NCLAT Expunges NCLT Remarks Against SBI Officials, Says Tribunal Cannot Make Stigmatic Observations Without Giving Hearing

The NCLAT, Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), has expunged the stigmatic remark against the SBI officials and counsel, while observing that the tribunals cannot make stigmatic observations or impose costs without giving an opportunity to be heard. The NCLT dismissed the SBI's petition under section 95 of...

Recall Application Seeking Review Of NCLAT Judgment Is Not Permissible: NCLAT Chennai

The National Company Law Appellate Tribunal (NCLAT), Chennai Bench, comprising Justice Rakesh Kumar Jain (Member-Judicial) and Mr. Ajai Das Mehrotra, has held that a recall application seeking review of the NCLAT's order is not permissible. The appellant, erstwhile liquidator of the corporate debtor, filed an appeal against the decision of the adjudicating authority, which was...

Institution Of Criminal Proceedings Against Officials Of Financial Creditor Does Not Bar Petition U/S 7 Of IBC: NCLT Cuttack

The National Company Law Tribunal (NCLT) Cuttack bench of Deep Chourasia (Judicial Member) and Babulal Meena (Technical Member) has held that institution of criminal proceedings or allegations of fraud against officials of the financial creditor do not bar an application under section 7 of the IBC. It was held that, unlike an application under section 9 of the IBC, the petition under...

NCLT Not Empowered To Interfere With Attachment Of Properties Under PMLA Proceedings: NCLT New Delhi

The NCLT, New Delhi Bench, comprising Shri Manni Sankariah Shanmuga Sundaram (Member-Judicial) and Shri Atul Chaturvedi (Member-Technical), has held that the NCLT lacks the authority to adjudicate upon an order issued by the adjudicating authority under PMLA or to direct the Enforcement Directorate to release the attachment. The present application was filed by the...

NCLT Bengaluru Admits Insolvency Petition Against Dunzo Digital Private Limited For Debt Of ₹1.91 Crore

The National Company Law Tribunal, Bengaluru Bench, comprising Shri Sunil Kumar Aggarwal (Member-Judicial) and Shri Radhakrishna Sreepada (Member-Technical), has admitted the CIRP petition against Dunzo Digital Private Limited for Debt of Rs. 1.91 Crore. The section 9 IBC petition was filed by the Velvin Packaging Solutions, seeking initiation of the CIRP against the Dunzo...

Completion Certificate Issued By Corporate Debtor With Caveat On Rectification Of Defects Is Not Unconditional Acceptance Of Work: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain, Justice Mohd Faiz Alam Khan and Mr. Naresh Salecha (Technical Member) dismissed an appeal filed by Operational Creditor. The Tribunal held that issuance of completion certificate containing a caveat that the defects in the work have to be rectified cannot be construed as an...

Detailed Inquiry Into Legality Of Transfer Of Property Cannot Be Adjudicated In Summary Proceeding U/S 7 IBC: NCLT New Delhi

The NCLT, New Delhi Bench, comprising Shri Manni Sankariah Shanmuga Sundaram (Member-Judicial) and Shri Atul Chaturvedi (Member-Technical), has held that a deeper inquiry into the legality of the transfer of property or allegations of fraud cannot be adjudicated in a summary proceeding under Section 7 of the IBC. The Section 7 application was filed by the financial creditor...

NCLT Kolkata Admits Application U/S 7 Of IBC Against Jain Infraprojects, Gives Two-Month Settlement Window

The National Company Law Tribunal, bench of Siddharth Mishra (Technical Member) and Bidisha Banerjee (Judicial Member), Kolkata admitted a section 7 petition filed by IDBI Bank against Jain Infraprojects Limited, while granting the Corporate Debtor a two-month window for settlement.The tribunal observed that IDBI Bank had misrepresented the status of the One-Time Settlement before the...

Liquidator Cannot Be Penalized For Event Outside His Control: NCLT Kolkata Permits Exclusion Of Time Spent In Procedural Compliance

The National Company Law Tribunal, Kolkata Bench, comprising Justice Bidisha Banerjee (Member-Judicial) and Siddharth Mishra (Member-Technical), has permitted exclusion of time spent in complying with judicial orders and directions of the stakeholder body, saying that the liquidator cannot be penalized for an event outside his control. The liquidation order of the corporate debtor...

BIFR Scheme Under SICA Stands Superceded After Enforcement Of IBC, Benefits Can't Be Claimed After Approval Of Resolution Plan: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Mohammad Faiz Alam Khan and Mr. Naresh Salecha (Technical Member) has held that an unresolved claim under the Board for Industrial & Financial Reconstruction (BIFR) scheme constitutes a claim under Section 3(6) of the IBC and should be dealt with within the Code. The failure of the BIFR scheme does not...

Equity Investment Made Through Commercial MoU Doesn't Qualify As Operational Debt: NCLT Hyderabad

The National Company Law Tribunal, Hyderabad Bench, comprising Mr. Rajee Bhardwaj (Member-Judicial) and Mr. Sanjay Puri (Member-Technical), has held that an equity investment with conditional repayment made through a commercial memorandum of understanding (MoU) doesn't qualify as operational debt. The present application was filed by the operational creditor u/s 9 read with rule 6 of...

Delhi High Court Transfers Winding-Up Petitions Against Vigneshwara Developwell Pvt Ltd To NCLT

The Delhi High Court has transferred winding-up petitions filed against Vigneshwara Developwell Pvt Ltd to the NCLT. The petition was filed under Sections 433(e), 434, and 439 of the Companies Act, 1956, seeking winding up of the respondent company due to its inability to pay the debt of the petitioner. During the pendency of the petition, an application was filed for the transfer...