Auditor Cannot Be Debarred For 5 Years Under Section 140 (5) Of The Companies Act 2013 In Absence Of Evidence : NCLAT

The NCLAT has set aside an order passed by NCLT in a matter relating to debarring of an auditor for a period of 5 years. The court while allowing the appeal held that though he was negligent, there was no material on record to infer that the auditor had acted fraudulently or misused his position as a statutory auditor,The Appellant was appointed as the statutory auditor in 2014 of Zen Shaving...

PNB Scam - Powers Under Sec 339 Companies Act Can Be Invoked Only Against Officers Of Company In Which Mismanagement Is Alleged : SC [Read Order]

In the PNB-Nirav Modi scam, the Supreme Court has granted relief to Usha Ananthasubramanian, former MD & CEO of Punjab National Bank, by setting aside the order passed by NCLT by which her assets were frozen.In the case regarding mismanagement of Gitanjali Gems Ltd run by Nirav Modi, the National Company Law Tribunal had passed an order restraining several individuals, including...

CIRP Against Real Estate Company Limited To Project Concerned And Will Not Affect Other Projects : NCLAT [Read Judgment]

The National Company Law Appellate Tribunal has held that an insolvency process against a real estate company will impact only the project concerned and not the other projects of the builder-developer."In CIRP against a real estate, if allottees or financial institutions, banks or operational creditors of one project initiated CIRP against the corporate debtor, it is confined to the...

Dispute Raised To Application U/S 9 IBC Over Telephone Inadmissible: NCLT, Allahabad [Read Order]

In its recent order the Allahabad bench of the NCLT has decided that 'notice of dispute' to a claim under Section 9 of the Insolvency and Bankruptcy Code, 2016 is not admissible if made over a telephonic communication, not supported by phone records. The observations have been made in a company petition filed under Section 9 of the Code for initiation of Corporate Insolvency...

Time Spent For SARFAESI Proceedings Can Be Excluded For Computing Limitation Under IBC : NCLAT

Since the proceedings initiated under the SARFEASI Act were within limitation period, NCLAT held that the Financial Creditor was entitled for the exclusion of time period under the Limitation Act.

Satyam Scam : SC Issues Notice On SEBI's Challenge Against SAT Quashing Price Waterhouse Ban

The Supreme Court has issued notice on appeal filed by SEBI against the SAT's order) quashing the SEBI order imposing a two year ban on the accounting firm Price Waterhouse(PW) for its alleged involvement in the Satyam scam. Further, the apex court has also stayed the part of decision, insofar as it held that SEBI did not have the jurisdiction to debar auditors and auditing firms...

Registrar Of Companies Cannot Strike Off Company When Insolvency Process Is Pending : NCLT [Read Order]

The Registrar of Companies (ROC) cannot strike off the name of a company during Corporate Interim Resolution Process, which is reported to have pending litigation, the Ahmadabad Bench of National Company Law Tribunal has held. A bench of Harihar Prakash Chaturvedi (Member Judicial) and Prasanta Kumar Mohanty (Member Technical) said so while deciding the appeal moved by the liquidator of...

Centre Notifies Rules For Corporate Insolvency Resolution Process Of Guarantors To Corporate Debtors

The Centre, through the Ministry of Corporate Affairs (MCA) has notified rules for corporate insolvency resolution process in respect of guarantors of corporate debtors, called the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. With the rules set to be enforced from...

Arcelor Mittal Bid For Essar Steel: Key Aspects In SC Judgment

In what will have a long-standing impact on the IBC regime, the SC has decided the Essar Steel Insolvency matter in favour of the Committee of Creditors (CoC) of Essar Steel, and has set aside the NCLAT'sjudgment. The constitutional validity of the Insolvency and Bankruptcy Code (Amendment) Act, 2019 (Amendment Act, 2019), has been upheld however, the word 'mandatorily' in...

SC Sets Aside NCLAT Order Which Held That Dissenting Financial Creditor Should Not Be Discriminated [Read Judgment]

The Supreme Court on Friday set aside an order passed by the National Company Law Appellate Tribunal which held that a dissenting financial creditor cannot be discriminated.A bench comprising Justices Arun Mishra and Ravindra Bhat allowed the appeal filed by Rahul Jain, the resolution applicant in the insolvency of Rave Scans Private Ltd.The appellant was aggrieved with the NCLAT's direction...

Karnataka HC Stays Insolvency Proceedings Against Flipkart

[Update] : The High Court of Karnataka has stayed the NCLT proceedings against Flipkart. The Stay Order dated 25th October 2019 was passed by Justice B Veerappa on the strength of submissions advanced by Senior Advocate Dhyan Chinnappa. The Senior Advocate, who appeared for Flipkart, contended that NCLT has travelled beyond its jurisdiction in admitting the company into CIRP. The counsel...

NCLAT Sets Aside IBC Order Passed By Judicial Member Alone In A Case Heard By DB

The NCLAT has set aside insolvency proceedings initiated against Ambience Pvt. Ltd by 'Vistra ITCL(India) Ltd.' on the ground that the matter was heard by a Division Bench of the NCLT Delhi, comprising of R. Vardharajan (Member Judicial) and Ms. Deepa Krishan (Member Technical) but the order was passed by a single bench comprising of only the judicial member. The application...