Financial Creditor Can't Seek Premature Redemption Of OCDs When Right Vests With Corporate Debtor: NCLT Kolkata

The National Company Law Tribunal (NCLT) at Kolkata recently held that a financial creditor cannot demand premature redemption of Optionally Convertible Debentures (OCDs) when the contractual terms give the right of early redemption exclusively to the corporate debtor.“Since the right of early redemption of Optionally Convertible Debentures vests exclusively in the Corporate Debtor, the Financial Creditor had no right to seek premature redemption,” the bench observed. “The terms of the...

Subhash Chandra Repayment Plan Hearing Could Bring NCLT Functioning To “Standstill”: NCLT President, Amid Member Shortage

The Delhi bench of the National Company Law Tribunal (NCLT) at Delhi on Wednesday orally remarked that the tribunal's functioning could come to a “standstill” if it had to hear the repayment plan proposed by Essel Group Chairman Subhash Chandra during regular court hours, amid the need for more Members.“I think we are likely to get more Members; otherwise, if we start hearing this during the Court time, the functioning of NCLT would come to a standstill,” NCLT President Justice Anupinder Singh...

NCLT Delhi Issues Notice To CBI In Subhash Chandra's Personal Guarantor Insolvency Case

The Delhi Bench of the National Company Law Tribunal (NCLT) on Wednesday issued notice to the Central Bureau of Investigation (CBI) in proceedings concerning a repayment plan proposed for Essel Group Chairman Emeritus Dr Subhash Chandra in his capacity as a personal guarantor of his group companies. The notice was issued after Solicitor General Tushar Mehta informed the five-member bench that the CBI was investigating a matter that has a bearing on the proceedings.“ We have been...

NCLT Mumbai Rejects SBI's ₹1,759 Crore Insolvency Plea Against Patanjali Foods Guarantor

The National Company Law Tribunal (NCLT), Mumbai, has rejected State Bank of India's insolvency plea against Dinesh Shahra, personal guarantor for Patanjali Foods Ltd., formerly known as Ruchi Soya Industries Ltd. The tribunal held that SBI's petition over a debt of ₹1,759 crore was filed after the limitation period had expired.A coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar held that SBI's March 21, 2023 insolvency petition was not maintainable, as the...

Liquidation Pendency Cannot Confer Jurisdiction Over Property Outside Liquidation Estate: NCLT Delhi

The Delhi Bench of the National Company Law Tribunal (NCLT) on 3 September held that the mere pendency of liquidation proceedings does not confer jurisdiction on the Adjudicating Authority to determine an independent dispute over possession of immovable property that does not form part of the liquidation estate. A Bench comprising President Justice Anupinder Singh Grewal and Technical Member Ravindra Chaturvedi dismissed an application filed by Vikas Chopra, who sought possession of an...

CLB Order Does Not Become Unenforceable Merely Because Forum Ceased To Exist: NCLT Guwahati

The National Company Law Tribunal (NCLT), Guwahati, on 16 September held that the abolition of the erstwhile Company Law Board (CLB) does not render a final order passed by the CLB incapable of enforcement. A Bench comprising Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh rejected the objection to execution of a final CLB order and directed Prag Bosimi Synthetics to take necessary steps to give effect to the order in favour of 3A Capital Services within four weeks....

NCLT Guwahati Says Unaccepted OTS Can't Stall Liquidation Sale, Dismisses ₹16.23 Cr. E-Auction Challenge

The National Company Law Tribunal (NCLT), Guwahati, on 10 September held that an unaccepted One-Time Settlement (OTS) proposal made before liquidation cannot be enforced as a matter of right to stop subsequent liquidation proceedings. A Bench comprising Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh dismissed an application challenging the liquidation sale of Shree Sai Prakash Alloys Pvt. Ltd. and seeking cancellation of the e-auction and the Sale Certificate...

Successor RP Cannot Revisit Earlier Avoidance Transaction Determination After Failed Resolution Plan: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has ruled that a Resolution Professional appointed after a failed resolution plan cannot reopen an earlier RP's concluded determination on avoidance or fraudulent transactions. The successor RP can place additional evidence to support the earlier determination, but cannot review or revisit it. “Accordingly, we are of considered view that IA 4677 of 2025 is not maintainable and cannot be adjudicated by this Tribunal in view of erstwhile RP...

NCLT Kolkata Allows Homebuyer To Seek Alternative Flat Or Full Refund After Invalid Cancellation

The Kolkata bench of the National Company Law Tribunal (NCLT) has held that a homebuyer's flat allotment could not be treated as cancelled after the developer failed to make the refund linked to the proposed cancellation.Since the flat was subsequently allotted to another person and possession was granted, the tribunal allowed the allottee to either seek an alternative flat with a covered car parking space or opt for a full refund of the amount paid with interest at statutory rates. The bench of...

NCLT Mumbai Dismisses ₹2,235 Crore Insolvency Plea Against Sumer Radius Realty Amid CBI, ED Probe

The National Company Law Tribunal at Mumbai has dismissed Omkara Assets Reconstruction Private Limited's ₹2,235 crore insolvency petition against Sumer Radius Realty Pvt. Ltd.A coram of Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati said that the financial creditor's inconsistent stands regarding the same transaction attracted the principle of approbate and reprobate, while the underlying transaction was also under investigation by the CBI and Enforcement...

Bank Cannot Retain Margin Money After Bank Guarantees Expire Without Invocation: NCLT Mumbai

The National Company Law Tribunal's Mumbai bench has observed that margin money deposited for Bank Guarantees can be retained by a bank only to the extent necessary for live guarantees and must be released where the guarantees have expired without invocation.The ICICI Bank had retained Rs.1.32 crore deposited by the corporate debtor, DK Infrastructure Pvt Ltd as margin money though only two Bank Guarantees remained live.A coram of Judicial Member Vinay Goel and Technical Member Charanjeet Singh...

Interest-Free Payment Does Not Automatically Become Financial Debt Merely Because Called A Loan: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai, has held that an interest-free payment does not automatically become a financial debt merely because it is described as a loan. The tribunal ruled that the nature and commercial purpose of the transaction, along with the surrounding documentary evidence, must be examined.A coram of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar observed, “An interest-free payment does not automatically become a financial debt merely because it is...