Page 11 - Nclat

NCLAT upholds insolvency case on Tulip Hotels over default of guarantees

The National Company Law Appellate Tribunal (NCLAT) has upheld the insolvency proceedings against Tulip Hotels, which had defaulted on Rs 450 crore corporate guarantees given for Cox & Kings and EzeeGo One Travel & Tours each. On May 16, 2023, the Mumbai bench of National Company Law Tribunal (NCLT) had directed initiation of a Corporate Insolvency Resolution Process (CIRP) against Tulip Hotels over a plea filed by Yes Bank, claiming a default of Rs 900 crore for two corporate guarantees issued by it. The order was challenged before appellate body NCLAT, which upheld the earlier order by NCLT, saying when a corporate debtor gives a guarantee for a loan transaction, the right of the financial creditor to initiate action against it gets trigger the moment the principal borrower commits a default. Tulip Hotels was a corporate guarantor for two loans disbursed by Yes Bank to Cox & Kings and EzeeGo One Travel and Tours Ltd. After they defaulted, the financial creditor Yes Bank .

NCLAT asks IRP of Dream 11 to refrain from taking steps for insolvency

The National Company Law Appellate Tribunal has directed the interim resolution professional of Sporta Technologies, which operates the fantasy sports platform Dream 11, not to take any steps towards insolvency and keep the company as a going concern. The appellate tribunal said it has already stayed the Corporate Insolvency Resolution Process (CIRP) of the company. "We only clarify that IRP is directed not to take any steps in the CIRP, however, IRP being in the place shall keep the company as a going concern," the NCLAT said in its order. The NCLAT, on February 14, stayed the NCLT Mumbai bench order to initiate a corporate Insolvency Resolution Process (CIRP) against Sporta Technologies. It had stayed the NCLT order over an urgent petition moved by Dream11 co-founder and COO Bhavit Sheth. Dream 11 is the title sponsor of the IPL T20 cricket league also. The NCLT had directed to initiate CIRP against Dream 11 over a petition filed by its operational creditor Reward Solutions und

NCLAT dismisses Sundaram Brake's plea against CCI cease and desist order

The National Company Law Appellate Tribunal on Tuesday dismissed a plea by Sundaram Brake Linings, challenging a cease and desist order passed against the company by the fair trade regulator CCI. NCLAT upheld orders passed by the Competition Commission of India (CCI), and said there was a "meeting of mind" with other parties, which were participating in the bidding process of certain tenders of the Indian Railways. The CCI had on July 10, 2022 passed an order directing 10 companies, including the appellant Sundaram Brake Linings, and some of their officials, to cease and desist from indulging in anti-competitive practices. The Chennai-based company challenged the order in NCLAT. In its petition, Sundaram Brake Linings had raised several points and said it was wrongly clubbed into the CCI order. The CCI has passed an order without any application of mind, contrary to fundamental principles of competition law and the law of evidence, it said. Moreover, it had only given a bid for t

NCLAT scraps homebuyers' plea for insolvency against Ansal Hi-tech Township

The National Company Law Appellate Tribunal (NCLAT) on Monday set aside a plea seeking insolvency proceedings against Ansal Hi-tech Township Ltd filed by its homebuyers of a project in Greater Noida. The appellate tribunal has upheld the order passed by the Delhi-based bench of the National Company Law Tribunal (NCLT), which had in January 2023 set aside the plea of homebuyers, observing that the allottees belong to different projects and does not fulfil the required criteria to file an insolvency case. The project is located in Greater Noida, Uttar Pradesh. The NCLT's order was challenged before the NCLAT. The homebuyers argued that the agreement with the developer terms 'Sushant Megapolis' as one complete 'Project' and was signed much before RERA (Real Estate Regulation and Development Act) came into force. They further submitted that 1,500-acre project 'Sushant Megapolis' comprises plots, built-up plots, raw houses/flats/floors, high-rise apartments, under various allocated site

IL&FS seeks nod to sell insolvent companies without shareholders' approval

IL&FS group has approached the NCLAT to seek permission to sell its stake with a "haircut" and without shareholders' approval in its companies, which are insolvent with unsustainable debts and placed under the Category II list of resolution framework. The government sought time to file a reply from the National Company Law Appellate Tribunal (NCLAT) in the last hearing earlier this week over IL&FS' interim application to sell a stake in group entities falling under Category II, whose highest bid amount was lesser than their debts. In this process, "lenders, as well as shareholders, would anyway have to take a haircut for their respective debt/ and equities," IL&FS said, adding that it would also ensure the revival of such entity, balancing the interests of stakeholders. The resolution of such companies is in line with the process followed under the Insolvency & Bankruptcy Code, where the requirement of seeking consent from shareholders is dispensed with, IL&FS has .

NCLAT directs 11 PSBs to not take action against IL&FS till next hearing

The National Company Law Appellate Tribunal (NCLAT) has directed 11 public sector lenders not to take coercive action against IL&FS and its group companies till its next hearing on May 14. A two-member NCLAT bench headed by Chairperson Justice Ashok Bhushan also issued notices to the banks, along with the Reserve Bank of India (RBI), directing them to file a reply. "In view of the order dated October 15, 2018, the Respondents (banks) shall not proceed to take any coercive action against the Applicant (IL&FS and group companies) till the next date," said the NCLAT. On October 15, 2018, the NCLAT stayed all proceedings against IL&FS and other group companies till its further order. It had also restrained creditors of IL&FS from filing suits, in the case of non-repayment of loans. The NCLAT direction came on Tuesday over an urgent plea moved by the newly appointed board of debt-ridden IL&FS, seeking direction to the banks restraining them from initiating or pursuing ..

IL&FS moves NCLAT, seeks protection for group cos from wilful defaulter tag

The newly appointed board of debt-ridden IL&FS has moved an urgent application before the appellate tribunal NCLAT to restrain 11 public sector lenders from initiating proceedings to declare its group companies as "wilful defaulters". In its petition, IL&FS said it is aggrieved by the "blatant violation and disregard" of previous NCLAT orders by the banks. IL&FS also charged banks of taking procedural action under the garb of the RBI guidelines, and harassing the Directors of the IL&FS companies". The banks are "issuing show cause notices, calling for a personal hearing before the Wilful Defaulter Identification Committee, threatening initiation of criminal proceedings, including initiating proceedings as well as and for declaring IL&FS companies and their current Directors as Wilful Defaulters, as well as getting issued Look Out Circulars," it submitted. "All such coercive actions/steps are attempts by the Respondent Banks to pressurize the IL&FS companies to .

NCLAT clears runway for Jalan Kalrock Consortium's Jet Airways ownership

NCLAT has directed SBI to complete the transfer within 90 days and instructed JKC to obtain an air operator's certificate within the same period

NCLAT upholds Jet Airways transfer of ownership to Jalan Kalrock Consortium

Insolvency appellate tribunal NCLAT on Tuesday upheld the resolution plan of grounded carrier Jet Airways and approved the transfer of its ownership to Jalan Kalrock Consortium. The NCLAT bench has directed the Jet Airways monitoring committee to complete the transfer of ownership within 90 days. Besides, it has also directed the lenders of Jet Airways to adjust the Rs 150 crore paid by the consortium as performance bank guarantee. The lenders of Jet Airways and Jalan Kalrock Consortium (JKC), the successful bidder, are in a legal tussle for more than a year over the transfer of the management of the grounded carrier. Earlier, the lenders had approached the Supreme Court, which had declined to interfere in the matter and had directed the National Company Law Appellate Tribunal (NCLAT) to take a decision on the issue. The NCLAT directed the managing committee, consisting of lenders led by SBI, to create security on immovable properties as offered by the successful resolution applic

UP govt still considering Jaypee infra resolution plan: Yeida tells NCLAT

Yeida had approved all five conditions of Suraksha Group's resolution plan to take over stuck realty projects of Jaypee Infratech

NCLAT green lights sale of Jet planes to Ace Aviation, JKC approaches SC

Ace approached the National Company Law Appellate Tribunal (NCLAT) two weeks ago seeking to expedite the sale of three aircraft in Mumbai in the same case

Competitive ecosystem

The dominance of app stores calls for regulation

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

NCLAT dismisses BHEL's pleas against REC over Hiranmaye Energy insolvency

Insolvency appellate tribunal NCLAT on Monday set aside a BHEL petition seeking to halt REC from initiating insolvency proceedings against Hiranmaye Energy, formerly India Power Corp (Haldia). The NCLAT said it sees no reason to interfere in the order passed by the Kolkata bench of NCLT admitting REC's insolvency plea against Hiranmaye Energy, and said claims filed by BHEL against the debt-ridden thermal power company should be dealt with in accordance with the law. The National Company Law Tribunal (NCLT) on January 2, 2024, directed to initiate a Corporate Insolvency Resolution Process (CIRP) against Hiranmaye Energy, admitting the plea filed by REC, formerly known as Rural Electrification Corporation. Challenging this, BHEL moved the appellate tribunal NCLAT, where it filed two petitions. In the first plea, it challenged the admission of insolvency plea by the NCLT and also the order of January 5, 2024, in which PSU's intervention application filed by it was rejected. BHEL ...

Must acquire three Jet Airways planes in six months, says Ace Aviation

"Needless to say if we missed our conversion slots we would have to pay penalties and could potentially lose our slots altogether," Koish said

NCLAT declines to interfere with Jaypee Infratech resolution plan

The NCLT last year on March 7 approved Suraksha Realty's takeover of the debt-laden Jaypee Infratech dismissing three different appeals against the Rs 7,936 crore offer by the Mumbai-based company

Expert panel suggests adoption of voluntary mediation in insolvency cases

The committee also noted that not all scenarios under the IBC are fit for resolution through mediation. For instance, issues such as avoidance transactions are excluded

NCLAT stays NCLT ruling in Dream 11 case, bars IRP actions until Feb 23

The National Company Law Appellate Tribunal on Wednesday stayed the NCLT Mumbai bench order to initiate a corporate Insolvency Resolution Process (CIRP) against Sporta Technologies, which operates the fantasy sports platform Dream 11. However, it has also directed the Interim Resolution Professional (IRP), appointed by the National Company Law Tribunal (NCLT) after suspending the board of Dream 11, not to take any further steps till the next date of hearing, scheduled for February 23. A three-member bench of the appellate tribunal also issued notice to the IRP of Sporta Technologies and Resolution Professional of Reward Business Solution, directing them to file a reply within a week. "List this Appeal on 23.02.2024," the National Company Law Appellate Tribunal (NCLAT) order said, adding that "In the meantime, the order impugned shall remain stayed. No steps, till the next date shall be taken by the IRP in the CIRP". NCLAT directions came over an urgent petition moved by Dream11 ...

NCLT issues notice to Sony in plea by Zee Ent to implement merger

The plea of Mad Men Film Ventures, a shareholder of Zee, seeking enforcement of the merger has been clubbed together with ZEEL's plea and will be heard on the same date

Jet Airways case: Supreme Court directs JKC to deposit Rs 150 crore

"The question of adjustment of Rs 150 crore (through bank guarantee), we will keep it with the NCLAT. You (JKC) have to (pay)," the apex court said