NCLAT and NCLT pass orders and judgments

NCLAT and NCLT pass orders and judgments

CASE 1

The National Company Law Tribunal (NCLT) has admitted the petition for initiation of the Corporate Insolvency Resolution Process (CIRP) on the corporate debtor Mideast Integrated Steels Ltd, declaring moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC).

In the Rajendra Kumar Sahoo vs Mideast Integrated Steels Ltd case, the tribunal held that the applicant-financial creditor was entitled to claim its outstanding financial debt from the corporate debtor and there was a default in payment of the financial debt. The Adjudicating Authority (AA) appointed Lekhraj Bajaj to act as Interim Resolution Professional (IRP).

CASE 2

The National Company Law Appellate Tribunal (NCLAT) has pitched for an early revival of the grounded Jet Airways.

Providing more time to the winning bidder, Jalan Kalrock Consortium, to fulfil payment obligations, it has directed the lenders not to encash the performance bank guarantee of Rs.175 crores furnished by the consortium.

In the State Bank of India vs The Consortium of Murari Lal Jalan and Florian Fritsch case, the tribunal extended the timeline by excluding the time period between 16 November 2022 and 3 March 2023, when the petition filed by the lenders was being heard. The appeal has been listed for hearing on 12 July.

CASE 3

In the Rajesh Kumar Modi vs Punjab National Bank International Ltd case, the NCLAT dismissed the appeal and upheld the order of NCLT. The appellate tribunal held that the repayment of instalments of loan amounts payable to the corporate debtor regarding two loan facility agreements were financial debts.

It added that the defaulted repayment and the dates of the recall notice and filing of the Section 7 application were clear that the application was filed within the limitation period. Since the AA did not commit any error in the impugned order, it does not require mediation.

CASE 4

The NCLAT has held that in case the dispute between two parties is amply supported by material on the record, it is not the remit of IBC to investigate the related contractual disputes. It does not require looking into the merits if it suffices that a plausible defence was raised.

Therefore, in the Shree Durga Iron And Steel Co. Ltd. vs Rawalwasia Textile Industries Pvt. Ltd case, the defence raised by the corporate debtor cannot be termed spurious or hypothetical.

The NCLT had rejected the Section 9 application filed by the appellant on the ground of pre-existing dispute.

CASE 5

In the Abhigam Shares Securities Pvt. Ltd. vs Infrastructure Leasing and Financial Services Ltd case, the NCLAT has held that the AA has not committed any error in not acceding to the prayer to stay the interim distribution.

The tribunal stated that the submission was that the contractual rights of the appellant cannot be ignored by the respondent. Under the contractual obligations, the respondent was not entitled to have precedence in payment in the interim distribution.

CASE 6

In the Zee Entertainment Enterprises Ltd vs BSE Ltd case, the NCLAT has set aside the impugned order on the ground of non-compliance with the principle of natural justice. The appellate tribunal has remitted the NCLT to examine the matter and pass appropriate order after hearing both parties.

CASE 7

In the Bank of Baroda vs Dinesh Sood case, the NCLAT has condoned a delay of 70 days in refilling the appeal. The ground stated in the affidavit was that the advocate for the applicant met with an accident, due to which the delay was caused. The appellate tribunal held that it was sufficient cause for condoning the delay.