Hindustan Controls & Equipments (P) Limited

Adjudicating Authority (NCLT) lacks jurisdiction to set aside an Arbitral Award even the award was passed after initiation of CIRP and during in course of moratorium under Section 14 of IBC – Subodh Kumar Agarwal, RP of Hindustan Controls and Equipment Pvt. Ltd. Vs. Steel Authority of India – NCLT Kolkata Bench

Hon’ble NCLT Kolkata Bench held that:

(i) Although NCLT has the power to issue an Ante Arbitration injunction, in light of the Section 430 of the Companies Act, 2013 and also has the power to refer parties to Arbitration or enforce Arbitration Award, it cannot set aside an Arbitral Award.
(ii) The NCLT cannot do what the IBC consciously did not provide the power to do.
(iii) The Tribunal lacks jurisdiction to set aside an Arbitral Award, although it was passed in course of moratorium under Section 14 of IBC, the IA is disposed of with liberty to the RP to initiate appropriate proceedings to challenge the said Award.

Adjudicating Authority (NCLT) lacks jurisdiction to set aside an Arbitral Award even the award was passed after initiation of CIRP and during in course of moratorium under Section 14 of IBC – Subodh Kumar Agarwal, RP of Hindustan Controls and Equipment Pvt. Ltd. Vs. Steel Authority of India – NCLT Kolkata Bench Read Post »

The period of limitation is to be computed from the date free certified copy of the order passed by the Adjudicating Authority is provided to the party – Mahendra Trading Company & Ors Vs. Hindustan Controls and Equipment Pvt. Ltd. – NCLAT

NCLAT held that Sub-section (1) of Section 61 of the ‘I&B Code’ empowers an aggrieved person to prefer an appeal before the National Company Law Appellate Tribunal against an order passed by the Adjudicating Authority (National Company Law Tribunal). Section 61(2) makes it clear that the appeal has to be preferred within 30 days and the power of condonation is only for 15 days’ delay and not more than that.
In the present case, the question arises as to how the period of 30 days is to be counted.
Section 420 of the Companies Act, 2013 prescribes the manner in which the National Company Law Tribunal (Adjudicating Authority) is to pass order. Sub-section (3) of Section 420 mandates the Tribunal to send a copy of every order to all the parties concerned.

The period of limitation is to be computed from the date free certified copy of the order passed by the Adjudicating Authority is provided to the party – Mahendra Trading Company & Ors Vs. Hindustan Controls and Equipment Pvt. Ltd. – NCLAT Read Post »

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