Page 3 - National Company Law Tribunal

NCLT allows insolvency against Himalayan Mineral Water on J-K Bank's plea

The National Company Law Tribunal (NCLT) has directed initiating insolvency proceedings against Himalayan Mineral Waters, allowing Jammu & Kashmir Bank's plea for default of a corporate guarantee given for LeeL Electricals. The Allahabad bench of NCLT has also appointed Bhoopesh Gupta as the interim resolution professional (IRP) for this Dehradun-based firm's Corporate Insolvency Resolution Process (CIRP). "We are satisfied that the Applicant/Financial Creditor (J&K Bank) has proved the debt and the default, which is more than the threshold limit... the application u/s 7 is found to be fit for initiation of the CIRP against the Corporate Debtor (Himalayan Mineral Waters," said a two-member bench in the order passed last Monday. Jammu & Kashmir Bank had claimed a default of Rs 50 crore against Himalayan Mineral Waters, engaged in the business of manufacturing of beverages, being the corporate guarantor for the credit facilities availed by the Leel Electricals. LeeL ...

Cash-strapped Byju's may pay salary to employees for April this week

Last month, Byju Raveendran, the founder and chief executive of Byju's, secured a private debt of about Rs 30 crore to pay the March salaries of employees

How to make insolvency law solvent

IBC has served purpose by creating the fear of god among rogue promoters. It's time to plug the loopholes in the law and make the defaulters understand that the IBC isn't just all bark and no bite

Edtech company Byju's shareholders approve $200 million rights issue

The culmination of the rights issue will also set the stage for the launch of Byju's 3.0, the suite of AI-first products

NCLAT shuns insolvency plea against Parsvnath Landmark Developers

The National Company Law Appellate Tribunal (NCLAT) has dismissed the plea filed by four unit buyers of Parsvnath Landmark Developers to initiate insolvency proceedings against the subsidiary of Parsvnath Developer. The appellate tribunal upheld the orders of the Principal bench of the National Company Law Tribunal (NCLT), which on October 17, 2023, rejected their plea on technical grounds as the number of petitioners was only four, while the total number of allottees by Parsvnath Landmark is 488. The matter relates to La Tropicana Khyber Pass, a Delhi-based project of the realty firm. Section 7(1) of the Insolvency and Bankruptcy Code (IBC) mandates a petition on behalf of the homebuyers (as financial creditors) is maintainable only if either 100 in number or 10 per cent of the allottees join the petition. Moreover, the appellate tribunal also rejected the plea of flat buyers that they are of a different class, having an order from Delhi RERA directing the developer to refund the

Byju's seeks arbitration on NCLT trial; hearing adjourned to April 23

The plea for arbitration is interesting, as this will mean that the case will be moved away from NCLT's jurisdiction

Aon completes transaction to acquire Global Insurance Brokers in India

The process is expected to be completed later this year. In the meantime, Global Insurance Brokers will operate independently as an Aon company

Edtech major Byju's says now 262 tuition centres operate across India

The edtech firm says focus on quality with efficiency helps most centres turn profitable

HC sends show-cause notice to Go First official over maintenance issues

The Delhi High Court has issued a show-cause notice to the resolution professional of crisis-hit 'Go First' airline, asking why contempt proceedings should not be initiated against him for prima facie willfully disobeying judicial orders on allowing inspection and maintenance of lessors' aircraft. The high court said the RP (Resolution Professional) cannot plead difficulties in the implementation of the October 12, 2023, judgment after contempt proceedings have been filed by a lessor seeking to enforce court orders. "Prima facie, the orders of this court have been wilfully disobeyed by the respondent/ RP. Issue notice to show cause as to why proceedings of contempt be not initiated...," Justice Tara Vitasta Ganju said. The counsel for the RP submitted that he was willing to revert to the position regarding the maintenance of the aircraft. The court listed the matter for further hearing on March 15. It was hearing a petition filed by one of the lessors DAE (SY22) 13 Ireland Design

Biz integrity critical to ensuring investor confidence: NCLAT Chairperson

Emphasising that business integrity is extremely important for economic growth, appellate tribunal NCLAT's Chairperson Justice Ashok Bhushan on Tuesday said companies have the first responsibility of preparing a set of accounts that can be trusted. He asserted that constant vigil needs to be exercised so that each element of the transparency and governance chain works properly and to its best capacity. The chairman of the National Company Law Appellate Tribunal (NCLAT) was speaking at the international conference on 'Transparent Financial Reporting and Audit Quality - Pillars of Corporate Governance', organised by the National Financial Reporting Authority (NFRA) in the national capital. "Companies have the first responsibility of preparing a set of accounts that can be trusted. In several cases, weak accounting practices have led to financial scandals. If record keeping is not proper, financial results are not accurate, the entire business environment suffers," Bhushan said. If th

SpiceJet settles Rs 250 cr dispute with aircraft lessor Celestial Aviation

Both parties reached out to the National Company Law Tribunal (NCLT) last week, and now the matter will officially be withdrawn on March 1

Reached settlement with Celestial Aviation, formalities remain: SpiceJet

SpiceJet informs NCLT of near resolution in dispute with aircraft lessor Celestial Aviation requested an adjournment to finalise the settlement process

Byju's EGM gets underway: Raveendran skips, investors file suit before NCLT

A group of four investors of Byju's has filed an oppression and mismanagement suit against the management of the company before the Bengaluru bench of the NCLT, seeking declaring of founders, including CEO Byju Raveendran, as unfit to run the company, and appointing a new board. Besides, the suit has sought declaring the just concluded rights issue as void. Investors, who are seeking the ouster of Raveendran and family from the Byju's board at an extraordinary general meeting of shareholders for alleged "mismanagement and failures" at what was once India's hottest tech startup, have also sought a forensic audit of the company in the plea filed before the National Company Law Tribunal (NCLT) on Thursday evening, according to a court filing. As per the filing, the investors have sought declaring the present management as unfit to run the company and appointing of a new CEO and a new board. The plea also wants a forensic audit and a direction to the management to share information wit

NCLT extends deadline for Go First's insolvency for another 60 days

The National Company Law Tribunal on Tuesday extended the deadline for another 60 days to complete the resolution process of grounded airline Go First. A two-member bench of the Delhi-based NCLT admitted the plea filed by the resolution professional (RP) of Go First seeking an extension of the timeline to complete the corporate insolvency resolution process (CIRP). Diwakar Maheshwari, appearing for RP, argued that so far three parties have submitted their expression of interest for Go First and deposited the earnest money. These firms are expected to submit resolution plans for Go First which has been undergoing CIRP since May 10, 2023. This is the second such extension granted by the NCLT. The tribunal had on November 23 last year granted an extension of 90 days, which ended on February 4. The three firms, including budget carrier Spicejet, Sharjah-based Sky One, and African continent-focused firm Safrik Investments, have shown interest in buying Go First. The Insolvency & ...

SIAC cites lack of jurisdiction, rejects Sony's plea against Zee Ent

The Singapore arbitration panel cites lack of jurisdiction for rejection

NTPC to bid for stressed KSK Mahanadi thermal power project in Chhattisgarh

Sources said NTPC will be bidding for KSK as the union power ministry is pursuing government companies to pick stressed assets for both private and state-owned companies

Ex-promoters, can submit bids if eligible under Section 29A of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) on Thursday said former promoters and directors of a company going through insolvency process are not barred from submitting bids until they are ineligible under clauses of Section 29A of the insolvency law. The mere fact that someone was a promoter and director of a company going through the Corporate Insolvency Resolution Process (CIRP), does not make that person ineligible to submit a resolution plan, said the appellate tribunal while setting aside an order of Mumbai bench of the National Company Law Tribunal (NCLT). The NCLT said Section 29A of the Insolvency and Bankruptcy Code (IBC) restricts such persons from submitting a resolution plan as it could have an adverse effect on the entire CIRP. The tribunal made the observations while denying the resolution plan of Mahesh Mathai for Blue Frog Media, in which he was a director. Mathai's proposal was approved by the Committee of Creditors (CoC) with a 91.86 per cent vote share a

SSW to invest Rs 138 cr in AMW Autocomponent, part of insolvency resolution

Steel Strips Wheels Ltd (SSWL) will invest Rs 138 crore in AMW Autocomponent Ltd as part of an insolvency resolution plan. The company's board has decided on the plan after the Ahmedabad Bench of the National Company Law Tribunal gave its nod for its resolution plan for AMW Autocomponent, a regulatory filing said on Tuesday. "SSWL shall infuse Rs 138.15 crore into AMW Autocomponent Limited(AACL) through a mix of equity and debt as per the resolution plan approved by NCLT Ahmedabad," it said. The amount will be utilised as full and final settlement of financial creditors, operational creditors, workmen/employees and other creditors of AACL, and will be treated as full discharge of SSWL's obligation under the approved resolution plan, it added. SSWL is into designing and manufacturing automotive wheels, both under the steel & alloy categories.

NCLT approves resolution plan for Reliance Communications Infrastructure

Last week, the NCLT gave its approval for the sale of specific real estate properties of Reliance Communications Limited

Resolution professional calls for EOI for troubled GVK Gautami Power

The financial creditor, Edelweiss Asset Reconstruction Company Limited, had filed a petition to initiate a Corporate Insolvency Resolution Process (CIRP) against GVK Gautami Power