NCLAT

The National Company Law Appellate Tribunal has declined to lift the stay on the NCLT order, barring amendment of the Articles of Association of Aakash Educational Services, a subsidiary of the debt-ridden edtech major Byju. Disposing the petitions moved by Manipal Health Systems and Aakash Educational Services, the Chennai bench of the National Company Law Appellate Tribunal (NCLAT) on Friday asked them to file applications before the National Company Law Tribunal for vacating the order passed on November 20, 2024. A two-member bench granted them a week to file it and also directed the National Company Law Tribunal (NCLT) to decide it within three weeks thereafter. Moreover, the status quo would continue as directed by the Supreme Court in this matter, a 14-page-long NCLAT order said. An extraordinary general meeting (EGM) of Aakash Educational Services was scheduled to be held on November 20 to consider and approve alteration in the AoA, which was objected to by the minority ...

NCLAT refuses to set aside order halting move to amend AoA

Insolvency appellate tribunal NCLAT has given a go-ahead to debt-ridden IL&FS group for the sale of its subsidiary IL&FS Paradip Refinery Water Ltd (IPRWL) to a successful bidder. According to reports, this may enable IL&FS to repay a debt of around Rs 1,000 crore. IPRWL was set up to meet water requirement of the 15 MTPA Paradip Refinery Project developed by IOC in Odisha. IL&FS, which is paring its debt through asset resolution, has not received consent from IOCL for sale of its stake in IPRWL. It had approached the National Company Law Appellate Tribunal (NCLAT), which is supervising the process, to direct IOCL to either acquire 100 per cent shareholding in IPRWL at a fair valuation or grant its consent as per the terms of the BOOT agreement and the RFP so as to enable IL&FS to sell it. However, IOCL through its counsel submitted that the BOOT (Build, Own, Operate, and Transfer) agreement with IL&FS was till 2039 and it cannot be disinvested before the said .

The National Company Law Appellate Tribunal (NCLAT) has set aside a petition seeking to initiate insolvency proceedings against Amazon Wholesale (India). A three-member NCLAT bench upheld the order passed by the National Company Law Tribunal (NCLT), which had in March this year dismissed the insolvency plea filed by Multiplier Brand Solutions. Multiplier Brand Solutions had filed the plea under Section 9 of the Insolvency & Bankruptcy Code. It had alleged a default of Rs 3.7 crore for eight invoices raised between March 2023 and May 2023. However, rejecting it, NCLAT said the "claim of Appellant for payment of invoices which are the subject matter of Section 9 Application was disputed much before Demand Notice was issued". The appellate tribunal further said: "The adjudicating authority (NCLT) has not committed any error in refusing to initiate CIRP, there being pre-existing dispute which is reflected with the correspondence which took place between the parties much prior to ...

In a relief to Raheja Developers, the appellate tribunal NCLAT has confined the insolvency proceedings against the realty firm to only one of its projects 'Raheja Shilas'. However, it has directed Raheja Developers to provide the details regarding the other incomplete projects and the status of all ongoing projects, enabling appropriate orders to be passed. A three-member bench of the National Company Law Appellate Tribunal (NCLAT) led by Chairperson Justice Ashok Bhushan, directed the Interim Resolution Professional (IRP) to collate the claims related to the project and submit the status report. "We are of the view that, for the time being, as was prayed by the Applicant/Respondent herein, the insolvency may convene to one Project, namely 'Raheja Shilas (Low Rise)," said NCLAT in its interim order passed on Thursday. The NCLAT direction came over a petition filed by Navin Raheja, Chairman & Managing Director of the suspended board of the realty firm challenging an order from ...

Banks have had to take a haircut of over two-thirds in the corporate insolvency cases being resolved through the bankruptcy courts, a report said on Wednesday. In over 71 per cent of the cases, the 270-day timeline is getting exceeded, the report by rating agency Icra said, adding that this is resulting in a higher number of liquidation orders as the elongated process erodes value. "'Lenders continue to face steep haircuts or reduction in loan amounts of nearly 72 per cent in Q2 FY2025 as the overall resolution process continues to face material delays emerging from litigations from either promoters or dissenting creditors," the agency's group head for structured finance ratings Abhishek Dafria said. He added that 71 per cent of the ongoing corporate insolvency resolution processes (CIRPs) had exceeded 270 days, post-admission by the NCLT. "The elongated process results in further erosion of the corporate debtor, which has also resulted in a high share (44 per cent) of CIRPs being

The Insolvency appellate tribunal has directed the debt-ridden IL&FS group to complete the resolution of the remaining 58 firms by March 31, 2025 and has extended the moratorium until the date. A two-member bench observed that the resolution process for the remaining 58 entities is at an advanced stage and "considerable progress has been made by IL&FS (Infrastructure Leasing and Financial Services), which is pairing debts through asset resolution and other mechanisms. "We, thus, for the time being, are of the view that a direction needs to be issued to IL&FS and a new board to complete the resolution process of 58 entities as captured in paragraph 24 of the affidavit by March 31, 2025," said NCLAT in an order passed on Tuesday. NCLAT also directed IL&FS to take "appropriate steps" before the National Company Law Tribunal (NCLT) to close the process. Earlier, on August 28, 2024, the National Company Law Appellate Tribunal (NCLAT) questioned the continuation of the ...

The NCLT currently operates with 43 members out of its authorised strength of 63. Legal experts believe that if the NCLT had been at full capacity, Jet Airways might have had a chance at revival

The Supreme Court has directed the liquidation of Jet Airways, citing the failure of the Jalan-Kalrock Consortium to meet revival conditions, overturning the NCLAT's approval

The NCLAT on Friday upheld a CCI order that rejected a plea by the Travel Agents Association of India (TAAI) alleging anti-competitive practise by the government by exclusively using the services of their own agencies. A three-member bench also imposed a cost of Rs 5 lakh, observing that Government of India cannot be considered as an enterprise. The case pertains to a direction issued by the Department of Expenditure(DoE) in March 2006 to all government officials, including employees of PSU units to exclusively utilise the services of either Balmer Lawrie & Co or Ashok Travels and Tours. Balmer Lawrie & Co is a company under Ministry of Petroleum & Natural Gas while Ashok Travels and Tours is a division of state-owned India Tourism Development Corporation. Terming the directive anti-competitive, TAAI approached CCI alleging that it has restricted the market access for travel agent services for booking air tickets for the last 14 years and adversely impacted the benefits ..

With this, Byju Raveendran and his brother Riju Raveendran have again lost control over Think and Learn Pvt Ltd or Byju's

A bench led by Chief Justice DY Chandrachud revoked the NCLAT's approval of Byju's settlement of Rs 158.9 cr in outstanding dues to the BCCI

Appellate tribunal NCLAT has upheld an order to allow the central government to take over the management of the prestigious Delhi Gymkhana Club. The National Company Law Appellate Tribunal (NCLAT) set aside the petition filed by the erstwhile management members against the order passed by the Principal Bench of the NCLT. On April 1, 2024, the NCLT allowed the plea filed by the Ministry of Corporate Affairs for taking over the Delhi Gymkhana Club management citing "violations" of the Company Law and said there was "sufficient material" for holding that, as it is a case of mismanagement. In its 149-page order, the NCLT had also allowed the ministry to nominate 15 persons as directors on the club's general committee as well as manage the affairs of the club. The said order was challenged before the appellate tribunal, which has been now upheld on Monday by a two-member bench, comprising Chairperson Ashok Bhushan and Member Arun Baroka. However, the NCLAT bench also also directed the

The National Company Law Appellate Tribunal (NCLAT) has closed the insolvency proceedings against Jaypee Healthcare after the financial creditors' dues were settled by Max Healthcare. The appellate tribunal's direction to close the Corporate Insolvency Resolution Process (CIRP) against Jaypee Healthcare Ltd (JHL) came after the financial creditor submitted that they had received the amount of Rs 1,035.29 crore as part of the settlement and no claim had survived. "In view of the fact that the entire claim has now been satisfied and the amount deposited has been disbursed, we see no reason to continue the CIRP any further," said the NCLAT order passed on Thursday. CIRP against JHL was initiated by the Allahabad bench of the National Company Law Tribunal (NCLT) on June 14 this year, over a petition filed by its lead creditor JC Flowers Asset Reconstruction Ltd. This was challenged by the Manoj Gaur-led parent group firm Jaypee Infratech Ltd (JAL) before the appellate tribunal ...

The Supreme Court on Wednesday reserved its judgement on a plea of State Bank of India and other creditors challenging the National Company Law Appellate Tribunal (NCLAT) decision that upheld the resolution plan of grounded air carrier Jet Airways and approved the transfer of its ownership to Jalan Kalrock Consortium (JKC). A bench comprising Chief Justice of India D Y Chandrachud and Justices JB Pardiwala and Manoj Misra heard submissions of Additional Solicitor General (ASG) N Venkatraman, appearing for the appellant banks and others, and senior advocate Mukul Rohatgi, representing the consortium, before reserving the judgement. The NCLAT had on March 12 upheld the resolution plan of the grounded air carrier and approved the transfer of its ownership to the JKC. The appellate tribunal further directed the Jet Airways monitoring committee to complete the transfer of ownership within 90 days. Besides, the insolvency the NCLAT had also directed the lenders of Jet Airways to adjust th

The National Company Law Tribunal (NCLT) has has directed to initiate insolvency proceedings against Syska LED Lights, admitting the plea filed by its operational creditor -- Sunstar Industries. Syska LED Lights, part of Pune-based SSK Group, operates in segments such as LED lights, personal care appliances, mobile accessories, home appliances, and smart watches. The Mumbai bench of NCLT admitted the plea filed by Sunstar Industries, claiming total dues of Rs 7.70 crore and has appointed Debashis Nanda as the interim resolution professional suspending the board of Syska LED Lights, as per the provisions of the Insolvency & Bankruptcy Code (IBC). It rejected Syska LED Lights' claims of a pre-existing dispute and said the e-mail exchanged between parties establishes its liability towards its operational creditor. "We are of the considered view that the applicant has been able to establish the existence of operational debt and its default on the part of the corporate debtor and ...

It stated that, according to the Supreme Court, there should be minimal interference in the commercial decision of the committee of creditors

The Insolvency appellate tribunal NCLAT has granted two weeks more time to debt-ridden realty firm Supertech Township Projects suspended director Ram Kishore Arora to circulate the settlement proposal to both its lenders and home buyers. The National Company Law Appellate Tribunal (NCLAT) also suggested the realty firm facing insolvency proceedings to publish the settlement proposal on its website so that it can be accessed by all concerned stakeholders. "In view of the fact that Appellant is circulating a proposal for resolution of the project to the bank as well as to the homebuyers, we grant two weeks opportunity to the Appellant to complete the proposal and circulate it to the bank as well as to all the homebuyers," said a three-member NCLAT bench. The bench further said, "On the next date, we will consider whether the proposal submitted deserves to be accepted or not after hearing counsel for the lenders as well as the homebuyers who have filed applications in the appeal. Any .

The NCLAT on Thursday gave a go-ahead to the insolvency resolution of IL&FS Engineering and Construction Company Limited (IECCL) and delinked it with the other listed loss-making companies of debt-ridden IL&FS. However, the National Company Law Appellate Tribunal (NCLAT) also clarified that ICICI-led consortium, which is opposing the IECCL resolution, would have the liberty to press for its "objection on the extinguishment of its entire debt, or mere payment of 42.25 per cent shareholding of IECCL in the ongoing resolution process." IL&FS, which owns 42.25 per cent of IECCL, is selling a stake in the company and has invited bids under the Swiss Challenge method. It has received a binding bid from a prospective buyer and voting by lenders is expected to be completed by September 30, 2024. The consortium led by ICICI has opposed the proposal before the NCLAT, where IL&FS has filed an application seeking its permission to sell its stake with a "haircut" and without ...

The Supreme Court on Thursday reserved its verdict on a plea of a US firm against the NCLAT order stopping insolvency proceedings against ed-tech firm Byju's. A bench headed by Chief Justice D Y Chandrachud asked the insolvency resolution professional (IRP) to maintain status quo till the apex court delivers its judgement in the matter. The bench, also comprising Justices JB Pardiwala and Manoj Misra, considered the plea of US firm Glas Trust Company LLC and asked the IRP not to proceed with the committee of creditor's meeting to deal with the Byju's case. While hearing the matter on Wednesday, the top court had questioned the verdict of insolvency appellate tribunal NCLAT setting aside the insolvency proceedings against Byju's and approving its Rs 158.9 crore dues settlement with the BCCI. Observing that the National Company Law Appellate Tribunal (NCLAT) did not apply its mind while closing the insolvency proceedings against the ed-tech major, the bench had hinted that it may sen