NCLT Bengaluru Dismisses Insolvency Petition Against Café Coffee Day

The National Company Law Tribunal (NCLT) Bengaluru bench comprising of Ajay Kumar Vatsavayi ( Judicial Member) and Manoj Kumar Dubey ( Technical Member) has dismissed the insolvency petition filed against the parent company of Cafe Coffee Day namely Coffee Day Global Limited ("Coffee Day") by Cooperative Rabobank U.A. ("Rabobank"). Brief Factual Background Rabobank which is...

Pendency Of Execution Proceedings No Bar To Section 9 Petition: NCLAT

The NCLAT Principal bench comprising of Justice Ashok Bhushan and Dr Alok Srivastava held that the pendency of an execution petition does not bar the operational creditor from filing a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 Brief Factual Background The Operational Creditor Royal Resinex Pvt Ltd. ("Resinex") supplied poly propylene to the Corporate...

Supreme Court Issues Notice On NCLT Bar Association's Petition Challenging MCA Notification Fixing NCLT Members' Term As 3 Years

The Supreme Court on Tuesday issued notice in a writ petition seeking to modify the term of 3 years fixed by a notification issued by the Ministry for the members of the National Company Law Tribunal as 5 years.The Notification was issued on 20.09.2019 by the Ministry of Corporate Affairs in exercise of the powers conferred by section 408 of the Companies Act, 2013. The term was fixed as...

NCLT Delhi Declares Logix City Developers Insolvent And Appoints IRP

After the initiation of Corporate Insolvency resolution process of Supertech, Jaypee, Mascot Soho another Noida based real estate developer Logix city developers private limited ("Logix") is declared insolvent by the NCLT New Delhi vide its order dated and appointed the interim resolution professional. Colliers international (India) property services Pvt. Ltd. ("Operational...

National Company Law Tribunals; Reeling Under Poor Infrastructure

The National Company Law Tribunals (NCLT) were constituted in 2016 for adjudication of matters arising out of the Companies Act, 2013, and exclusive jurisdiction under the Companies Act was vested with the NCLTs. After the enactment of the Insolvency and Bankruptcy Code, 2016 in December 2016, NCLT has been vested with exclusive jurisdiction to deal with cases arising out of IBC. However, like any other tribunal, NCLTs have also received indifferent treatment from the government and...

NCLT Permits Centre To Take Over Delhi Gymkhana Club

The Bench comprising of Justice R Sudhakar and Narendra Kumar Bhola of Principal Bench, NCLT New Delhi allowed the petition filed under Section 241-242 of the Companies Act, 2013 by Union of India against the Delhi Gymkhana Club and allowed the Govt. to take over the control of the Delhi Gymkhana Club by nominating Fifteen (15) persons to be appointed as the directors of the Delhi...

Creditors Filing False Claims Liable To Be Punished Under S.235A IBC: Centre Tells Delhi High Court

The Central Government has informed the Delhi High Court that creditors filing false or misleading claims during the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 can be prosecuted and punished under Section 235A of the Code.Section 235A provides that if any person contravenes any of the provisions of the Code or the rules or regulations made...

Insolvency Law In Review – January 2022

The enactment of the Insolvency and Bankruptcy Code 2016 (Code) has had significant ramifications on the corporate insolvency landscape. Over time, the Code has witnessed a manifold increase in litigation, and consequently in the number of decisions. This has made it difficult for insolvency practitioners to stay updated with developments in the field. This column fills this...

NCLAT Order Vitiated If It Fails To Look Into A Vital Aspect On Which NCLT Had Recorded A Specific Finding : Supreme Court

The Supreme Court, on Tuesday, held that the failure of NCLAT as the first appellate authority to look into a vital aspect of the matter regarding which NCLT had already recorded a specific finding of fact, would vitiate its order. A Bench comprising Justices Hemant Gupta and V. Ramasubramanian allowed an appeal challenging the order of the NCLAT which reversed the order of the...

IBBI First Appellate Authority Allows RTI Application By A Company Seeking Information Regarding Complaint Against IRP

The Executive Director and First Appellate Authority, Santosh Kumar Shukla, IBBI in Utility Premises Private Limited v. Central Public Information officer allowed the RTI application filed by Utility Premises Private Limited seeking information regarding the complaint filed by it against the IRP, Mr. X. The Central Public Information Officer (CPIO) had rejected the RTI...

Effect Of Increase In Threshold Limit Under Section 4 Of IBC, 2016- Conflicting Judgements Of NCLT

Ever since the central government has issued the notification dated 24.03.2020 for increasing the threshold limit of default from Rs. 1 Lac to Rs. 1 Crore under Section 4 of the Insolvency and Bankruptcy Code, 2016 "Code" different benches of NCLT are giving contradictory judgements as to whether this notification has prospective or retrospective effect. The National Company Law Tribunal (NCLT), New Delhi Bench-III has recently ruled in the matter of the "Bansal Trading Company V....

Notice Served To The Address Shown In ROC Records Is Valid : NCLT, Delhi

The Principal Bench, consisting of Justice Ramalingam Sudhakar (President) and Narender Kumar Bhola (Member Technical) of the National Company Law Tribunal, New Delhi admitted the plea of M/s. Jones Lang Lasalle Building Operations Pvt. Ltd and declared M/s. Celebration City Projects Pvt. Ltd. as insolvent and appointed IRP. The petition was filed by M/s. Jones Lang Lasalle...