Page 11 - Nclat

NCLAT rejects UBI's plea to oppose Darwin Platform's bid for Lavasa Corp

The National Company Law Appellate Tribunal on Wednesday dismissed the plea of Union Bank of India to challenge the Darwin Platform Group's bid for Lavasa Corporation. Union Bank of India (UBI) had challenged the July 21, 2023, order of the Mumbai bench of the National Company Law Tribunal (NCLT), which approved the resolution plan of Darwin Platform Infrastructure Ltd for Lavasa Corporation that was developing a private hill city in the Pune district. The public sector lender contended for maximisation of the assets and submitted if a fresh process and fresh valuation were done, Lavasa Corporation would achieve more value. According to the reports, Darwin Group's bid for Lavasa was for Rs 1,814 crore. The National Company Law Appellate Tribunal (NCLAT) observed that UBI itself was a member of the CoC and also approved the plan as part of the assenting Financial Creditors who approved the Resolution Plan by 96.41 per cent vote share. After approval of the Resolution Plan by the NC

NCLAT rejects insolvency proceedings plea against Aditya Birla Fashion

The National Company Law Appellate Tribunal (NCLAT) on Tuesday dismissed a plea of an operational creditor to initiate insolvency proceedings against Aditya Birla Fashion and Retail Ltd (ABFRL). The appellate tribunal upheld the order of the Mumbai bench, which had on October 11, 2023, dismissed the plea of In Style Fashion on the ground of pre-existing dispute. "Considering the overall facts and circumstance of the present case and in view of the foregoing discussion, we are satisfied that the Adjudicating Authority (NCLT) did not commit any error in rejecting the Section 9 Application filed by the Appellant on the ground of pre-existing dispute," said the NCLAT. In Style Fashion was a franchisee and commission agent for running the showroom of ABFRL. However, the NCLAT also said, "We do not agree with the finding of the Adjudicating Authority that the Section 9 application was time-barred and hit by limitation". Meanwhile, the appellate tribunal said the operational creditor has

NCLAT refuses to stay Zee-Sony merger, case to be heard on January 8

Tribunal agrees to hear appeal against it on Jan 8

NCLAT refuses to stay Zee-Sony merger, case now to be heard in January

IDBI Bank and Axis Finance had challenged the August 10, 2023, order of the Mumbai bench of the National Company Law Tribunal (NCLT), which approved the Zee-Sony merger

Supreme Court agrees to hear bankruptcy plea against Zee founder

IDBI Trusteeship is the debenture trustee of 425 debentures worth Rs 425 crore issued by Essel Infraprojects Limited (EIL)

Penalty stayed on NTPC for non-disclosure of private firm stake acquisition

The National Company Law Appellate Tribunal (NCLAT) has stayed a CCI order that imposed a penalty on state-owned power producer NTPC for not disclosing the acquisition of 35.47 per cent equity share capital in Ratnagiri Gas & Power Private Ltd. The Competition Commission of India on August 22, 2023, imposed a penalty of Rs 40 lakh on NTPC for non-disclosure of its acquisition of 35.47 per cent of the equity share capital in Ratnagiri Gas & Power Private Ltd (RGPPL). This was challenged by NTPC before the NCLAT, which is an appellate authority over the orders passed by the Competition Commission of India (CCI). A two-member bench directed to list the matter on February 27, 2024, for the next hearing on NTPC's appeal and stayed the operation of order passed by the Competition Commission of India (CCI). "Till next date of hearing the operation of the impugned order dated 22.08.2023 passed by the CCI shall remained stayed," said NCLAT passed earlier this week. NCLAT directed CCI ..

Unable to repossess Go First planes, global aviation body downgrades India

Country tagged 'negative' due to 'material non-compliance', says Aviation Working Group

Govt mulls increasing NCLAT's strength to speed up corporate case disposal

The Centre is considering increasing the member strength of NCLAT to 20 from 12, and NCLT from 63 to 163

NFRA has retrospective jurisdiction over offences by delinquent CAs: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has upheld the penalty imposed by the National Financial Reporting Authority (NFRA) on auditors of Dewan Housing Finance Corporation Ltd (DHFL) observing that it has retrospective jurisdiction in the case of misconduct. Dismissing a bunch of appeals by DHFL's auditors, NCLAT in its 156-page long order said NFRA has a "clear and required retrospective jurisdiction" over the alleged offences by delinquent Chartered Accountants for a period even prior to its formation. Earlier in April 2023, NFRA had passed an order imposing a fine of Rs one lakh each on 18 DHFL auditors, barring 14, for six months to a year, citing misconduct in branch audits. Four of them - Harish T K, Ayna Tamtam, M Baskaran and Sam Varghese - who were debarred for one year had challenged the order by filing an appeal before NCLAT. The preliminary ground of the appellants was that NFRA does not have any retrospective jurisdiction since the watchdog was constituted

Zee-Sony merger: IDBI Trusteeship files appeal against Chandra at NCLAT

The appeal challenges the National Company Law Tribunal (NCLT) Mumbai order rejecting IDBI trusteeship's objection to the merger

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 ...

NCLAT adjourns hearing of Jet Airways' insolvency case to November 9

Insolvency appellate tribunal NCLAT on Wednesday adjourned the hearing on the Jet Airways matter to November 9 over the issue of transfer of ownership of the grounded air carrier to the Jalan Kalrock Consortium (JKC). When the matter was called for hearing on Wednesday, Additional Solicitor General N Venkataraman informed the two-member bench that the identical matter is also listed before the Supreme Court for hearing next week on November 7. Venkataraman, who is representing lenders including SBI and other banks in this matter, requested the bench to adjourn and list it for hearing after that, which was accepted by the bench headed by Chairperson Justice Ashok Bhushan. Though, senior advocate Krishnendu Dutta appearing for JKC, requested NCLAT to proceed and said the matter before the Supreme Court on November 7 had no direct connection with the matter before the appellate tribunal. Lenders of Jet Airways approached the Supreme Court last month over the NCLAT order granting more

SC accepts unconditional apology of NCLAT member, slaps fine of Rs 1 cr

The top court asked Deepak Chhabria to pay Rs 1 crore to the PM's Relief Fund and the scrutinizer to give Rs 10 lakh to the PM's Relief Fund

Finolex Cables case: NCLAT bench wilfully defied our order, says SC

The Supreme Court on Monday held that a National Company Law Appellate Tribunal (NCLAT) bench comprising judicial member Rakesh Kumar and technical member Alok Srivastava wilfully defied its October 13 order by going ahead with the pronouncement of their verdict in the Finolex Cables case. A bench headed by Chief Justice D Y Chandarchud and Justices JB Pardiwala and Manoj Misra, however, closed the contempt proceedings against Kumar and Srivastava. It took note of the fact that the judicial member has resigned from his post and Srivastava, who only followed the direction of Kumar, tendered an unconditional apology. We are of the view that there was an attempt to defy the orders of this court, the bench said. The bench, however, imposed a cost of Rs one crore on Deepak Chhabria, one of the parties to the corporate dispute, and Rs 10 lakh on a scrutinizer for their role in the case and said the amount be paid in four weeks. The amount will be deposited with the Prime Minister's reli

NCLAT dismisses plea to initiate insolvency proceedings against Inox Wind

The National Company Law Appellate Tribunal (NCLAT) has dismissed the plea to initiate insolvency proceedings against Inox Wind by an operational creditor of the company. A three-member bench of the insolvency appellate tribunal also upheld the orders of the Chandigarh Bench of the National Company Law Tribunal (NCLT), which on May 22, 2023, rejected the plea of GRI Towers India. While dismissing the plea, the NCLAT again said that the Insolvency & Bankruptcy Code (IBC) are "not proceedings for recovery of contractual dues". The bench said it was apparent from the facts of the present case the operational creditor has initiated proceedings for recovery of its contractual dues arising out of a contract between the parties. "Suit for recovery of dues was already filed by the Appellant, which was withdrawn by the Appellant," the NCLAT observed. GRI, which is in trade and service relating to the business of providing equipment and manpower, had approached the NCLT, alleging a default

TMS Ep547: SC on NCLT & NCLAT, airport charges, markets, Mandal Commission

Why is the SC worried about NCLT and NCLAT? Can airport operators raise charges as demand goes up? Will markets bounce back this week? What was the Mandal Commission? All answers here

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

SC summons 2 NCLAT members for defying order, slams 'rot' in tribunal

A bench, which also had justices J B Pardiwala and Manoj Misra, asked the two NCLAT members to appear before the Supreme Court on October 30

Finolex case: SC issues notices to NCLAT judicial member, technical member

In an unusual move, the Supreme Court on Wednesday issued notices to the National Company Law Appellate Tribunal judicial member Rakesh Kumar and technical member Alok Srivastava, asking them why contempt proceedings be not initiated against them for defying apex court orders in Finolex Cables disputes matter. A bench headed by Chief Justice DY Chandrachud took strong exception to the passing of a judgement by the NCLAT bench. The top court set aside the NCLAT bench's October 13 judgement relating to the annual general meeting (AGM) of Finolex Cables without going into its merit. The bench also comprising Justices JB Pardiwala and Manoj Misra said the case would be heard by NCLAT chief Justice Ashok Bhushan. "NCLAT has got down to a rot now. This case is an illustration of that rot.We are prima facie of the view that the members of the NCLAT have failed to disclose correct facts. "We are of the view that it is necessary to pass orders to ensure that the dignity of this court is ..

Sony-Zee merger may be finalised by November despite appeals from banks

IDBI Bank and Axis Finance have both filed pleas National Company Law Appellate Tribunal (NCLAT) challenging the merger