NCLT Delhi Seeks Tribunal President's View On Whether Banks Lending to Homebuyers Are Financial Creditors Of The Developer

The National Company Law Tribunal (NCLT), Delhi, has referred to its President the question of whether banks that advanced housing loans to homebuyers under a tripartite agreement be treated as Financial Creditors of the real estate developer undergoing insolvency, after its two members issued conflicting rulings in the CIRP of AVJ Developers (India) Pvt Ltd. AVJ has been in insolvency...

Written OTS Offer Revives Time-Barred Debt, NCLT Delhi Admits Insolvency Plea Against JS Designer

The National Company Law Tribunal at New Delhi has recently admitted Central Bank of India's insolvency plea against JS Designer Ltd, holding that the company's written one-time settlement proposals in 2024 constituted a fresh and enforceable promise to pay a time barred debt. A coram of Judicial Member Jyotsna Sharma and Technical Member Anu Jagmohan Singh noted that JS Designer had remained...

NCLT Hyderabad Orders Liquidation Of Pavana Keerthi Hotels After SRA Fails To Furnish Bank Guarantee

The National Company Law Tribunal at Hyderabad has recently ordered the liquidation of Pavana Keerthi Hotels India Pvt. Ltd after observing that the successful resolution applicant failed to execute the resolution plan including the submission of a mandatory Performance Bank Guarantee (PBG). A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri in an order passed...

CoC Can Invite Fresh Bids, Regulations Only Limit Modification Of Existing Bids: NCLT Kochi

The National Company Law Tribunal (NCLT), Kochi Bench, has recently clarified that the Insolvency and Bankruptcy Board of India Regulations, 2016, restrict only the modification of an already issued Expression of Interest and do not prevent the Committee of Creditors from issuing a fresh call for EOIs. A coram of Judicial Member Vinay Goel and Technical Member Madhu Sinha dismissed...

NCLAT Dismisses Challenge To Grainotech's Plan For Resolution Of KSG Sugar.

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that the failure to communicate the individual score and ranking of a resolution applicant does not invalidate the corporate insolvency resolution process. The Tribunal ruled that the Consortium of Govindrao Sable's objection to the non disclosure of its scorecard did not affect the approval of the...

Parties Cannot Be Penalised for Lawyer's Absence: NCLAT Orders Rehearing In Sagar Power Preferential Deal Case

The National Company Law Appellate Tribunal (NCLAT) at Chennai has reaffirmed that parties cannot be penalised because their lawyer failed to appear, and has directed the National Company Law Tribunal (NCLT) Bengaluru to rehear the liquidator's application alleging preferential transactions by former directors of Sagar Power after giving them an opportunity to be heard.The appeal was filed...

NCLAT Dismisses Plea Challenging Investigation Into Alleged Siphoning By Exclusive Capital, Promoters

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently dismissed an appeal filed by Exclusive Capital Ltd. and its promoters, upholding the National Company Law Tribunal (NCLT) Delhi's decision directing a full investigation into the company's affairs. The probe concerns allegations that the management siphoned funds through related-party transactions and diversion of...

NCLT Bengaluru Denies Interim Relief To Riju Ravindran In His Plea Against Glas Trust's Aakash Right Issue Funding Plan

The National Company Law Tribunal (NCLT) at Bengaluru on Tuesday refused to grant any interim relief in former Byju's promoter Riju Ravindran's plea challenging the Committee of Creditors' approval of a Compulsorily Convertible Debenture structure proposed by Glas Trust to fund Think and Learn Private Limited's subscription to Aakash Educational Services Limited's rights issue. The...

Insolvency Process Can Be Withdrawn Before Formation of CoC, NCLT Chennai Reaffirms

The National Company Law Tribunal at Chennai has recently reaffirmed that a corporate insolvency resolution process (CIRP) may be withdrawn after admission but before the Committee of Creditors (CoC) is formed, while allowing the withdrawal of insolvency proceedings against Vees Properties Limited. The tribunal relied on the Supreme Court's ruling in Glas Trust Company LLC v. BYJU...

Delay Equals Refusal, NCLT Kochi Directs Company To Transfer Shares To Legal Heir

The National Company Law Tribunal at Kochi has recently held that the prolonged delay by Whispering Kera Ecological Homestay Pvt. Ltd. in acting on a request to transmit shares of a deceased shareholder amounted to a refusal to transfer, and has directed the company to complete the transfer in favour of the surviving legal heir. The tribunal allowed the appeal filed by the shareholder's...

Bank's Adjustments From Share and Dividend Accounts During CIRP Are Void, Refundable With Interest: NCLT Ahmedabad

The National Company Law Tribunal (NCLT) at Ahmedabad has recently held that Mehsana Urban Co-operative Bank, a lender was not entitled to deduct money from the share and dividend accounts of Swastik Ceracon Limited during its insolvency process, declaring the deductions void and directing the bank to return Rs. 56 lakh with 10 per cent interest. A coram of Judicial Member Shammi Khan...

Insolvency Cannot Be Initiated Against Guarantor Under Section 7 Without Invoking Guarantee First: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi recently held that a financial creditor cannot directly initiate insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016, against a corporate guarantor without first invoking the guarantee in accordance with the contract and without proceeding against the principal borrower. The tribunal therefore refused to...