Mr. Chandra Bhan Singh

Without filing an application for restoration of the Corporate Debtor whose name has been struck off by ROC, No CIRP can be initiated – SCI International Securities Ltd. Vs. Brio Academic Infrastructure & Resource Management Pvt. Ltd. – NCLT Mumbai Bench

The company petition is filed against the corporate debtor whose name has been struck off by ROC from their records. When this bench questioned the counsel with regard to how the above company petition can be admitted and continued against the company whose name has been already struck of, the learned counsel appearing for the Operational Creditor relied upon the order passed by the Hon’ble NCLAT dated 05.09.2019 in Mr. Hemang Phophalia V/s. The Greater Bombay Cooperative Bank Limited [2019] ibclaw.in 149 NCLAT. After perusing the above order passed by the Hon’ble NCLAT and upon hearing the submissions this bench is of the considered view that the above order passed by the Hon’ble NCLAT is distinguishable and is not applicable to the facts of the present case. Since no application for restoration of the Corporate Debtor has been filed either by the Operational Creditor or by the workmen this bench is of the considered opinion that there is no point in keeping the above company petition pending which is of the year 2018. Accordingly, the above company petition is disposed of as not maintainable.

Without filing an application for restoration of the Corporate Debtor whose name has been struck off by ROC, No CIRP can be initiated – SCI International Securities Ltd. Vs. Brio Academic Infrastructure & Resource Management Pvt. Ltd. – NCLT Mumbai Bench Read Post »

Share purchase with exit option/Annual Put Option cannot be considered as a debt which is disbursed against consideration of time value for money – GVFL Trustee Company Pvt. Ltd. Vs. Hubtown Ltd. – NCLT Mumbai Bench

The Adjudicating Authority held that a shareholder is different from a lender. Equity is not a debt and as such any contract for acquisition of shareholding in a body corporate can never result in the formation of a debt. Share purchase in HBT Mehsana by GVFL with exit option of inter alia “Annual Put Option” cannot be considered as a debt which is disbursed against consideration of time value for money. The Bench also held that Internal Rate of Return (IRR) cannot be equated with interest payments.

Share purchase with exit option/Annual Put Option cannot be considered as a debt which is disbursed against consideration of time value for money – GVFL Trustee Company Pvt. Ltd. Vs. Hubtown Ltd. – NCLT Mumbai Bench Read Post »

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