NCLAT
Appeal U/S 421 Of Companies Act Not Maintainable Against Interlocutory Order Permitting AGM, No Substantive Rights Affected: NCLAT
The National Company Law Appellate Tribunal has recently held that an appeal under Section 421 of the Companies Act, 2013, against an interlocutory order permitting holding of an Annual General Meeting (AGM) without affecting the substantive rights of the appellants is not maintainable. The Tribunal emphasized that procedural orders which do not determine substantive rights cannot be appealed under Section 421.The NCLAT bench presided over by Justice Sharad Kumar Sharma [Member (Judicial)] and...
NCLAT Upholds Status Of Canara Bank As Financial Creditor For Providing Loans To Homebuyers Of CD, Distinguishes Value Infracon Judgment
The NCLAT New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member) upholds the claims of the Canara Bank for the loans advanced to the corporate debtor on behalf of the Homebuyers on the ground that a specific clause was mentioned in the tripartite agreement executed between the parties that in case of default made by the borrower, the builder was obligated the refund the entire amount to the bank. The tribunal distinguished the Value...
Claims Filed Subsequent To Cut-Off Date Shall Be Dealt With As Per Resolution Plan Approved By Adjudicating Authority: NCLAT
The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that claims filed subsequent to cut off date shall be dealt with as per Resolution Plan approved by the Adjudicating Authority. Brief Facts The Appellant booked an Apartment and a Plot with M/s. Puma Realtors Pvt. Ltd. in the year 2010 in its Project IREO Rise (Gardenia), Mohali, Punjab and the IREO Hamlet Project respectively. The...
Eurolife Healthcare Pvt Ltd As Corporate Debtor Retains Absolute Rights Over Disputed Cephalosporin Facility As Part Of Liquidation Estate: NCLAT
The National Company Law Appellate Tribunal bench of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) has held that the Corporate Debtor, Eurolife Healthcare Pvt. Ltd., retained absolute rights over the disputed 13,000 sq. ft. Cephalosporin Facility as part of the liquidation estate. Brief Facts Maharashtra Industrial Development Corporation (MIDC) executed a 95-year lease deed on 08.09.1998 for Plot No. B-15/2 in Waluj Industrial Area, Aurangabad, in favour of...
Workers' Claims For Layoff Period Dues Under Industrial Disputes Act Cannot Be Decided By Adjudicating Authority: NCLAT
The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that non-computation of salary after lay off by the Resolution Professional cannot be faulted with since the Resolution Professional has no adjudicatory jurisdiction and the Adjudicating Authority has rightly observed that whether the Workers are entitled to claim their dues for the layoff period under provisions of Industrial Dispute Act...
Adjudicating Authority While Dismissing Appeal For Non-Prosecution Cannot Add Direction To Dismiss It On Merits As Well: NCLAT
The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that when the appeal is dismissed on the ground of non-prosecution, it cannot be said to be dismissed on merits as well. In this case, the NCLT while dismissing the appeal for non-prosecution added a direction that the appeal is dismissed on merits as well. Brief Facts The present has been filed against an order passed by the NCLT by...
Period From 15.03.2020 To 28.02.2022 Shall Stand Excluded As Per SC Judgment In 'Re:Cognizance For Extension Of Limitation': NCLAT
The NCLAT New Delhi bench of Justice Yogesh Khanna (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member) has held that period from 15.03.2020 to 28.02.2022 shall stand excluded in light of the Supreme Court judgment in In Re: Cognizance for Extension of Limitation for the purpose of calculating the limitation period while filing an application under section 9 of the code. Brief Facts This appeal has been filed against an order passed by an Adjudicating Authority by which...
Eviction Of Tenant From Corporate Debtor's Property Can Be Sought Under Tenancy Law, Not U/S 60(5) Of IBC: NCLAT
The NCLAT New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member) has held that eviction of tenant from the property of corporate debtor can only be sought under the Act in which tenancy was created and such power of eviction cannot be exercised by the Adjudicating Authority under Section 60(5) of the Code. Brief Facts The insolvency proceedings were initiated against the CD on March 17, 2023 and the RP was appointed. Thereafter, the RP...
Initiation Of Arbitration Proceedings Before Issuance Of Demand Notice Is Sufficient To Reject Application U/S 9 Of IBC: NCLAT
The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that initiation of arbitration proceedings before the issuance of demand notice under section 8 of the code evidences a pre-existing dispute which can be a ground to reject application under section 9 of the code. Brief Facts The appellant filed this appeal against an order passed by the NCLT by which an application under section 9 of the code was dismissed. ...
No Title To Immovable Property Can Be Transferred On Basis Of Unregistered Instrument: NCLAT
The NCLAT New Delhi Bench of Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that the fact that the property is shown in the records in the name of the Corporate Debtor, Liquidator has every right to take possession of the shop on which the Appellant could not prove any title. The Appellant on the basis of the unregistered agreement to sell, cannot claim to have acquired any title. Brief Facts The Appellant has filed this appeal against an...
Successful Auction Purchaser Cannot Be Compelled To Pay Pre-CIRP Electricity Dues Before Restoring Electricity Connection: NCLAT
The NCLAT New Delhi Bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that Successful Auction Purchaser cannot be insisted to pay Pre-CIRP electricity dues which dues were payable by the Corporate Debtor, before restoring electricity connections. Dues if any would have to be paid as per waterfall mechanism under section 53 of the code. Brief Facts On an Application filed under Section 7 by the UCO Bank against the Corporate Debtor M/s....
Unilateral Revocation Of Guarantee Does Not Discharge Guarantor From His Obligations When Such Revocation Was Not Accepted By Creditor: NCLAT
The NCLAT New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member ) and Mr. Indevar Pandey (Technical Member) has held that unilateral revocation of guarantee by the Respondent No.1 does not absolve him from his obligations under the guarantee agreement when the Financial Creditor has not agreed to such revocation. The terms of contract agreement also clearly show that the contract was irrevocable. Brief Facts In 1999, the corporate debtor...