Mr. Justice Ramalingam Sudhakar

Liability arises on the part of Corporate Debtor in respect of sale agreement, which, being in the nature of a financial lease under Ind AS, is covered under Section 5(8)(d) of the Code? – Ghaziabad Development Authority Vs. Mr. Amit Agarwal – NCLT Principal Bench

The Hon’ble NCLT Principal Bench is of the view that the judgment, in Sandeep Mittal v. ASREC (India) Ltd. and Ors. (2024) ibclaw.in 573 NCLAT relied by Corporate Debtor is on a different footing based on a different factual matrix in which primarily the ingredients of Section 5(8)(f) of the Code were covered whereas in the present case ingredients of Section 5(8)(d) of the Code is applicable wherein it is a case of liability of Corporate Debtor, as is in the form a financial lease with the element of time value of money being incorporated in the agreement to sale itself and part transacted and balance defaulted with interest liability.

Liability arises on the part of Corporate Debtor in respect of sale agreement, which, being in the nature of a financial lease under Ind AS, is covered under Section 5(8)(d) of the Code? – Ghaziabad Development Authority Vs. Mr. Amit Agarwal – NCLT Principal Bench Read Post »

Section 224(5) of the Companies Act, 2013 does not gives the power to NCLT/ Tribunal to appoint a Nominee Director – Union of India Vs. Carnoustie Management (I) Pvt. Ltd. and Ors. – NCLT Principal Bench

Hon’ble NCLT Principal Bench held that it is amply clear the Section 224(5) of the Companies Act, 2013 does not gives the power to this Tribunal to appoint a nominee director as prayed by the Applicant in this application. It only speaks about passing of appropriate orders with regard to disgorgement of such asset, property, or cash, as the case may be, and also for holding such director, key managerial personnel, officer or other person liable personally without any limitation of liability. It is also well settled that Sec 224(5) of the Companies Act does not whisper about the appointment of Nominee Director. It is only under Sec 241 and 242 and under the statutory provisions i.e. Sec 161 of the Act, under which the said appointment can be done.

Section 224(5) of the Companies Act, 2013 does not gives the power to NCLT/ Tribunal to appoint a Nominee Director – Union of India Vs. Carnoustie Management (I) Pvt. Ltd. and Ors. – NCLT Principal Bench Read Post »

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