NCLT Mumbai Refuses To Initiate Investigation Into Former Management of 'Smaaash Entertainment'

The National Company Law Tribunal (NCLT) at Mumbai has recently refused to order an investigation into the erstwhile management of Smaaash Entertainment Private Limited, a gaming company known for its virtual reality-based entertainment centres. However, it has directed that a copy of its order be sent to government authorities to examine possible irregularities and non-compliances by...

Admission Of Claim By RP Is No Defence To Preferential Transaction U/S 43 of IBC: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of Shri K. R. Saji Kumar (Judicial Member) & Shri Anil Raj Chellan (Technical Member) held that just because the claim had been submitted and accepted by the Resolution Professional, it does not negate preferential transaction under section 43 of the IBC. It held that “submission of a claim by a person with the...

NCLT Kochi Orders Liquidation Of Malayalam Vehicles India Pvt Ltd After CoC Fails To Receive Any Resolution Plan

The National Company Law Tribunal (NCLT), Kochi Bench, has ordered the liquidation of Malayalam Vehicles India Private Limited (a former Tata Motors passenger vehicle dealer) in furtherance to the resolution passed by the Committee of Creditors (CoC) to liquidate the corporate debtor. The bench comprising Judicial Member Vinay Goel and Technical Member Madhu Sinha observed...

Gensol Insolvency: NCLAT Refuses To Expunge NCLT's Remarks Against IRP, Says Observations Not Adverse To His Conduct

The National Company Law Appellate Tribunal (NCLAT) recently refused to expunge certain adverse observations made against insolvency professional Pulkit Gupta in an order passed by the National Company Law Tribunal (NCLT), Ahmedabad, while admitting insolvency proceedings against Gensol Engineering Limited and its group entity Gensol EV Lease Limited. The appellate tribunal, in an order...

Shareholder Advances Recorded As 'Repayable On Demand' Qualify As Financial Debt: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of Sushil Mahadeorao Kochey (Judicial Member) and Prabhat Kumar (Technical Member) admitted a petition under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Euro Corporate Services Pvt. Ltd. (formerly Distent Barter Pvt. Ltd.) against Royal Fantasy Constructions Pvt. Ltd (Corporate Debtor) holding that the...

Supreme Court To Examine If NCLAT Can Refer Matter To Third Member When Two-Member Bench Delivers Split Verdict

The Supreme Court is set to decide whether, in the case of a split verdict by the National Company Law Appellate Tribunal (“NCLAT”), the reference of the case to a third member would be legally justifiable or should the matter be referred to a larger bench of three members for fresh adjudication. Observing that there is no clear procedure to address situations where a two-member bench...

NCLAT Rejects Jaypee Infratech's ₹15 Crore Interest Claim On Funds Deposited By JAL For Homebuyers

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Tuesday dismissed a plea by real estate company Jaypee Infratech Ltd. (JIL) seeking interest of Rs 15 crore on nearly Rs 546 crore deposited by its parent company, Jaiprakash Associates Ltd. (JAL), for the benefit of homebuyers during JIL's insolvency proceedings A bench of Chairperson Justice Ashok Bhushan and Technical...

Adjustment Of Security Deposit By Electricity Company During Moratorium Violates S.14 Of IBC: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench, comprising Mohan Prasad Tiwari (Member-Judicial) and Charanjeet Singh Gulati (Member-Technical), has held that the adjustment of the security deposit by the electricity company against outstanding energy bills during the moratorium period violates the mandate of section 14 of the IBC, 2016. The CIRP of the corporate debtor...

Time Spent In Voluntary Pre-Institution Mediation Cannot Be Excluded For Computing Limitation U/S 14 Of Limitation Act: NCLT New Delhi

The National Company Law Tribunal (NCLT), New Delhi Bench, Court-IV, comprising Manni Sankariah Shanmuga Sundaram (Member-Judicial) and Atul Chaturvedi (Member-Technical), has held that the time spent in voluntary pre-institution mediation proceedings cannot be excluded for computation of limitation under Section 14 of the Limitation Act. The operational creditor, Shiva Asphaltic...

Default In Any Credit Account Leads To NPA Classification; Sufficient To Trigger CIRP U/S 7 IBC: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of Sushil Mahadeorao Kochey (Judicial Member) and Prabhat Kumar (Technical Member) held that default in one of several facilities was sufficient to trigger Corporate Insolvency Resolution Process (CIRP) under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Tribunal further observed that where the debtor...

Amendment Of Default Date In IBC Pleadings Is Permissible Before Final Adjudication: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of Sushil Mahadeorao Kochey (Judicial Member) and Prabhat Kumar (Technical Member) admitted an insolvency petition against Vibrant Content Pvt. Ltd.(Corporate Debtor) filed by Central Bank of India holding that acknowledgment of debt in the balance sheet constitutes a valid acknowledgement under section 18 of the Limitation Act...

IBBI Advises Insolvency Professionals To Seek ED-Attached Assets To Boost Recoveries

The Insolvency and Bankruptcy Board of India (IBBI), noting that assets of entities in insolvency are often under attachment by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), has issued a circular guiding insolvency professionals on seeking restitution of such assets. In a circular issued on November 4, addressed to all registered insolvency...