Page 31 - Nclat

NCLAT accepts fresh 'pro-rata' distribution framework for IL&FS creditors

The National Company Law Appellate Tribunal (NCLAT) on Thursday accepted a fresh distribution framework based on "pro-rata distribution" among creditors of debt-ridden IL&FS group from the proceeds of the sale, as suggested by the government. A two-member bench headed by Chairman Justice S J Mukhopadhaya said that the resolution framework should be "fair and equitable" and should ensure that interests of all stakeholders are considered and balanced. The appellate tribunal rejected the objections raised by the creditors, which wanted the NCLAT to follow Section 53 of IBC for distribution of funds, the appellate tribunal said that it would be against the public interest as the money invested by these public funds, in fact belonged to share and unit holders. "We reject the objections raised by some of the Creditors, as noticed above, we accept the suggestion of pro-rata distribution as suggested by Union of India and the procedure as suggested by it for the purpose of completing ...

NCLAT sets aside CAIT plea against CCI nod to Walmart's Flipkart buy

A two-member bench of the appellate tribunal headed by Justice S J Mukhopadhaya said CAIT failed to establish its allegations against CCI granting approval for Walmart-Flipkart deal

'Delay in appeal': NCLAT dismisses DoT's plea in Aircel moratorium issue

The National Company Law Appellate Tribunal (NCLAT) has dismissed the telecom department's plea citing delay in appeal against the NCLT order which held that the spectrum and licence of debt-ridden Aircel cannot be taken away during the insolvency resolution period. The Department of Telecommunications (DoT) had appealed against an order of the Mumbai bench of the National Company Law Tribunal (NCLT). In its plea, the DoT raised the issue as whether licence/spectrum to run a telecom company could be subject to moratorium during the insolvency proceedings or not. However, a three-member bench of the NCLAT held that the petition filed by the DoT was time barred under the provisions of Section 61 of the Insolvency & Bankruptcy Code, 2016. Under the IBC, any appeal against order passed by the NCLT could be filed before the appellate tribunal within 30 days and the delay which can be condoned for reasonable cause in the NCLAT is only 15 days. "This appeal was presented on February 20,

NCLAT asks NCLT to decide on liquidation of Lakshmi Cotsyn within 10 days

The National Company Law Appellate Tribunal (NCLAT) has asked the Allahabad bench of the NCLT to decide within 10 days on the liquidation of Kanpur-based textile manufacturer Lakshmi Cotsyn. A two-member bench comprising Justice Bansi Lal Bhat and Shreesha Merla observed that plea for liquidation of Lakshmi Cotsyn is pending before the National Company Law Tribunal (NCLT) on the pretext of one or the other miscellaneous application being filed in the matter. "Such conduct on the part of different characters cannot be permitted to thwart the course of insolvency resolution proceedings under I&B Code," it said. "Having regard to the object of the statute and to protect the interests of all stakeholders, we request the Learned Adjudicating Authority (NCLT) to take up the liquidation application for disposal at the earliest and make all possible endeavours to pass appropriate orders thereon within 10 days," said the NCLAT order dated March 3. The NCLAT direction came on a plea filed ..

SC admits plea challenging NCLAT order allowing sale of Bhushan Power

The Supreme Court Friday admitted a plea challenging appellate tribunal NCLAT's order allowing JSW Steel to acquire Bhushan Power & Steel Ltd for Rs 19,700 crore by providing it immunity from prosecution by the Enforcement Directorate. A bench comprising Chief Justice S A Bobde and Justices B R Gavai and Surya Kant refused however to put the sale on hold. "The appeals are admitted. Senior Advocate Dr A M Singhvi, appearing for the Committee of Creditors, states that in case he receives money, he will return the said amount within two months, if the appeal succeeds," the bench said. The apex court has put up the matter for hearing on April 15. A two-member bench of the National Company Law Appellate Tribunal (NCLAT), headed by Chairman Justice S J Mukhopadhaya, had said that JSW Steel will be immune from the acts done by the former promoters of Bhushan Power & Steel Ltd (BPSL). However, it had also said that prosecution against the former promoters under the money laundering ...

Allcargo Logistics gets Sebi nod for open offer to buy 26% in Gati

Multi-modal logistics firm initiates final phase of stake buy in Gati

IL&FS case: NCLAT rejects Deloitte, KPMG auditors plea against impleadment

The NCLAT on Wednesday dismissed the pleas of auditors of debt-ridden IL&FS -- Deloitte Haskins & Sells and KPMG arm BSR & Associates -- along with independent directors challenging their impleadment in the case of alleged fraud at a group firm IFIN. A two-member bench of the NCLAT upheld the directions of the Mumbai bench of the National Company Law Tribunal, saying it can not be termed as "illegal". The NCLT had directed them to implead the auditors and independent directors as party. The NCLT is empowered to pass order to implead them under Section 242 of the Companies Act, 2013 in a petition under Section 241(2) if "it forms opinion that the affairs of the company have been conducted in a manner prejudicial to the public interest", the appellate tribunal further said. "Once such opinion is formed by the Tribunal, it may pass any order as it deem fit and proper,"said the National Company Law Appellate Tribunal (NCLAT) bench headed by Chairperson Justice S J ...

NCLAT asks CCI to probe against Flipkart over alleged unfair practices

Earlier, the CCI had absolved e-commerce major Flipkart of unfair practices using its dominant position

Top headlines: NCLAT calls for probe against Flipkart, services PMI, & more

From govt allowing telcos to defer payments to 28 coronavirus cases in India, here are the top stories for the day

NCLAT dismisses Deloitte, KPMG pleas against impleadment in IL&FS case

The National Company Law Appellate Tribunal (NCLAT) on Wednesday dismissed the pleas of debt-ridden IL&FS auditors -- Deloitte Haskins & Sells and KPMG arm BSR & Associates -- challenging their impleadment in the case involving alleged fraud in IFIN, a subsidiary of IL&FS. A two-member NCLAT bench led by Chairman Justice S J Mukhopadhaya dismissed the pleas of auditors and other independent directors. The appellate tribunal, however, granted a relief to both auditors and other independent directors by allowing the operation of its earlier interim order passed on July 29, 2019 for two weeks. On July 29, the NCLAT stayed the order of the Mumbai bench of the National Company Law Tribunal (NCLT) to implead the auditors and the independent directors of IL&FS. Earlier on July 23, the NCLT had allowed the plea of the Ministry of Corporate Affairs (MCA) to implead the auditors and independent directors of IFIN. "On the request of the counsel, we allow (that) interim order .

SC sets aside NCLAT order on Dhanuka's resolution plan for Orchid Pharma

The apex court's ruling effectively gives the green signal to Dhanuka's plan for Orchid Pharma

Top headlines: Note-ban ghost visits jewellers, Analysts on Q3FY20 GDP

NCLAT relief for Flipkart, FM on credit scores, flurry of dividend payouts by companies and more

Bhushan Power ex-MD Sanjay Singal challenges JSW resolution plan in SC

Petition says, JSW disqualified under Section 29A, has no claim on Rs 3,000 crore EBITDA during CIRP

Top 10 biz headlines: Vodafone Idea on the brink, Mistry moves SC, and more

In a day of twists and turns, the government received Rs 14,697 crore from three companies out of the telecom sector's total dues linked to adjusted gross revenue estimated at Rs 1.47 trillion

Bhushan Power takeover: NCLAT gives JSW Steel immunity from criminal probes

The National Company Law Appellate Tribunal (NCLAT) on Monday gave JSW Steel Ltd immunity from all criminal investigations after its takeover of Bhushan Power & Steel Ltd, whose assets were sought to be attached by the Enforcement Directorate (ED) over alleged bungling by former management. A two-member NCLAT bench headed by Justice S J Mukhopadhaya also declared attachment of assets of insolvent Bhushan Power & Steel Ltd (BPSL) by the ED as "illegal and without jurisdiction". Billionaire Sajjan Jindal-led JSW Steel had moved the appellate tribunal seeking to extinguish all present and future liabilities on account of criminal investigations against Bhushan Power & Steel, contending that an absence of any such protection would jeopardise the feasibility and viability of its resolution plan. JSW Steel had made the highest bid of Rs 19,700 crore for the takeover of BPSL. While the government had in December amended the insolvency law to ring-fence a corporate debtor, after ..

Pass order on plea within 2 months: NCLAT to NCLT on GE Triveni issues

The National Compamy Law Appellate Tribunal (NCLAT) on Monday asked the Bengaluru bench of NCLT to make a decision on the arbitration plea, preferably within two months, in the ongoing dispute between the JV partners of GE Triveni Ltd. A two member NCLAT bench headed by NCLAT Chairman Justice S J Mukhopadhaya also declined to interfere over the order passed by the Bengaluru bench of the National Company Law Tribunal (NCLT) at this stage. The Bengaluru bench of the National Company Law Tribunal (NCLT) had on September 27, 2019 issued notices over the petition filed under Section 45 of the Arbitration & Conciliation Act, 1996 by two service providers seeking arbitration in the issue. This was challenged before the NCLAT by Triveni Turbine, which is in dispute with its JV partner General Electric. "We are not inclined to interfere with the impugned order dated September 27, 2019," said the NCLAT. It further said that the tribunal is required to decide the interlocutory Applications .

Mistry files appeal in SC; says his family deserved more relief from NCLAT

Mistry, whose family owns 18.37 per cent stake in Tata Sons, has filed a cross appeal in the court

DEA had red flagged possible 'risks' over IL&FS collapse in 2018

The Department of Economic Affairs had earlier raised red signals over the likely collapse of IL&FS in a confidential note on September 30, 2018 and expressed concerns over its impact on the Indian economy, according to a latest affidavit filed by the corporate affairs ministry. The Ministry of Corporate Affairs (MCA) in the affidavit said the DEA had opined that if IL&FS group collapses, the Indian economy may have to face repercussions as redemption pressure would continue, debt market sell-off expected, may create liquidity crunch and NBFC licenses could be cancelled. "DEA had raised red signals of the likely collapse of IL&FS and had expressed its deep concern of such a collapse on the Indian economy," said MCA in the affidavit filed before the National Company Law Appellate Tribunal (NCLAT). Immediately after that, the MCA had moved the National Company Law Tribunal to take over the management of IL&FS, which had a debt exposure of over Rs 91,000 crore. According .

Realty firm under insolvency can continue to complete other projects: NCLAT

The NCLAT has also said that if insolvency is initiated against a project, it will not extend to the entire company or any of its other projects

Govt seeks 270 days more to complete resolution for 105 IL&FS group firms

The government has approached the National Company Law Appellate Tribunal seeking additional 270 days to complete resolution process of 105 IL&FS group companies. The Ministry of Corporate Affairs (MCA) has also requested the appellate tribunal to release 55 other entities from moratorium, so that they can discharge their debt obligations. Certain protection and reliefs were granted to the 55 entities through an order passed by the National Company Law Appellate Tribunal (NCLAT) on October 15, 2018. In addition to the 55 entities, the ministry has also asked the NCLAT to release nine companies from the scope and operation of the October 2018 order, according to an affidavit filed by the ministry with the appellate tribunal. Lalpur Wind Energy, Etesian Urja, Khandke Wind Energy, Ratedi Wind Power, Wind Urja India, Tadas Wind Energy, Kaze Energy, Jharkhand e-Governance solutions Services and Infrastructure Development Corporation of Assam are the nine companies. "For the remaining .