Page 8 - Nclat

Byju's knocks at NCLAT door against NCLT's insolvency order in BCCI case

Crisis-ridden Byju's has moved the National Company Law Appellate Tribunal (NCLAT) against the recent order of NCLT that allowed cricket board BCCI's petition for initiating insolvency proceedings against the once-famed edtech company, sources said. Sources privy to the development said that the company is seeking an urgent hearing on the matter. Byju's did not comment on the issue. According to sources, Byju's on Thursday moved the appellate tribunal, NCLAT, contesting the recent order of NCLT's Bengaluru bench that had admitted the cricket board's plea to start insolvency proceedings against the parent company Think and Learn, after the edtech firm failed to pay Rs 158.9 crore dues. Founder and CEO Byju Raveendran will report to the resolution professional. NCLT has appointed Pankaj Srivastava as the interim resolution professional. Byju's had previously sponsored the Indian cricket team. Earlier this week, Byju's had said it is hopeful of reaching "an amicable settlement" with

Karnataka HC reserves order on edtech firm Byju's second rights issue

Byju's is currently restricted from issuing shares and using funds raised from a $200 million rights issue until the tribunal decides the matter

NCLAT orders NCLT to hear afresh insolvency plea by APL Apollo Tubes

The National Company Law Appellate Tribunal (NCLAT) has directed the NCLT to hear afresh the insolvency plea filed by APL Apollo Tubes against one of its purchasers of goods. A two-member bench came down heavily on the Bengaluru bench of the National Company Law Tribunal (NCLT) for rejecting claims of APL Apollo Tubes on the "hypothetical interpretation". The NCLAT said the tribunal "should refrain from stepping into the shoes of a litigating party by substituting their own finding in the absence of there being any pleading evidence". The appellate tribunal has directed the NCLT to make all efforts to decide proceedings as expeditiously as possible. The NCLAT order came over a petition filed by APL Apollo Tubes against an order of the NCLT, which, on September 9, 2019, dismissed its insolvency plea filed as an operational creditor against Tanisha Scaffolding. Tanisha Scaffolding was engaged in marketing the products manufactured by APL Apollo Tubes. Some amount against supplies wa

Jaypee Infratech appoints new CFO to delist shares as part of insolvency

Jaypee Infratech's shares on the BSE are currently suspended. The company, as of May 24, is under the management of Suraksha Group, following NCLAT approval

NCLAT asks ICICI to consider OTS proposal in Jaiprakash Associates case

Insolvency appellate tribunal NCLAT has issued a notice to ICICI Bank over the plea of Jaiprakash Associates Ltd and said the private sector lender may consider the one-time settlement proposal submitted by the debt-ridden company by June 24, the next date of hearing. During the proceedings of NCLAT, JAL through its counsel submitted that it is inclined to make the entire payment within 18 weeks, if the OTS is accepted by the Bank, which was opposed by creditors alleging that the total debt is over Rs 26,000 crore. Earlier, JAL moved a one-time settlement Proposal (OTS) to creditors before the NCLT, which had a provision of an upfront amount of Rs 200 crore and the balance of about Rs 16,000 crore to be paid on or before 18 weeks from its acceptance. However, this was dismissed by the Allahabad bench of the National Company Law Tribunal (NCLT) and directed to initiate the Corporate Insolvency Resolution Process (CIRP) against JAL, which was challenged before NCLAT. In its order, a

Suspended board of Jaiprakash Associates moves NCLAT over insolvency order

The suspended board of debt-ridden Jaiprakash Associates has moved appellate tribunal NCLAT challenging last week's NCLT order which directed initiation of insolvency proceedings against the firm. The petition was listed before a vacation bench of the National Company Law Appellate Tribunal (NCLAT), which declined to grant an interim stay on the NCLT order. On June 3, the Allahabad bench of National Company Law Tribunal (NCLT) admitted the insolvency plea filed by ICICI Bank. The tribunal also appointed Bhuvan Madan as Interim Resolution Professional of JAL after suspending the board of the company. In September 2018, ICICI Bank had filed an insolvency petition against JAL under Section 7 of IBC. The NCLT rejected JAL's contention that it faced a liquidity crunch and defaulted on debt repayments mainly due to delays in government approvals and prolonged litigation concerning land acquisition for Yamuna Expressway and changes in government policies. It has been held by the Supreme

NCLAT dismisses plea filed by foreign investors against edtech giant Byju's

NCLAT dismissed an appeal filed by the four investors - MIH EdTech Investments, a subsidiary of Prosus NV, General Atlantic Singapore, Peak XV Partners Operations LLC, and Sofina

NCLAT upholds Adani Goodhomes plan with 93% haircut for Radius Estate

Insolvency Appellate Tribunal NCLAT has upheld orders approving Adani Goodhomes' resolution plan for realty firm Radius Estate with a 93 per cent haircut for creditors. A two-member bench comprising the NCLAT Chairman rejected the petitions by two dissenting financial creditors, saying it was "commercial wisdom" of the Committee of Creditors (CoC), which approved the payout to different creditors. The Mumbai bench of the National Company Law Tribunal (NCLT) on January 9, 2022, approved the resolution plan of Adani Goodhomes, a part of Adani Realty. As per the resolution plan, which received an 83.99 per cent of the vote of the CoC and was approved by NCLT, nearly 700 flat owners were getting possession of without escalation of any price. The plan was opposed by two dissenting financial creditors -- Beacon Trusteeship and ICICI Prudential Venture Capital Fund Real Estate -- before the National Company Law Appellate Tribunal (NCLAT). According to reports, Adani Goodhomes had propose

NCLAT defers hearing on Google's Play Store billing policy to July 5

Insolvency appellate tribunal NCLAT on Friday deferred hearing to July 5 on the petitions filed against tech giant Google over its Play Store billing policy. A two-member National Company Law Appellate Tribunal (NCLAT) bench, after a brief hearing over the petitions, directed listing the matter after summer vacations on July 5. Indian Broadcasting and Digital Foundation (IBDF), Indian Digital Media Industry Foundation, People Interactive India which operates Shaadi.com, and Mebigo Labs which operates Kuku FM have filed petitions before the NCLAT against Play Store billing policy. During the proceedings, counsel appearing from app developers requested the bench to pass an order directing status quo till the next date of hearing, though Google had not de-listed them from the Play Store for non-acceptance of policy terms. They urged the appellate tribunal to ask Google for an undertaking to this effect. Google's counsel refused to give an undertaking, however, assured the NCLAT that

NCLAT upholds NCLT order on Jaypee Infra, asks Suraksha to pay Rs 1,300 cr

Insolvency Appellate Tribunal NCLAT on Friday upheld Suraksha Realty's bid to acquire debt-ridden Jaypee Infratech Ltd but asked it to pay an additional around Rs 1,300 crore as farmers' compensation. Upholding the National Company Law Tribunal's (NCLT) decision of March 2023, the NCLAT said the decision was to avoid any further delay in the implementation of the resolution plan and to take care of the interests of all stakeholders, including home buyers and claim of Yamuna Express development authority YEIDA for additional compensation of the farmers. NCLT had on March 7, 2023, approved the bid of Mumbai-based Suraksha group to buy Jaypee Infratech Ltd (JIL), giving relief to more than 20,000 home buyers whose investments are stuck across various projects being developed in Delhi-NCR. "The impugned order passed by the adjudicating authority (NCLT) deals with the claim of the appellant (YEIDA) of Rs 1,689 crore of additional farmers compensation is set aside and the rest of the ord

Play Store billing case: NCLAT seeks response from Google and CCI

The NCLAT has told both the parties to submit their replies before the next hearing on May 24

ITPCL debt: NCLAT rejects SBI's objection on liquidation value given by PNB

Appellate tribunal NCLAT has rejected SBI's pleas opposing the liquidation value of ITPCL provided by the debt-ridden firm's lead banker PNB and said the country's largest lender cannot "wriggle out" the debt restructuring process of the IL&FS group's thermal power company. The National Company Law Appellate Tribunal (NCLAT) has dismissed all three applications moved by SBI and said it does "not find any error in fixing the liquidation value as of 30.09.2018" of IL&FS Tamil Nadu Power Company Ltd (ITPCL). The appellate tribunal observed that as per the RBI circular, an Inter-Creditor Agreement has been entered between the lenders. Moreover, over 90 per cent lenders by value and 75 per cent by numbers have already approved ITPCL restructuring plan. The lenders of ITPCL "with the requisite majority has already taken a decision to approve restructuring plan, the SBI, who is also one of the lenders, cannot be permitted to wriggle out of the terms of the ITPCL restructuring ...

NCLAT order of Jet Airways takeover shocking, unacceptable: SBI tells SC

The lenders have appealed against this order in the Supreme Court

NCLAT sets aside insolvency process against Dream 11 parent company

Section 10A deals with the suspension of initiation of insolvency process for any default arising on or after March 25, 2020, for a period of six months or extending to one year

Jaypee Infratech's stalled Wish Town leaves homebuyers in the lurch

Homebuyer's appeal to be heard by NCLAT if the two bodies do not reach settlement by April 18

Efforts on to develop cross-border insolvency framework, say experts

Efforts are going on to develop a cross-border insolvency framework with a cautious approach and such a framework should respect the laws of other countries without superseding Indian law, according to experts. Former NCLAT (National Company Law Appellate Tribunal) Chairperson S J Mukhopadhaya emphasised the importance of having a robust cross-border insolvency framework in the country. "We will have to respect the law of other countries, but it does not mean superseding our law. The dominance should be of our law in our jurisdiction," he was quoted as saying in a release. He was speaking at the conference on 'Cross-Border and Group Insolvency in India: Challenges and Opportunities' in the national capital on Saturday. The conference was organised by the Indian Institute of Insolvency Professionals of ICAI (IIIPI) jointly with the Foreign, Commonwealth & Development Office-United Kingdom (UKFCDO), the Insolvency and Bankruptcy Board of India (IBBI) and the Institute of Chartered .

NCLAT stays insolvency proceedings against Deccan Charters till April 26

The National Company Law Appellate Tribunal (NCLAT) has stayed insolvency proceedings against Captain GR Gopinath's Deccan Charters till April 26, 2024, its next date of hearing. Earlier, the Bengaluru bench of the National Company Law Tribunal (NCLT) had directed initiation of Corporate Insolvency Resolution Process (CIRP), admitting a plea of financial creditor Krone Finstock claiming a default of around Rs 10 crore. The Chennai bench of NCLAT on a petition filed by Sanjay Saihgal, a director of the suspended board of Deccan Charters, on Wednesday directed Krone Finstock to file a reply within four days. A three-member bench of the appellate tribunal also directed the interim resolution professional (IRP) not to proceed any further till the next date of hearing i.e. April 26, 2024. Deccan Charters provides services such as aircraft maintenance, aviation training and charter services of helicopter and fixed-wing aircraft. The NCLT had also appointed an IRP for the company, which

NCLAT shuns insolvency plea against Parsvnath Landmark Developers

The National Company Law Appellate Tribunal (NCLAT) has dismissed the plea filed by four unit buyers of Parsvnath Landmark Developers to initiate insolvency proceedings against the subsidiary of Parsvnath Developer. The appellate tribunal upheld the orders of the Principal bench of the National Company Law Tribunal (NCLT), which on October 17, 2023, rejected their plea on technical grounds as the number of petitioners was only four, while the total number of allottees by Parsvnath Landmark is 488. The matter relates to La Tropicana Khyber Pass, a Delhi-based project of the realty firm. Section 7(1) of the Insolvency and Bankruptcy Code (IBC) mandates a petition on behalf of the homebuyers (as financial creditors) is maintainable only if either 100 in number or 10 per cent of the allottees join the petition. Moreover, the appellate tribunal also rejected the plea of flat buyers that they are of a different class, having an order from Delhi RERA directing the developer to refund the

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