NCLAT Chennai Condones Delay Of 147 Days In Filing Appeal,The Time Spent On Bona fide Litigation

Case Title: M.K. Resely & Ors. v Union Bank of India

Case No.: Company Appeal (AT)(CH)(Ins) No.337/2022

The National Company Law Appellate Tribunal ("NCLAT"), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Shri Naresh Salecha (Technical Member), has condoned a delay of 147 days in filing of appeal before NCLAT upon equity. The delay had occurred as the Appellant had challenged the Impugned Order before the High Court instead of NCLAT but on a bona fide basis. The time taken by the High Court in deciding the matter has been excluded by the NCLAT in computation of limitation.

Net Worth Of Transferor & Transferee Company Being Highly Positive, Consent Of Secured Creditors Not Required For Amalgamation: NCLAT Delhi

Case Title: Lasa Supergenerics Limited v Harishree Aromatics & Chemicals Private Limited

Case No.: Company Appeal (AT) No. 82 of 2021

The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member), has held that in cases where the net worth of the Transferor and Transferee Companies are highly positive, it is not required to seek consent of secured creditor for amalgamation. In place of seeking a No Objection Certificate from Secured Creditor, the Bench has directed the Secured Creditor to file an objection to the Scheme of Amalgamation, if any, within 30 days.

Section 96(1)(B) Of IBC Does Not Stay Any Future Liability Or Obligation: NCLAT Delhi

Case Title: Ashok Mahindru & Anr. v Vivek Parti

Case No.: Company Appeal (AT) (Insolvency) No.1324 of 2022

The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has held that Section 96(1)(b) of IBC does not stay any future liability or obligation. The Bench declined to stay proceedings under Section 19(2) and Section 66-67 of IBC initiated against the Personal Guarantors in another insolvency petition, in view of interim moratorium imposed under Section 96 of IBC in insolvency proceedings against the Personal Guarantors.

NCLAT Approves Sugar Farmers As Separate Creditors Group In The Sugar Industry Resolution Plan

Case Title: Excel Engineering & Ors. v Mr. Vivek Murlidhar Dabhade & Anr.

Case No.: Comp. App. (AT) (Ins.) No. 85-86 of 2020

The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member), has urged the Government and the IBBI to examine some minimum entitlement to Operational Creditors based on the amount realised in the Resolution Plan over and above the liquidation value.

NCLT

RP Cannot Pursue An Avoidance Application After Approval Of Resolution Plan By The AA: NCLT Mumbai

Case Title: State Bank of India v Ushdev International Limited

Case No.: C.P (IB) No. 1790/MB/C-II/2017

The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Justice P.N. Deshmukh (Judicial Member) and Mr. Shyam Babu Gautam (Technical Member), has held that the Resolution Professional cannot carry the hat of the "Former Resolution Professional" and pursue an avoidance Application in respect of preferential transaction after the change of hands in the management of the Corporate Debtor. The Bench has rejected the avoidance application which was filed prior to approval of Resolution Plan but was being heard post approval.

Central Government Notifies The Posting Of Newly Appointed NCLT Members

The central government vide its order dated 02.12.2022 notified the posting of newly appointed NCLT Members.

The posting of judicial members is as follows;

a. Justice (Retd.) T Krishna Vali- Bengaluru

b. Kuldeep Kunar Kareer- Mumbai

c. Ashok Kumar Bhardawaj- New Delhi

d. Praveen Gupta- Allahabhad

e. Bidisha Banerjee- Kolkata

The Posting of Technical Members is as follows:

a. Prabhat Kumar- Mumbai

b. Charan Singh-Hyderabad

c. Anu Jagmohan Singh-Mumbai

d. Ashish Verma-Allahabhad

e. Atul Chaturvedi- New Delhi.

Earlier, the Central Govt. notified the appointment of 15 new members for NCLT but only 10 members took oath and joined so far. After these appointments, the working strength of NCLT rises to 38 members as against the sanctioned strength of 63 members. Recently, the Central Government informs the Supreme Court that after the appointment of these 15 members process for appointment of other 19 vacancies is under process.

HIGH COURT

Gujarat High Court Refuses Former NCLT Member's Plea For Re-Appointment

Case Title: Manorama Kumari v Union of India

Case No.: R/Special Civil Application No. 23268 Of 2022

The Gujarat High Court Bench comprising of Justice N.V. Anjaria and Justice Sandeep N. Bhatt, has rejected the plea of a former NCLT Member for re-appointment as a Judicial Member of NCLT, after having served a term of 5 years and being retired. The Bench held that re-appointment is not a vested right for the Petitioner. "Merely because the Petitioner has shown her willingness to be considered, merely because she is liable to be considered and merely because she has opted for reappointment, could not be ground to seek writ from the Court that her appointment process may be completed."