10/09/2024

Can CIRP be initiated against a Stock Broker Company, which is a Financial Service Provider under Section 3(16)(e), if, at the time of initiation of CIRP, the Stock Broker is not engaged in providing financial services due to SEBI restrictions prohibiting it from accepting new clients for its stockbroking activities? – Kapston Facilities Management Ltd. Vs. Karvy Stock Broking Ltd. – NCLT Hyderabad Bench

In this case, Operational Creditor submitted that the Corporate Debtor was not dealing in the business of providing financial services at the time of initiation of the present petition in view of ad-interim ex-parte order issued by SEBI, which prohibited the CD from accepting new clients for its stockbroking activities.

The Hon’ble NCLT held that this contention of the Applicant is meritless because SEBI’s restrictions were limited to prohibiting the CD from taking on new clients for stockbroking activities. As per the Certificate of Registration issued by SEBI, it is explicitly stated that the Certificate remains valid unless it is suspended or cancelled in accordance with the regulations.

Can CIRP be initiated against a Stock Broker Company, which is a Financial Service Provider under Section 3(16)(e), if, at the time of initiation of CIRP, the Stock Broker is not engaged in providing financial services due to SEBI restrictions prohibiting it from accepting new clients for its stockbroking activities? – Kapston Facilities Management Ltd. Vs. Karvy Stock Broking Ltd. – NCLT Hyderabad Bench Read Post »

Whether issue of limitation can be a subject matter of a recall of a judgment passed by NCLAT? – Arunkumar Jayantilal Muchhala Vs. Awaita Properties Pvt. Ltd. and Anr. – NCLAT New Delhi

Hon’ble NCLAT held that there is no express provision in the IBC or the Regulations/Rules framed thereunder conferring on this Tribunal the jurisdiction to recall its order on the issue of limitation. Strictly speaking, the issue of limitation cannot be a subject matter of a recall application.

Whether issue of limitation can be a subject matter of a recall of a judgment passed by NCLAT? – Arunkumar Jayantilal Muchhala Vs. Awaita Properties Pvt. Ltd. and Anr. – NCLAT New Delhi Read Post »

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