Page 5 - Nclt

Settlement with BCCI outside lenders' scrutiny, Byju's Raveendran to NCLAT

Riju, the younger brother of founder Byju Raveendran, told the appellate tribunal that the settlement with BCCI had been finalised before the committee of creditors (CoC) was formed

IIHL to acquire Reliance Capital by Feb 26, meeting scheduled for Tuesday

IndusInd International Holdings Limited (IIHL) is set to acquire the debt-ridden Reliance Capital by February 26 as the National Company Law Tribunal (NCLT) on Monday accepted the acquiring company's request. During the hearing, sources said, IIHL confirmed submission of all definitive documents and achieving financial closure towards implementation of the resolution plan of Reliance Capital. NCLT has accepted IIHL's plea for achieving closure by February 26, 2025 in the hearing earlier in the day. Consequently, the next hearing in the matter is scheduled on February 26 for final closure of implementation of approved resolution plan and handing over the control of Reliance Capital and its subsidiaries to IIHL. IIHL's lenders have reassured that they are ready to draw down the remaining funds of Rs 4,300 crore required to complete the payment of total Rs 9,861 crore of resolution plan value to creditors of Reliance Capital Ltd (RCL), sources said. IIHL has already completed more th

NCLT recalls insolvency order against Logix Infra, cites 'mala fide' intent

In a rare move, NCLT has recalled and set aside its own order directing insolvency proceedings against realty firm Logix Infrastructure in July 2023, saying the plea was initiated with "fraudulent and mala fide intentions" and a collusive petition was filed by the financial creditor. NCLT said "there is a nexus and connection" between its financial creditor Experts Realty Professionals whose plea for insolvency was initiated against Logix Infrastructure. The corporate tribunal said the entire transaction was "orchestrated" and forum was used "with purported malicious intent". The insolvency petition filed "with an ulterior motive" against Logix Infrastructure and its financial creditor has used this forum for purposes other than the insolvency resolution of the realty firm with purported malicious intent, contrary to the objectives of the IBC, the tribunal said. The National Company Law Tribunal (NCLT) also asked for a thorough probe by the Serious Fraud Investigation Office (SFIO)

Decide on BCCI-Byju's settlement in a week, NCLAT directs tribunal

The apex court had then asked BCCI to transfer the money in an escrow account, sending the case back to NCLT

Not given a fair hearing by NCLT: Former Byju's resolution professional

Srivastava told the NCLAT that the NCLT, Bengaluru, did not hear him in the absence of his lawyers and that the disciplinary action initiated against him was unfair

Glas Trust, Aditya Birla Finance reinstated as lenders of edtech co Byju's

Both Glas Trust and Aditya Birla Finance were initially part of the CoC last year in August but were later removed from the reconstituted CoC by the IRP

NCLAT sets aside penalty on lenders for delay in Mudra Denim insolvency

The National Company Law Appellate Tribunal (NCLAT) has set aside the penalty imposed against lenders of debt-ridden Mudra Denim, saying there was no laxity on their part for delay in insolvency process. The Mumbai bench of the National Company Law Tribunal had, on November 11 last year, while deciding creditors' plea seeking extension of deadline to complete the insolvency process, imposed a cost of Rs 55,000 on the Committee of Creditors (COC). This was challenged before NCLAT by COC through IDBI Bank, contending that there was not any laxity on the part of COC which decided to take Mudra Denim for liquidation on December 13, 2023, prior to the expiry of the CIRP (Corporate Insolvency Resolution Process) period. All facts could not be brought to the notice since the COC was not appearing before the NCLT, hence the imposition of cost was uncalled for, the lenders submitted. Also, the company's resolution professional said that e-voting on the appointment of the liquidator was ...

NCLT orders Go First liquidation as CoC opts for no revival prospects

CoC opts for liquidation after failed resolution plans; NCLT approves request

NCLT approves liquidation of Go First Airways amid insolvency crisis

The NCLT has ordered the liquidation of Go First on a plea filed by the airline's Committee of Creditors; airline faced insolvency proceedings since May 2023 with no revival options

Udaan set for IPO as NCLT clears demerger plan for corporate restructuring

The approved restructuring will boost Udaan's agility and open up various financing avenues, including the ability to pursue an IPO in India by 2026, according to sources.

Zepto gets NCLT approval to shift domicile back to India ahead of 2025 IPO

Zepto will not require a no-objection-certificate (NOC) from the Reserve Bank of India, the order read

Company law tribunal appoints 24 new members to tackle member shortages

The newly appointed members will serve for five years or until they reach the age of 65

NCLT directs initiation of insolvency proceedings against Hero Electric

The National Company Law Tribunal (NCLT) has directed initiation of insolvency proceedings against Hero Electric after admitting a plea filed by Metro Tyres, an operational creditor claiming a default of Rs 1.85 crore. As per provisions of the Insolvency & Bankruptcy Code (IBC), NCLT has appointed Bhoopesh Gupta as Interim Resolution Professional to run the company after suspending the board of Hero Electric. The Delhi-based bench of NCLT rejected the contentions of Hero Electric of a pre-existing dispute with the operational creditor saying that it was "not just a moonshine or feeble legal argument". The objections raised by Hero Electric are not found "tenable in law" and have been duly negated by Metro Tyres, which had supplied tyres and tubes to the company. "In the facts and circumstances of the instant case, we are of the view that the corporate debtor has not been able to raise a plausible contention regarding the pre-existence of dispute between the parties. Hence, the ...

NCLAT declines to lift stay on NCLT order barring Aakash from amending AoA

The National Company Law Appellate Tribunal has declined to lift the stay on the NCLT order, barring amendment of the Articles of Association of Aakash Educational Services, a subsidiary of the debt-ridden edtech major Byju. Disposing the petitions moved by Manipal Health Systems and Aakash Educational Services, the Chennai bench of the National Company Law Appellate Tribunal (NCLAT) on Friday asked them to file applications before the National Company Law Tribunal for vacating the order passed on November 20, 2024. A two-member bench granted them a week to file it and also directed the National Company Law Tribunal (NCLT) to decide it within three weeks thereafter. Moreover, the status quo would continue as directed by the Supreme Court in this matter, a 14-page-long NCLAT order said. An extraordinary general meeting (EGM) of Aakash Educational Services was scheduled to be held on November 20 to consider and approve alteration in the AoA, which was objected to by the minority ...

NCLAT rejects Jaiprakash Associates' petition challenging insolvency

The National Company Law Appellate Tribunal (NCLAT) on Friday rejected Jaiprakash Associates Ltd's petition challenging the insolvency proceedings initiated against the company. While upholding an earlier order, the appellate tribunal NCLAT observed mere pending of loan restructuring arrangement with the lender before NCLT does not debar the creditors to file insolvency proceedings under section 7 of Insolvency & Bankruptcy Code 2016. A three-member bench led by Chairperson Justice Ashok Bhushan has upheld the order passed by the National Company Law Tribunal (NCLT), which had directed initiating the Corporate Insolvency Resolution Process (CIRP) against the company. The appellate tribunal said "after answering all the issues, we are of the view that no grounds have been made out to interfere in order of NCLT". The OTS (one-time settlement) proposal submitted to NCLT and as well as before this tribunal on behalf of JAL contains the "clear acknowledgment of debt" and ...

NCLAT dismisses petition seeking insolvency against Amazon Wholesale

The National Company Law Appellate Tribunal (NCLAT) has set aside a petition seeking to initiate insolvency proceedings against Amazon Wholesale (India). A three-member NCLAT bench upheld the order passed by the National Company Law Tribunal (NCLT), which had in March this year dismissed the insolvency plea filed by Multiplier Brand Solutions. Multiplier Brand Solutions had filed the plea under Section 9 of the Insolvency & Bankruptcy Code. It had alleged a default of Rs 3.7 crore for eight invoices raised between March 2023 and May 2023. However, rejecting it, NCLAT said the "claim of Appellant for payment of invoices which are the subject matter of Section 9 Application was disputed much before Demand Notice was issued". The appellate tribunal further said: "The adjudicating authority (NCLT) has not committed any error in refusing to initiate CIRP, there being pre-existing dispute which is reflected with the correspondence which took place between the parties much prior to ...

Vedanta demerger: NCLT clears way for meetings of shareholders, creditors

Mining major Vedanta Ltd on Friday said the Mumbai bench of the NCLT has asked the company to call for a meeting of its secured and unsecured creditors and shareholders in the next 90 days to discuss the proposed demerger. The proposed demerger will create independent companies housing aluminium, oil and gas, power, steel and ferrous materials, and base metals businesses. The existing zinc and new incubated businesses will remain under Vedanta Ltd. "A meeting of the equity shareholders... be convened and held within 90 days from the date of receipt of the order," said a two-member bench of the National Company Law Tribunal (NCLT) comprising Technical Member Madhu Sinha and Judicial Member Reeta Kohli in its order dated November 21. Vedanta Chairman Anil Agarwal had earlier said the proposed demerger of the company's diverse verticals that represent more than 15 commodities will see it progress from being asset managers to asset owners. As the company passes through the transition .

NCLT stays Aakash's EGM resolution to amend Articles of Association

The National Company Law Tribunal (NCLT) on Wednesday stayed a resolution related to amendment in the Articles of Association (AoA) of Aakash Educational Services which allegedly seeks to dilute the rights of petitioners including Singapore VII Topco I. An Extra Ordinary General Meeting (EGM) of Aakash Educational Services was scheduled to be held on Wednesday to consider and approve alteration in the AoA, which was objected to by the petitioners. " ... in the interests of justice, this Tribunal directs the Respondents No.1 to 11 (Aakash Educational Services and others) not to give effect to the resolutions, if passed, in relation to the Agenda Item No 8 in the Extra Ordinary General Meeting to be held on today i.e. 20.11.2024, till the disposal of the main Petition," said NCLT in its interim order. The Bengaluru bench of NCLT directed that the matter will be listed for the next hearing on December 19, 2024. NCLT order came over a petition filed by Singapore VII Topco I Pte Ltd and

SpiceJet faces fresh insolvency pleas from Sabarmati Aviation, JetAir 17

Two more insolvency petitions were filed by Sabarmati Aviation and JetAir 17 against budget carrier Spicejet at the National Company Law Tribunal (NCLT) on Monday. The NCLT issued a notice to the airline over the plea by operational creditor Sabarmati Aviation while asking another complainant, JetAir 17, to file additional documents in support of its claims of USD 27 million. During the proceedings, senior advocate Krishnendu Datta representing SpiceJet submitted that a reply would be filed over the plea of Sabarmati Aviation. However, he opposed the plea of JetAir 17 contending that their claims as an operational creditor are disputed. In the matter of JetAir 17, the NCLT asked the company to file additional documents to support its claims as SpiceJet contended that it has not entered into a lease agreement with it. JetAir 17, an Irish company, operates within the renting and leasing of air passenger transport equipment industry. Dutta submitted that JetAir 17 is claiming its du

BCCI may move NCLT to seek withdrawal of Byju's insolvency proceedings

The Supreme Court last month annulled the National Company Law Appellate Tribunal ruling that sanctioned a settlement of Rs 158 crore between Byju's and the BCCI on Oct 23