Page 3 - National Company Law Tribunal

Liberty Shoes ousts Exec-Director Adesh Gupta after NCLT rejects his plea

Liberty Shoes has removed its Executive Director Adesh Kumar Gupta from the board after the National Company Law Tribunal (NCLT) dismissed his petition seeking exemption on requirements to file a plea, according to a regulatory filing. Gupta, who along with some other shareholders holds 5.83 per cent of the company, had filed a plea under Section 244 of the Companies Act, 2013, seeking waiver in requirements to file a plea alleging oppression and mismanagement. To file a plea alleging oppression and mismanagement, which is done under Section 241, it should be backed by at least one-tenth of the total number of the issued share capital of the company. However, NCLT has powers to waive this requirement in special circumstances. Gupta had approached NCLT seeking this waiver, which was rejected on November 20, 2023, according to a regulatory filing by Liberty Shoes on Tuesday. Earlier, NCLT had given a go-ahead to the Annual General Meeting of Liberty Shoes in which a special notice w

NCLAT dismisses PNB's plea against Sterling Biotech sale to US-based firm

The National Company Law Appellate Tribunal has set aside the plea of a UK-based subsidiary of Punjab National Bank against the NCLT order, approving the sale of Sterling Biotech to US-based food technology startup Perfect Day. The Mumbai bench of the National Company Law Tribunal (NCLT) on November 11, 2022, approved a Rs 638 crore bid of Perfect Day in an auction conducted by the liquidator of Sterling Biotech under the Insolvency & Bankruptcy Code. However, this was challenged by Punjab National Bank (International) Ltd, a stakeholder in Sterling Biotech, before the appellate tribunal National Company Law Appellate Tribunal (NCLAT), contending that the value of the Corporate Debtor was much higher than the one mentioned in the e-Auction notice. It had prayed to stay the auction process, direct the liquidator to maintain the status quo and invite fresh bids. According to the PNB's subsidiary, the value of Sterling Biotech was much higher than Rs 548.46 crore mentioned in the ...

Power ministry nudges state govts, gencos to take up insolvent assets

The power ministry is looking at a quicker turnaround of these stressed power plants and enhancing power supply

What are NCLT and NCLAT? Why has the Supreme Court accused them of 'rot'?

The NCLT and NCLAT are quasi-judicial bodies that hear cases related to Indian companies and came in for criticism from the Supreme Court on Wednesday

Go First case: New NCLT bench to hear petitions of airline, lessors

The NCLT bench had asked the registry to list the matter before the tribunal president for clarification, while hearing applications filed by 10 lessors in the Go First case

IBC regime was costing carriers additional $1.3 billion, says Centre

Time period during which airlines incurred these costs is unclear

Torrent files urgent plea in SC against Hinduja plan for Reliance Capital

Company says insolvency tribunal approved plan when appeals against it are pending

After filling most NCLT vacancies, Centre eyes faster resolution

After boosting NCLT's strength, the MCA has asked the body to expeditiously dispose of crucial cases, especially M&A, under the Companies Act

NCLT reserves order on Torrent Investent's plea against lenders on bidding

The National Company Law Tribunal (NCLT) on Wednesday reserved its order on Torrent Investment's plea against lenders accepting the resolution plan of Indusind International Holdings (IIHL), the investment arm of the Hinduja Group, to take over Anil Ambani-promoted Reliance Capital. In its appeal, Torrent Investment said the matter is pending with the Supreme Court and if the tribunal approves IIHL's Rs 9,650 crore resolution plan it will become infructuous if the apex court rules against the Committee of Creditors (CoC) decision on the extended challenge mechanism. However, the counsel for the administrator said, the apex court did not stay the proceedings on NCLAT's order on the extended challenge mechanism. After hearing both counsels, the NCLT bench consisting of Virendrasingh Bisht and Prabhat Kumar reserved the order on Torrent Group's appeal. NCLT on February 2, allowed Torrent Investments' plea challenging bankers' decision to hold a fresh round of auction for the takeover

Punj Lloyd fails to attract any bidder in second round of e-auction

Debt-ridden engineering, procurement and construction company Punj Lloyd, which is facing liquidation, has again failed to attract any buyer in the second round of e-auctions conducted by its liquidator. The second round of e-auction was conducted on the directions of the National Company Law Tribunal (NCLT) at a reserved price of Rs 1,061 crore on a going concern basis, according to a regulatory filing by the company secretary. "...e-auction notice dated July 24, 2023 made pursuant to Asset Sale Process Memorandum (ASPM) for the second e-auction- Punj Lloyd Ltd (in liquidation), announcing the sale of Punj Lloyd Ltd at the Reserve Price of Rs 1,061 crore ongoing concern basis undergoing liquidation pursuant to order dated May 27, 2022 of NCLT, New Delhi, Principal Bench, has failed to attract any bidder," the filing said. In July, Punj Lloyd had failed to get any buyer in the first round of e-auctions conducted by its liquidator. A reserve price of Rs 1,061 crore was fixed for Pun

Corporate affairs ministry assessing need to ramp up bench strength of NCLT

While industry stakeholders are calling for dedicated benches to handle insolvency matters, the government is reportedly not in favour of this proposal

Future Retail insolvency proceedings: NCLT extends deadline to Aug 17

The debt-laden firm has requested multiple extensions in the past

Spicejet argues against maintainability of petition filed by lessors

Aircastle (Ireland) told the NCLT that it is entitled to file multiple petitions against SpiceJet for breach of multiple contracts

NCLT reserves order in Zee Entertainment, Sony India merger case

The NCLT approval is an important legal milestone for the merger scheme to come into effect

Govt mulls changes to MSME prepackaged scheme, more teeth for IBBI

Experts feel that the current voting limit of 66 per cent for initiating the prepack process is a very rigid condition, which has been a deterrent for MSMEs

Zee Media board approves submission of bid to pave way for RBNL takeover

In its company filing, Zee Media said that a resolution had been passed on May 5, 2023, that granted approval to the company to submit its EOI with the CIRP of RBNL

JC Flowers ARC makes claim on Subhash Chandra's no-compete fees

ARC says no-compete fees received from Sony should be used to repay local debt

Weekend Bites: Corporate Samurai keels over, and big deal that's Met Gala

In which we munch over the week's platter of news and views

Nuvama Wealth aims to list by August, sets ambitious biz growth targets

Wealth management company Nuvama is aiming for a listing by August this year once its demerger from Edelweiss Financial Services gets through, a top official said on Wednesday. Edelweiss Financial Services' shareholders have already given their nod for the demerger. Nuvama, which was earlier called as Edelweiss Wealth Management, will be approaching the National Company Law Tribunal (NCLT) later this month for its approval for the scheme, Nuvama's chief executive and managing director Ashish Kehair told reporters. We would like to do the listing as soon as possible. I feel it will get listed by July or August, he added. Over 55 per cent of Nuvama is owned by private equity fund PAG, while Edelweiss' Rashesh Shah and Venkat Ramaswamy will have a 9 per cent ownership between them, he said. Kehair also announced the company's targets on the business growth front, stating that the wealth management space is under-penetrated in the country. The company, which has client assets of Rs 2

IBC provisions cannot be turned into debt recovery proceeding: NCLAT

The National Company Law Appellate Tribunal on Monday said the provisions of the Insolvency & Bankruptcy Code (IBC) cannot be turned into a debt recovery proceeding as the idea of this special code is to bring a debtor company back on its feet. Setting aside an order of the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against Coppertun Brewing, the appellate tribunal observed it "clearly fell in error" in admitting the plea "while turning a blind eye" on the evidence of pre-existing disputes between parties. When an operational creditor seeks to initiate an insolvency process against a Corporate Debtor, it can only be done in clear cases where no real dispute exists between the two, said the National Company Law Appellate Tribunal (NCLAT) bench, comprising Chairperson Justice Ashok Bhushan and Member Barun Mitra. "What also heavily weighs on our mind is that both in terms of the objectives of the IBC and settled proposition of law as expressed and ...