Page 7 - Insolvency And Bankruptcy Code

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 ...

Byju's founder told ally to flee US to avoid testifying against him

William R Hailer said Raveendran sent him a plane ticket to Dubai just two days before Hailer was set to testify about Raveedran's efforts to regain control of parts of the Byju's education empire

SpiceJet faces fresh insolvency pleas from Sabarmati Aviation, JetAir 17

Two more insolvency petitions were filed by Sabarmati Aviation and JetAir 17 against budget carrier Spicejet at the National Company Law Tribunal (NCLT) on Monday. The NCLT issued a notice to the airline over the plea by operational creditor Sabarmati Aviation while asking another complainant, JetAir 17, to file additional documents in support of its claims of USD 27 million. During the proceedings, senior advocate Krishnendu Datta representing SpiceJet submitted that a reply would be filed over the plea of Sabarmati Aviation. However, he opposed the plea of JetAir 17 contending that their claims as an operational creditor are disputed. In the matter of JetAir 17, the NCLT asked the company to file additional documents to support its claims as SpiceJet contended that it has not entered into a lease agreement with it. JetAir 17, an Irish company, operates within the renting and leasing of air passenger transport equipment industry. Dutta submitted that JetAir 17 is claiming its du

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 ...

BCCI may move NCLT to seek withdrawal of Byju's insolvency proceedings

The Supreme Court last month annulled the National Company Law Appellate Tribunal ruling that sanctioned a settlement of Rs 158 crore between Byju's and the BCCI on Oct 23

Insolvency law must protect homebuyers, avoid complex resolution process

A more effective solution would be to adopt the waterfall mechanism from the FSC framework, which prioritises the interests of customers over those of other claimants

Include land authority in CoC for real estate insolvency cases: IBBI

The IBC has seen successful resolution in 46 per cent of cases admitted in the real estate sector as of June 2024, IBBI data shows

IBBI proposes mediation mechanism for operational creditors in IBC

IBBI stated that in most insolvency cases initiated by operational creditors, the creditors are more focused on the repayment of money claims than on admission or resolution of the corporate debtor

IBBI, IBA to launch centralised platform for asset liquidation auctions

Initially, the platform will be deployed in pilot mode, with a full rollout planned at a later date after incorporating improvements based on usage feedback

Mahagenco-NTPC emerges as top bidder for Sinnar Thermal at Rs 3,800 crore

The Mahagenco-NTPC has outbid at least seven others including Adani Power, Vedanta Group, Jindal Power, Orissa Metaliks, and Singapore-based VFSI Holdings

Regulatory changes to provide necessary push to surety bonds biz: Experts

Regulatory changes like amendment in the Insolvency & Bankruptcy Code and standardization of bond wordings would give a fillip to newly introduced product underwritten by general insurance companies, called surety bonds, experts said. This product launched in 2022 is going to play a crucial role in supporting India's infrastructure development and heavily reduce reliance on bank guarantees for project finance. As a result, banks can focus on other productive sectors for lending. Bajaj Allianz General Insurance, which is the pioneer of the product said that it has been able to add more than 50 beneficiaries who have started accepting surety bonds. According to Bajaj Allianz General Insurance Chief Technical Officer TA Ramalingam, possible amendments in the legal framework are crucial in providing insurance companies with equal legal recourse as banks under the Insolvency and Bankruptcy Code (IBC). This parity would provide a level playing field, encourage fair competition and ...

Supreme Court sets aside NCLAT order halting Byju's insolvency proceedings

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

Byju's in trouble again as SC scraps NCLAT ruling on insolvency proceedings

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

When will India celebrate failure? Insolvency key to small business growth

Entrepreneurs, fearful of social judgement, often hesitate to seek help, allowing their struggles to fester until it is too late

NCLAT closes proceedings against JHL as Max Healthcare settles claims

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 ...

SC revives Adani's Rs 27K cr insolvency resolution for KSK Mahanadi project

The lenders have made claims of Rs 29,330 crore against KSK Mahanadi, which was sent for debt resolution in 2020 after the firm defaulted on its debt payments

There is a need for second-generation IBC reforms, says Amitabh Kant

India's G20 Sherpa called for opening doors to non-sovereign or private players to deploy technology for improved court management

Future Lifestyle lenders approve bid from Space Mantra & Guptas' consortium

The lenders of Future Lifestyle Fashions Ltd, going through insolvency resolution, have approved the bid from a consortium of Space Mantra and Sandeep Gupta & Shalini Gupta. The Committee of Creditors (CoC) of Future Lifestyle Fashions Ltd (FLFL) has voted in favour of the resolution plan submitted by the consortium, according to a regulatory filing from the company. "We hereby inform and place on record that the resolution plan submitted by consortium of Space Mantra Pvt Ltd and Sandeep Gupta & Shalini Gupta is approved by the Committee of Creditors of FLFL on September 27, 2024," it said. The company has not shared the details of the plan approved by the lenders. It also informed that the Corporate Insolvency Resolution Process (CIRP) period for FLFL ended on August 26, 2024. The Resolution Professional (RP) of the company filed an application before the National Company Law Tribunal on August 24, 2024, seeking extension of the CIRP period. The CIRP proceedings of FLFL is ...

NCLAT grants two weeks time for Supertech Township's settlement proposal

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 .