Resolution Plan Can't Be Approved By NCLT If Leasehold Rights Over Primary Assets Are Not Proved: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) upheld an order of NCLT Kolkata which refused to sanction a resolution plan wherein a disputed parcel of land was the primary asset.The Tribunal held that since the corporate debtor failed to prove leasehold rights over the land as the deed was executed...

Inadequate Stamping Of Loan Documents Is Curable Defect, Does Not Bar Admission Of Plea U/S 7 Of IBC: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of Shri Ashish Kalia (Judicial Member) and Shri Sanjiv Dutt (Technical Member) has held that inadequate stamping of loan documents does not bar the admission of a petition under section 7 of the IBC. Background Dombivli Nagari Sahakari Bank Ltd. (“DNS Bank”) advanced financial facilities, including cash credit and term...

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...