The insolvency regulator has proposed mandating bidders for bankrupt firms to disclose beneficial ownerships, a move aimed at curbing misuse of the ‘clean slate’ principle and preventing backdoor entry of disqualified promoters or related parties, the Economic Times of India reported. In a discussion paper, the Insolvency and Bankruptcy Board of India (IBBI) has suggested a standard format for beneficial ownership disclosures by all potential resolution applicants.
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A two-member bench of the appellate tribunal said the NCLT should have taken into consideration the directions issued by the Supreme Court in the Mansi Brar Fernandes case, where it was held that real-estate insolvency should be project-specific, the Economic Times of India reported. Moreover, the NCLAT also noticed an intervention application filed by different sets of homebuyers of other projects of Mahagun, where they prayed to set aside the NCLT order directing insolvency against the realty firm.
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The National Company Law Appellate Tribunal (NCLAT) recorded the consent terms by Bollywood superstar Salman Khan and Jerai Fitness on mutual settlement, TaxScan.com reported. The bench allowed the withdrawal of his ₹7.24 crore insolvency application bringing an end to the protracted legal battle between the two parties. Salman Khan was named the brand ambassador for Jerai Fitness under a brand endorsement deal, which gave rise to the disagreement.
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The India's bankruptcy regulator has issued a circular empowering insolvency professionals to file applications before the special courts handling money-laundering cases for the restitution of the assets of stressed companies attached by the Directorate of Enforcement (ED), the Economic Times of India reported. Attachment of assets discourages potential investors and hampers efforts to rescue insolvent firms.
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The Supreme Court in India on Friday agreed to hear on Monday an appeal by U.S.-based Glas Trust Co. against Aakash Educational Services' move to conduct a rights issue that would reduce Byju's parent Think & Learn's stake from 25.75% to below 5%, the Economic Times reported. Glas Trust, a U.S.-based lender to Think & Learn and a member of its committee of creditors (CoC), has moved the top court, challenging a National Company Law Appellate Tribunal's order that refused to stay Aakash's EGM on October 29.
A new study by the Indian Institute of Management (IIM)-Indore has found that corporate bankruptcies can have far-reaching consequences beyond the failed firms themselves — potentially destabilising even financially healthy companies within the same industry, the Free Press Journal reported. Published in the reputed journal Finance Research Letters, the study, titled “Bankruptcy Spillovers and Stock Price Crash Risk of Non-Bankrupt Firms,” is co-authored by Prof. Radha Mukesh Ladkani of IIM-Indore.
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The Principal Bench of the National Company Law Appellate Tribunal (NCLAT), Delhi, has restrained Raheja Developers from creating third-party rights by selling units or land, the Economic Times of India reported. “It is clarified that, insolvency having commenced, we have no doubt that the management of the corporate debtor shall not create any third-party rights in the immovable properties,” the NCLAT said in its order. Earlier, the homebuyers had raised concerns that the assets of the company were being sold and transferred without the instructions of the IRP.
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The Bengaluru bench of the National Company Law Tribunal (NCLT) dismissed Byju’s parent Think and Learn’s plea for an interim stay aimed at stopping Aakash Educational Services from holding its extraordinary general meeting (EGM) to approve a rights issue on October 29, the Economic Times of India reported. Counsel for Think & Learn argued that the proposed rights issue would reduce its stake in the coaching centre operator from 25.75% to around 5%, since the company, currently under insolvency, cannot participate in the issuance of new shares.
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