NCLT Initiates Insolvency Proceedings Against Builder On Homebuyers' Plea

The NCLT Delhi has admitted an insolvency petition filed by a group of 'homebuyers' against the builder Today Homes Noida India Ltd. The allottees of the flat (homebuyers) had entered into a Flat Buyers Agreement for allotment of flats in a residential project at Noida, with Today Homes during 2011-13, and had paid almost 90% of the purchase value. As per the agreement,...

Insolvency Proceedings Against Jet Airways in India And Netherlands- NCLAT to Decide The Legality of Dual Proceedings

What should the domestic company law tribunals do when a foreign court has already triggered insolvency proceedings against an Indian entity – this question has popped up before the NCLAT in the Jet Airways insolvency proceedings. In an interesting turn of events, the NCLAT while hearing an appeal filed by the Administrator appointed in the Dutch Bankruptcy Proceedings, has now sought...

NCLT Ahmedabad Admits Insolvency Proceedings Against Anil Ambani Group Company

The National Company Law Tribunal bench of Ahmedabad has ordered initiation of insolvency proceedings against 'RMOL Engineering and Offshore Ltd' ( till recently known as 'Reliance Marine Engineering and Offshore Ltd'), belonging to Anil Dirubhai Ambani Group (ADAG). This was done by admitting the insolvency application filed by Industrial Financial Corporation of India Ltd (IFCI), a...

IBC - A Big Game Changer In Banking! (Part II)

In Part I, we have discussed about certain core fundamental competitiveness of IBC over other recovery laws such as Sarfaesi, DRT and Civil Courts. Now, we will dwell further upon other competitive factors which make IBC preferable recovery tool over other recovery measures. IBC – Separation of powers between commercial and judicial domains IBC separates commercial aspects of insolvency and bankruptcy proceedings from judicial aspects. Under IBC, the Adjudicatory...

NCLT Cautions RPs To Look Out For Excess Claims Made By Financial Creditors Against Corporate Debtor

The NCLT Principal Bench at New Delhi, while admitting an insolvency plea, has cautioned RP's to carefully settle the claims made by financial creditors, banks and financial institutions, in excess of what's actually owed to them by the Corporate Debtor. The petitioner (Operational Creditor) in the matter [S.A. Consultants and Forwarders Private Ltd. vs. Cargo Planners...

A Financial Creditor Cannot Challenge The Insolvency Proceedings Initiated By Another Financial Creditor On The Ground Of Superior Claim: NCLAT

The NCLAT while dismissing an appeal filed by L&T Infrastructure Finance Company Ltd. held that a Financial Creditor cannot challenge the order of admission of Insolvency petition by another financial creditor merely on the ground that it has a superior claim over the claim of the other Financial Creditors. In this case, an Agreement was executed between...

Symposium on 'Recovery & Resolution – Emerging Challenges before Recovery Tribunals and NCLTs'

'Law 85 Trust' in association with the 'Federation of Indian Hire Purchase Association' (FIHPA) is organising a Symposium on the topic 'Recovery & Resolution – Emerging Challenges before Recovery Tribunals and NCLTs'. Senior judges including Hon'ble Justice Mr. Sanjay Kishan Kaul (Judge, Supreme Court of India), Hon'ble Justice Mr....

NCLT Has Inherent Power To Impose Moratorium Before Initiation Of Corporate Insolvency Resolution Process : NCLAT [Read Judgment]

The National Company Law Appellate Tribunal (NCLAT) in a matter has recently held that once an application for initiating insolvency proceedings is filed, NCLT does not have to await hearing of the parties to impose moratorium. The NCLAT Bench comprising of Justice S.J. Mukhopadhaya, Chairperson and Kanthi Narahari, Member (Technical), while hearing the matter [NUI Pulp and...

IBC - A Big Game Changer In Banking (Part I)

The introduction of IBC was termed as the most powerful weapon in the hands of the bankers to reduce the frightening level of non-performance assets. It is expected that IBC will change the game plan of NPA Management in Indian banking space. The main objectives of the code were time bound reorganisation, maximisation of value of assets, promotion of entrepreneurship, availability of credit and balance interests of all stakeholders. The euphoria around IBC may prompt many to ask -...

Workmen Dues Of Pension, Gratuity, PF Not Included In Liquidation Assets : NCLAT Affirms NCLT View [Read Judgment]

The Appellate Tribunal confirmed that the dues should be paid to the workers directly, and would not fall under the waterfall mechanism of distribution of assets under section 53 of the IBC.

NCLAT Gives Nod To Insolvency Proceedings Against Sahara Q Shop [Read Order]

National Company Law Appellate Tribunal refused to grant relief to Sahara Q Shop Unique Products Range Limited against an order passed by the National Company Law Tribunal admitting an application filed against the said company under section 9 of the Insolvency and Bankruptcy Code, 2016. The present appeal arose from the order of the National Company Law Tribunal which had admitted...

A Creditor Can't Be Given Preferential Treatment Towards Satisfaction Of A Compromise Decree, Pending Moratorium In IBC Proceedings: Delhi HC [Read Judgment]

Dismissing a contempt petition, the Delhi HC on Friday held that contempt proceedings could not be used to execute an order of payment, whose execution was otherwise prevented by law on account of ongoing insolvency proceedings. Background The Petitioner, a sole proprietor, had filed a suit for recovery of money against the Respondents, a construction company and its directors,...