Successful Resolution Applicant Can Seek Termination Of Related Party Contracts Via Clauses In Resolution Plan: NCLT Delhi

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in India SME Asset Reconstruction Company Limited v M/s Medirad Tech India Limited, has held that the Successful Resolution Applicant can seek termination of Related Party...

MCA Assigns NCLT Benches To Newly Appointed Members

The Ministry of Corporate Affairs (“MCA”), Government of India, has issued a circular dated 16.08.2023, assigning benches of the National Company Law Tribunal (“NCLT”) to the newly appointed Judicial and Technical Members. The benches have been assigned in accordance with Rule 15A of the NCLT (Salary, Allowances and other Terms and Conditions of Service of President...

NCLT Delhi Upholds Termination Of Related Party Agreements By Resolution Professional With Coc’s Consent

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in India SME Asset Reconstruction Company Limited v M/s Medirad Tech India Limited, has upheld the termination of Related Party agreements (Service & Lease Agreements) by the...

NCLT Issues Circular Intimating Transfer Of Members

The National Company Law Tribunal (“NCLT”), has issued a circular dated 17.08.2023, intimating the transfer of NCLT Members to different benches. The Members have been transferred in accordance with Rule 15A of the NCLT (Salary, Allowances and other Terms and Conditions of Service of President and other Members) Rules, 2015 and in consultation with the President, NCLT. ...

NCLAT Delhi Upholds Reduction Of Resolution Professional’s Fee By NCLT

The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in Rohit J. Vora v Religare Finvest Ltd. & Ors., has upheld the NCLT order whereby the fee of the Resolution Professional was reduced from Rs. 3.75 Lakhs + GST to Rs. 1 Lakh...

NCLAT Chennai Reprimands Bank For Filing Appeal With Delay, Refuses To Condone

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in DCB Bank Limited v Ramakrishnan Sadasivam & Ors., has reprimanded the conduct of a Bank which filed an appeal exactly on the 45th day, despite having huge machinery at...

Sec. 10A Inapplicable To Defaults Committed Prior To 25.03.2020; NCLAT Chennai Says Explanation To Sec. 10A Removes All Doubts

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in Carissa Investments LLC v Indu Techzone Pvt. Ltd. & Ors., has held that the Explanation to Section 10A of IBC removes any doubt by clarifying that the prohibition to initiate...

NCLAT Chennai Stays Insolvency Proceedings Against Café Coffee Day’s Parent Company

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member) and Mrs. Shreesha Merla (Technical Member), while adjudicating an appeal filed in Malavika Hegde v Indusind Bank Ltd. & Anr., has stayed the Corporate Insolvency Resolution Process (CIRP) of M/s Coffee Day Global Ltd. which was initiated by the NCLT...

Special Bench At NCLT Principal Bench On 16th & 17th August 2023

The National Company Law Tribunal (“NCLT”) has issued a circular dated 11.08.2023, intimating the constitution of Special Bench for NCLT Principal Bench (New Delhi) on 16.08.2023 and 17.08.2023. The Special Bench shall attend to the matters listed before Justice Ramalingam Sudhakar (President) and Shri Avinash Kumar Srivastava (Technical Member). The Special Bench shall...

Weekly Digest Of IBC Cases: 31 July To 7 August 2023

NCLT Go Airlines | NCLT Issues Notice On Application Filed By RP Seeking Refund Of Cancelled Ticket Amount To Passengers Case Title: Go Airlines (India) Limited Case No.: Company Petition No. (IB)-264(PB)/2023 The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Mahendra Khandelwal (President) and Shri Rahul Bhatnagar (Technical Member), has...

Corporate Distress And Compassion: Integrating Humanitarian Values Into NCLT's Decisions

The Insolvency and Bankruptcy Code, 2016 (IBC) is a landmark legislation that aims to provide a speedy and efficient resolution of Insolvency and Bankruptcy cases in India. The IBC empowers the National Company Law Tribunal (NCLT) to admit and adjudicate applications for initiating Corporate Insolvency Resolution Process (CIRP) against defaulting companies. The IBC's primary goal is to establish a time-bound and efficient mechanism for resolving Insolvency and Bankruptcy in a transparent...

Half Yearly Digest Of IBC Cases: January To June 2023

Supreme Court “Inappropriate, Almost Bordering On Contempt”: SC Deprecates NCLAT Order Impeding Implementation Of SC Order Case Title: Indiabulls Housing Finance Ltd. v Iirf India Realty Xii Ltd. & Ors. Case No.: CIVIL APPEAL NO.9062/2022 The Supreme Court Bench comprising of Justice Sanjay Kishan Kaul and Justice Abhay S. Oka while adjudicating an appeal has set aside...