Page 2 - Nclat

NCLAT sets aside Future Consumer's plea for insolvency against Aussee Oats

Appellate Tribunal NCLAT has set aside an appeal by Future Consumer Ltd (FCL) seeking to initiate insolvency against Aussee Oats Ltd. A two-member NCLAT bench has upheld the orders of the Mumbai bench of the National Company Law Tribunal (NCLT), which had rejected the claims of FCL, part of the debt-ridden Future Group. FCL had claimed an amount of over Rs one crore due from Aussee Oats. It had given Rs two crore to Aussee Oats in the form of an Inter-Corporate Deposit. According to FCL, out of the total deposit, only Rs 1.35 crore has been paid, and the rest Rs 65 lakh is due, which now, along with interest, totals over Rs one crore. However, NCLT observed that the financial statement of the corporate debtor (Aussee Oats) reflected a 'set off' of the claims, and there was NIL amount payable to the Financial Creditor (FCL). Moreover, it also observed a dispute between them. This order was challenged by FCL before the National Company Law Appellate Tribunal (NCLAT), which also rej

Best of BS Opinion: GST 2.0 reforms miss underlying core principles

Today's pieces look at the available space for more rate cuts, the sorry state of tribunals, why GST reforms are not really that, and how India can harness its vast non-export MSME sector

Reforming tribunals: Rising vacancies at the top are hampering efficiency

According to legal think tank Daksh's State of Tribunals 2025 report, India's commercial tribunals face a backlog of 356,000 cases, worth ₹24.2 trillion (as of September)

NCLAT sets aside plea against Reliance Retail capital share reduction

In a relief to the Reliance Industries arm Reliance Retail, appellate tribunal NCLAT has set aside a petition against the leading retailer, which in 2023 reduced the equity share capital of the company, saying non-promoters were offered a "fair value" of their shares. Reliance Retail had in 2023 decided to reduce and cancel 78,65,423 equity shares of the company, held by the minority shareholders, other than the promoters/holding company. Observing that non-promoter shareholders were offered a "fair value" of their shares during the exercise and an overwhelming majority voted in favour of the resolution, the appellate tribunal upheld the earlier order passed by the National Company Law Tribunal (NCLT) and said it found "no reason to upset a reasoned order passed" by it. The NCLAT, while referring to previous judgements, said "selective reduction is permissible if objecting shareholders are paid a fair value of their shares". On July 4, 2023, the board of Reliance Retail Ltd (RRL),

NCLAT reserves verdict on Meta and Whatsapp pleas against CCI penalty

The appellate tribunal NCLAT has completed hearing and reserved its order on the appeals filed by Meta Platforms and WhatsApp, challenging the CCI's penalty on the social media major for the 2021 WhatsApp privacy policy update. An NCLAT bench, comprising Chairperson Justice Ashok Bhushan and Member (Technical) Arun Baroka, has directed the parties to file written submissions by October 6. "All the parties to file concise notes of submissions of not more than ten pages by October 6, 2025," said the bench on Thursday, while reserving its judgment. The National Company Law Appellate Tribunal (NCLAT) was hearing the petition by the tech giant Meta, which challenged a penalty of Rs 213.14 crore on the social media major for unfair business practices with respect to the WhatsApp privacy policy update done in 2021. Senior Counsel Arun Kathpalia and Amit Sibbal have completed their submissions in the rejoinder over arguments by the Senior Advocate Balbir Singh appearing for the Competition

Commercial tribunals' case backlog ties up 7.5% of India's GDP: Study

India's commercial tribunals face 3.56 lakh pending cases worth Rs 24.7 lakh crore, about 7.5% of GDP, with vacancies, procedural gaps and weak infrastructure slowing justice

NCLAT keeps order reserved in WhatsApp, Meta challenge to CCI penalty

The appellate tribunal has reserved its order on WhatsApp and Meta's plea against the Rs 213.14 crore fine imposed by CCI for alleged abuse of dominance over its 2021 privacy policy

Let consumer decide on data sharing with intermediaries: CCI to NCLAT

CCI argued before NCLAT that users must retain the right to share or withdraw data on platforms like WhatsApp as it defended its penalty on Meta for alleged abuse of dominance

No player close to WhatsApp in terms of revenue, assets: CCI to NCLAT

CCI argued before NCLAT that WhatsApp's dominance stems from its vast user base and unmatched revenues, defending its Rs 213.14 crore fine on Meta over the 2021 privacy policy

Retired judges reluctant to join tribunals due to poor facilities, says SC

The Supreme Court said retired judges hesitate to accept tribunal posts due to inadequate housing, transport and dignity, and asked the Centre to upgrade infrastructure

We are being punished for providing superior services, Meta tells NCLAT

Meta told NCLAT it was being punished by CCI for offering superior services and highlighted lapses in the watchdog's findings on WhatsApp's 2021 privacy policy case

NCLAT upholds order recalling insolvency case against Logix Infra

Appellate tribunal NCLAT has upheld the decision of the National Company Law Tribunal (NCLT) to recall a previous ruling for an insolvency case against real estate firm Logix Infrastructure after finding the debt claim as "fraudulent" and "malicious". A two-member NCLAT bench said the plea for CIRP (Corporate Insolvency Resolution Process) against Logix Infrastructure, which was developing the Blossom County project in Noida Sector 137, are based on collusion and are malicious with sufficient material. "In the facts and circumstances of the case, we do not find any infirmity in the orders of the adjudicating authority (NCLT) allowing the Section 65 application filed by the Respondents. For the reasons noted herein, we find that reversing of Section 7 proceedings doesn't amount to a review in the guise of a fresh determination," the bench said. Section 65 of the Insolvency & Bankruptcy Code (IBC) allows the NCLT to set aside the insolvency proceedings filed with a malicious intent .

CCI overstepped jurisdiction by ruling on privacy issues: WhatsApp to NCLAT

The appellate tribunal in March this year had deferred the hearing in the case, citing the upcoming Digital Personal Data Protection (DPDP) Rules

Meta tells NCLAT WhatsApp user data is its private property in CCI case

Meta argued before NCLAT that WhatsApp user data is its private property, challenging a CCI order that imposed a Rs 213.14 crore fine over WhatsApp's 2021 privacy policy

Gensol's CoC, IRP deliberately delaying insolvency process: Lessor to NCLAT

SMAS Auto Leasing told NCLAT that Gensol's IRP and CoC had deliberately delayed the insolvency process in a dispute over e-vehicles, as the tribunal fixed hearing for September 2

SC orders probe after NCLAT judicial member claims 'approached for favour'

The Supreme Court has ordered an inquiry into the claims of a judicial member of the National Company Law Appellate Tribunal (NCLAT) of being "approached by one of the most revered members of the higher judiciary". Sources privy to the development said the inquiry will be conducted by the apex court's secretary general with the top court deciding the future course of action on the basis of the outcome. Justice Sharad Kumar Sharma, the judicial member of the Chennai-based NCLAT, alleged being approached by a member of higher judiciary for a favourable order in a case which was pending before him. He recused himself from hearing the matter and even recorded the incident in a two-paragraph order passed on August 13. "We are anguished to observe, that one of us, Member (Judicial), has been approached by one of the most revered members of the higher judiciary of this country for seeking an order in favour of a particular party. Hence, I recuse to hear the matter (sic)," the NCLAT order

NCLAT judge alleges pressure from senior judge, recuses himself from case

In a rare incident, a judicial member of the National Company Law Appellate Tribunal (NCLAT) has alleged being "approached by one of the most revered members of the higher judiciary", seeking an order in favour of a party, and has recused himself from hearing the matter. The Chennai-based bench of the appellate tribunal has even recorded the incidence in a two-paragraph order passed on August 13. Justice Sharad Kumar Sharma, the judicial member of the NCLAT, has recused himself from hearing the matter. "We are anguished to observe, that one of us, Member (Judicial), has been approached by one of the most revered members of the higher judiciary of this country for seeking an order in favour of a particular party. Hence, I recuse to hear the matter," the NCLAT bench said in the order. It requested that the matter be placed "before the Hon'ble chairperson for nomination of an appropriate bench" for hearing. The two-member bench comprised Justice Sharma and Technical Member Jatindra

NCLAT rejects plea, clears Nuvoco Vistas ₹1,800 crore bid for Vadraj cement

Appellate tribunal NCLAT has dismissed the plea against the acquisition of Vadraj Cement by Nirma group cement business Nuvoco Vistas Corporation during an insolvency resolution process. The Delhi-based principal bench of NCLAT has upheld the previous order passed by the Mumbai bench of the National Company Law Tribunal (NCLT), which on April 1, 2025, approved Nuvoco Vistas's plan for Vadraj Cement that includes an upfront payment of Rs 1,800 crore. A two-member NCLAT bench comprising Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra rejected an appeal filed by an employee and authorised representative of employees of Vadraj Cement against the approval of Nuvoco Vistas's bid over their payout regarding their gratuity dues. Gujarat-based Vadraj Cement, formerly owned by ABG Shipyard, which has a 3.5 MTPA (million tonnes per annum) clinker unit in Kutch and a 6 MMTPA grinding unit in Surat, along with a captive jetty in Kutch, has a total debt of over Rs 8,000 crore

NCLAT upholds insolvency proceedings against Supertech Realtors

NCLAT has upheld an NCLT order to begin insolvency proceedings against Supertech Realtors over a ₹168 crore default, rejecting a revised settlement proposal from its promoter

NCLAT allows Gensol lessor to retain vehicles taken before insolvency

Tribunal permits SMAS Auto Leasing to keep possession of 152 e-vehicles taken before Gensol Engineering's insolvency; hearing on remaining vehicles on August 28