Page 12 - Nclat

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

NCLAT sets aside notice against lenders over liquidation without bids

The National Company Law Appellate Tribunal (NCLAT) on Wednesday set aside an order of the NCLT, which had issued a show cause notice for recommending liquidation of realty firm SARE Realty Projects, without exploring the possibility of finding a buyer. The appellate tribunal said there is an "error in the approach" of the National Company Law Tribunal (NCLT) for taking a decision regarding the liquidation of a corporate debtor (CD) and the lenders have to complete all the steps regarding resolution. "The CoC has the jurisdiction to pass the order of liquidation of the CD, approving it by not less than 66 per cent of the voting share, but it should be before the confirmation of the resolution plan," said NCLAT. Earlier, the New Delhi Bench of NCLT had on March 16, 2023 issued a show cause notice to the lenders asking why penalty stipulated under Section 65 of the Insolvency & Bankruptcy Code should not be imposed on them. NCLT had said that "it was prima facie of the opinion that .

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

NCLAT rejects Jindal Power plea to allow bid for Tuticorin Coal Terminal

The insolvency appellate tribunal NCLAT has dismissed the plea of Jindal Power to allow the company to participate in the ongoing resolution process of debt-ridden Tuticorin Coal Terminal. A two-member bench of the National Company Law Appellate Tribunal (NCLAT) upheld the earlier order passed by the Mumbai Bench of NCLT, which said that under CIRP Regulations, Jindal Power Ltd (JPL) was "ineligible to submit a Resolution Plan" for Tuticorin Coal Terminal. The appellate tribunal said the process prescribed in the IBC asks for maximisation of the value, but it cannot give a go-by to the existing specific CIRP Regulations, which prevent the entry of companies that are not in the final list of prospective resolution applicants. The NCLAT further directed the resolution professional and the Committee of Creditors (COC) to decide on the bid received from Seapol. "We do not find merit in the present Appeal, which if allowed would mean contravention and violation of Regulation...The Appea

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