NCLT

Summary of Orders related to IBC 2016 passed by IBBI, NCLT, NCLAT, HC & SC

Corporate Law - Summary of Orders related to IBC 2016 passed by IBBI, NCLT, NCLAT, HC & SC during July to September 2020 Orders by Supreme Court M/s Marathe Hospitality Vs. Mahesh Surekha & Ors. [SLP (C) No. 8139/2020] The petitioner filed an appeal before the NCLAT. However, the NCLAT closed its functioning as one of its employees […]...

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Case review of State Bank of India Vs Metenree Ltd

Corporate Law - This article is about judgment of NCALT/NCLT  in the matter of STATE BANK OF INDA V. M/S METENERE Ltd, on aspect of Interim Resolution Professional (herein refers as IRP). NCALT affirmed in the judgement in which it has been held that an ex-employee of creditor, having long association with creditor should be substituted, because he [&he...

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Calcutta HC strikes down NCLT order of creditor-filing of default record

Corporate Law - On Aug 19th the Calcutta High Court has nullified the order of the National Company Law Tribunal (NCLT) order that provided earlier all financial creditors shall be required to mandatorily file a default record from information utility along with a plea under Section 7 of Insolvency & Bankruptcy Code. These findings were provided ...

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Is Moratorium required at Pre-admission stage?

Corporate Law - Under Insolvency and Bankruptcy code, the application for initiation of corporate insolvency Resolution Proceedings can be initiated by 1) Financial Creditor under section 7(1) 2) Operational Creditor under section 9(1) 3) Corporate Debtor under section 10(1) Financial creditor means as per the section 5(7)  the person to whom the financ...

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NCLT Kolkata | Applicability of Section 32A IBC on Liquidation Proceedings

Corporate Law - NCLT Kolkata held that non-obstante provision of Section 32A of Insolvency & Bankruptcy Code, 2016 is also applicable to liquidation proceedings....

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19844 cases pending before NCLT

Corporate Law - As on 31st July, 2020, total 19,844 cases were pending before National Company Law Tribunal (NCLT), including 12,438 cases under Insolvency and Bankruptcy Code (IBC)....

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SC order binding on everyone in India; NCLT benches to remain close till 31.03.2020

Corporate Law - National Company Law Tribunal 6th Floor, Block-3, CGO Complex, Lodhi Road New Delhi-110003 Dated: 24.3.2020 NOTICE 1.With regard to Limitation,it is clear that the order dated 23.3.2020 passed by Hon’ble Supreme Court in suo motu WP-03/2020 is binding on everyone in India,for further clarification,it is hereby clarified that the lit...

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NCLAT & NCLT members to stick to time limits to cut delays in insolvency cases

Corporate Law - Justice Mukhopadhaya raised serious concerns with regard to the constant delays in insolvency proceedings and said that the Members of NCLAT and NCLTs must cut the time period of insolvency proceedings short and focus on quicker disposal of cases. He emphasised that there are only limited grounds to argue at the stage of admission and tha...

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Govt to set up National Company Law Appellate Tribunal Bench in Chennai

Corporate Law - In pursuance of judgement of Hon’ble Supreme Court, the Government has decided to set up a bench of National Company Law Appellate Tribunal (NCLAT) at Chennai. This was stated by Shri Anurag Singh Thakur, Union Minister for State for Finance &Corporate Affairs, in a written reply to a question in Lok Sabha today....

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Debt recovery mechanism strengthened with enactment of IBC, 2016

Corporate Law - Taking note of the recent successes in recovery of loans since the Insolvency and Bankruptcy Code, 2016 came into effect, the Survey proposes further strengthening of the National Company Law Tribunals (NCLT) and the appellate tribunal....

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Any company creditor can seek transfer of winding up proceedings pending before HC to NCLT

Kaledonia Jute And Fibres Pvt. Ltd Vs Axis Nirman And Industries Ltd. & Ors. (Supreme Court of India) - Kaledonia Jute And Fibres Pvt. Ltd Vs Axis Nirman And Industries Ltd. & Ors. (Supreme Court of India) Section 278 of the 2013 Act shows that any petition by a single creditor or contributory is actually treated as a joint petition of creditors and contributories, so that the order of winding up ...

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NCLT admits plea for insolvency process initiation against personal guarantor

In re Anil Syal (NCLT) - From the report there does not appear any request of the Resolution Professional for issuance of the instructions for the purpose of conducting negotiations between the debtor and creditors for arriving at the repayment plan. Therefore, based on the reasons recorded in the report submitted by the Re...

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NCLT dismisses CIRP filed by Neesa Infrastructure Limited

M/s. Neesa Infrastructure Limited vs State Bank of India (NCLT) - M/s. Neesa Infrastructure Limited vs State Bank of India (NCLT) Advocate, Mr. Nipun Singhvi appeared on behalf of the Respondent. The order is pronounced in the open court, vide separate sheet. 1. Sanjay Gupta, claiming himself to be the authorised signatory, on behalf of M/s. Neesa Infrastructure L...

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Article 226 cannot be invoked to challenge order passed by NCLT

Sulochana Gupta Vs RBG Enterprises Pvt. Ltd. (Kerala High Court) - Sulochana Gupta Vs RBG Enterprises Pvt. Ltd. (Kerala High Court) Writ petition filed under Article 226 of the Constitution of India, can be for the enforcement of fundamental rights or for any other purpose, as envisaged under Article 226 of the Constitution. There is no pleadings or materials to su...

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Corporate Debtor cannot raise dispute post approval of Resolution plan by Committee of Creditors: SC

Karad Urban Cooperative Bank Ltd. Vs. Swwapnil Bhingardevay (Supreme Court) - Karad Urban Cooperative Bank Ltd. Vs. Swwapnil Bhingardevay (Supreme Court) If all the factors that need to be taken into account for determining whether or not the corporate debtor can be kept running as a going concern have been placed before the Committee of Creditors and the CoC has taken a cons...

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NCLT Benches re-constituted to attend regular hearing via Video Conference w.e.f. 1.12.2020

File No. 10/03/2020-NCLT - (25/11/2020) - File No. 10/03/2020-NCLT NATIONAL COMPANY LAW TRIBUNAL 6th Floor, Block-3, CGO Complex, Lodhi Road, New Delhi- 110003 Dated: 25 November 2020 ORDER The NCLT Benches are hereby re-constituted as under to attend regular hearing through Video Conference w.e.f. 1.12.2020. The Benches shall hear the matt...

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NCLT & NCLAT(Procedure for investigation of misbehaviour or incapacity of Chairperson, President and other Members) Rules, 2020

Notification No. G.S.R. 470(E) - (28/07/2020) - These rules may be called the National Company Law Tribunal and National Company Law Appellate Tribunal (Procedure for investigation of misbehavior or incapacity of Chairperson, President and other Members) Rules, 2020....

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NCLT not to accept new petitions without record of default U/s. 7 of IBC, 2016

Notification No. File No. 25/02/2020-NCLT - (12/05/2020) - All concerned are directed to file default record from Information Utility alongwith the new petitions being filed under section 7 of Insolvency and Bankruptcy Code, 2016 positively. No new petition shall be entertained without record of default under section 7 of IBC, 2016...

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National Company Law Tribunal (Amendment) Rules, 2020

Notification No. G.S.R. 80(E) - (03/02/2020) - These rules may be called the National Company Law Tribunal (Amendment) Rules, 2020. They shall come into force on the date of their publication in the Official Gazette....

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MCA notifies rules for Posting and transfer of NCLT Members

Notification No. G.S.R. 682(E). - (23/09/2019) - Rule 15 A. Posting and transfer of Members. - (1) Initial posting of a Member shall be done by the Central Government in consultation with the President. (2) Subsequent transfers to different Benches shall be done by the President having regard ordinarily to the following:—...

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NCLT’s Popular Posts

Recent Posts in "NCLT"

Summary of Orders related to IBC 2016 passed by IBBI, NCLT, NCLAT, HC & SC

Summary of Orders related to IBC 2016 passed by IBBI, NCLT, NCLAT, HC & SC during July to September 2020 Orders by Supreme Court M/s Marathe Hospitality Vs. Mahesh Surekha & Ors. [SLP (C) No. 8139/2020] The petitioner filed an appeal before the NCLAT. However, the NCLAT closed its functioning as one of its employees […]...

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Posted Under: Company Law |

NCLT Benches re-constituted to attend regular hearing via Video Conference w.e.f. 1.12.2020

File No. 10/03/2020-NCLT (25/11/2020)

File No. 10/03/2020-NCLT NATIONAL COMPANY LAW TRIBUNAL 6th Floor, Block-3, CGO Complex, Lodhi Road, New Delhi- 110003 Dated: 25 November 2020 ORDER The NCLT Benches are hereby re-constituted as under to attend regular hearing through Video Conference w.e.f. 1.12.2020. The Benches shall hear the matters of respective jurisdiction as were h...

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Any company creditor can seek transfer of winding up proceedings pending before HC to NCLT

Kaledonia Jute And Fibres Pvt. Ltd Vs Axis Nirman And Industries Ltd. & Ors. (Supreme Court of India)

Kaledonia Jute And Fibres Pvt. Ltd Vs Axis Nirman And Industries Ltd. & Ors. (Supreme Court of India) Section 278 of the 2013 Act shows that any petition by a single creditor or contributory is actually treated as a joint petition of creditors and contributories, so that the order of winding up operates in favour […]...

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NCLT admits plea for insolvency process initiation against personal guarantor

In re Anil Syal (NCLT)

From the report there does not appear any request of the Resolution Professional for issuance of the instructions for the purpose of conducting negotiations between the debtor and creditors for arriving at the repayment plan. Therefore, based on the reasons recorded in the report submitted by the Resolution Professional...

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Posted Under: Company Law | |

NCLT dismisses CIRP filed by Neesa Infrastructure Limited

M/s. Neesa Infrastructure Limited vs State Bank of India (NCLT)

M/s. Neesa Infrastructure Limited vs State Bank of India (NCLT) Advocate, Mr. Nipun Singhvi appeared on behalf of the Respondent. The order is pronounced in the open court, vide separate sheet. 1. Sanjay Gupta, claiming himself to be the authorised signatory, on behalf of M/s. Neesa Infrastructure Limited filed this Petition under Section...

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Posted Under: Company Law | |

Article 226 cannot be invoked to challenge order passed by NCLT

Sulochana Gupta Vs RBG Enterprises Pvt. Ltd. (Kerala High Court)

Sulochana Gupta Vs RBG Enterprises Pvt. Ltd. (Kerala High Court) Writ petition filed under Article 226 of the Constitution of India, can be for the enforcement of fundamental rights or for any other purpose, as envisaged under Article 226 of the Constitution. There is no pleadings or materials to substantiate that the appellants are disch...

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19844 cases pending before NCLT

As on 31st July, 2020, total 19,844 cases were pending before National Company Law Tribunal (NCLT), including 12,438 cases under Insolvency and Bankruptcy Code (IBC)....

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Posted Under: Company Law |

Corporate Debtor cannot raise dispute post approval of Resolution plan by Committee of Creditors: SC

Karad Urban Cooperative Bank Ltd. Vs. Swwapnil Bhingardevay (Supreme Court)

Karad Urban Cooperative Bank Ltd. Vs. Swwapnil Bhingardevay (Supreme Court) If all the factors that need to be taken into account for determining whether or not the corporate debtor can be kept running as a going concern have been placed before the Committee of Creditors and the CoC has taken a conscious decision to approve […]...

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Case review of State Bank of India Vs Metenree Ltd

This article is about judgment of NCALT/NCLT  in the matter of STATE BANK OF INDA V. M/S METENERE Ltd, on aspect of Interim Resolution Professional (herein refers as IRP). NCALT affirmed in the judgement in which it has been held that an ex-employee of creditor, having long association with creditor should be substituted, because he [&he...

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Posted Under: Company Law |

Corporate Debtor liability not extinguished upon Insolvency Resolution Plan Approval

State Bank of India Vs Anil Dhirajlal Ambani (NCLT Mumbai)

whether the liability of a guarantor of a debt of a corporate debtor stands reduced/extinguished upon an Insolvency Resolution Plan in respect of the corporate debtor, being approved under the Insolvency and Bankruptcy Code, 2016?”...

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Posted Under: Company Law | |

Calcutta HC strikes down NCLT order of creditor-filing of default record

On Aug 19th the Calcutta High Court has nullified the order of the National Company Law Tribunal (NCLT) order that provided earlier all financial creditors shall be required to mandatorily file a default record from information utility along with a plea under Section 7 of Insolvency & Bankruptcy Code. These findings were provided ...

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Posted Under: Company Law |

NCLAT: NCLT has to sit with two members bench and not singly as per SC directions

Indison Agro Foods Ltd. Vs Registrar & Anr. (NCLAT Delhi)

Indison Agro Foods Ltd. Vs Registrar & Anr. (NCLAT Delhi) Hon’ble NCLAT in a landmark judgement directed Hon’ble President NCLT to constitute a bench of Two members of Judicial and Technical Member. The issue came for consideration in an interesting case where the insolvency matter was filed before NCLT Indore Bench, however one o...

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Posted Under: Company Law |

Is Moratorium required at Pre-admission stage?

Under Insolvency and Bankruptcy code, the application for initiation of corporate insolvency Resolution Proceedings can be initiated by 1) Financial Creditor under section 7(1) 2) Operational Creditor under section 9(1) 3) Corporate Debtor under section 10(1) Financial creditor means as per the section 5(7)  the person to whom the financ...

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Posted Under: Company Law |

NCLT Kolkata | Applicability of Section 32A IBC on Liquidation Proceedings

NCLT Kolkata held that non-obstante provision of Section 32A of Insolvency & Bankruptcy Code, 2016 is also applicable to liquidation proceedings....

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Posted Under: Company Law |

Analysis of notification on rules for investigation of NCLT & NCLAT’s members

Analysis of ministry of corporate affair’s notification on rules for investigation of NCLT and NCLAT’s members The Ministry of Corporate Affairs on July 28, 2020 notified The National Company Law Tribunal and National Company Law Appellate Tribunal (Procedure for investigation of misbehavior or incapacity of Chairperson, President and...

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Posted Under: Company Law |

NCLT relaxes timeline of implemented resolution plan

M/s Fincast Founders and Engineers Pvt. Ltd. Vs Shri Rajat Mukherjee RP for Shaifali Foils (NCLT Ahemdabad)

M/s Fincast Founders and Engineers Pvt. Ltd. Vs Shri Rajat Mukherjee (NCLAT Ahemdabad) 1) The instant application is filed under section 60 (5) of the IB Code r.w. Rule 11 of the NCLT Rules, 2016 seeking appropriate direction in Resolution Plan dated 25.05.2019, with following prayer: a. to enable the applicant to comply with the [&hellip...

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Posted Under: Company Law | |

NCLT & NCLAT(Procedure for investigation of misbehaviour or incapacity of Chairperson, President and other Members) Rules, 2020

Notification No. G.S.R. 470(E) (28/07/2020)

These rules may be called the National Company Law Tribunal and National Company Law Appellate Tribunal (Procedure for investigation of misbehavior or incapacity of Chairperson, President and other Members) Rules, 2020....

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CSR Provision under Companies Act 2013 with latest case laws decided by NCLT

CORPORATE SOCIAL RESPONSIBILITY UNDER THE COMPANIES ACT, 2013 For conducting its business activities, a company exploits various resources of the society and the environment. Corporate Social Responsibility (CSR) is an act of incorporating the social and environmental concerns into the business model of the company. CSR is not a voluntary...

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Posted Under: Company Law |

IBC, 2016 Vs. Arbitration and Conciliation Act, 1996

Indus Biotech Private Limited Vs Kotak India Venture Fund-I (National Company Law Tribunal)

Indus Biotech Private Limited Vs Kotak India Venture Fund-I (National Company Law Tribunal) FACTUAL BACKGROUND In the present case, the Indus Biotech Pvt. Ltd. (Corporate Debtor) has filed a Interlocutory application under Section 8 of the Arbitration and Conciliation Act, 1996 (Arbitration Act, 1996) where in the underlying Insolvency pe...

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Posted Under: Company Law | |

Merger of Partnership Firm with Company through scheme of Merger/Amalgamation

The following question arose for consideration before Ahemdabad Bench of National Company Law Tribunal (NCLT), in a recent case Kediya Ceramics [IA No. 254/NCLT/AHM/2017 in CA(CAA) No. 95/NCLT/AHM/2017]  Whether a registered partnership firm, being a body corporate, can be treated as a company for the purpose of section 230-232 of the Co...

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Posted Under: Company Law |

Stay on NCLT Order Initiating Insolvency Proceedings against MSME

Pankaj Aggarwal Vs Union of India & Ors. (Delhi High Court)

Whether the NCLT was correct in passing an order of initiation of the CIRP against a MSME without considering the fact that the minimum threshold limit of filing application in NCLT has been increased to Rs. 1 Crore?...

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NCLT appointed liquidator liable to pay GST & Register

In re Mansi Oils and Grains Pvt. Ltd. (GST AAR West Bengal)

In re Mansi Oils and Grains Pvt. Ltd. (GST AAR West Bengal) Whether a liquidator appointed by NCLT is liable to pay GST on asset sales and required to get registered? The liquidator is appointed under section 34 (1) of IBC after NCLT initiates liquidation in terms of section 33 of IBC. As the applicant – […]...

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Does NCLT has Power to Direct A Pre-Admission Enquiry?

An insolvency application filed by an Operational Creditor U/s 9 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) can be resisted on the ground that there is an ‘existing dispute‘, the I&B Code does not provide for such a defence for resisting an insolvency application filed in respect of a financial debt U/s 7 [...

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Posted Under: Company Law |

Comparative Analysis of NCLT & NCLAT Orders in Tata-Mistry Case

Oppression and Mismanagement is envisaged in Section 241 of the Companies Act, 2013 and allows the petitioners i.e. the minority shareholders to file a suit if they believe the affairs of the company are conducted in a manner prejudicial and/or oppressive to themselves, to the interests of the company or to the public...

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Posted Under: Company Law |

Increase in threshold for initiating CIRP is prospective in effect

Foseco India Limited Vs Om Boseco Rail Products Limited (NCLT Kolkata)

Whether increase in threshold by CG through notification  for initiating CIRP is prospective or retrospective in effect?...

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Posted Under: Company Law | |

Doctrine of Fresh Slate and Essar Steel Ruling- A Case for Disputed Claims Post Resolution Plan

Introduction The fundamental legislative intent behind the enactment of IBC has been the resolution of Corporate Debtors. Compared to previous laws, the distinguishing feature of the Code is that it does not to operate as a mere debt recovery route for creditors. The doctrine of fresh slate is of much significance in achieving the objecti...

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Posted Under: Company Law |

Jurisdiction of NCLT under the Companies Act, 2013

The National Company Law Tribunal (NCLT) is a quasi-judicial body in India that adjudicates issues of Indian Companies. NCLT was established underneath the Companies Act 2013 and was set up in June 2016  and is founded on the advice of the V. Balakrishna Eradi committee on law relating to the insolvency and the winding up […]...

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Posted Under: Company Law |

Suspension of IBC: A Slick Move or an Impetuous Hindrance?

Mandatory procedures under Corporate Insolvency Resolution Process such as interim financing for insolvent assets, time-bound resolution process, and a creditor in control model may not be easily met under the present COVID-19-induced conditions. Another concern can be an over-burdened NCLT besides everything. These could be the probable ...

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Posted Under: Company Law |

NCLAT Rules on Pre-Admission Enquiries: Underpins that time is of the Essence

In the year 2016, the Indian Parliament completely overhauled the then existing framework governing insolvency and bankruptcy in India. The novel Insolvency and Bankruptcy Code, 2016 (Code) sets out a comprehensive and consolidated set of provisions, which seeks to provide a new trajectory to the sick industry regime in India. With a dire...

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Posted Under: Company Law |

Consultation paper on proposed amendment to delisting regulations: Will it be a case of “many a slip between the cup and the lip”?

Traditionally, a listed company (Parent Co) wishing to integrate the operations of its listed subsidiary (Sub Co), usually contemplates a merger. However, there may be instances in which a merger is unfeasible for a plethora of reasons, viz.,industry-specific constraints (e.g. licences or contracts with specific restrictions on transfer),...

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Posted Under: Company Law |

Procedure for Merger through NCLT

A ‘Merger’ is a combination of two or more entities into one; merger essentially means an arrangement whereby one or more existing companies merge their identity into another to form a new and different entity which may or may not be one of those existing entities. It is a corporate strategy of combining different companies […]...

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Posted Under: Company Law |

IBC: Adjudicatory Attempt to Step into the Shoes of Regulatory

Hon’ble NCLT vide its order dated 12th May 2020, attempted to step into the shoes of Regulatory vide restricting the scope of section 7(3)(a), also, unwittingly try to give retrospective effect by covering those applications which are already filed and pending for admission. Hope the Hon’ble NCLT shall come out with a clarification, a...

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Posted Under: Company Law |

NCLT not to accept new petitions without record of default U/s. 7 of IBC, 2016

Notification No. File No. 25/02/2020-NCLT (12/05/2020)

All concerned are directed to file default record from Information Utility alongwith the new petitions being filed under section 7 of Insolvency and Bankruptcy Code, 2016 positively. No new petition shall be entertained without record of default under section 7 of IBC, 2016...

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Limitation In Case of Equitable Mortgage Under IBC

NCLAT declined to accept the stand of the Financial Creditor that, Article 62 of the Limitation Act, will be applicable for counting limitation under Section 7 of the IBC and further held that only Article 137 of the Limitation will be applicable on the Application under Section 7, 9 and 10 of the IBC....

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Posted Under: Company Law |

E-filing of petition & hearing through video conferencing before NCLT, Mumbai during lockdown

Procedure to file a Company Petition / Interlocutory Application before NCLT, Mumbai Bench and hearing thereof through video conferencing during lockdown as a measure to prevent spread of COVID-19:...

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Posted Under: Company Law |

Restore e-way facility for filing of GST returns: NCLT

Abhijit Guhathakurta R.P. for the 13 Videocon Group Companies Vs Central Goods & Services Department (National Company Law Tribunal)

NCLT directs the GST Department to (a) To restore the e-way facility for filing of the GST returns in respect of Corporate Debtors all Companies including Techno Electronics Limited currently under Corporate Insolvency Resolution Proceedings....

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Posted Under: Company Law | |

SC order binding on everyone in India; NCLT benches to remain close till 31.03.2020

National Company Law Tribunal 6th Floor, Block-3, CGO Complex, Lodhi Road New Delhi-110003 Dated: 24.3.2020 NOTICE 1.With regard to Limitation,it is clear that the order dated 23.3.2020 passed by Hon’ble Supreme Court in suo motu WP-03/2020 is binding on everyone in India,for further clarification,it is hereby clarified that the lit...

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Posted Under: Company Law |

Difference between ‘Adjudicating Authorities’ & ‘Court’: NCLAT clarifies

Vijay Pal Garg & Ors. Vs Pooja Bahry (NCLAT)

Adjudicating Authorities cannot possess the power to direct the Central Government to conduct/order the investigation against any company. Taking a look at Section 210(3) of the Act, it is clear that the Central Government ought to conduct an investigation into the affairs of the Company by appointing an inspector and obtain his report th...

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Condonation of INC-28 for NCLT order under IBC

MCA vide its General Circular No. 08/2020 dated 6th march 2020 mandated the filing of NCLT order for CIRP or Liquidation process under the IBC 2016. This circular provides for the mandatorily filing of INC-28 for NCLT order to Registrar of Companies on the part of IRP (Interim Resolution Professional) or RP (Resolution Professional). Furt...

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Posted Under: Company Law |

NCLAT & NCLT members to stick to time limits to cut delays in insolvency cases

Justice Mukhopadhaya raised serious concerns with regard to the constant delays in insolvency proceedings and said that the Members of NCLAT and NCLTs must cut the time period of insolvency proceedings short and focus on quicker disposal of cases. He emphasised that there are only limited grounds to argue at the stage of admission and tha...

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Posted Under: Company Law |

February 2020- Monthly Statutory updates

The monthly Newsletter – encompasses MCA notifications issued in the month of February 2020, informal Guidances given by SEBI on  SEBI SBEB , Takeover and Insider Trading Regulations and NCLT judgement in Videocon Insolvency case. Independent Directors who could not get themselves registered on IICA databank can rest easy. The deadlin...

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Posted Under: Company Law |

Whether NCLT Moratorium Order covers pending GST proceedings

National Plywood Industries Ltd. Vs Union of India And Anr. (Gauhati High Court)

National Plywood Industries Ltd. Vs Union of India And Anr. (Gauhati High Court) In the given case the issue under consideration is whether the order of moratorium of the National Company Law Tribunal also covers the proceeding pending before the GST authorities under the GST Act 2017? The Hon’ble National Company Law Tribunal, Guwahati...

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Can a settlement come in record if NCLT bench have passed CIRP order?

The Insolvency and Bankruptcy Code, 2016 (Code) is a Codification of Sections of various previous Acts to deal with corporate insolvency and bankruptcy. Hailed as a comprehensive economic reform, IBC was hailed as the fastest and most effective tool to recover bad debt....

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Posted Under: Company Law |

National Company Law Tribunal (Amendment) Rules, 2020

Notification No. G.S.R. 80(E) (03/02/2020)

These rules may be called the National Company Law Tribunal (Amendment) Rules, 2020. They shall come into force on the date of their publication in the Official Gazette....

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OTS Proposal is An Acknowledgement of Debt: NCLT

An OTS is a legitimate and valid acknowledgement of debt on the part of the Corporate Debtor and this just goes to show the liberal and pragmatic view of the NCLT while deciding such applications under Section 7. Unless overruled, this decision would set course for similar Section 7 applications in the future....

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Posted Under: Company Law |

Cyrus Mistry won half the battle – What Tata Sons will do next

Cyrus Mistry won half the battle; on the other hand Tata Sons is seeking more legal option to win the next battle of the Board. On 18th December 2019 (Wednesday), Mr. Cyrus Pallonji Mistry would have been the happiest man in Mumbai’s Corporate Circle, for not only did he win back the chair he was […]...

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Posted Under: Company Law |

NCLT: Directs for access of GST Portal to Corporate Debtor to pay GST liability

Any company once gone into CIRP, if at all the Corporate Debtor is to be run as a going concern, it can be obligated to pay the taxes from the date of initiation of CIRP. As to the dues of pre-admission period, the creditors, including Tax authorities, are entitled to make a claim against the Corporate Debtor as mentioned in the Insolvenc...

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Posted Under: Company Law |

IBC Act overrides GST Act- Liability to Pay GST after initiation of CIRP

T. R. Ravichandran Vs The Asst. Commissioner (ST) (NCLT)

T. R. Ravichandran, RP Vs The Asst. Commissioner (ST) (NCLT) As to provisions of GST Act, since Section 238 of the Insolvency and Bankruptcy Code having categorically mentioned that IBC will have over riding effect on all other laws which are in contravention to the provisions of the IBC, RI cannot raise an objection saying […]...

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Posted Under: Company Law | |

Provision of IBC overrides GST: NCLT

T. R. Ravichandran, RP Vs Asst. Commissioner (ST) (NCLT)

T. R. Ravichandran, RP Vs The Asst. Commissioner (ST) (NCLT) Section 238 of the Insolvency and Bankruptcy Code having categorically mentioned that IBC will have over riding effect on all other laws which are in contravention to the provisions of the IBC, RI cannot raise an objection saying since no provision has been made in […]...

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Govt to set up National Company Law Appellate Tribunal Bench in Chennai

In pursuance of judgement of Hon’ble Supreme Court, the Government has decided to set up a bench of National Company Law Appellate Tribunal (NCLAT) at Chennai. This was stated by Shri Anurag Singh Thakur, Union Minister for State for Finance &Corporate Affairs, in a written reply to a question in Lok Sabha today....

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Posted Under: Company Law |

MCA notifies rules for Posting and transfer of NCLT Members

Notification No. G.S.R. 682(E). (23/09/2019)

Rule 15 A. Posting and transfer of Members. - (1) Initial posting of a Member shall be done by the Central Government in consultation with the President. (2) Subsequent transfers to different Benches shall be done by the President having regard ordinarily to the following:—...

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Company under insolvency cannot be Struck off: ROC order set aside

M/s J R Diamonds P Limited (Vinod Tarachand Agrawal) Vs. Registrar of Companies ( NCLT Ahmedabad)

M/s J. R. Diamonds P Limited (Vinod Tarachand Agrawal) Vs. Registrar of Companies (NCLT Ahmedabad) In path-breaking judgement delivered by Hon’ble NCLT Ahmedabad, set aside ROC order to struck down the name of the company from ROC register. M/s J R Diamonds P Limited, company wherein no financial creditors are their was under Insolvency...

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Posted Under: Company Law |

Can A Incorporated Company Be Considered As Void Ab Initio (void from the beginning) ???

Can A Incorporated Company Be Considered As Void Ab Initio (void from the beginning) ??? The incorporation of a company refers to the legal process that is used to form a corporate entity or a company. Section 7 of the Companies Act 2013 and rules made thereunder as amended from time to time are applicable […]...

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Posted Under: Company Law |

SC orders IRP to complete CIRP concerning Jaypee Infratech within 90 days

Jaiprakash Associates Ltd & Anr. Vs IDBI Bank Ltd. & Anr. (Supreme Court of India)

We direct the Interim Resolution Professional (IRP) to complete the Corporate Insolvency Resolution Process (CIRP) within 90 days from today. In the first 45 days, it will be open to the IRP to invite revised resolution plan only from Suraksha Realty and NBCC respectively, who were the final bidders and had submitted resolution plan on th...

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NCLT dismisses 9 IBC plea for payment of interest due to dispute on existence of debt

Steel India Vs M/s. Theme Developers Pvt Ltd (NCLT Mumbai)

Steel India Vs M/s. Theme Developers Pvt Ltd (NCLT Mumbai) We have carefully gone through the pleadings on record and pursued the submissions made by the counsels for both the sides. On careful perusal of the documents it is noticed that the Corporate Debtor has already paid the entire Principal amount to the Petitioner, which […]...

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Posted Under: Company Law | |

New Provision in Handbook of Procedure 2015-20 of cases referred to NCLT

Public Notice No. 39/2015-2020-DGFT (18/10/2019)

A new para has been added in Chapter 2 of Foreign Trade Policy 2015-20 for operational modalities to be followed for the cases referred to National Company Law Tribunal vide Public Notice No. 39/2015-2020 dated: 18th October, 2019. Government of India Ministry of Commerce and Industry Department of Commerce Directorate General of Foreign ...

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New Provision in FTP 2015-20 of cases referred to NCLT

Notification No. 25/2015-2020-DGFT [S.O. 3752(E)] (18/10/2019)

A new para has been added in Chapter 2 of Foreign Trade Policy 2015-20 about the cases referred to the National Company Law Tribunal vide Notification No. 25/2015-2020 dated 18th October 2019. Government of India Ministry of Commerce and Industry Department of Commerce Directorate General of Foreign Trade Udyog Bhawan ***** Notification N...

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CG delegates powers to appoint Officers/Staff to NCLT/NCALT

[F. No. A-12018/02/2017- Ad-IV/P] (14/10/2019)

Central Government (CG) delegates its powers and functions under section 418(1) of Companies Act, 2013 to provide officers and other employees to the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCALT) to the President and Chairperson of the said  NCLT and NCALT. GOVERNMENT OF INDIA MINISTRY OF CO...

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Govt appoints 28 new Judicial and Technical Members in NCLT

Notification No. S.O. 3412(E). (20/09/2019)

Central Government appoints 28  persons as Judicial and Technical Members in the National Company Law Tribunal for a period of three years or till the attaining the age of sixty-five years, whichever is earlier. MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 20th September, 2019 S.O. 3412(E).—In exercise of the powers confe...

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Interim Moratorium: To be a Judicial Discretion ?

Everyone rushes to drill the well and if they know that the well is about to dry they will rush more to get those last drops. Moratorium banns to drill the wells which are about to dry. Moratorium is said to be the main plank of the rescue culture....

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Posted Under: Company Law |

Voluntary Liquidation of Company – IBC, 2016

Voluntary Liquidation of Company (Section 59 of the Insolvency and Bankruptcy Code, 2016) > Application for Voluntary Liquidation:- A Company who intends to liquidate itself voluntarily and has not committed any default on any debt to any person may initiate voluntary liquidation proceedings. A Company may choose to be wound up volunta...

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Posted Under: Company Law |

Series of Judicial Pronouncement – Insolvency and Bankruptcy Code, 2016

All proceedings under the IBBI Code in respect of Corporate Insolvency are to be adjudicated by the National Company Law Tribunal (NCLT), which has been designed as the ‘Special One Window Forum’ to tackle all aspects of insolvency resolution. The NCLT is referred to as the ‘Adjudicating Authority’....

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Posted Under: Company Law |

Compilation of monthly Corporate Law updates of August 2019

Article contains update on Amendment to Companies Act, 2013 and its Rules, Amendment to SEBI Law, NCLT Order, Highlights of Consumer Protection Bill, Labour laws, E-commerce guidelines for Consumer Protection ICSI – Recognition to Company Secretaries to act as Arbitrator under the Arbitration and Conciliation (Amendment) Act, 2019, upda...

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Posted Under: Company Law |

Application to NCLT for Repayment of Deposit under Section 73(4)

As per Section 73 (4) of Companies Act, 2013, where a company fails to repay the deposit or part thereof or any interest thereon, the depositor concerned may apply to National Company Law Tribunal (NCLT) for an order directing the company to pay the sum due or for any loss or damage incurred by him as a result of such non-payment and for ...

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Posted Under: Company Law |

Procedure to Restoration of Name of Struck off Company by NCLT

Procedure To Restoration of Name of Struck off Company By National Company Law Tribunal As per Section 248(1) of Companies Act, 2013, the Registrar is vested with the power to strike off the name of the Company, consequently, it had struck off various companies in India and also in process to strike off other companies, […]...

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Posted Under: Company Law |

Filling up of posts of Judicial and Technical Member in NCLT

No.A-12023/3/2019-Ad.IV (26/09/2019)

Filling up of 06 (six) posts of Judicial Member and 05 (five) posts of Technical Members in the National Company Law Tribunal (NCLT) - inviting online applications for....

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Constitution of benches at all NCLT Locations

File No. 10/03/2019-NCLT (25/07/2019)

President, National Company Law Tribunal hereby constitutes the following Benches for the purpose of exercising and discharging the Tribunal's powers and functions:...

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Budget 2019: Measures for resolution of distressed companies

The existing provisions of section 79 are not applicable to a company where any change in shareholding takes place in a previous year pursuant to a resolution plan approved under the Insolvency and Bankruptcy Code, 2016 (IBC) subject to the condition that jurisdictional Principal Commissioner or Commissioner is provided a reasonable oppor...

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Posted Under: Company Law |

Debt recovery mechanism strengthened with enactment of IBC, 2016

Taking note of the recent successes in recovery of loans since the Insolvency and Bankruptcy Code, 2016 came into effect, the Survey proposes further strengthening of the National Company Law Tribunals (NCLT) and the appellate tribunal....

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Posted Under: Company Law |

Pre-Budget Memorandum 2019- A Small Wish List From New Finance Minister

Union Budget 2019 – New Finance Minister Smt. Nirmala Sitharaman’s first budget after the huge and unprecedented electoral win of Sh. Narendra Modi Government has the backing of a mammoth public mandate and as such is expected to be a reform oriented budget and not a populist one. However, along with the bold and reform […]...

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Posted Under: Company Law |

Government Notifies Threshold For Filing Class Action Suits

Provisions governing Class Action is set out under Section 245 of Companies Act, 2013 which falls under Chapter XVI Prevention of oppression and Mismanagement notified on 01st June, 2016. ...

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Posted Under: Company Law |

Posting of Judicial and Technical Members of NCLT

Order No. A-22012/4/ 2019-Ad.IV-MCA (19/06/2019)

As per ACC directions contained in DoP&T's communication no. 18/10/ 2019-EO (SM.II) dated 03.05.2019 and in consultation with the President, National Company Law Tribunal (NCLT), the following Judicial and Technical Members of NCLT are posted at the Benches as under:...

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Workmen dues cannot be a part of liquidation estate assets: NCLT

Alchemist Asset Reconstruction Co. Ltd. Vs. Moser Baer India Limited (NCLT Delhi, Principal Bench)

Alchemist Asset Reconstruction Co. Ltd. Vs. Moser Baer India Limited (NCLT Delhi, Principal Bench) Under Section 36(4) (a) (III), the expression ‘liquidation estate’ has been defined and it is clarified that all sums due to any workman or employee from the provident fund, pension fund and gratuity fund, were not to constitute ...

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Posted Under: Company Law | |

Class Action Suits via NCLT (Second Amendment) Rules, 2019

Central Government dictates details of Class Action Suits via National Company Law Tribunal (Second Amendment) Rules, 2019 Background At the time of Satyam scam, the Indian investors, as opposed to their counterparts in USA, could not file litigations against the fraudulent company. Owing to the peculiarity of weighty financial scam of Sa...

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Posted Under: Company Law |

Threatening RP while discharging her duties as Court officer can never be tolerated

Asset Reconstruction Company (India) Pvt Ltd Vs Shivam Water Treaters Pvt Ltd (National Company Law Tribunal, Mumbai)

Asset Reconstruction Company (India) Pvt Ltd Vs Shivam Water Treaters Pvt Ltd (National Company Law Tribunal, Mumbai) The Resolution professional has also reported that Mr Gaurav Dave abused the RP while she was discharging her duties as Court officer. Such actions of the Ex-directors can never be tolerated. We at this moment provide two ...

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Compendium of Company Law, SEBI, RBI, NCLT Changes in Feb 2019

Article Contains updates on Notifications/ Circulars issued by MCA, SEBI, RBI, BSE, NSE in February 2019 and on Recent Important NCLT Order. Updates includes updates on The Companies (Significant Beneficial Owners) Amendment Rules, 2019 – 8 February 2019, The Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 201...

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Posted Under: Company Law |

NCLT Has Jurisdiction Over Issues Related to Insolvency – Delhi HC

Liberty House Group Pte Ltd Vs State Bank of India & Ors. (Delhi High Court)

National Company Law Tribunal shall have jurisdiction to entertain or dispose of any question of law or facts, arising out of or in relation to the insolvency resolution or liquidation proceedings of the corporate debtor or corporate person under the Code...

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Andhra Pradesh and Madhya Pradesh get new NCLT benches

Notification No. [S.O. 1216(E)] (08/03/2019)

Andhra Pradesh and Madhya Pradesh get new NCLT benches The Government has approved establishment of two new benches of National Company Law Tribunal (NCLT), one at Amaravati in Andhra Pradesh and the other at Indore in Madhya Pradesh. This step has been taken keeping in view the increasing case load, especially under the Insolvency &...

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Amalgamation scheme devised to benefit few shareholder and to huge avoid tax cannot be approved: NCLT

In re Gabs Investments Pvt. Limited Vs Ajanta Pharma Limited (NCLT Mumbai)

Scheme of Amalgamation and Arrangement between G Pvt. Ltd.  ('Transferor Company') and A Limited (`Transferee Company') and their respective shareholders appeared to be unfair, unreasonable and was not in the public interest as the scheme was devised mainly to benefit the four share holders of G who were also the promoters of A (common p...

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Posted Under: Company Law | |

Govt amends appointment date of NCLT Judicial & Technical Members

Notification No. S.O. 1039(E) (27/02/2019)

Govt amends appointment date of NCLT Judicial and  Technical Members to 23.06.2016 from earlier notified date of 08.06.2016 which was notified vide S.O. 2563(E), dated the 28th July, 2016. MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 27th February, 2019 S.O. 1039(E).—In exercise of the powers conferred by section 408 of t...

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NCLT bars CA for issuing false Audit certificate relating to financials

Union of India Vs Mr. Mukesh Maneklal Choksi (NCLT)

Union of India Vs Mr. Mukesh Maneklal Choksi (National Company Law Tribunal, Mumbai Bench) Since Respondent No 1, Mr Mukesh Maneklal Choksi, Statutory Auditor , colluded with the Chairman/Director of R-2 company and has given a false Audit certificate relating to the Profit & Loss Account and Balance Sheet of the R-2 company, without ...

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Posted Under: Company Law | |

National Company Law Tribunal (Amendment) Rules, 2019

Notification No. G.S.R. 29(E) (15/01/2019)

Central Government hereby makes the following rules further to amend the National Company Law Tribunal Rules, 2016, namely:- 1. (1) These rules may be called the National Company Law Tribunal (Amendment) Rules, 2019. ...

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Basic Understanding Of NCLT & NCLAT For Students

Everyone knows High Court and Supreme Court but few People like CA/CS/Lawyers know NCLT & NCLAT. Lets through light on this topic in very simple language for better understanding of student and Public at Large. Introduction: – NCLT, National Company Law Tribunal is a quasi-judicial body to regulate and resolve Civil Corporate di...

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Posted Under: Company Law |

Reduction in share capital under Companies Act, 2013

Procedure For Reduction Of Share Capital Under Section 66 Read With NCLT (Procedure For Reduction Of Share Capital) Rules, 2016 i. Convene a Board Meeting to approve the reduction of share capital and fixing the date of general meeting of the company. ii. Hold the general meeting and have the Special Resolution passed. iii. File […...

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Posted Under: Company Law |

Insolvency & Bankruptcy Code-Home buyers: Most outstanding judgement – reduction of voting share

Nikhil Mehta & Sons (HUF) & Ors vs M/s AMR Infrastructure Ltd (NCLT, New Delhi)

In a memorable and consequential judgement, in the matter of Nikhil Mehta & Sons (HUF)&Or’s vs M/s AMR Infrastructure Ltd (CA No. 811(PB/2018 in IB-02(pb)/2017, it has been upheld that the voting threshold in the IBC are merely directory in nature and that preference can be taken to decision taken by the largest percentage in th...

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Posted Under: Company Law | |

‘A New Avenue For Restructuring’- Merger of a LLP With a Company

Mergers and acquisitions (M&A) are the transactions in which the ownership of companies, other business organizations, or their operating units are transferred or consolidated with other entities. As an aspect of strategic management, M&A can allow enterprises to grow or downsize, and change the nature of their business or competitive pos...

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Posted Under: Company Law |

Playing Game Tactically: Race For Essar Steel (Analysis of Essar Steel Case)

In this case it is for the first time that the principles of Section 29A and circumstances of its applicability has been adjudged by the National Company Law Appellate Tribunal (hereinafter “NCLAT”). This judgment is not about maximization of value of entity at the time of bidding but focuses and restricts itself on the qualification ...

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Posted Under: Company Law |

Moratorium: Not Applicable to action U/s. 138 of Negotiable Instruments Act, 1881

This article is a critical analysis of the recent judgment of NCLAT i.e., in the matter of Shah Brothers Ispat Pvt. Ltd. Vs. P. Mohanraj & Ors.-Company Appeal (AT) (Insolvency) No. 61 of 2018 wherein it has been held that moratorium will not be applicable to action under section 138 of the Negotiable Instruments Act, 1881....

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Posted Under: Company Law |

Cyrus Mistry-Tatas feud: Rights of Minority shareholders compromised??

NCLT, Mumbai Bench dismissed the petition filed by Cyrus Mistry who incidentally owns about 18.3% (including preference capital) of Tata Sons Limited. NCLT ruled that Tata Sons Limited has all the rights to remove its Executive Chairman and NCLT found no merit in Mistry’s  allegations of operational mismanagement and oppression of mino...

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Posted Under: Company Law |

NCLT forms 12th bench in Cuttack for matters of Odisha & Chhattisgarh

Notification No. S.O. 3430(E) (12/07/2018)

Central Government hereby establishes the National Company Law Tribunal, Cuttack Bench at Cuttack and for the said purpose further amends the notification of the Ministry of Corporate Affairs number S.O. 1935 (E), dated the 1st day of June, 2016, namely:—...

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Corporate Insolvency Resolution Process by Financial Creditor

India’s banking industry is in the throes of a crisis. Bad debts are piling up at banks. Freeing up this money is crucial for the banking sector to go about its business. There were many laws dealing with insolvency for Companies as well as for individuals. But most of them were either dating from the British Raj or failing to recover l...

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Posted Under: Company Law |

Restore Company name when company expresses its willingness to file ROC returns with late fee: NCLT

Ms. Rashmi Rajpal v. Klienz Herbal (P.) Ltd. (National Company Law Tribunal, Hyderabad Bench)

Ms. Rashmi Rajpal v. Klienz Herbal (P.) Ltd. (National Company Law Tribunal, Hyderabad Bench) Where name of a company was struck off because of delay in filing statutory returns, reasons of which was explained, and, company had expressed its willingness to file all returns along with payment of prescribed fee to which ROC had no objecti...

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Posted Under: Company Law | |

Merger of Partnership Firms under Companies Act, 2013- Is it possible?

M/s. Kediya Ceramics (NCLT Ahemdabad)

A partnership firm can participate in a scheme of amalgamation only after converting itself into a company under section 366 of the Act. Since the vesting of properties and liabilities of such partnership firm to the company is by operation of law [Section 368 of the Act], the succession is exempt from capital gains tax pursuant to the pr...

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Posted Under: Company Law | |

Ensure Representation before NCLT benches: CBDT to Pr. CCITs

F.No.278/M-52/2003-ITJ(Pt.) (04/04/2018)

For a PCCIT region where the NCLT bench is not situated in the region, the concerned PCCIT was directed to ensure representation by coordinating with the PCCIT in whose jurisdiction the NCLT bench is located. This assumes importance in view of the fact that in case of many NCLT benches, a single bench covers the territorial jurisdiction o...

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9,073 cases under consideration in NCLT as on 31.01.2018

9,073 cases are under consideration in NCLT, including 1,630 cases of Merger and Amalgamation; 2,511 cases of insolvency and 4,932 cases under other sections of Companies Act.  The Company Law Board (CLB) set up under Companies Act 1956 stands dissolved with the setting up of National Company Law Tribunal (NCLT). As on 12.03.2018, only o...

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Posted Under: Company Law |

9 Landmark Judgements in Insolvency and Bankruptcy Code, 2016

The evolving law in due course is seeing some settlement (not by virtue of Article 142 of the Indian Constitution though), but some imperative issues, still some require settlement, and certain others warrant immediate changes. Briefly discussed below are a few imperative judicial pronouncements....

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Posted Under: Company Law |

Key points while filing petition/application before NCLT court

As we all knows that Central Government notified NCLT Rules, 2016 on 21st of July, 2016 through notification in the official gazette. The provisions specify the professionals i.e., Company Secretaries, Chartered Accountants and Advocates who can practice before the NCLT or NCLAT....

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Posted Under: Company Law |

Section 4(b) of Sick Industrial Companies (Special Provisions) Repeal Act, 2003 is constitutionally valid: HC

M/S Atv Projects (India) Ltd Vs. Union Of India & Ors. (Delhi High Court)

M/S Atv Projects (India) Ltd Vs. Union Of India & Ors. (Delhi High Court) Under the newly enacted Section 4(b) there are only two classes of persons, namely (i) those persons in whose cases schemes were sanctioned and (ii) those persons in whose cases the schemes were pending. In the former, there are two sub-classes […]...

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CBDT on Decentralization of handling of cases under IBC 2016

F. No. 385/04/2018-IT(Budget) (16/01/2018)

The undersigned is directed to say that by virtue of implementation of Insolvency & Bankruptcy Code (IBC) 2016 after the repeal of erstwhile Sick Industrial Companies Act (SICA). The necessity to decentralize handling of cases at the level of field formations has been felt as 11 National Company Law Tribunal (NCLT) benches having territor...

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