, 2016, and directed recovery of ₹1 crore into the bankruptcy estate. The bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri passed the order in applications arising out of the bankruptcy proceedings...

NCLT Kochi Holds Similar Pre- and Post-CIRP Pricing Negates Undervaluation Allegation

The Kochi Bench of the National Company Law Tribunal (NCLT) on 8 May dismissed an application filed by the Resolution Professional of Pelican Biotech and Chemicals Labs Private Limited seeking avoidance of alleged undervalued transactions. Judicial Member Vinay Goel held that continuity of pricing between pre-CIRP and CIRP periods can be a relevant factor in assessing allegations of undervaluation under the Insolvency and Bankruptcy Code, 2016. He observed: “The Adjudicating Authority is...

NCLT Mumbai Bench Rejects Boston Ivy Insolvency Plea Against Aaquaries Over Fresh Demand Notice After Filing

The National Company Law Tribunal (NCLT) in Mumbai has rejected Boston Ivy Healthcare Solutions Private Limited's insolvency plea against Aaquaries Global Industries Limited after finding that the initial demand notice was defective and the company issued a fresh demand notice after already moving the tribunal over the same dues. “In this case, the Applicant filed an application under Section 9 based on a demand notice, which subsequently was found as defective and therefore, the Applicant...

NCLT Mumbai Admits Canara Bank's Insolvency Plea Against Supreme Housing Over ₹567 Crore Default

The National Company Law Tribunal (NCLT) at Mumbai on Wednesday admitted Canara Bank's Section 7 insolvency petition against Supreme Housing & Hospitality Private Limited over a default of ₹567.43 crore and initiated corporate insolvency resolution process (CIRP) against the company.A Bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar observed: “Accordingly, in our view, there exists a debt which is in default and the said debt is within limitation and exceeds the...

NCLT Chennai Orders Liquidation Of ARS Energy After CoC Fails To Approve Resolution Plan

On 5 May, the Chennai Bench of the National Company Law Tribunal ordered liquidation of ARS Energy Private Limited after the Committee of Creditors failed to approve any resolution plan and the proposal to appoint the Resolution Professional as liquidator did not secure the mandatory voting threshold under the Insolvency and Bankruptcy Code, 2016. Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam allowed an application filed by Resolution Professional R. Bhuvaneshwari...

NCLT Delhi Allows Withdrawal Of Nobility Estates CIRP, Restores Management Control To Board

The Delhi Bench of the National Company Law Tribunal (NCLT) on 5 May allowed withdrawal of the Corporate Insolvency Resolution Process (CIRP) against Nobility Estates Private Limited under Section 12A of the Insolvency and Bankruptcy Code, 2016, after recording that creditors met the statutory approval threshold and parties reached a settlement. Acting President Bachu Venkat Balaram Das and Technical Member Ravindra Chaturvedi allowed the withdrawal application, restored control of the company...

NCLT Chandigarh Orders Handover Of Aabha Industries Factory To RP, Says Arbitral Award Hit By IBC Moratorium

The Chandigarh bench of the National Company Law Tribunal (NCLT) has directed Neel-Rattan Enterprises Pvt. Ltd. and its directors to hand over possession, custody, and control of factory premises and related assets belonging to Aabha Industries Limited to the resolution professional, holding that continued enforcement of an arbitral award allowing their occupation could not continue during the insolvency moratorium.“The Tribunal further observes that the principle underlying Section 14 of the...

NCLT Mumbai Rejects Johnson Screens' Insolvency Plea Against Shapoorji Pallonji

The Mumbai bench of the National Company Law Tribunal on Tuesday dismissed a plea by Johnson Screens (India) Pvt Ltd to initiate corporate insolvency resolution process against construction major Shapoorji Pallonji and Company Pvt Ltd over an alleged operational debt of Rs 1.05 crore. Relying on a recent three-member NCLAT ruling in Ajay Rana (Director of Erstwhile Sarika Industries Pvt. Ltd.) v Sanjay Kumar Goel and Ors., which held that a unilateral interest clause in invoices cannot be...