NCLAT New Members To Take Oath Tomorrow

The swearing in ceremony of the newly appointed members of the National Company Law Appellate Tribunal will be held at 10.30 A M on 17th May , 2022 in the Court of Chairperson , shri. Ashok Bhushan, National Company Law Appellate Tribunal. Following Judges will be taking oath on 17th May , 2022 , as per the Circular dated 16.05.2022 Justice Rakesh Kumar Jain, Retd. judge,...

Pendency Of Proceedings Before DRT, SARFAESI Or Other Fora-Not A Bar For Initiating CIRP: NCLAT Chennai

The National Company Law Appellate Tribunal ("NCLAT"), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Kanthi Narahari (Technical Member), while adjudicating an appeal in Mr. Amar Vora v City Union Bank Ltd, has held that a petition can be moved under Section 7, 9, or 10 of Insolvency and Bankruptcy Code, 2016 ("IBC"), even when proceedings with respect to the...

S. 44 IBC NCLT Doesn't Have The Power To Suo-Moto Classify A Transaction As A 'Preferential Transaction': NCLAT

In a recent decision, the National Company Law Appellate Law Tribunal (NCLAT) has held that NCLT does not have the power to suo-moto classify a transaction as a Preferential Transaction in Section 44 of the Insolvency and Bankruptcy Code, 2016. A Division Bench of Justices M. Venugopal [Member Judicial] and Dr. Ashok Kumar Mishra [Member Technical] allowed the appeal challenging the order of...

Mere Pendency Of An Insolvency Petition Is Not A Bar To The Appointment Of The Arbitrator: Delhi High Court

The High Court of Delhi has held that the mere pendency of an insolvency petition under Section 9 of the IBC is not a bar to the appointment of an arbitrator. The Single Bench of Justice Sanjeev Sachdeva has held that merely because an insolvency petition is pending, it cannot be an embargo on the power of the Court to decide arbitration applications. It is only when...

Failure To Pay Consideration In 90 Days, NCLAT Delhi Cancels The Sale Of Corporate Debtor To The Auction Purchaser In Liquidation Proceedings.

The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, New Delhi, comprising of Justice Ashok Bhushan (Chairperson) and Ms. Shreesha Merla (Technical Member) while adjudicating an appeal in Potens Transmissions & Power Pvt. Ltd v Gian Chand Narang, has upheld the cancellation of sale of Apex Buildsys Ltd. as a going concern to Potens Transmissions & Power Pvt....

Insolvency Cannot Be Initiated On The Basis Of Unpaid LTC And Leave Encashment Dues: NCLAT

National Company Law Appellate Tribunal (NCLAT) bench comprising of Justice Ashok Bhushan and Ms. Shreesha Merla in the case of Kishore K Lonkar versus Hindustan Antibiotics Ltd. held that the welfare claims such as Leave Encashment, superannuation dues are not operational debt for the purpose of initiation of Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor...

National Company Law Appellate Tribunal Gets Five More Judges

The NCLAT has been facing a severe shortage of Judges . By appointing five new Judges ,the Judges strength has gone up from seven to twelve. The new five Judges are now appointed by Notification dated 12.05.2022. As per the Notification ,Two former High Court Judges and one sitting Judge are appointed as Judicial Members . Two Former bureaucrats from All India Services have been appointed...

Arrears Of Salary Due Beyond Three Years, Barred By Limitation, Cannot Be The Basis For Initiating CIRP: NCLAT Delhi

The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, New Delhi, comprising of Justice Ashok Bhushan (Chairperson) and Ms. Shreesha Merla (Technical Member) while adjudicating an appeal filed in Omega Laser Products B.V. v Anil Agrawal, has held that arrears of salary due beyond a period of 3 years would be barred by limitation for the purposes of initiating...

Appeal To NCLAT Shall Be Filed Within A Period Of 30 Days, Reiterates Supreme Court

The Supreme Court bench comprising of Justice L N Rao and Justice P S Narasimha in the case of Safire Technologies Pvt Ltd versus Regional Provident Fund Commissioner reiterates that an appeal against the order of NCLT shall be filed before the NCLAT within a period of 30 days and the appellate tribunal can only condone delay for a period of 15 days. The appellant filed a civil...

IBC - Moratorium Period Can Be Excluded In Computing Limitation Period In A Suit/Application By Corporate Debtor: Supreme Court

The Supreme Court has held that the entire period during which the moratorium was in force in respect of corporate debtor can be excluded while computing the period of limitation for a suit or proceeding by the corporate debtor.In this case, the appellant, had approached the Apex Court challenging the Delhi High Court's order allowing the application filed by respondent corporate debtor...

Threshold Of Rs.1 Crore Is Required For Initiation of CIRP, Even If The Cause Of Action Arises Out Of Failure Of The Consent Terms Of The Earlier Section 7 Application: NCLAT

National Company Law Appellate Tribunal (NCLAT) bench comprising of Justice Ashok Bhushan and Ms. Shreesha Merla in the case of Prafulla Purushottamrao Gadge v. Narayan Mangal held that an application filed after 24.03.2020 under Section 7 of the Insolvency and Bankruptcy Code, 2016 below the threshold of Rs. One Crore is not maintainable. The suspended director of the Corporate...

NCLT Is Empowered To Pierce The Corporate Veil To Ascertain The Real Successful Bidder: NCLT Delhi

The National Company Law Tribunal (NCLT), New Delhi Bench, comprising of Dharminder Singh (Judicial Member) and Sumita Purkayastha (Technical Member), while adjudicating applications filed in the matter of Argentium International Pvt. Ltd. v Utm Engineering Pvt. Ltd, has held that the NCLT has the power to pierce the 'corporate veil' in order to ascertain the real successful bidder....