Articles by "NCLT"
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Hello Jammu News at 3:52:00 PM 0

New Delhi, Aug 9: In a setback to the Jaypee group, the Supreme Court today asked the National Company Law Tribunal (NCLT), Allahabad, to deal with the insolvency proceedings against Jaypee Infratech Ltd (JIL) and barred the group or its promoters from participating in the fresh bidding process.

A bench headed by Chief Justice Dipak Misra said the limitation period of 180 days to conclude the insolvency proceedings will commence from today.

The bench, also comprising Justices A M Khanwilkar and D Y Chandrachud, said the Rs 750 crore deposited by the JIL in the apex court shall be transferred to NCLT Allahabad.

The top court also allowed the Reserve Bank of India (RBI) to direct the banks to initiate separate insolvency proceedings against JIL's holding company Jaiprakash Associate Limited (JAL).

The bench said home buyers should be included in the committee of creditors in accordance with the amendments made in the Insolvency and Bankruptcy Code (IBC).

The bench disposed of all the petitions and applications pending before it.

The apex court had earlier reserved its order on "interim reliefs" sought by various stakeholders, including the home buyers of JIL, JAL, banks and financial institutions and the Insolvency Resolution Professional (IRP).

IDBI bank had moved the Corporate Insolvency Resolution application before the NCLT against the debt-ridden realty firm, JIL, after it allegedly defaulted in paying back a loan of Rs 526 crore.

The ASG had earlier said that, according to the amended IBC, now home buyers are financial creditors in a firm. Hence, the committee of creditors, which usually included banks and FIs, will have to consider the views of home buyers while deciding the resolution plan of a company.

Lawyers, representing the home buyers, opposed the submission that JAL be allowed to complete the housing projects, saying that it was barred under the law to do so.

Taking note of the enormity of the situation, the bench said it was thought that the liability of the firm was to the tune Rs 2,000 crore and it has now gone beyond Rs 30,000 crore.

Earlier, JAL had said it would deposit Rs 600 crore more to refund the home buyers if it was allowed to dispose of its identified assets, including a cement plant at Rewa in Madhya Pradesh.

JAL had said Rs 750 crore has been deposited by it with the apex court's registry and Rs 600 crore more would be required for paying the principal sum to the home buyers.

The home buyers had moved the apex court stating that around 32,000 people had booked flats and were now paying instalments. (PTI)

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Hello Jammu News at 12:44:00 PM 0

Mumbai, Jul 9: The National Company Law Tribunal (NCLT) today dismissed the pleas of Cyrus Mistry challenging his removal as Chairman of Tata Sons.

Mistry was removed as the Tata Sons board and majority of its members lost confidence in him, the NCLT Mumbai's main bench of B S V Prakash Kumar and V Nallasenapathy said in a judgement.

The tribunal said it was not accepting Mistry's contentions that his removal was due to the result of mismanagement by the board and oppression of minority shareholders of the group.

Mistry was removed because the board and majority of its members lost confidence in him after he sent out certain crucial information about the company to the I-T department, leaked details to the media and came out openly in public against the company's shareholders and its board, the bench said.

In October 2016, Mistry was ousted as Tata Sons Chairman.

Two months later, he and his family-run investment firm, Cyrus Investments, approached the NCLT as minority shareholders against the corporate monolith and others, including Ratan Tata, alleging oppression and mismanagement.

As per the plea, five months later he was also removed from the post of director of Tata Sons' board for approaching the NCLT.

Mistry can appeal against this order before the National Company Law Appellate Tribunal. (PTI)
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Hello Jammu News at 5:28:00 PM 0



Bengaluru, Mar 27: The debt ridden domestic ship building industry, especially in the private sector, is facing severe order crunch.
The cancellation of orders of unfinished ships is looking towards the Defence and Coast Guard orders for their revival.
The industry which is in downward trend since 2011 following decline in freight rates and fall in ship prices are facing keen competition from Korean and China ship builders who were offering ships at much lower costs due to cheap labour and material costs besides competitive finance availability.
According to credit rating agency ICRA, the credit profile of most of the private shipyards has deteriorated in recent years as the rising debt levels coupled with lower profits have resulted in weak financial leverage and debt coverage metrics. 
Two large private shipbuilders-- ABG Shipyard Limited and Bharti Defence and Infrastructure Limited, have already been referred to the National Company Law Tribunal (NCLT) with a cumulative debt burden of Rs 25,000 crore. The private shipyards are now focusing on orders from the Indian Navy and the Indian Coast Guard and are accordingly acquiring and enhancing their Defence shipbuilding capabilities with the aim to turnaround their ailing financial health.
Mr K Ravichandran, Senior Vice-President & Group Head, Corporate Ratings, ICRA, said in a release on Tuesday that “Defence shipbuilding in India is emerging as an area of focus for public and private sector shipyards alike. While the public sector shipyards are the front-runners in the Defence shipbuilding space, an increasing number of private shipyards are undertaking specific measures to enhance competence and modify their existing shipbuilding repair facilities to suit the needs of the Indian Navy. Some of the leading private shipyards, which entered the shipbuilding market as commercial shipbuilders, have been repositioning themselves as companies with Defence shipbuilding capabilities. 
With the revised Defence Procurement Procedure-2016 launched in March 2016, the Defence sector is working towards achieving higher indigenisation in both the design and the construction of Defence equipment.”
The Government of India has undertaken multiple initiatives to encourage indigenous design and construction of warships and to strengthen the financial support and incentives provided to the shipyards. ICRA expects the shipbuilding industry to witness greater consolidation and collaboration between the private and public sector to enhance its capabilities on the technological and operational front. The Sagarmala programme which aimed to modernise the country’s ports and increase transportation of cargo and passengers through inland waterways will benefit the domestic shipbuilding industry. The programme entails development of six new ports and new waterways which will create the requirement for dredgers and harbour crafts. There would be greater oil exploration activity in deep-water leading to greater demand for offshore rigs and vessels. Further, there would be increase in demand for ships and ports to handle liquid and gas cargoes. With the emphasis on Make in India, this initiative would also look at job creation in the shipbuilding sector.
On the Government of India initiatives, Ms. Anubha Rustagi, Senior Analyst, ICRA, added: “Over the last two years, the government has taken various steps to support the domestic shipbuilding sector. These include granting of infrastructure status to stand-alone shipyards thereby allowing them to seek flexible structuring of the project loans; renewing the financial subsidy granted to the Indian shipyards under a Rs. 4,000 crore program that will run until 2026; granting the right of first refusal to the Indian shipyards for newbuilds and ship repairs in the bulk-tendering process. The impact of these measures is expected to gradually improve the sector’s financial performance. ICRA notes that over the last couple of years, the GoI has brought the private sector onboard to ensure availability of sufficient capacity to execute its ongoing and upcoming defence shipbuilding plans though timely tendering and awarding of orders along with required budgetary allocations to the Indian Navy would remain important.” UNI
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Hello Jammu News at 12:22:00 PM 0


New Delhi, Dec 13: The Supreme Court on Wednesday stayed the order of National Company Law Tribunal (NCLT) allowing Centre to take over management of real estate firm Unitech.
A three-judge bench, headed by Chief Justice of India Dipak Misra and also comprising Justices A M Khanwilkar and D Y Chandrachud, said the NCLT should have taken its leave before allowing the government to take over Unitech’s management. 
Attorney General (AG), K K Venugopal, top law officer appearing for the Central government, told the Court that the Union of India should not have approached the NCLT when the Apex Court was already seized of the matter relating to Unitech's failure to refund home buyers. 
The NCLT had in its order on Friday had restrained all the Unitech directors from discharging their duties on December 8. 
This was subsequently challenged by Mukul Rohatgi, the counsel appearing for Unitech. 
The top court observed that it was more concerned about the homebuyers and not about the real estate company. 
It had earlier sought information from the Ministry of Corporate Affairs (MCA) on how Unitech would refund homebuyers. 
The Apex Court had also sought Rs 750 crore from Unitech Ltd by December end. UNI
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Hello Jammu News at 5:05:00 PM 0


New Delhi, Dec 12: The Supreme Court on Tuesday deferred for tomorrow the hearing of a plea by real estate major, Unitech, seeking a stay on a NCLT order which had restrained all its directors from discharging their duties. 
Unitech is Rs 8,000 crore in the red.
A bench, headed by Chief Justice of India Dipak Misra and also comprising Justices AM Khanwilkar and DY Chandrachud, questioned the Centre as to why it did not take permission from the apex court to move the National Company Law Tribunal for suspension of directors and their substitution by government nominees.
Additional Solicitor General, Tushar Mehta, appearing for the Union of India, informed the bench that he will take instructions from the Centre and apprise the apex court tomorrow. 
The NCLT on Friday had restrained all the Unitech directors from discharging their duties. 
This was subsequently challenged by the real estate giant. 
The apex court had observed that it was more concerned about the home buyers and not the real estate company. 
It had earlier sought information from the Ministry of Corporate Affairs on how Unitech would refund home buyers. The Supreme Court had also sought Rs 750 crores from Unitech Ltd by December end. UNI
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