Page 2 - Nclat

NCLAT rejects plea to stay insolvency proceedings against Indrajit Power

The National Company Law Appellate Tribunal (NCLAT) has dismissed a plea to stay the insolvency proceedings against debt-ridden thermal power producer Indrajit Power. The appellate tribunal said "no error has been committed" by the National Company Law Tribunal (NCLT), while admitting the plea to initiate insolvency proceedings against the Maharashtra-based company on February 1, 2024, filed by Yes Bank. The said order passed by the Mumbai bench of NCLT was challenged by Rajiv Munjal, a director from the suspended board of Indrajit Power, before the NCLAT. However, NCLAT upheld the NCLT order observing that it admitted the insolvency plea after finding debt and default which is not even questioned in the appeal filed by the suspended board. "The submission of the appellant (director) that he proposes to enter into settlement, itself makes it clear that debt and default are admitted. In view of the aforesaid, we do not see any good grounds to entertain this appeal," said a two-membe

Supertech lender rejects settlement proposal; NCLAT to decide on insolvency

Punjab & Sind Bank, the lead lender of Supertech Township Projects, has rejected the settlement proposal and NCLAT will now take a final decision on the insolvency of the debt-ridden realty firm. Counsel representing Ram Kishore Arora, the suspended director of the realty firm informed NCLAT on Thursday about the rejection of the settlement proposal. "Counsel for the appellant (Arora) submits that they have received the communication from Punjab & Sind Bank that the proposal submitted by the appellant is not acceptable," noted an NCLAT order recording the submissions. A three-member bench of the National Company Law Appellate Tribunal (NCLAT) said it will have to take a "final decision" in the matter as the appeal has been pending for the last several months. "As a last opportunity, one-week time is allowed to the appellant," said NCLAT directing to list the matter on January 23 for the next hearing. Supertech Township Projects is developing a Group Housing Project - Golf ...

Company law tribunal appoints 24 new members to tackle member shortages

The newly appointed members will serve for five years or until they reach the age of 65

Meta moves NCLAT over CCI's Rs 213 cr penalty in WhatsApp privacy case

Meta asked the NCLAT to hear the case urgently, noting its implications and the stakes involved and the NCLAT bench led by Chairperson Justice (Retd) Ashok Bhushan is likely to hear it

NCLAT to hear Meta Platform's plea against CCI's penalty on January 16

Meta Platforms Inc on Monday moved corporate appellate tribunal NCLAT against the order passed by fair trade regulator CCI, which imposed a penalty of Rs 213.14 crore for abuse of its dominant position. The petition was mentioned before a National Company Law Appellate Tribunal (NCLAT) bench which also comprised its Chairperson Justice Ashok Bhushan. Senior advocates Kapil Sibal and Mukul Rohatgi appearing for Meta requested for an urgent hearing in the matter considering the importance and nature of the matter. A three-member bench, which also consisted of technical members Barun Mitra and Arun Baroka, directed listing the petition on January 16 for hearing. On November 18, the Competition Commission of India (CCI) had imposed a penalty of Rs 213.14 crore on social media major Meta for unfair business ways with respect to WhatsApp privacy policy update done in 2021. Besides, the competition watchdog has directed Meta to cease and desist from anti-competitive practices. Meta and

SC calls for govt 'introspection' over excessive delays in filing pleas

The Supreme Court on Friday called for an introspection by government authorities, including the National Highways Authority of India, over excessive delays in filing of appeals. Chief Justice of India Sanjiv Khanna while hearing a plea by the NHAI said, "I think everyone is adhering to the time schedule in almost 95 per cent of the cases. Why should the government of India not be able to adhere to it? There is something wrong somewhere... Introspection is necessary." The NHAI challenged an order by the National Company Law Appellate Tribunal (NCLAT) in an insolvency case which was listed before the bench, also comprising Justice Sanjay Kumar. The NCLAT had dismissed the NHAI's appeal on account of the delay. Expressing disapproval over the 295-day delay, the CJI emphasised on the importance of adhering to procedural timelines and observed solicitor general Tushar Mehta, representing the NHAI, had agreed with the court and assured addressing the issue. "I undertake to speak to the

NCLAT clears Sapphire Media's acquisition of Big 92.7 FM, upholds order

The National Company Law Appellate Tribunal (NCLAT) on Monday upheld the approval of Sapphire Media's resolution plan for acquiring Big 92.7 FM, owned by Reliance Broadcast Network Limited, dismissing a batch of appeals filed by Radio Mirchi, Orange FM, and others.The NCLAT Bench, comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra, concluded, "After considering the submissions, we find no grounds to interfere with the NCLT's order dated May 6, 2024, and consequently, the appeals are dismissed."Earlier, the National Company Law Tribunal (NCLT) cleared Sapphire Media's resolution plan in a ruling on May 6, 2024, with the plan being filed for approval by the resolution professional in NCLT Mumbai.The decision made by the National Company Law Tribunal (NCLT) was contested by the unsuccessful bidders, Abhijit Realtors & Infraventure and Creative Channel Advertising & Marketing, who filed a set of five appeals before the NCLAT. The appellants claimed ..

SC reverses NCLAT order, restores claims of 4 lenders of Reliance Infratel

During the insolvency process, the resolution professional had admitted the claims of these four entities as lenders

NCLAT refuses to limit insolvency process of Spaze Towers to one project

Appellate tribunal NCLAT on Tuesday dismissed the plea filed by the former promoters of realty firm Spaze Towers to confine the Corporate Insolvency Resolution Process to only one project -- Spaze Arrow. The National Company Law Tribunal (NCLT), on October 21, 2024, directed the initiation of insolvency proceedings against Spaze Towers, admitting a plea filed by its flat owners. Appealing against the order, the former management approached the National Company Law Appellate Tribunal (NCLAT), requesting to confine the CIRP process to only one project. However, the appellate tribunal rejected it, saying, "When the claimants have filed claims for the Project Corporate Park, which is not complete despite the Occupancy Certificate and Completion Certificate, by confining the CIRP to only one Project shall be tantamount to excluding the claims filed before the RP from different Project". "We, thus, after considering the facts and circumstances, which have been brought on the record by th

NCLAT sets aside EIH plea against NCLT order for Golden Jubilee Hotels sale

The National Company Law Appellate Tribunal (NCLAT) has set aside hospitality major EIH Ltd's petition against an NCLT order approving the sale of Hyderabad-based Golden Jubilee Hotels. The appellate tribunal upheld the earlier decision of the National Company Law Tribunal (NCLT), allowing the bid of a Singapore-based entity and said the business decision by the majority of the CoC (Committee of Creditors) "cannot be questioned or looked into". "This recent judgment leaves no doubt about reinforced faith in commercial wisdom of CoC and little scope of any judicial intervention," said a two-member bench of the NCLAT. Earlier, the Hyderabad Bench of NCLT had approved the bids of Singapore-based BREP Asia II Indian Holding Co II (NQ) PTE on February 7, 2020, which was challenged before NCLAT by EIH, a flagship company of The Oberoi Group. EIH, which was managing Golden Jubilee Hotels and has 16 per cent shareholding, contended that it could not be treated as a promoter and become ...

NCLAT appoints NBCC as consultant to complete Supertech's housing projects

State-owned NBCC has been appointed as a project management consultant to complete Supertech Ltd's 16 real estate projects at a cost of nearly Rs 9,500 crore, a move that will provide relief to thousands of homebuyers. In a regulatory filing on Thursday, the company informed that the National Company Law Appellate Tribunal (NCLAT), vide its order dated December 12, 2024, has "appointed NBCC (India) Limited as Project Management Consultant for the completion of 16 projects of Supertech Ltd". NBCC will complete 16 projects, comprising 49,748 houses in Uttar Pradesh, Uttarakhand, Haryana and Karnakata. "The tentative construction cost of the project is approx Rs 9,445 crore, including 3 per cent contingency. The consultancy fee has been fixed as 8 per cent, including 1 per cent marketing fee," NBCC said. The public sector company is mainly into project management consultancy (PMC) and real estate business. NBCC is already completing stalled projects of Amrapali Group on the order of

NCLAT declines to lift stay on NCLT order barring Aakash from amending AoA

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 ...

Don't want to go Byju's way: Aakash Educational Services to NCLAT

NCLAT refuses to set aside order halting move to amend AoA

IL&FS gets NCLAT nod to sell subsidiary IPRWL to successful bidder

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 .

NCLAT dismisses petition seeking insolvency against Amazon Wholesale

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 ...

NCLAT limits insolvency proceedings against Raheja to one project only

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 ...

Frequent breach of timelines leading to more liquidations under IBC: ICRA

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

NCLAT directs IL&FS to complete resolution of remaining firms by March 31

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 ...

Vacancies in company law tribunals hinder insolvency resolutions: SC

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

SC orders liquidation of Jet Airways, rejects NCLAT's approval of takeover

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