IBC News
NCLT Mumbai Declares Megi Agro Chem Insolvent, Reiterates OTS Proposal Amounts To Acknowledgement Of Debt
The National Company Law Tribunal ("NCLT"), Mumbai Bench, comprising of Shri. H.V. Subba Rao (Judicial Member) and Smt. Anuradha Sanjay Bhatia (Technical Member), while adjudicating a petition filed in M/s. Pridhvi Asset Reconstruction and Securitisation Company Limited v M/s. Megi Agro Chem Limited, has initiated Corporate Insolvency Resolution Process ("CIRP") against Megi Agro...
NCLAT Delhi Directs Tax Authorities To Withdraw Notices For Freezing Accounts Of Corporate Debtor
The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Justice M. Satyanarayana Murthy (Judicial Member) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in Mr. Hemant Mehta v Asst. Commissioner of State Tax, has held that notices issued by the Tax Authorities to freeze the accounts the...
NCLT Issues Clarification To Spurious Notification Dated 8th August 2022 Regarding Conduct Of Online Hearing
The National Company Law Tribunal ("NCLT") has issued a notification dated 09.08.2022 clarifying that a previous spurious notification dated 08.08.2022, which was being circulated on Whatsapp since yesterday, is inauthentic and neither approved by the President of NCLT nor uploaded on the NCLT official website. Brief Background On 08.08.2022, a fabricated NCLT notification was...
NCLT Will Only Hear Urgent Cases Due To Shortage Of Members
The Benches of National Company Law Tribunal (NCLT) will only hear urgent matters from 08.08.2022 due to the shortage of members. A notification in this regard is issued by the Registrar of NCLT after prior approval of the Justice Ramalingam Sudhakar, President, NCLT. NCLT is currently functioning at its 50% strength owing to the retirement of 15 members in July, 2022 as the...
IBC Cases Weekly Round Up : 1 August To 7August, 2022
Supreme Court Entries In Book Of Accounts/Balance Sheet Of Corporate Debtor Can Be Treated As Acknowledgment Of Liability Of Debt Payable To Financial Creditor: Supreme Court Case Title: Asset Reconstruction Company (India) Limited v Tulip Star Hotels Limited Case No.: 2022 LiveLaw (SC) 648, CA 84-85 OF 2020 The Supreme Court Bench comprising of Justice Indira Banerjee...
CIRP Against Solvent, MSME Company Providing Employment Not Justified : NCLAT Delhi
The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Anant Bijay Singh (Judicial Member) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in M/s Agarwal Veneers v Fundtonic Service Pvt. Ltd., has upheld the dismissal of a Section 9 petition on the grounds of the Corporate Debtor being a solvent company, operating as...
NCLT Principal Bench To Hear Matters Through Video Conferencing From 8th To 18th August 2022
The National Company Law Tribunal ("NCLT") has issued a Circular dated 05.08.2022, intimating that the matters before the Principal Bench (Court Room No. 1) of the NCLT, New Delhi, would be heard through video conferencing from 08.08.2022 to 18.08.2022. The hearings are being conducted through video conferencing to meet the shortage of Members in NCLT after 15 Members retired...
Fraudulent Initiation Of CIRP, NCLAT Upholds Issuance Of Show Cause Notice To Related Parties
The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Justice M. Satyanarayana Murthy (Judicial Member) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in Zoom Communications Pvt. Ltd. v M/s. Par Excellence Real Estate Pvt. Ltd., has upheld the Adjudicating Authority's order declining...
Homebuyers Can't Be Defrauded ; NCLT Delhi Initiates CIRP Against Som Resorts
The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri. Dharminder Singh (Judicial Member) and Dr. Binod Kumar Sinha (Technical Member), while adjudicating a petition filed in Yadubir Singh Sajwan & Ors. v Som Resorts Private Limited, has held that under the guise of 'separate legal entity' doctrine, a developer company cannot be permitted to defraud...
NCLAT Declines To Entertain Revised Resolution Plan As CIRP Had Already Crossed 559 Days, Timely Completion Of Resolution Necessary
The National Company Law Appellate Tribunal ("NCLAT"), New Delhi Bench, comprising of Justice Rakesh Kumar Jain (Judicial Member), Mr. Kanthi Narahari (Technical Member), Dr. Alok Srivastava (Technical Member), while adjudicating an appeal in Shrinathji Trading Company v Sanwaria Consumer Ltd., has dismissed an application filed by resolution applicant seeking consideration of...
Term Of Future NCLT Members Should Be 5 Years, Supreme Court Tells Centre While Refusing To Extend 3 Yr Term Of Those Appointed In 2019
The Supreme Court, on Monday, turned down a plea seeking modification of the tenure of members of National Company Law Tribunal (NCLT) appointed pursuant to the notification dated 20.09.2019 issued by the Ministry of Corporate Affairs, from 3 years to 5 years. It refused to extend tenure for the concerned 23 members, but clarified that while making appointments in future the...
Entries In Book Of Accounts/Balance Sheet Of Corporate Debtor Can Be Treated As Acknowledgment Of Liability Of Debt Payable To Financial Creditor: Supreme Court
The Supreme Court observed the entries in Books of Account/Balance sheet of a company can be treated as acknowledgement of liability in respect of debt payable to a financial creditor.An application under Section 7 of the IBC would not be barred by limitation, on the ground that it had been filed beyond a period of three years from the date of declaration of the loan account of the...