Sec.12A IBC : Propriety Of Allowing Withdrawal Of CIRP At The Instance Of Defaulting Promoters

The National Company Law Appellate Tribunal ("NCLAT") reversed the order of NCLT while adjudicating upon the matter concerning insolvency of Sterling Biotech. The NCLAT allowed the creditors to withdraw the insolvency petition as per section 12A of the Insolvency and Bankruptcy Code ("IBC"), 2016 and to settle with the promoters of the Corporate Debtor. Thereby, allowing the promoters of the Corporate Debtor to take the control after making full payment to the lenders. An application...

NCLAT Allows Dutch Administrator To Participate In Insolvency Proceedings Of Jet Airways

The NCLAT has given its nod to offshore proceedings in the Jet Airways insolvency case by allowing the Administrator, Rocco Mulder, appointed by Dutch Insolvency Court (Trustee) to participate in the meetings of the Committee of Creditors (CoC). The Appellate Tribunal was dealing with cross border insolvency in the matter, as insolvency proceedings were initiated against the...

Renewed Hope For Amtek Auto Resolution As SC Allows RP To Issue Invitation For Fresh Bids

Supreme Court has allowed the plea of the Committee of Creditors (CoC) of Amtek Auto for granting extension to the extent that, fresh bids may be invited by the Resolution Professional from potential resolution applicants. Solicitor General Tushar Mehta appearing for the CoC of Amtek, asked for an extension of 90 days for completing resolution process. He contended that the...

SFIO Challenges NCLT's Order Directing Investigation Into Fraud By Companies

The Government through Serious Fraud Investigation Office (SFIO) has moved NCLAT against NCLT Principal Bench's order directing SFIO to investigate alleged siphoning of funds by two companies undergoing insolvency proceedings, Luxury Train Pvt. Ltd. and Zynke Exports Pvt. Ltd. The Principal Bench headed by Judicial Member M M Kumar in both the cases observed that funds were...

Insolvency & Bankruptcy Code Prevails Over Prevention Of Money Laundering Act : PMLA Appellate Authority

In a decision with a possibility of having a far-reaching effect, the Appellate Authority of the Prevention of Money Laundering Act, 2002 (PMLA) has upheld the prevalence of the IBC over the provisions of PMLA. The Appellate Bench has ordered the release of specific properties of PMT Machines Ltd., which were attached by the ED (Directorate of Enforcement), in view of allegations...

NCLAT Allows Group Insolvency Of Group Companies For Adel Landmarks Limited [Read Judgment]

NCLAT recently allowed group insolvency of the 100 percent subsidiaries of Adel Landmarks Limited namely Sachet, Sameeksha, Mehak, Jamvant and Magadh with that of Adel. This was done while admitting the five out of the nine Appeals preferred by Edelweiss Asset Reconstruction Company against the Order passed by NCLT, Principal Bench, declining the Insolvency Petitions filed. NCLAT directed NCLT to admit the aforesaid five companies and appoint the Resolution Professional of Adel as the common...

NCDRC Directs Sahara Developer To Refund Money To Homebuyer For Deficiency In Service

The NCDRC has held Sahara Developers guilty of deficiency of service and has directed the Developer to refund booking amount of Rs. 4.06 lakh with interest to a homebuyer, as well as compensation of Rs 2 lakhs for 'mental agony' on not having received possession even after a lapse of 10 years since booking of the flat. The Alwar-based homebuyer Tapasya Palawat booked a flat...

NCLAT Directs Modification Of Resolution Plan On Ground Of Discrimination Between Similarly Situated Financial Creditors

Although the Appellate Tribunal found the resolution plan to be in contravention of provisions of the IBC, it did not set aside the plan. An opportunity was given to the resolution applicant to remove the discrimination by providing similar treatment, as was provided to other similarly situated financial creditors.

Imposition Of Pre CIRP Moratorium: Icing On The Cake

Pre CIRP moratorium will prevent corporate debtors from taking advantage of delay in admitting insolvency applications.

SAT Quashes SEBI Ban On Price Waterhouse For Alleged Conspiracy In Satyam Scam [Read Judgment]

The Securities Appellate Tribunal has quashed the SEBI order imposing a two year ban on the accounting firm Price Waterhouse(PW) for its alleged involvement in the Sathyam scam.The ban was imposed by the Whole Time Member(WTM) of the Securities and Exchange Board of India (SEBI) in January 2018 under Sections 11, 11B of the SEBI Act barring PW from directly or indirectly issuing any...

'Homebuyers Cannot Be Made To Wait Indefinitely For Possession' : NCDRC Directs Developer To Refund Money [Read Judgment]

NCDRC has held that purchasers cannot be made to wait indefinitely for possession of building unit, and has directed real estate developer Golden Peacock Residency Pvt. Ltd. to refund Rs. 4.12 cr. with interest to the homebuyer. The order came on a complaint filed by one Alok Kumar under Section 21 (a) (i) of the Consumer Protection Act, 1986 ('the Act') against the developer...

IBC Proceedings Maintainable Even If Company's Name Struck Off From The Register Of Companies: NCLAT

The NCLAT has reiterated that an application under Sections 7 and 9 of the Insolvency and Bankruptcy Code, 2016 ('I&B Code') for the initiation of 'Corporate Insolvency Resolution Process' (CIRP) is maintainable even if the name of the Company has been struck-off by the Registrar of Companies. The Appellate Bench was hearing an appeal filed by Elektrans Shipping Pvt....