Corporate
NCLT Mumbai Orders Insolvency Of Kute Group's Tirumalla Agro Industries
The National Company Law Tribunal (NCLT), Mumbai Bench-VI, has admitted the section 9 IBC petition filed by Aryatech Platforms Pvt. Ltd. against Tirumalla Agro Industries (Unit Company of Kute Group). Tirumalla Agro becomes the second entity in the conglomerate to face the insolvency. The group is already stumbling from a Rs. 2500 Cr. co-operative society fraud scandal, and its...
Delhi High Court Upholds Liability Of Company To Reimburse Official Liquidator's Security Expenses For Safeguarding Corporate Assets
A division bench of the Delhi High Court, comprising Justice Anil Kshetrapal and Justice Harish Vaidyanathan Shankar, has upheld the liability of a company to reimburse the official liquidator's security expenses for safeguarding corporate assets. Background of the Case The winding-up process of the appellant company (M/s Connoisseur Buildtech Pvt. Ltd.) was going on in the year...
No One Can Claim Exclusivity Over Name Of Chhatrapati Shivaji Maharaj : Bombay High Court Refuses To Stall Release Of Marathi Film
The Bombay High Court has recently ruled that no one can claim exclusive rights over the name of 'Chhatrapati Shivaji Maharaj', while rejecting a film producer's plea to stop the release of a Marathi movie using the Maratha ruler's name in its title.A single bench of Justice Amit S. Jamsandekar made the observation while refusing relief in a plea by Everest Entertainment LLP, the producer of...
NCLT Approves Demerger Of Hindustan Unilever's Ice Cream Business Into Kwality Wall's
The National Company Law Tribunal on Thursday approved the demerger of Hindustan Unilever Limited's ice cream business into its wholly owned subsidiary, Kwality Wall's (India) Limited.The scheme will create a separate, independently listed ice cream company and is part of the global restructuring plan of HUL's parent company, Unilever PLC. The scheme was approved by a coram of Judicial...
Appeal Against Dismissal Of Contempt Petition By NCLT Not Maintainable: NCLAT Chennai
The National Company Law Appellate Tribunal (NCLAT) at Chennai has recently held that an appeal against dismissal of a contempt petition by the National Company Law Tribunal (NCLT) is not maintainable before the Appellate Tribunal under Section 19 of the Contempt of Courts Act, 1971. A coram comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain...
Gujarat High Court Approves One-Time Ex-Gratia Payment For Company-Paid Staff Of Official Liquidator's Office
The Gujarat High Court has approved a one-time ex-gratia welfare payment to 12 company-paid staff employed under the office of the official liquidator. “The welfare measure of a one-time ex-gratia payment is justified in equity provided that it doesn't prejudice the entitlement of stakeholders in liquidation proceedings,” Hon'ble Mrs. Justice Mauna...
Transactions Purely Commercial; Public Trust Doctrine Can't Defeat Limitation: Madras HC Dismisses GAIL Appeals In ₹246 Cr Dispute
In an important ruling for the natural gas sector, the Madras High Court Bench of Justices G Jayachandran and Mummineni Sudheer Kumar denied appeals by GAIL (India) Limited against five natural gas supplier companies in arbitrations aggregating to Rs. 246 crores, observing that natural gas transactions are commercial and GAIL could not invoke the public trust doctrine to escape...
RP's Admission Of Claim In Earlier CIRP Amounts To Acknowledgement U/S 18 Limitation Act For Commencement Of Fresh Limitation Period: NCLAT
The NCLAT, Principal Bench, New Delhi, comprising Justice N. Seshasayee (Member-Judicial) and Arun Baroka (Member-Technical), has held that the admission of a financial creditor's claim by a resolution professional during an earlier CIRP amounts to an acknowledgement of debt within the meaning of section 18 of the Limitation Act. Therefore, the said acknowledgement gives the fresh period...
Unenforced Equitable Mortgage Remains Corporate Debtor's Asset, Cannot Be Treated As Margin Money: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi set aside an order passed by National Company Law Tribunal (NCLT) Mumbai by which it directed that an amount equivalent to 5% of the value of Foreign Letters of Credit (FLCs), Letters of Credit (LCs), and Bank Guarantees (BGs) be excluded from the total assets of Frost International Limited and be allocated to Bank of India (BOI)...
NCLAT Seeks Replies From Aakash, Others On Byju's Plea To Block Rights Issue
The National Company Law Appellate Tribunal (NCLAT), Chennai, on Thursday sought replies from Aakash Educational Services Ltd. (AESL) and other respondents in a plea filed by debt-ridden edtech major Byju's (Think and Learn Pvt. Ltd.) seeking to restrain Aakash from proceeding with a proposed rights issue that could dilute its shareholding in the test-prep subsidiary.The right's issue which...
Arbitral Award In One Proceeding Can Be Used As Evidence In Another: Allahabad High Court Upholds ₹126 Cr Award To Adani
The Allahabad High Court has held that an arbitral award given in one proceedings can be used as evidence in other arbitral proceedings, though the weightage given to it may vary on case to case basis.While dealing with an arbitral award of more than Rs. 126 crores in favour of Adani Enterprises Ltd., the bench of Chief Justice Arun Bhansali and Justice Jaspreet Singh held“An Arbitral...
Delhi High Court Dismisses Patanjali Ayurved's Appeal Against Order To Pay ₹48.5 Lakh To Supplier
The Delhi High Court on Thursday dismissed an appeal by Patanjali Ayurved Limited against a lower court order that directed the company to pay nearly Rs 48.5 lakh to Ujala Goel, proprietor of Ru Overseas, for goods supplied to it.A bench of Justices V Kameswar Rao and Vinod Kumar while dismissing the appeal however reduced the interest payable on the amount from 15% to 9%. “The appeal...