National Company Law Tribunal and National Company Law Appellate Tribunal Law, Practice & Procedure

Contents at a glance NCLT & NCLAT – Information at fingertips .................................................................vii Acknowledgement ........................................................................................................... xv About the author ........................................................................................................... xvii Foreword to the second edition ..................................................................................... xix Foreword to the first edition ......................................................................................... xxi Preface to the sixth edition .......................................................................................... xxiii Detailed table of contents ........................................................................................... xxvii NCLT, NCLAT and Supreme Court Rulings......................................................................lxi Table of cases ............................................................................................................... lxxi Key to reading this book................................................................................................ xci Abbreviations .............................................................................................................. xciii Concise Referencer Powers of NCLT: at a glance ..................................................................................R-1 Notified Sections of IBC as on 31st March, 2018 ...................................................R-9 Case Digest: List of Important Judgments under IBC ..........................................R-13 Supreme Court Cases (with brief history) ................................................... R-13 National Company Law Appellate Tribunal ................................................. R-38 Case Digest: List of important pronouncements under Companies Act .............R-139 Roster of Judges..................................................................................................R-165 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12

Introduction............................................................................................. 1.1 Constitution of NCLT and NCLAT ........................................................ 2.1 Transition to NCLT: Impact on Existing Cases ...................................... 3.1 General Powers of NCLT and NCLAT .................................................. 4.1 De-registration, Striking off of Companies and Director Disqualification....................................................................................... 5.1 Variation of Shareholders’ Rights .......................................................... 6.1 Transfer and Transmission of Securities ................................................. 7.1 Reduction of Capital ............................................................................... 8.1 Deposits: Delays and Defaults ................................................................ 9.1 Tribunal Convened General Meetings .................................................. 10.1 Reopening of Accounts and Revision of Financial Statements ............ 11.1 Tribunal directed investigations ............................................................ 12.1 xxv

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Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24

Compromises and Arrangements .......................................................... 13.1 Oppression and Mismanagement .......................................................... 14.1 Class Actions ........................................................................................ 15.1 Revival and Rehabilitation of Sick Companies .................................... 16.1 Winding up............................................................................................ 17.1 Compounding of Offence ..................................................................... 18.1 Miscellaneous Powers of Tribunal ........................................................ 19.1 Powers of Tribunal under other Acts .................................................... 20.1 Appeals, Reviews and Writs ................................................................ 21.1 General Practice and Procedure ............................................................ 22.1 Jurisdiction and Limitation ................................................................... 23.1 The Insolvency and Bankruptcy Code, 2016 ........................................ 24.1

Annexures to the book Annexure 1 National Company Law Tribunal Rules, 2016 ..................................... A1-1 Annexure 2 National Company Law Appellate Tribunal Rules, 2016 .................... A2-1 Annexure 3 The Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 ............................................................... A3-1 Annexure 4 The National Company Law Tribunal (Procedure for Reduction of Share Capital of Company) Rules, 2016 .............................................. A4-1 Annexure 5 The Companies (Transfer of Pending Proceedings) Rules, 2016 ........ A5-1 Bibliography ............................................................................................................... B1-1 Contents provided on the website ...................................................................................lix

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Detailed table of contents NCLT & NCLAT – Information at fingertips .................................................................vii Acknowledgement ......................................................................................................... xiii About the author ............................................................................................................. xv Foreword to the second edition .................................................................................... xvii Foreword to the first edition ......................................................................................... xix Preface to the sixth edition ............................................................................................ xxi Contents at a glance ..................................................................................................... xxv NCLT, NCLAT and Supreme Court Rulings......................................................................lxi Table of cases ............................................................................................................... lxxi Key to reading this book................................................................................................ xci Abbreviations .............................................................................................................. xciii Concise Referencer Powers of NCLT: at a glance ..................................................................................R-1 Notified Sections of IBC as on 31st March, 2018 ...................................................R-9 Case Digest: List of Important Judgments under IBC ..........................................R-13 Supreme Court Cases (with brief history) ................................................... R-13 National Company Law Appellate Tribunal ................................................. R-38 Case Digest: List of important pronouncements under Companies Act .............R-139 Roster of Judges..................................................................................................R-165 Chapter 1 Introduction 1.1. Introduction ........................................................................................................ 1.1 1.2. Meaning of NCLT and NCLAT ......................................................................... 1.2 1.2.1.

New enforcement mechanism—place of tribunals............................ 1.3 1.2.2.

Difference between NCLT and NCLAT ........................................... 1.3 1.2.3.

Court v Tribunal ................................................................................ 1.4 1.3. Introduction of Concept of NCLT in India – Eradi Committee ......................... 1.4 1.4. 2002 Amendment Challenged ............................................................................ 1.5 1.5. JJ Irani Committee ............................................................................................. 1.6 1.6. Introduction of Tribunal in Companies Act, 2013 ............................................ 1.6 1.6.1.

Nature of Challenge under 2013 Act ................................................. 1.7 1.6.2.

Reasons for establishing tribunals ..................................................... 1.8 1.7. Further Reading ................................................................................................. 1.9 Annexure I—Constitution of NCLT and NCLAT ...................................................... 1.10

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Annexure II—Notification of sections of Companies Act, 2013 and notification of constitution of benches of NCLT ............................................................................ 1.11 Chapter 2 Constitution of NCLT and NCLAT Constitution of NCLT ........................................................................................ 2.2 2.2 2.2.1 Qualification ...................................................................................... 2.2 2.2.1.1 President ........................................................................... 2.3 2.2.1.2 Judicial member................................................................ 2.3 2.2.1.3 Technical member ............................................................ 2.3 2.2.2 Number of members .......................................................................... 2.4 2.2.3 Seat of NCLT .................................................................................... 2.4 2.3 Appellate Tribunal (NCLAT) ............................................................................. 2.4 2.3.1 Constitution ....................................................................................... 2.4 2.3.2 Number of members .......................................................................... 2.4 2.3.3 Qualification ...................................................................................... 2.4 2.3.3.1 Chairperson....................................................................... 2.4 2.3.3.2 Judicial member................................................................ 2.5 2.3.3.3 Technical member ............................................................ 2.5 2.4 Selection Process ................................................................................................ 2.5 2.4.1 Manner of selection ........................................................................... 2.6 2.4.2 Composition of Selection Committee................................................ 2.6 2.5 Term of NCLT and NCLAT .............................................................................. 2.6 2.6 Staff .................................................................................................................... 2.7 2.7 Further Reading .................................................................................................. 2.7 Chapter 3 Transition to NCLT: Impact on Existing Cases 3.1 Introduction ........................................................................................................ 3.2 3.2 Transfer of Pending Proceedings........................................................................ 3.4 3.2.1 Date for transfer of proceedings ........................................................ 3.4 3.2.2 Continuance of proceedings before existing forums ......................... 3.4 3.3 Pending High Court Proceedings ....................................................................... 3.5 3.3.1 Corporate restructuring cases ............................................................ 3.8 3.3.1.1 Compromise and arrangements ........................................ 3.9 3.3.1.2 Reduction of capital cases .............................................. 3.12 3.3.2 Pending winding up proceedings ..................................................... 3.12 3.3.2.1 What will be the status of pending cases? ........................ 3.16 3.3.2.2 Appeals against orders passed by the high court .............. 3.16 3.4 Pending Company Law Board Proceedings....................................................... 3.19 3.4.1 Challenge against orders of CLB..................................................... 3.21 3.4.2 Status of existing interim orders ...................................................... 3.21 3.5 Pending BIFR/AAIFR proceedings .................................................................. 3.21 3.6 Pending Investigation Proceedings................................................................... 3.24 xxviii

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3.7 3.8

Existing Interim Orders .................................................................................... 3.24 Further Reading ............................................................................................... 3.25

Chapter 4 General Powers of NCLT and NCLAT 4.1 Introduction ........................................................................................................ 4.2 4.2 General Powers Under the ACT ........................................................................ 4.2 4.2.1 Power to determine procedure (Section 424) .................................... 4.2 4.2.2 Power to punish for contempt (Section 425) ..................................... 4.3 4.2.3 Powers of civil court (Section 424) ................................................... 4.3 4.2.4 Powers of courts (Section 424) ......................................................... 4.4 4.2.5 Execution of orders (Section 424) ..................................................... 4.4 4.2.6 Assistance of courts/authorities (Section 429) .................................. 4.4 4.2.7 Delegation of powers (Section 426) .................................................. 4.5 4.3 General Powers Under the Rules ....................................................................... 4.5 4.3.1 Adjournment of hearing .................................................................... 4.5 4.3.2 General power to amend (Rule 155 of NCLT Rules) ........................ 4.5 4.3.3 Tribunal to be deemed to be a court .................................................. 4.6 4.3.4 Power to dispense with the requirements of the rules ....................... 4.6 4.3.5.

Saving of inherent powers of the Tribunal (Rule 11 of the NCLT Rules) ............................................................................... 4.6 4.3.6 Enlargement of time (Rule 15 and 153 of the NCLT Rules) ................................................................................................ 4.8 4.3.7 Rectification of Order (Rule 154 of the NCLT Rules) ...................... 4.9 4.3.8 Power to impose costs (Rule 149 of NCLT Rules) ........................... 4.9 4.3.9 Amicus Curiae........................................................................................... 4.9 4.3.10: Assesors and Valuers (Rules 54 of NCLT Rules) ................................ 4.10 4.4 General Provisions for Exercise of Powers ...................................................... 4.10 4.4.1 Production of documents................................................................. 4.10 4.4.2 Nature of exercise of powers ........................................................... 4.10 4.5 Comparison between Powers of Different Tribunals ....................................... 4.10 Chapter 5 De-registration, Striking off of Companies and Director Disqualification 5.1 Introduction ........................................................................................................ 5.2 5.2 Nature of the remedy of De-registration ............................................................ 5.2 5.2.1 Background for insertion of this remedy ........................................... 5.2 5.2.2 Benefits ............................................................................................. 5.3 5.2.3 Scope of the remedy .......................................................................... 5.3 5.2.4 Difference between provision of striking off and deregistration ..................................................................................... 5.3 5.2.5 Difference between winding up and deregistration? ......................... 5.4 5.3 The Remedy Of De-Registration ....................................................................... 5.4 5.3.1 Who can apply? ................................................................................. 5.6

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5.3.2 5.3.3 5.3.4

When can one apply? ........................................................................ 5.6 Under what circumstances? ............................................................... 5.7 Against which companies? ................................................................ 5.7 5.3.4.1 Can registration of any company under the Companies Act, 2013 be challenged? ............................... 5.7 5.3.4.2 Can registration of companies under the Companies Act, 1956 be questioned?.................................................. 5.8 5.3.5 Nature of reliefs sought ..................................................................... 5.8 5.4 Procedure for Deregistration .............................................................................. 5.9 5.5 Striking off of Companies ................................................................................ 5.11 5.5.1 Power of Tribunal to Restore Companies Struck off ....................... 5.12 5.5.1.1 Power to restore in case of any type of striking off ........ 5.13 5.5.1.2 Power in voluntary striking off ....................................... 5.16 5.6 Procedure for Filing Appeal under Section 252 ............................................... 5.16 5.7 Director Disqualification .................................................................................. 5.18 Annexure A-1 – Bombay High Court on Condonation of Delay Scheme, 2018 (Excerpts) .................................................................................................................... 5.20 Annexure A-2 – Stay on Order of Bombay High Court Granted by Apex Court ........ 5.22 Annexure B-1 – Delhi High Court on Condonation of Delay Scheme, 2018 .............. 5.23 Annexure B-2 – Delhi High Court on Condonation of Delay Scheme, 2018 .............. 5.25 Annexure C – Excerpts of Madras High Court Judgement ......................................... 5.27 Annexure D – Condonation of Delay Scheme 2018 .................................................... 5.36 Annexure E – Continuation Circular of Condonation of Delay Scheme, 2018 ........... 5.41 Annexure F – Clarification-Condonation of Delay Scheme, 2018-reg. dated 17th May 2018 General Circular No. 05/2018 .................................................... 5.42 Annexure G – Mumbai NCLT Bench Order of revival for the purpose of availing benefit of CODS Scheme ............................................................................................ 5.43 Chapter 6 Variation of Shareholders’ Rights 6.1 Introduction ........................................................................................................ 6.2 6.2 Overview of Changes ......................................................................................... 6.3 6.2.1 Additional approvals ......................................................................... 6.3 6.2.2 Wider scope of applicants ................................................................. 6.3 6.3 What are shareholders’ rights? ........................................................................... 6.4 6.3.1 Statutory rights .................................................................................. 6.5 6.3.1.1 Can statutory rights be waived/varied? .............................. 6.5 6.3.2 Contractual rights .............................................................................. 6.6 6.4 What constitutes class rights? .............................................................................. 6.6 6.5 Nature and Scope of Variation ........................................................................... 6.8 6.5.1 What constitutes variation? ............................................................... 6.9 6.5.2 Applicability of these decisions to section 48 ................................. 6.10

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6.6 6.7

6.8

6.9

6.10 6.11

6.12

6.13

6.5.3 Prohibition in contract – is variation possible? ............................... 6.10 When does section 48 become applicable? ......................................................... 6.11 Conditions for Varying Shareholder’s Rights ..................................................... 6.11 6.7.1 Approval for seeking permission to vary ........................................ 6.12 6.7.1.1 Approval from the concerned class whose rights are varied .............................................................................. 6.12 6.7.2 Approval of other affected class of shareholders ............................ 6.13 6.7.2.1 Deciphering the term “Affect”........................................... 6.13 6.7.2.2 Manner of approval from affected classes .......................... 6.14 Variation by Other Provisions of the Act.............................................................. 6.15 6.8.1 Variation v Merger .......................................................................... 6.15 6.8.2 Variation v Reduction ..................................................................... 6.16 Objection to Variation ...................................................................................... 6.17 6.9.1 In which circumstances can one apply under section 48(2)? .................................................................................. 6.17 6.9.2 Who can apply? ............................................................................... 6.17 6.9.2.1 When to object?.............................................................. 6.18 6.9.2.2 Joint application ............................................................. 6.18 6.9.3 What is the time limit? .................................................................... 6.19 6.9.4 Condonation of delay ...................................................................... 6.20 6.9.5 Powers of Tribunal and nature of reliefs ......................................... 6.21 6.9.6 Time limit for completion of proceedings ....................................... 6.21 Procedure for Objecting to the Variation of Shareholders’ Right ......................... 6.21 Comparison Chart - Variation of Shareholder's Right ..................................... 6.24 6.11.1 Comparison of New Act with Old Act ............................................ 6.24 6.11.2 Comparison of Old Act with New Act ............................................ 6.25 6.11.3 Comparison of New Rules with Old Rules ..................................... 6.26 6.11.4 Comparison of Old Rules with New Rules ..................................... 6.26 6.11.5 Corresponding Forms under New Act & Old Act ........................... 6.27 Schedule I......................................................................................................... 6.27 6.12.1 Appendix A: Corporate Transactions Requiring Special Resolution ....................................................................................... 6.28 6.12.2 Appendix B: Corporate Transactions Requiring Ordinary Resolution ........................................................................ 6.30 6.12.3 Appendix C: 10% Shareholding ...................................................... 6.32 6.12.4 Appendix D: Rights of Every Member ........................................... 6.32 Further Reading ............................................................................................... 6.34

Chapter 7 Transfer and Transmission of Securities 7.1 Introduction ........................................................................................................ 7.3 7.2 Overview of Changes.......................................................................................... 7.3

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7.2.1

7.3

7.4

7.5

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Scope and applicability of section 58 and section 59 have changed .............................................................................................. 7.3 7.2.2 Changes in time lines ......................................................................... 7.4 7.2.3 Contract or arrangement ..................................................................... 7.4 Appeal against Refusal to Transfer/Transmit .......................................................... 7.4 7.3.1 Distinction between remedy under section 58 and section 59 ........................................................................................... 7.5 7.3.2 Securities of a private company (Section 58(1)) ................................. 7.6 7.3.2.1 Restrictions on transfer/transmission of shares .................. 7.6 7.3.2.2 Restrictions on other securities .......................................... 7.6 7.3.2.3 Interest of member: a grey area........................................... 7.6 7.3.2.4 Who can challenge? ........................................................... 7.7 7.3.2.5 Time limits ....................................................................... 7.8 7.3.3 Securities of a public company.......................................................... 7.9 7.3.3.1 Reasons for refusal ......................................................... 7.10 7.3.3.2 Time lines ....................................................................... 7.11 7.3.4 Reliefs.............................................................................................. 7.11 7.3.5 Interim reliefs .................................................................................. 7.11 7.3.5.1 Can interim reliefs other than those specified in rules be granted?...................................................................... 7.11 7.3.6 Penalty ............................................................................................. 7.12 Rectification of register of members ................................................................ 7.12 7.4.1 Rectification of register of members under section 59(1) ............... 7.13 7.4.1.1 Which registers can be rectified? .................................... 7.13 7.4.1.2 Under what circumstances? ............................................ 7.14 7.4.1.3 Who can file an appeal for rectification? ........................ 7.14 7.4.1.4 To whom does the appeal lie? ........................................ 7.15 7.4.1.5 Nature of reliefs .............................................................. 7.15 7.4.1.6 Interim reliefs ................................................................. 7.15 7.4.2 Rectification where transfers are in violation of law under section 59(4) .......................................................................... 7.15 7.4.2.1 Which register? ............................................................... 7.15 7.4.2.2 Under what circumstances? ............................................ 7.16 7.4.2.3 Who can make an application? ....................................... 7.16 7.4.2.4 Relief .............................................................................. 7.17 7.4.3 Difference between rectification sought under section 59(1) and section 59(4) ....................................................... 7.17 7.4.4 Time limit for filing application for rectification ............................ 7.17 7.4.5 Penalty ............................................................................................. 7.17 Case Laws and their Applicability ................................................................... 7.17

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7.5.1

7.6

7.7 7.8

7.9

Part I: Case laws related to nature and scope of sections 111 and 111A .................................................................... 7.17 7.5.1.1 Case 1 ............................................................................. 7.18 7.5.1.2 Case 2 ............................................................................. 7.19 7.5.1.3 Case 3: Jurisdiction is exclusive ..................................... 7.19 7.5.1.4 Case 4: Composite Petition ............................................ 7.20 7.5.1.5 Case 5: Complicated Question ....................................... 7.20 7.5.1.6 Case 6 ............................................................................. 7.21 7.5.1.7 Case 7 ............................................................................. 7.21 7.5.2 Part II: Case laws related to refusal to transfer and transmission of securities ................................................................ 7.22 7.5.2.1 Where refusal to transfer and transmission is valid: ....... 7.22 7.5.2.2 Where refusal to transfer and transmission is invalid ..... 7.23 Procedure for Refusal to Transfer or Transmit Securities ................................ 7.33 7.6.1 Company Law Board (CLB) ........................................................... 7.33 7.6.2 National company law tribunal (NCLT) ......................................... 7.33 Free Transferability of Share of Public Company............................................ 7.34 Comparison Chart — Refusal to Transfer or Transmit Securities ................... 7.48 7.8.1 Comparison of New Act with Old Act ............................................ 7.48 7.8.2 Comparison of Old Act with New Act ............................................ 7.51 Further Reading ............................................................................................... 7.54

Chapter 8 Reduction of Capital 8.1 Introduction ........................................................................................................ 8.3 8.2 Overview of Changes ......................................................................................... 8.3 8.2.1 Single procedure ............................................................................... 8.3 8.2.2 Representation of authorities ............................................................. 8.3 8.2.3 Certificate not a conclusive proof ..................................................... 8.3 8.2.4 Restrictions on reduction................................................................... 8.4 8.2.5 Removal of the words "and reduced" ................................................ 8.4 8.2.6 Articles irrelevant .............................................................................. 8.4 8.3 Meaning and Scope of Reduction of Capital...................................................... 8.4 8.3.1 Meaning of reduction ........................................................................ 8.6 8.3.2 Applicability/non applicability of section 66 .................................... 8.7 8.3.2.1 Only share capital ............................................................. 8.7 8.3.2.2 No application in mergers ................................................ 8.7 8.3.2.3 Redemption ...................................................................... 8.7 8.3.2.4 Court directed purchase in oppression and mismanagement ................................................................ 8.7 8.3.2.5 Securities premium account ............................................. 8.7 8.3.2.6 Cancellation of unissued shares ....................................... 8.7 xxxiii

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8.3.3 8.3.4

8.4

8.5

8.6 8.7 8.8 8.9

8.10

8.11

Companies who can reduce capital ................................................... 8.8 Manner of reduction .......................................................................... 8.8 8.3.4.1 Whether we will be able to reduce the share capital in the same manner, as we were able to reduce it earlier? .............................................................................. 8.8 8.3.4.2 Are there any new ways of reducing capital contemplated in the Act? .................................................. 8.8 8.3.4.3 Can we take benefit of the decisions under the old Act? .................................................................................. 8.8 8.3.4.4 Types of reduction ............................................................ 8.9 Restrictions/Conditions for Reduction ............................................................. 8.19 8.4.1 Default in payment of deposits ........................................................ 8.19 8.4.2 Notice to authorities (Section 66(2)) ............................................... 8.19 8.4.3 Auditors certificate .......................................................................... 8.19 Approvals for Reduction .................................................................................. 8.20 8.5.1 Approval from shareholder.............................................................. 8.20 8.5.2 Approval from Tribunal .................................................................. 8.20 Liability of Members ........................................................................................ 8.21 8.6.1 Unpaid creditors-liability of members ............................................. 8.21 Fraud on creditors............................................................................................. 8.21 Procedure for Reduction of Share Capital ........................................................ 8.22 Additional important details ............................................................................. 8.25 8.9.1 Role of Tribunal .............................................................................. 8.25 8.9.2 What does the list of creditor contain? ............................................ 8.26 8.9.3 Contents of petition ......................................................................... 8.26 8.9.4 Contents of minutes ......................................................................... 8.27 Comparison Chart on Reduction of Share Capital ............................................... 8.27 8.10.1 Comparison of New Act (Companies Act, 2013) with Old Act (Companies Act, 1956) ...................................................... 8.27 8.10.2 Comparison of Old Act with New Act ............................................ 8.28 8.10.3 Comparison of New Rules with Old Rules...................................... 8.31 8.10.4 Comparison of Old Rules with New Rules...................................... 8.31 8.10.5 Corresponding forms as per New Act ............................................ 8.31 Further Reading ................................................................................................ 8.32

Chapter 9 Deposits: Delays and Defaults 9.1 Introduction ........................................................................................................ 9.2 9.2 Overview of Changes ......................................................................................... 9.3 9.2.1 Bar on acceptance of deposits ........................................................... 9.3 9.2.2 Provisions discontinued ..................................................................... 9.3 9.2.3 Acceptance from members ................................................................ 9.3 9.2.4 Default in payment ............................................................................ 9.3 xxxiv

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9.3 9.4

9.5 9.6

9.7 9.8 9.9

9.10

9.11 9.12

9.2.5 Fraud ................................................................................................. 9.3 9.2.6 Changes made by Companies Amendment Act, 2017 ...................... 9.4 9.2.7 Class action ....................................................................................... 9.4 Overview of Law on Deposits............................................................................ 9.4 Definition of Deposits.......................................................................................... 9.6 9.4.1 Definition under section 2(31) ............................................................. 9.6 9.4.2 Items excluded from deposits .............................................................. 9.6 9.4.3 Definition of deposits for purpose of section 74 ................................. 9.11 Applicability ..................................................................................................... 9.14 9.5.1 Non Applicability ............................................................................. 9.14 Permissibility to Accept/Invite/Retain Deposits .................................................. 9.14 9.6.1 Who can accept/invite deposits and from whom? .............................. 9.14 9.6.2 Retaining deposits under the Companies Act, 1956 ............................ 9.15 9.6.2.1 Deposits which are not matured........................................ 9.15 9.6.2.2 Deposits remaining unpaid at the time of commencement ............................................................... 9.16 Remedies for Depositors .................................................................................. 9.17 Restrictions on Defaulting Companies ............................................................. 9.19 Application to Tribunal .................................................................................... 9.20 9.9.1 Application in case of non- repayment of new deposits .................. 9.20 9.9.1.1 Who can apply? .............................................................. 9.20 9.9.1.2 Depositor of which company? ........................................ 9.20 9.9.1.3 Under what circumstances? ............................................ 9.21 9.9.1.4 What reliefs? .................................................................. 9.21 9.9.1.5 Applicability ................................................................... 9.21 9.9.2 Application for extension of time for company .............................. 9.21 9.9.2.1 Which companies can apply? ......................................... 9.21 9.9.2.2 Which forum will the application lie? ............................ 9.22 9.9.2.3 Under what circumstances? ............................................ 9.22 Case Laws ........................................................................................................ 9.23 9.10.1 Case laws under section 73 and 74 of the Companies Act, 2013 decided by CLB...................................................................... 9.23 9.10.2 Some Case Laws on deposits under the Companies Act, 1956 ......................................................................................... 9.25 Procedure Under Chapter V ............................................................................. 9.35 9.11.1 Procedure under NCLT ..................................................................... 9.35 Further Reading ............................................................................................... 9.36

Chapter 10 Tribunal Convened General Meetings 10.1 Introduction ...................................................................................................... 10.1 10.2 Tribunal Convened AGM ................................................................................ 10.2

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10.3 10.4 10.5 10.6

10.7

10.2.1 Highlights of section 97 ......................................................................... 10.2 Tribunal convened EOGM ............................................................................... 10.3 10.3.1 Highlights of section 98 ......................................................................... 10.3 Applicability of old case laws .......................................................................... 10.3 10.4.1 Analysis of case laws ............................................................................. 10.4 Procedure for tribunal convened general meetings ........................................ 10.11 Comparison Chart - Holding of Annual and General Meeting of Members .. 10.12 10.6.1 Comparison of New Act (Companies Act, 2013) with Old Act (Companies Act, 1956) ........................................................... 10.12 10.6.2 Comparison of Old Act with New Act ................................................ 10.13 10.6.3 Comparison of New Rules with Old Rules .......................................... 10.13 Further Reading .............................................................................................. 10.13

Chapter 11 Reopening of Accounts and Revision of Financial Statements 11.1 Introduction ...................................................................................................... 11.2 11.2 Historical Triggers............................................................................................ 11.3 11.2.1 Satyam case ....................................................................................... 11.3 11.2.2 Reebok ............................................................................................... 11.3 11.3 Reopening of Accounts by Court’s or Tribunal’s Orders ................................. 11.3 11.3.1 Similar provisions under the UK law................................................. 11.5 11.3.2 Bar on reopening................................................................................ 11.5 11.3.2.1 Applicability to books maintained under the Companies Act, 1956 ..................................................... 11.5 11.3.3 Application by authorities or any person concerned .......................... 11.5 11.3.3.1 Meaning of ‘person concerned’ ...................................... 11.6 11.3.4 Court/Tribunal ................................................................................... 11.6 11.3.5 Circumstances .................................................................................... 11.6 11.3.5.1 Account prepared in fraudulent manner ......................... 11.7 11.3.5.2 Mismanagement of affairs .............................................. 11.9 11.3.6 In which event can one apply for reopening? .................................... 11.9 11.3.7 At what point of time? ....................................................................... 11.9 11.3.8 Notice to whom? ................................................................................ 11.9 11.3.9 Implication of order reopening/recasting ........................................... 11.9 11.3.10 Who should be heard?...................................................................... 11.10 11.3.11 Pros and Cons .................................................................................. 11.10 11.4 Voluntary revision of financial statements or Board’s report......................... 11.10 11.4.1 Comparison with UK Law ............................................................... 11.11 11.4.2 Exception ......................................................................................... 11.11 11.4.3 Which documents? ........................................................................... 11.11 11.4.4 Which event? ................................................................................... 11.12 11.4.5 For which period is the revision permissible? ................................. 11.12

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11.5 11.6 11.7

11.4.6 Prior approval of tribunal ................................................................ 11.12 11.4.7 Right to be heard ............................................................................. 11.12 11.4.8 Finality............................................................................................. 11.12 11.4.9 Reporting ......................................................................................... 11.13 11.4.10 Impact of this provision ................................................................... 11.13 Procedure for Reopening of Books of Accounts ............................................ 11.16 Procedure for Voluntary Revision of Financial Statements or Board’s Report............................................................................................................. 11.17 Further Reading ............................................................................................. 11.18

Chapter 12 Tribunal directed investigations 12.1 Introduction ...................................................................................................... 12.4 12.2 Overview of Changes ....................................................................................... 12.4 12.2.1 Dilution of eligibility criteria .......................................................... 12.4 12.2.2 Power to freeze assets ..................................................................... 12.4 12.2.3 Restriction of securities ................................................................... 12.4 12.2.4 Constitution of SFIO ....................................................................... 12.4 12.2.5 Application for investigation ........................................................... 12.5 12.2.6 Scope of investigation ..................................................................... 12.5 12.2.7 Penalties .......................................................................................... 12.5 12.3 Power of the Tribunal ...................................................................................... 12.5 12.3.1 Investigation by the tribunal ............................................................ 12.5 12.3.1.1 Who can apply? .............................................................. 12.5 12.3.1.2 Who will be notified? ..................................................... 12.7 12.3.1.3 Order of investigation (Section 213) .............................. 12.7 12.3.1.4 Security for costs (Section 214) ......................................... 12.8 12.3.2 Investigation into ownership of a company .................................... 12.8 12.3.3 Freezing of assets of company on inquiry and investigation (Section 221) ............................................................. 12.9 12.3.3.1 Who can apply?................................................................ 12.9 12.3.3.2 Under what circumstances? .......................................... 12.10 12.3.3.3 Nature of order ............................................................. 12.10 12.3.3.4 Penalty for contravening the order of the Tribunal .......... 12.10 12.3.4 Imposition of restrictions upon securities (Section 222) ............... 12.10 12.3.4.1 Who can impose restriction? ........................................ 12.10 12.3.4.2 Who can apply? ............................................................ 12.10 12.3.4.3 Under what circumstances? .......................................... 12.11 12.3.4.4 Nature of order ............................................................. 12.11 12.3.4.5 Penalty .......................................................................... 12.11 12.4 Inspectors ....................................................................................................... 12.11 12.4.1 Who can be an inspector? ............................................................. 12.11 xxxvii

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12.4.2

12.5

12.6

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Powers of inspectors ...................................................................... 12.12 12.4.2.1 Calling for information and documents from officers, employees and agents ..................................... 12.12 12.4.2.2 Seeking information and documents from others ......... 12.13 12.4.2.3 Custody of books and papers ........................................ 12.13 12.4.2.4 Examination .................................................................. 12.14 12.4.2.5 Powers of the civil court ............................................... 12.14 12.4.2.6 Penalty .......................................................................... 12.14 12.4.2.7 Assistance from other authorities ................................. 12.15 12.4.2.8 Assistance from foreign governments ............................. 12.15 12.4.2.9 Assistance from foreign courts ....................................... 12.15 12.4.2.10 Investigation into the affairs of related entities................. 12.15 12.4.2.11 Seizure of documents by inspector (Section 220)......... 12.16 12.4.3 Report by inspector (Section 223) ................................................. 12.16 12.4.4 Actions on the basis of report ........................................................ 12.17 12.4.4.1 Action by Central Government/Tribunal ...................... 12.17 12.4.4.2 Prosecution ................................................................... 12.17 12.4.4.3 Winding up ................................................................... 12.17 12.4.4.4 Application for disgorgement ....................................... 12.18 12.4.4.5 Actions by the Tribunal ................................................ 12.18 12.4.4.6 Actions by members ..................................................... 12.18 12.4.4.7 Actions by others .......................................................... 12.19 12.4.4.8 Prosecution for fraud .................................................... 12.19 Other Provisions ............................................................................................. 12.19 12.5.1 Protection to employees (Section 218) .......................................... 12.19 12.5.1.1 To whom is it available? ............................................... 12.19 12.5.1.2 During what period? ..................................................... 12.19 12.5.1.3 Against what? ............................................................... 12.20 12.5.1.4 Under what circumstances can action be taken?........... 12.20 12.5.2 Protection for whistleblowers ........................................................ 12.20 12.5.3 Investigation during the pendency of other proceedings (Section 226) ................................................................................. 12.20 12.5.4 Investigation of foreign companies (Section 228) ......................... 12.21 12.5.5 Expenses for investigation (Section 225) ...................................... 12.21 Serious Fraud Investigation Authority ........................................................... 12.22 12.6.1 Organization structure ................................................................... 12.22 12.6.1.1 Director ......................................................................... 12.22 12.6.1.2 Experts .......................................................................... 12.22 12.6.2 Exclusive jurisdiction to investigate .............................................. 12.23 12.6.3 What cases can be investigated by SFIO? ..................................... 12.23

Detailed table of contents

12.7 12.8

12.9

12.6.3.1 Report ........................................................................... 12.23 12.6.3.2 Special resolution ......................................................... 12.23 12.6.3.3 Public interest ............................................................... 12.23 12.6.3.4 Request ......................................................................... 12.23 12.6.4 Can an investor complain to SFIO? .............................................. 12.24 12.6.5 Can SFIO investigate only companies?......................................... 12.24 12.6.6 Powers of SFIO ............................................................................. 12.24 12.6.6.1 Power of arrest ............................................................. 12.24 12.6.6.2 Power to prosecute ....................................................... 12.24 12.6.6.3 Powers of investigator .................................................. 12.24 12.6.7 Coordination.................................................................................. 12.25 12.6.8 Police report .................................................................................. 12.25 12.6.9 Obligation of company .................................................................. 12.25 12.6.10 Problem areas ................................................................................ 12.25 Procedure ....................................................................................................... 12.25 Comparison Chart Inspection, Inquiry and Investigation............................... 12.26 12.8.1 Comparison of the Companies Act, 2013 (New Act) with the Companies Act, 1956 (Old Act) ...................................... 12.26 12.8.2 Comparison of Old Act with New Act .......................................... 12.38 Further Reading ............................................................................................. 12.47

Chapter 13 Compromises and Arrangements 13.1 Introduction ...................................................................................................... 13.5 13.2 Overview of changes ........................................................................................ 13.5 13.2.1 Contractual mergers ........................................................................ 13.5 13.2.2 Deemed approval ............................................................................ 13.6 13.2.3 Cross border mergers ...................................................................... 13.6 13.2.4 Scope of powers .............................................................................. 13.6 13.2.5 Intimation to authorities .................................................................. 13.6 13.2.6 Valuation of shares .......................................................................... 13.6 13.2.7 Squeeze out rights ............................................................................ 13.7 13.2.8 Merger of a listed company with an unlisted company ..................... 13.7 13.2.9 Disclosure requirements ................................................................... 13.7 13.2.10 Dispensation of creditors meeting .................................................... 13.7 13.2.11 Definition of “company� .................................................................. 13.7 13.3 Overview of Chapter......................................................................................... 13.7 Part I: Tribunal Approved Mergers ............................................................................. 13.8 13.4 Chapter XV: A Complete Code ....................................................................... 13.8 13.4.1 Whether the chapter on compromise and arrangement provides a complete code? .............................................................. 13.8 13.4.1.1 Law under Companies Act, 1956 ................................... 13.8

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13.5

13.6

13.7

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13.4.1.2 Analysis of the position in the Companies Act, 2013 ..... 13.9 13.4.2 Scope of sections 230 and 232 ........................................................ 13.9 Compromise and Arrangement (Section 230) ................................................ 13.10 13.5.1.1 Meaning of “compromise” ........................................... 13.13 13.5.1.2 Meaning of the term “arrangement”................................ 13.14 13.5.1.3 Meaning of the term “company” .................................. 13.15 13.5.1.4 Class of shareholders or creditors ................................. 13.16 13.5.1.5 Who can enter into a compromise or arrangement? ....... 13.17 13.5.1.6 Eligibility to apply ......................................................... 13.17 13.5.1.7 What are the disclosures in application? ........................ 13.17 13.5.1.8 Analysis of the extent of disclosures ............................ 13.18 13.5.1.9 Meeting of members and creditors ............................... 13.19 13.5.1.10 Notice to statutory authorities ....................................... 13.21 13.5.1.11 Publication .................................................................... 13.24 13.5.1.12 Inspection and photocopying documents (2nd Proviso to sec 230) .................................................................... 13.25 13.5.1.13 Sanction of scheme........................................................ 13.25 Special Provisions for Mergers/Demergers (Section 232)................................ 13.31 13.6.1 Which arrangements are included under section 232? .................... 13.35 13.6.1.1 Mergers and amalgamations .......................................... 13.35 13.6.1.2 Demergers (Section 232 read with Explanation) ............ 13.36 13.6.2 Distinction between section 232 of the Companies Act, 2013 and section 394 of the Companies Act, 1956 ......................... 13.36 13.6.3 Applicability of section 230 to schemes under mergers and demergers under section 232.................................................... 13.36 13.6.4 The scheme of mergers or demergers ............................................. 13.37 13.6.4.1 Appointed date in scheme [Section 232(6) with Section 232(5)] .............................................................. 13.37 13.6.4.2 Filing draft scheme [Section 232(2)(b)] ....................... 13.37 13.6.4.3 Sanction of the scheme ................................................... 13.37 13.6.4.4 Powers of Tribunal while sanctioning the scheme ........... 13.38 13.6.4.5 Restrictions on scheme: treasury stocks .......................... 13.39 13.6.4.6 Effect of sanctioning of the scheme ................................ 13.39 13.6.5 Approvals ....................................................................................... 13.39 13.6.5.1 Notices calling meeting (Section 232(2)) ..................... 13.39 13.6.5.2 Post sanction compliances ............................................ 13.40 13.6.5.3 Mergers and compromise and arrangement ................... 13.41 13.6.5.4 Penalty [Section 232(8)] ............................................... 13.42 Buying Minority Shareholding Holding ......................................................... 13.42 13.7.1 Purchase of minority interest ......................................................... 13.42

Detailed table of contents

13.7.2

Power to acquire shares of dissenting shareholders [Section 235] ................................................................................. 13.44 13.7.3 Mandatory purchase of minority shareholding [Section 236] ................................................................................. 13.44 13.7.4 Applicability.................................................................................. 13.46 Part II: Contractual Mergers/Fast Track Mergers (Section 233) ............................... 13.49 13.8 Under what circumstances can the Section 233 route be used? ..................... 13.52 13.8.1 Nature of companies ..................................................................... 13.52 13.8.2 Applicability to listed companies .................................................. 13.53 13.8.3 Types of schemes .......................................................................... 13.53 13.8.4 Registered office ........................................................................... 13.54 13.8.5 Financial position .......................................................................... 13.54 13.8.6 Returns .......................................................................................... 13.54 13.9 Can companies opt out of Section 233? ......................................................... 13.54 13.10 What are the conditions to be fulfilled for using Section 233 route? ............. 13.55 13.10.1 Notice to ROC/OL ........................................................................ 13.56 13.10.2 Person affected .............................................................................. 13.56 13.10.3 Consideration of objections........................................................... 13.56 13.10.4 Approval ....................................................................................... 13.56 13.10.5 Declaration of solvency................................................................. 13.57 13.10.6 Creditors’ approval........................................................................ 13.57 13.10.7 Approvals and sanctions ............................................................... 13.58 13.11 Application to Tribunal .................................................................................. 13.59 13.11.1 Who can apply? ............................................................................. 13.59 13.11.2 Discretion of Tribunal ................................................................... 13.59 13.11.3 Order to be registered .................................................................... 13.59 13.12 Scheme under Section 233 ............................................................................. 13.71 13.12.1 Nature and scope of schemes ........................................................ 13.71 13.12.2 Effect of registration of scheme .................................................... 13.71 13.13 Distinction between Sections 230 to 232 with Section 233 ........................... 13.72 13.13.1 Sanction......................................................................................... 13.72 13.13.2 Approvals ...................................................................................... 13.72 13.13.3 Type of schemes............................................................................ 13.72 13.13.4 Authorities ..................................................................................... 13.72 13.13.5 Time limit ...................................................................................... 13.73 13.13.6 Disclosures .................................................................................... 13.73 13.13.7 Procedures ..................................................................................... 13.73 Part III: Cross Border Mergers (Section 234) ........................................................... 13.73 13.14 Meaning of Company in Section 234............................................................. 13.74 13.15 Meaning of Foreign Company ....................................................................... 13.75 13.15.1 Which type of scheme? ................................................................. 13.82 xli

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13.15.2 Applicability of Chapter XV ......................................................... 13.82 Part IV: Central Government Approved Merger ...................................................... 13.84 13.16 Scope of Section 237 ...................................................................................... 13.85 13.17 Challenges to constitutionality of Section 396 of 1956 Act ........................... 13.86 13.18 Scheme under Section 237 ............................................................................. 13.86 13.18.1 Impact on property and liabilities .................................................. 13.86 13.18.2 Legal proceedings.......................................................................... 13.87 13.18.3 Compensation ................................................................................ 13.87 13.18.3.1 Challenge in Tribunal ................................................... 13.87 13.18.4 Consideration before finalization of order..................................... 13.87 13.19 Procedures Under Chapter XV ....................................................................... 13.88 13.20 Procedure for Compromise and Arrangement (Section 230) ......................... 13.88 13.21 Procedure Under Merger and Demerger Section 232..................................... 13.99 13.22 Procedure for Fast Track Mergers Under Section 233 ................................. 13.107 13.23 Procedure under section 237 of amalgamation of companies by central government in public interest under section 237 .......................................... 13.111 13.24 Comparison Chart Compromise, Arrangement and Amalgamation ............. 13.112 13.24.1 Comparison of New Act with Old Act ........................................ 13.112 13.24.2 Comparison of Old Act with New Act ........................................ 13.115 13.24.3 Comparison of New Rules with Old Rules.................................. 13.119 13.24.4 Comparison of Old Rules with New Rules.................................. 13.122 13.25 Further Reading ............................................................................................ 13.124 Annexure – Foreign Exchange Management (Cross Border Merger) Regulations, 2018 .................................................................................................... 13.125 Chapter 14 Oppression and Mismanagement 14.1 Introduction ...................................................................................................... 14.3 14.2 Overview of Changes ....................................................................................... 14.4 14.2.1 Reducing the bar set for oppression ................................................ 14.4 14.2.2 Increasing the bar for mismanagement ............................................ 14.4 14.2.3 Composite petition .......................................................................... 14.4 14.2.4 Dilution of eligibility criteria........................................................... 14.4 14.3 The Remedy Under Section 241....................................................................... 14.5 14.4 Oppression........................................................................................................ 14.6 14.4.1 Meaning of oppression and scope of the remedy ............................ 14.6 14.4.1.1 Dictionary meaning ........................................................ 14.6 14.4.1.2 Meaning as analysed by case laws.................................. 14.7 14.4.2 Is there any change in the meaning and scope of Oppression? ................................................................................... 14.15 14.4.2.1 Past and concluded acts ................................................ 14.15 14.4.2.2 Prejudicial to members ................................................. 14.16

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14.5

14.6

14.7

14.8

14.4.2.3 Old case laws analysed in new light ............................. 14.17 14.4.2.4 Applicability of case laws under the Companies Act, 1956 .............................................................................. 14.19 Mismanagement .............................................................................................. 14.19 14.5.1 Meaning and scope of mismanagement under the Companies Act, 1956 .................................................................... 14.19 14.5.1.1 Dictionary meaning ....................................................... 14.20 14.5.1.2 Meaning as analysed by case laws .................................. 14.20 14.5.2 Change in nature and scope of mismanagement ........................... 14.21 14.5.2.1 Analysis of changes ....................................................... 14.22 Impact of Changes in Other Provisions ............................................................ 14.23 14.6.1 Overview of Changes .................................................................... 14.23 14.6.1.1 Additional powers ........................................................ 14.24 14.6.1.2 Disclosures ................................................................... 14.24 14.6.1.3 Effective participation .................................................. 14.24 14.6.1.4 Additional rights ........................................................... 14.25 14.6.1.5 Additional remedies ..................................................... 14.25 14.6.1.6 Strong corporate governance framework ..................... 14.25 14.6.1.7 Additional norms .......................................................... 14.25 14.6.2 Exploring plural remedies ............................................................. 14.26 14.6.3 Impact and interplay of other remedies ......................................... 14.26 14.6.3.1 De-registration and oppression and mismanagement(O&M) ............................................... 14.27 14.6.3.2 Class action and O&M ................................................. 14.27 14.6.3.3 Investigation and O&M ................................................ 14.27 14.6.3.4 Reopening and oppression and mismanagement .......... 14.27 14.6.3.5 Compensation from auditor and O&M......................... 14.27 14.6.3.6 Refusal to transfer and transmit and O&M .................. 14.27 14.6.3.7 Exit route and O&M ..................................................... 14.27 Eligibility to apply for Prevention of Oppression and Mismanagement ........ 14.28 14.7.1 Eligibility of members to apply ..................................................... 14.28 14.7.1.1 Who can apply? ............................................................ 14.28 14.7.1.2 What is the eligibility criteria? ..................................... 14.28 14.7.1.3 Can the Tribunal waive the conditions? ....................... 14.29 14.7.1.4 Comparison with section 399 of 1956 Act ................... 14.29 14.7.1.5 Analysis of important case laws under section 399 and their applicability to section 244............................ 14.29 14.7.2 Power of central government to apply .......................................... 14.30 Nature and Scope of Powers of Tribunal ....................................................... 14.31 14.8.1 Wide power to make order ............................................................ 14.33 xliii

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14.8.2 14.8.3

14.9 14.10 14.11 14.12 14.13

14.14 14.15

Tests for granting reliefs ................................................................ 14.34 Principles laid down under the Companies Act, 1956 ................... 14.35 14.8.3.1 Examples: two examples are given here to elucidate this aspect ...................................................................... 14.35 14.8.4 Power specified under section 242(2) ........................................... 14.36 14.8.4.1 Existing powers ............................................................. 14.36 14.8.4.2 New/modified powers .................................................... 14.37 14.8.5 Power to grant stay/injunction [section 242(4)] ............................ 14.37 Application of certain provisions to proceedings under section 241 ................... 14.39 Removal of Certain Provisions....................................................................... 14.39 Limitation of this Remedy - A Case for Class Action .................................... 14.40 Procedure for seeking relief against oppression and mismanagement ........... 14.41 Comparison Chart Oppression and Mismanagement ..................................... 14.44 14.13.1 Comparison of New Act with Old Act .......................................... 14.44 14.13.2 Comparison of Old Act with New Act .......................................... 14.45 Appendix A : Extracts of Bennett Coleman Case .......................................... 14.48 Further Reading .............................................................................................. 14.58

Chapter 15 Class Actions 15.1 Introduction ...................................................................................................... 15.2 15.2 The new-age of investor protection .................................................................. 15.2 15.3 Class Action - Meaning, Concept & Scope ...................................................... 15.3 15.3.1 Advantages of class action .............................................................. 15.4 15.3.2 Nature of class action ...................................................................... 15.5 15.3.3 Class actions worldwide .................................................................. 15.5 15.3.4 Class action in India ........................................................................ 15.6 15.3.5 What is the importance of class action suits in the Indian context? ........................................................................................... 15.6 15.3.6 Class action under the new Act ....................................................... 15.6 15.3.7 Applicability to companies .............................................................. 15.9 15.3.8 Who can file a class action suit?.................................................... 15.10 15.3.8.1 Eligibility criteria for members .................................... 15.10 15.3.8.2 Eligibility criteria for depositors ................................... 15.11 15.3.9 Representative person or association ............................................. 15.12 15.3.10 Guidelines for considering applications under section 245..................................................................................... 15.13 15.4 Public notice ................................................................................................... 15.16 15.5 Bar on future class action ............................................................................... 15.16 15.6 When can the Class action be filed? ............................................................... 15.18 15.7 NATURE OF ORDERS AND THEIR Impact............................................... 15.19 15.7.1 Non-compliance with orders [Section 245(7) read with section 425] ................................................................................... 15.20 xliv

Detailed table of contents

15.7.2 15.7.3 15.7.4 15.7.5

Vexatious application .................................................................... 15.20 Reimbursement of expenses in class action .................................. 15.20 Plural remedies .............................................................................. 15.21 Application of certain provisions to proceedings (Section 245) ................................................................................. 15.21 15.8 Challenges in class action .............................................................................. 15.21 15.9 Future of class action ..................................................................................... 15.22 15.10 Institutional Shareholder ................................................................................ 15.22 15.11 Procedure for Class Action ............................................................................ 15.24 Chapter 16 Revival and Rehabilitation of Sick Companies Chapter XIX – Section 253 to 269 of Companies Act, 2013 has been omitted by the Insolvency and Bankruptcy Code, 2016. Companies in financial distress can take recourse to the provisions of Insolvency and Bankruptcy Code for resolving the insolvency. For academic purpose, Chapter 16 is retained in the CD. ................. 16.1 Chapter 17 Winding up 17.1 Introduction ...................................................................................................... 17.5 17.2 Overview of Changes ....................................................................................... 17.6 17.2.1 Change in grounds for winding up .................................................. 17.6 17.2.2 Concept of private liquidator........................................................... 17.6 17.2.3 Summary involuntary winding up procedure .................................. 17.6 17.2.4 Custody of property......................................................................... 17.6 17.2.5 Statement of affairs ......................................................................... 17.6 17.2.6 Overview of Changes brought about by Insolvency and Bankruptcy Code, 2016 (IBC) ........................................................ 17.7 17.2.6.1 Change in Grounds for Winding up ............................... 17.7 17.2.6.2 Provisions for Voluntary winding up omitted ................ 17.7 17.2.6.3 Qualification of Company Liquidators ........................... 17.8 17.2.6.4 No Stay on winding up for exploring revival ................. 17.8 17.2.6.5 Priority of Payouts .......................................................... 17.8 17.2.6.6 Insolvency Rules inapplicable ........................................ 17.8 17.3 Types of winding up ........................................................................................ 17.8 17.4 Winding up and Dissolution............................................................................. 17.9 17.5 Winding up by Tribunal ................................................................................. 17.10 17.6 Grounds for winding up ................................................................................. 17.10 17.6.1 Analysis of the grounds ................................................................. 17.10 17.6.2 Applicability of principles under Companies Act, 2013 ............... 17.12 17.6.3 What will be the status of pending cases? ..................................... 17.12 17.6.4 Who can file a winding up petition? ............................................. 17.12 17.7 Order in winding up proceedings ................................................................... 17.13 17.7.1 Decision of tribunal ....................................................................... 17.13

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17.7.2 Timeline ........................................................................................ 17.13 17.8 Effect of Order ............................................................................................... 17.13 17.8.1 Impact on creditors and shareholders [Section 278]...................... 17.13 17.8.2 Impact on litigation [Section 279] ................................................. 17.13 17.8.3 Impact on officers [Section 277(3)]............................................... 17.13 17.8.4 Impact on company property [Section 283(2)].............................. 17.14 17.9 Important aspects in winding up..................................................................... 17.14 17.9.1 Provisional liquidator .................................................................... 17.14 17.9.1.1 Who can be a provisional liquidator? ........................... 17.14 17.9.1.2 Can an official liquidator be a provisional liquidator? ..................................................................... 17.14 17.9.1.3 When is a provisional liquidator appointed? ................ 17.14 17.9.1.4 Right of a company to oppose appointment ................. 17.14 17.9.1.5 When does a provisional liquidator cease to hold his position? ....................................................................... 17.15 17.9.1.6 What are the powers of provisional liquidator? ............ 17.15 17.9.1.7 How a provisional liquidator is remunerated? .............. 17.15 17.9.1.8 Who pays for his remuneration? ................................... 17.15 17.10 Company Liquidator ...................................................................................... 17.15 17.10.1 Who can be a company liquidator? ............................................... 17.15 17.10.2 Can an official liquidator be a company liquidator?...................... 17.15 17.10.3 Can company liquidator/provisional liquidator be removed/replaced?......................................................................... 17.16 17.10.4 Remuneration of company liquidator ............................................ 17.16 17.10.5 Powers of company liquidator ....................................................... 17.16 17.10.6 Appeal against the decision of company liquidator [Section 292(4)]............................................................................. 17.18 17.10.7 Other provisions ............................................................................ 17.18 17.11 Official liquidator ............................................................................................ 17.18 17.11.1 Appointment of official liquidator [Section 359] .......................... 17.18 17.11.2 Power and functions ...................................................................... 17.18 17.12 Procedure of winding up by Tribunal ............................................................. 17.19 17.12.1 Procedure of winding up by tribunal ............................................. 17.19 17.12.1.1 Application to vacate stay on other proceedings .......... 17.27 17.12.2 Role of advisory committee........................................................... 17.28 17.12.3 Procedure to be followed at the meetings of advisory committee ...................................................................................... 17.28 17.12.4 Rights of creditor and contributories ............................................. 17.28 17.12.5 Meeting of members ...................................................................... 17.29 17.12.6 Meeting of creditors ...................................................................... 17.30 17.12.6.1 Limitation on voting rights of creditors ........................ 17.32 xlvi

Detailed table of contents

17.13 Provisions applicable to involuntary winding up ........................................... 17.32 17.13.1 Section 324: Debts of all descriptions to be admitted to proof .............................................................................................. 17.32 17.13.2 Section 325: Application of insolvency rules in winding up of insolvent companies ............................................................. 17.32 17.13.3 Section 326: Overriding preferential payments ............................. 17.33 17.13.4 Section 327: Preferential payments ............................................... 17.35 17.13.5 Section 328: Fraudulent preference............................................... 17.38 17.13.6 Section 329: Transfers not in good faith to be void ...................... 17.39 17.13.7 Section 330: Certain transfers to be void ...................................... 17.39 17.13.8 Section 331: Liabilities and rights of certain persons fraudulently preferred.................................................................... 17.39 17.13.9 Section 332: Effect of floating charge ........................................... 17.40 17.13.10 Section 333: Disclaimer of onerous property ................................ 17.40 17.13.11 Section 334: Transfers, etc after commencement of winding up to be void .................................................................... 17.43 17.13.12 Section 335: Certain attachments, executions, etc in winding up by Tribunal to be void ................................................ 17.43 17.13.13 Section 336: Offences by officers of companies in liquidation ..................................................................................... 17.43 17.13.14 Section 337: Penalty for frauds by officers ................................... 17.46 17.13.15 Section 338: Liability where proper accounts not kept ................. 17.46 17.13.16 Section 339: Liability for fraudulent conduct of business ............. 17.47 17.13.17 Section 340: Power of Tribunal to assess damages against delinquent directors, etc .................................................... 17.49 17.13.18 Section 341: Liability under sections 339 and 340 to extend to partners or directors in firms or companies ................... 17.49 17.13.19 Section 342: Prosecution of delinquent officers and members of company .................................................................... 17.50 17.13.20 Section 343: Company liquidator to exercise certain powers subject to sanction ............................................................ 17.51 17.13.21 Section 344: Statement that company is in liquidation ................. 17.52 17.13.22 Section 345: Books and papers of company to be evidence ........................................................................................ 17.53 17.13.23 Section 346: Inspection of books and papers by creditors and contributories ........................................................... 17.53 17.13.24 Section 347: Disposal of books and papers of company ............... 17.54 17.13.25 Section 348: Information as to pending liquidations ..................... 17.55 17.13.26 Section 349: Official liquidator to make payments into public account of India .................................................................. 17.56 17.13.27 Section 350: Company liquidator to deposit monies into scheduled bank .............................................................................. 17.56

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17.13.28 Section 351: Liquidator not to deposit monies into private banking account ................................................................. 17.57 17.13.29 Section 352: Company Liquidation Dividend and Undistributed Assets Account ....................................................... 17.57 17.13.30 Section 353: Liquidator to make returns, etc ................................. 17.60 17.13.31 Section 354: Meetings to ascertain wishes of creditors or contributories ............................................................................ 17.60 17.13.32 Section 355: Court, tribunal or person, etc., before whom affidavit may be sworn ....................................................... 17.61 17.13.33 Section 356: Powers of Tribunal to declare dissolution of company void ............................................................................ 17.61 17.13.34 Section 357: Commencement of winding up by Tribunal ............. 17.62 17.13.35 Section 358: Exclusion of certain time in computing period of limitation ........................................................................ 17.62 17.14 Official liquidators ......................................................................................... 17.62 17.14.1 Section 359: Appointment of official liquidator ............................ 17.63 17.14.2 Section 360: Powers and functions of official liquidator .............. 17.63 17.14.3 Section 361: Summary procedure for liquidation .......................... 17.64 17.14.4 Section 362: Sale of assets and recovery of debts due to company ........................................................................................ 17.64 17.14.5 Section 363: Settlement of claims of creditors by official liquidator ........................................................................... 17.65 17.14.6 Section 364: Appeal by creditor .................................................... 17.65 17.14.7 Section 365: Order of dissolution of company .............................. 17.66 17.15 Further Reading .............................................................................................. 17.66 Chapter 18 Compounding of Offence 18.1 Introduction ...................................................................................................... 18.3 18.2 Overview of Changes ....................................................................................... 18.3 18.2.1 Changes by Company Amendment Act, 2017 ................................... 18.3 18.2.2 Officer who is in default ..................................................................... 18.3 18.2.3 Penalties ............................................................................................. 18.3 18.2.4 Adjudication mechanism .................................................................... 18.3 18.2.5 Trial of offence ................................................................................... 18.3 18.2.6 Compounding procedure .................................................................... 18.3 18.2.7 Grace period ....................................................................................... 18.4 18.3 Corporate Criminal Liability ............................................................................ 18.4 18.4 What is an offence? .......................................................................................... 18.4 18.4.1 Who is responsible for the offence? ................................................... 18.4 18.4.1.1 Analysis of the definition ............................................... 18.6 18.5 What is the penalty? ......................................................................................... 18.7 18.5.1 Penalty levels...................................................................................... 18.7 xlviii

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18.5.2 Penalties tied to damages ................................................................... 18.7 18.5.3 Enhanced imprisonment ..................................................................... 18.8 18.5.4 New imprisonment ............................................................................. 18.8 18.5.5 Non-executive director ....................................................................... 18.8 18.5.6 Statutory limits ................................................................................... 18.8 18.5.7 Distinct penalty for companies........................................................... 18.8 18.5.8 Frauds................................................................................................. 18.8 18.5.9 Provisions for reducing delays ........................................................... 18.8 18.5.10 Technical defaults .............................................................................. 18.9 18.5.11 Disclosures of offences ...................................................................... 18.9 18.5.12 Compulsory filing .............................................................................. 18.9 18.5.13 Adjudication of penalty ...................................................................... 18.9 18.5.14 Protection to whistle blowers ............................................................. 18.9 18.5.15 Trial of offenses ............................................................................... 18.10 18.6 Can offences be compounded?....................................................................... 18.10 18.6.1 What offences can be compounded? ................................................ 18.10 18.6.2 What offences cannot be compounded? ........................................... 18.10 18.6.3 Who is authorised to compound an offence? ................................... 18.10 18.6.4 When can they be compounded?...................................................... 18.11 18.6.5 Quantum of fees ............................................................................... 18.11 18.6.6 Procedure for compounding ............................................................. 18.12 18.6.7 Bar on compounding ........................................................................ 18.12 18.6.8 Effects of compounding ................................................................... 18.13 18.6.9 Penalty ............................................................................................. 18.13 18.7 Cognizable and Non-Cognizable Offences .................................................... 18.13 18.7.1 What are cognizable offences?......................................................... 18.13 18.7.2 What are non-cognizable offences? ................................................. 18.14 18.8 Appendix A: Penalties Under the Old and New Provisions ........................... 18.14 18.9 Appendix B: Imprisonment Increased (Illustrative sample provisions where the quantum of imprisonment has increased) ...................................... 18.41 18.10 Appendix C: New Imprisonment Provisions ................................................. 18.45 18.11 Procedure for Compounding of Offence ........................................................ 18.50 18.12 Comparison Chart Compounding of Offence ................................................ 18.51 18.12.1 Comparison of New Act with Old Act ............................................. 18.51 18.12.2 Comparison of Old Act with New Act .......................................... 18.52 Chapter 19 Miscellaneous Powers of Tribunal 19.1 Introduction ...................................................................................................... 19.3 19.2 Change in Financial Year ................................................................................. 19.3 19.2.1 Application to Tribunal ................................................................... 19.4 19.2.2 Who can apply? ............................................................................... 19.4

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19.3

19.4

19.5

19.6

19.7 19.8 l

19.2.3 Period of financial year ................................................................... 19.5 19.2.4 Procedure for making application under section 2(41) .................... 19.5 Tribunal Approved Company Conversion ....................................................... 19.5 19.3.1 Conversion of companies ................................................................ 19.6 19.3.1.1 Permissibility of conversion ........................................... 19.6 19.3.1.2 General process of conversion ........................................ 19.6 19.3.2 Conversion of public company into private company ..................... 19.6 19.3.2.1 Conditions for conversion .............................................. 19.6 19.3.2.2 Consequential changes ................................................... 19.8 19.3.2.3 Impact on debts and contracts......................................... 19.9 19.3.2.4 Effective date of conversion ........................................... 19.9 19.3.2.5 Listed companies .......................................................... 19.10 19.3.2.6 Procedure for conversion of public into private company ....................................................................... 19.10 Extension of Time for Redemption of Preference Shares .............................. 19.14 19.4.1 Who can approach? ....................................................................... 19.16 19.4.2 Approval ........................................................................................ 19.16 19.4.3 Inability to redeem......................................................................... 19.17 19.4.4 Nature of order .............................................................................. 19.18 19.4.5 Applicability of previous judgments ............................................. 19.18 19.4.6 Usefulness of section 55(3) ........................................................... 19.18 19.4.7 Procedure for seeking extension of time for redemption of preference shares ....................................................................... 19.19 Consolidation of Shares.................................................................................. 19.20 19.5.1 In what all cases is approval necessary? ........................................ 19.21 19.5.2 Procedure for consolidation of shares under the Act ..................... 19.22 Rights of Debentures Holders to Seek Reliefs ............................................... 19.24 19.6.1 Application under section 71(9) for interim reliefs ....................... 19.26 19.6.1.1 Who can apply? ............................................................ 19.26 19.6.1.2 In which case? .............................................................. 19.26 19.6.1.3 Who will be given opportunity of being heard? ........... 19.26 19.6.1.4 Nature of reliefs? .......................................................... 19.26 19.6.2 Application to Tribunal for seeking repayment ............................. 19.26 19.6.3 Penalty ........................................................................................... 19.27 19.6.4 Procedure for Application Under Section 71(9) Seeking Interim Reliefs by Debenture Trustee ........................................... 19.27 19.6.5 Procedure for Filing Application under Section 71(10) for Failure to Redeem Debentures [NCLT r 73] ...........................19.27 Inspection of Minutes ..................................................................................... 19.28 19.7.1 Procedure for making application for inspection ........................... 19.29 Injunction on Representations by Outgoing Directors ................................... 19.29

Detailed table of contents

19.9

19.8.1 Scope of the application ................................................................ 19.31 19.8.2 Who can apply? ............................................................................. 19.31 19.8.3 Under which instances?................................................................. 19.31 19.8.4 What relief? ................................................................................... 19.32 19.8.5 Procedure for making application under section 169 .................... 19.32 Beneficial Ownership ..................................................................................... 19.32

Chapter 20 Powers of Tribunal under other Acts 20.1 Introduction ...................................................................................................... 20.1 20.2 Power under RBI Act ....................................................................................... 20.1 20.3 Power under Limited Liability Partnership Act, 2008 ..................................... 20.2 20.3.1 Power to reduce/waive penalty ....................................................... 20.3 20.3.2 Power to Enforce Filing .................................................................. 20.3 20.3.3 Investigations .................................................................................. 20.4 20.3.4 Merger and Amalgamations ............................................................ 20.5 20.3.5 Winding up of LLP ......................................................................... 20.8 20.4 Competition Act ............................................................................................... 20.9 Chapter 21 Appeals, Reviews and Writs 21.1 Introduction ...................................................................................................... 21.2 21.2 Appeal from order of NCLT ............................................................................ 21.2 21.2.1 Section 421 of the Companies Act, 2013 ........................................ 21.3 21.2.2 Section 10F of the Companies Act, 1956 ........................................ 21.3 21.2.3 Section 25 of SICA ......................................................................... 21.3 21.2.4 Distinction between section 10F of Companies Act, 1956 and section 421 of the Companies Act, 2013 ......................... 21.4 21.2.5 Similarities/distinction under SICA and Companies Act, 2013 ......................................................................................... 21.4 21.2.6 Applicability of case laws under Companies Act, 1956? ................ 21.4 21.2.7 What orders can be appealed against? ............................................. 21.6 21.2.7.1 Dictionary meaning ........................................................ 21.6 21.2.7.2 Case laws on meaning of the term ‘order’...................... 21.6 21.2.8 Who can appeal? ............................................................................. 21.8 21.2.8.1 Dictionary meaning of “person aggrieved” .................... 21.8 21.2.8.2 Case laws on “person aggrieved” ................................... 21.8 21.2.8.3 Analysis of the term “person aggrieved” under Companies Act, 2013 ................................................... 21.12 21.2.9 Time period for filing an appeal .................................................... 21.13 21.2.10 Sufficient cause ............................................................................. 21.15 21.2.10.1 Test laid down to determine sufficient cause ............... 21.15 21.2.11 Consent orders............................................................................... 21.20 21.2.12 Grounds of appeal ......................................................................... 21.21 li

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21.3

21.4 21.5 21.6

Appeal to the Supreme Court ......................................................................... 21.22 21.3.1 Similar provisions in other Acts .................................................... 21.23 21.3.1.1 The Electricity Act, 2003.............................................. 21.23 21.3.1.2 The National Green Tribunal Act, 2010 ....................... 21.23 21.3.1.3 The Telecom Regulatory Authority of India Act, 1997 .............................................................................. 21.23 21.3.1.4 The Securities and Exchange Board of India Act, 1992 .............................................................................. 21.24 21.3.1.5 Companies Act, 1956 ................................................... 21.24 21.3.2 Terms used in the section .............................................................. 21.24 21.3.3 Period of filing the appeal ............................................................. 21.25 21.3.4 Scope of appeal ............................................................................. 21.25 21.3.4.1 Difference between a “questions of law” and “questions of fact .......................................................... 21.25 Power to Review ............................................................................................ 21.27 Writ Jurisdiction ............................................................................................. 21.28 Further Reading .............................................................................................. 21.39

Chapter 22 General Practice and Procedure 22.1 Introduction ...................................................................................................... 22.3 22.2 General Procedure & Practice .......................................................................... 22.3 22.2.1 Territorial Jurisdiction ..................................................................... 22.3 22.2.2 Filing of Petition/Application .......................................................... 22.3 22.2.2.1 Who can file ................................................................... 22.3 22.2.2.2 Modes of filing ............................................................... 22.4 22.2.2.3 How to file an application/petition ................................. 22.4 22.2.3 Documents to Accompany the petition or Application ................... 22.4 22.2.4 Scrutiny of Application/Petition ...................................................... 22.5 22.2.5 Advertisement [Rule 35] ................................................................. 22.5 22.2.6 Notice to Opposite Party [Rule 37] ................................................. 22.6 22.2.7 Filing of Affidavit of Service/Advertisement .................................. 22.6 22.2.8 Service of notice and Processes Issued by the Tribunal [Rule 38] .......................................................................................... 22.7 22.2.9 Filing of Reply and other Documents by the Respondents [Rule 41] .................................................................... 22.7 22.2.10 Filing of Rejoinder [Rule 42] .......................................................... 22.7 22.2.11 Additional Pleadings ....................................................................... 22.7 22.2.12 Framing of Issues ............................................................................ 22.8 22.2.13 Admission and denial of documents/discover and production of documents ................................................................. 22.8 22.2.14 Filing of Affidavit of Evidence [Rule 39] ....................................... 22.9 22.2.15 Cross Examination of any Deponent [Rule 39] ............................... 22.9 lii

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22.2.16

Summoning the Witness and Method of Recording Evidence [Rule 52].......................................................................... 22.9 22.2.17 Oath to witness [Rule 47] .............................................................. 22.11 22.2.18 Hearing of petition or application [Rule 44] ................................. 22.11 22.2.19 Action on Application for Applicants Default [Rule 48] .............. 22.11 22.2.20 Ex-parte hearing and disposal of petition or application [Rule 49] ....................................................................................... 22.12 22.2.21 Decision of the Tribunal................................................................ 22.12 22.2.22 Order to be Passed and Signed [Rule 149 & 150] ......................... 22.12 22.2.23 Filing of order of the Tribunal....................................................... 22.13 22.2.24 Application for Execution ............................................................. 22.13 22.2.25 Effect of Non-compliance [Rule 58] ............................................. 22.13 22.2.26 Procedure for Imposition of Penalty Under the Act [Rule 59] ....................................................................................... 22.14 22.2.27 Preservation of Record [Rule 103] ................................................ 22.14 22.2.28 Fees ............................................................................................... 22.14 22.3 Representation before NCLT/NCLAT ........................................................... 22.15 22.3.1 Authorised representative.............................................................. 22.15 22.3.1.1 Right to legal representation......................................... 22.15 22.3.1.2 Special authorized representatives ............................... 22.16 22.3.1.3 Amicus curiae............................................................... 22.16 22.3.1.4 Dress for the authorised representatives ....................... 22.17 22.3.2 Dress for and for the parties in person .......................................... 22.17 22.3.2.1 Memorandum of appearance ........................................ 22.18 22.3.2.2 Clerk of authorised interns ........................................... 22.18 22.4 Schedule A: schedule of fees ......................................................................... 22.18 Annexure I – Checklist NCLT .................................................................................. 22.21 Annexure II – Naming of old matters........................................................................ 22.24 Chapter 23 Jurisdiction and Limitation 23.1 Introduction ...................................................................................................... 23.2 23.1.1 What is jurisdiction? ....................................................................... 23.2 23.1.2 Why is it relevant? .......................................................................... 23.2 23.1.3 What are the types of jurisdiction? .................................................. 23.3 23.1.3.1 Jurisdiction over the subject-matter................................ 23.3 23.1.3.2 Territorial jurisdiction .................................................... 23.3 23.1.3.3 Pecuniary jurisdiction ..................................................... 23.3 23.1.3.4 Original or appellate jurisdiction .................................... 23.4 23.1.3.5 Division bench & single bench ...................................... 23.4 23.1.4 Bar on civil court jurisdiction.......................................................... 23.4 23.1.4.1 Case laws and their applicability .................................... 23.5 liii

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23.2

Limitation Period............................................................................................ 23.10 23.2.1 Applicability of Limitation Act ..................................................... 23.10 23.2.1.1 Scope of applicability ................................................... 23.10 23.2.1.2 Interpretation of the term “as far as may be” ................ 23.13 23.2.1.3 Calculation of limitation period .................................... 23.13 23.2.2 General principles of limitation ..................................................... 23.14 23.2.2.1 Dismissal of petition/application .................................. 23.14 23.2.2.2 Extension of period....................................................... 23.14 23.2.2.3 Expansion of time on showing sufficient cause ............ 23.14 23.2.2.4 Exclusions on account minority etc. ............................. 23.14 23.2.2.5 Continuous running of time .......................................... 23.14 23.2.2.6 Other exclusions ........................................................... 23.15 23.2.2.7 Manner of computation of time limit ............................ 23.15 23.2.2.8 Ownership by prescription............................................ 23.16 23.2.2.9 Miscellaneous provisions ............................................. 23.16 23.2.2.10 Schedule I: Limitation Period ....................................... 23.16 23.2.2.11 Enlargement of time by Tribunal [NCLT Rule 153] .... 23.17 Annexure I – Subject-wise jurisdiction of NCLT ...................................................... 23.17 Annexure II – State-wise jurisdiction of NCLT ........................................................ 23.18 Annexure III – Pecuniary jurisdiction of NCLT ........................................................ 23.20 Annexure IV – Divisional and Single Member bench ............................................... 23.21 Chapter 24 The Insolvency and Bankruptcy Code, 2016 24.1 Background ...................................................................................................... 24.5 24.2 Structure of the Code........................................................................................ 24.6 24.3 Meaning of Insolvency and Bankruptcy........................................................... 24.8 24.4 Applicability ..................................................................................................... 24.9 24.5 Insolvency Framework ................................................................................... 24.10 24.5.1 Insolvency professionals ............................................................... 24.11 24.5.2 Insolvency professional agencies .................................................. 24.14 24.5.3 Information Utilities ...................................................................... 24.14 24.5.4 Insolvency Regulator/the Board .................................................... 24.15 24.5.5 Adjudicatory Authorities ............................................................... 24.18 24.6 Insolvency Resolution Process (IRP) of Corporate Persons .......................... 24.18 24.7 Key highlights of the insolvency resolution process under IBC (Chapter II Part II) ............................................................................................................ 24.21 24.7.1 To whom is the process applicable? .............................................. 24.21 24.7.2 When can it be initiated? ............................................................... 24.22 24.7.3 Quantum of default ........................................................................ 24.22 24.7.4 Who can initiate? ........................................................................... 24.23 24.7.4.1 Financial Creditor ......................................................... 24.23 liv

Detailed table of contents

24.8 24.9 24.10

24.11 24.12 24.13

24.14

24.7.4.2 Operational Creditor ..................................................... 24.27 24.7.4.3 Corporate Applicant ..................................................... 24.30 24.7.4.4 Member of company .................................................... 24.30 24.7.4.5 Person managing operations ......................................... 24.30 24.7.4.6 Person in control and supervisor of the company......... 24.30 24.7.4.7 When can corporate applicant apply? [Section 10] ...... 24.31 24.7.5 Process of Insolvency Resolution [Section 12] ............................. 24.33 24.7.6 Application for Insolvency Resolution and provision for withdrawal of admitted application ............................................... 24.34 24.7.7 Impact of Admission of Application [Section 13 of IBC]............. 24.35 24.7.8 Insolvency Commencement Date.................................................. 24.35 24.7.9 Moratorium [Section 14 of IBC] ................................................... 24.35 Public announcement [Section 15]................................................................. 24.39 Appointment of Interim Resolution Professional [Section 16] ...................... 24.40 Powers and duties of the Interim Resolution Professional ............................. 24.41 24.10.1 Management of the affairs of the corporate debtor by the interim resolution professional [Section 17] ........................... 24.41 24.10.2 Duties of the interim resolution professional [Section 18] ................................................................................................. 24.43 24.10.2.1 Collection of information ............................................. 24.43 24.10.2.2 Collation of all claims against the corporate debtor ..... 24.44 24.10.2.3 Constitution of the committee of creditors ................... 24.45 24.10.2.4 Monitor assets, manage operations, and file information in relation to the corporate debtor............. 24.45 24.10.2.5 Take control and custody of assets of the corporate debtor ........................................................................... 24.46 24.10.3 Personnel of corporate debtor to extend cooperation to the interim resolution professional in managing the affairs of the corporate debtor [Section 19]................................... 24.46 24.10.3.1 Management of operations of the corporate debtor [Section 20] ................................................................. 24.47 24.10.4 Committee of creditors [Section 21] ............................................. 24.47 24.10.4.1 Financial creditors ........................................................ 24.47 24.10.4.2 Operational creditors .................................................... 24.50 Appointment of Insolvency Resolution Professional [Section 22] ................ 24.51 Resolution professional to conduct corporate insolvency resolution process [Section 23] ....................................................................................... 24.52 Meeting of the Committee Of Creditors [Section 24] .................................... 24.52 24.13.1 Notice of meeting and participation .............................................. 24.52 24.13.2 Voting share .................................................................................. 24.54 Duties of the Resolution Professional [Section 25]........................................ 24.55 lv

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24.15 Avoidance of transactions not to affect corporate insolvency Resolution process [Section 26] ....................................................................................... 24.56 24.16 Right to replace resolution professional [Section 27]..................................... 24.56 24.17 Resolution professional to act with the approval of the committee of creditors [Section 28] ..................................................................................... 24.57 24.17.1 Prior approval of the committee of creditors ................................. 24.57 24.17.2 Actions of the resolution professional without approval of the committee of creditors are void ........................................... 24.58 24.18 Preparation of information memorandum [Section 29] .................................. 24.59 24.19 Persons not eligible to be a resolution applicant ............................................ 24.60 24.20 Resolution plan [Section 30] .......................................................................... 24.76 24.20.1 What is a resolution plan? ............................................................. 24.76 24.20.2 Who can submit a resolution plan?................................................ 24.76 24.20.3 Mandatory requirements of every resolution plan ......................... 24.77 24.20.4 Measures for implementation of resolution plan ........................... 24.77 24.20.5 Approval of committee of creditors............................................... 24.78 24.20.6 Resolution applicant may be present at meeting of committee of creditors ................................................................... 24.80 24.21 Approval of resolution plan [Section 31] ....................................................... 24.80 24.21.1 Conditions for approval ................................................................. 24.80 24.21.2 Approval of the NCLT is binding.................................................. 24.80 24.21.3 Moratorium shall terminate upon approval of resolution plan ................................................................................................ 24.80 24.21.4 Record of proceedings to be filed with the Board ......................... 24.80 24.21.5 Successful Resolution Applicant to obtain necessary approvals. ...................................................................................... 24.81 24.22 Rejection and appeal [Section 32] .................................................................. 24.81 24.23 Liquidation ..................................................................................................... 24.81 24.23.1 Involuntary Liquidation under Chapter III Part II of the IBC ................................................................................................ 24.82 24.23.1.1 Who can initiate the process of involuntary liquidation? ................................................................... 24.82 24.23.1.2 In which circumstance will the NCLT pass an order for Liquidation? ............................................................ 24.83 24.23.1.3 Suo motu Initiaition of Liquidation by NCLT .............. 24.84 24.23.1.4 Application by Insolvency Resolution Professional ..... 24.85 24.23.1.5 Application by Affected Persons .................................. 24.85 24.23.2 Nature of Order for liquidation ...................................................... 24.85 24.23.3 Effect of liquidation order ............................................................. 24.86 24.23.3.1 Stay on initiation of suits & proceedings [Section 33(5) of IBC] ................................................................ 24.86

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24.23.3.2 Discharge of Employees [Section 33(7) of IBC].......... 24.86 24.23.3.3 Cessation of Powers of Board [Section 34(2) of IBC] .............................................................................. 24.86 24.23.4 Appointment of Liquidator ........................................................... 24.86 24.23.4.1 Who will be the liquidator? .......................................... 24.86 24.23.5 Powers of Liquidator ..................................................................... 24.87 24.23.5.1 Power of Management ................................................. 24.87 24.23.5.2 Assistance by personnel of corporate debtor ................ 24.87 24.23.5.3 Powers & Duties to be exercised subject to direction of NCLT [Section 35 of IBC]....................................... 24.87 24.23.6 Fee of Liquidator ........................................................................... 24.90 24.23.7 Liquidation Estate [Section 36(3) of IBC] .................................... 24.90 24.23.8 Rights of Creditors ........................................................................ 24.91 24.23.9 Consolidation of Claims [Section 38] ........................................... 24.91 24.23.10 Verification of Claims ................................................................... 24.92 24.23.11 Secured Creditor in Liquidator Proceedings [Section 52 of IBC] ....................................................................... 24.92 24.23.12 Priority of Payment in distribution of Assets [Section 53 of IBC] .......................................................................................... 24.94 24.23.12.1Priotiy cannot be modified contracutally ..................... 24.95 24.23.13 Dissolution of Corporate Debtor [Section 54 of IBC]................... 24.95 24.23.14 Transaction that can be questioned in liquidation ......................... 24.95 24.23.14.1Preferential Transactions [Section 43 of IBC] ............. 24.95 24.23.14.2Transaction not considered preferential transaction ..... 24.96 24.23.14.3Undervalued Transaction [Section 45 of IBC] ............. 24.98 24.23.14.4Transactions defrauding creditors [Section 49 of IBC] .............................................................................. 24.99 24.23.14.5Extortionate Credit Transaction [Section 50] ............... 24.99 24.24 Further reading ............................................................................................. 24.100 Annexures to the book Annexure 1 National Company Law Tribunal Rules, 2016..................................... A1-1 Annexure 2 National Company Law Appellate Tribunal Rules, 2016 ................... A2-1 Annexure 3 The Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 ............................................................... A3-1 Annexure 4 The National Company Law Tribunal (Procedure for Reduction of Share Capital of Company) Rules, 2016.............................................. A4-1 Annexure 5 The Companies (Transfer of Pending Proceedings) Rules, 2016 ........ A5-1 Bibliography............................................................................................................... B1-1 Contents provided on the website .................................................................................. lix lvii

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Contents provided on the website The Companies Act 2013 The Companies (Amendment) Act 2017 Companies (Amendment) Ordinance, 2018 IBC (Amendment) Act, 2018 IBC (Second Amendment) Act, 2018 Relevant Notified Rules under Companies Act 1. Companies (Acceptance of Deposit) Rules, 2014 2. NCLT Rules with amendments 3. NCLAT Rules with amendments 4. Companies (Transfer of Pending Proceedings) Rules, 2016 5. The Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 6. NCLT (Procedure for Reduction of share capital of Company) Rules, 2016 7. NCLT (Salary, Allowances and other Terms and Conditions of Service of President and other Members) Rules, 2015 8. NCLAT (Salaries and Allowances and other terms and conditions of service of the Chairperson and other Members) Rules, 2015 9. Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 10. Companies (Inspection, Investigation and Inquiry) Rules, 2014 11. Companies (Mediation and Conciliation) Rules, 2016 12. Companies (Management and Administration) Rules, 2014 13. Companies (Meetings of Board and its Powers) Rules, 2014 14. Companies (Registered Valuers and Valuation) Rules, 2017 The Insolvency and Bankruptcy Code, 2016 - BLRC Report - Joint Committee Report on Insolvency and Bankruptcy Code 2015 Insolvency Code - Rules and Regulations 1. Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 lix

2.

Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 3. Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 4. Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017 5. Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 6. Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 7. Insolvency and Bankruptcy Board of India (Insolvency Professional Agencies) Regulations, 2016 8. Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 9. Insolvency and Bankruptcy Board of India (Procedure for Governing Board Meetings) Regulations, 2017 10. Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 11. Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 12. Insolvency and Bankruptcy Board of India (Advisory Committee) Regulations, 2017 13. Insolvency and Bankruptcy Board of India (Engagement of Research Associates and Consultants) Regulations, 2017 14.Insolvency and Bankruptcy Board of India (Salary, Allowances and other Terms and Conditions of Service of Chairperson and members) Rules, 2016 15.Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017

NCLT and NCLAT Law Practice and Procedure, 6e 16. Insolvency and Bankruptcy Board of India (Employees’ Service) Regulations, 2017 Other Old Draft Rules for reference 1. Draft Rules on Prevention of Oppression and Mismanagement

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3.  

Rules on Revival and Rehab of Sick Cos Draft Winding up Rules SICA Repeal Act, 2003 Chapter 16 Revival and Rehabilitation of Sick Companies

NCLT, NCLAT and Supreme Court Rulings 1. Mintri Tea Company Limited., 2.Bhaveh Mintri, 3. Purnima Mintri, Shiwaani Mintri. v Punjab National Bank.

Company Appeal (AT) (Insv) No. 237 of 2017 .................................................... R-69 Achenbach Buschhutten GmbH & Co. v Arcotech Ltd. Company Appeal (AT) (Insv) No. 97 of 2017...................................................... R-82 Adesh Kaur v Eicher Motors and Ors (2018) 207 Com Cas 144 (NCLT) ND ............................................................... R-141 Aditya Enterprises v. Rajratan Exim Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 335 of 2018] ................................... R-107 Aditya Kumar Jajodia v. Srei Infrastructure Finance Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 292 & 293 of 2018] ........................ R-115 Aditya Raheja (GStaad Hotels Pvt. Ltd.) v. Heritage Marble Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 248 of 2018] .................................... R-136 Agarwal Coal Corporation Private Limited v Impex Ferro Tech Limited ....................................................................................................... R-13, R-14 Alchemist Asset Reconstruction Company Limited v M/s. Hotel Goudavan Pvt. Ltd. and Ors. ................................................................................ R-27 Allahabad Bank v. Srei Infrastructure Finance Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 324 of 2017] .................................... R-116 Allied Media Network Pvt. Ltd. v M/s Sunraa Media Ltd. Company Appeal (AT) (Insv) No. 226 of 2017 .................................................... R-43 Alpha & Omega Diagnostics (India) Ltd. v Asset Reconstruction Company of India Ltd. & Ors. Company Appeal (AT) (Insv) No. 116 of 2017 ........................................................................................................... R-78 Ammonia Supplies Corporation P Limited v Modern Plastic Container P Limited (AIR 1998 SC 3153) .......................................................................... R-140 ANG Industries Ltd v. 1. Shah Brothers Ispat Pvt. Ltd. 2. Ashok Leyland Ltd., [Company Appeal (AT) (Insolvency) No. 109 of 2018] ..................................................................................................................... R-90 Anil Mahindroo & Anr v Earth Iconioc Infrastructure (P) Limited.

Company Appeal (AT) (Insv) No. 74 of 2017...................................................... R-50 Annapurna Infrastructure Pvt. Ltd. and Anr. v M/s. SORIL Infra Resources Ltd. Company Appeal (AT) (Insv) No. 32 of 2017 ............................. R-84 Ansal Housing and Construction Limited, CP/109/2016/3.10.2016 ........................ R-155 Ardor Global Pvt. Ltd v Nirma Industries Pvt Ltd. Company Appeal (AT) (Insv) No. 137 of 2017 .................................................... R-74

lxi

NCLT and NCLAT Law Practice and Procedure, 6e

Asian Natural Resources (India) Ltd v IDBI Bank Limited and Bhatia Global Trading Ltd. v IDBI Bank Ltd. Company Appeal (AT) (Insv) No. 60 of 2017 & Company Appeal (AT) (Insv) No. 62 of 2017 ...................................................................................................................... R-54 Atlas Cycles (Haryana) Limited , NCLT/ND/CP/111 .............................................. R-154 Atul Mittal [Director of APS Buildtech Pvt. Ltd. - (Corporate Debtor)] v. Khushal Infratech Pvt. Ltd. & Anr. [Company Appeal (AT) (Insolvency) No. 86 of 2018] ....................................... R-113 B and A Packaging India Ltd. v.Amrex Marketing P. Ltd. and Ors., [2017] 203 comp cas 454 (NCLT) Kolkata. ....................................................... R-139 B.K. Educational Services Pvt. Ltd. v Parag Gupta & Associates.............................. R-37 Bank of New York Mellon London Branch v Zenith Infotech Limited. .................... R-21 Besto Tradelink Pvt. Ltd. v. SAL Steel Ltd. [CP - (IB)94/2017] ............................. R-133 Bharti Defence and Infrastructure Limited v Edelweiss Asset Reconstruction Company Limited. Company Appeal (AT) (Insv) No.71 of 2017 ....................................................................................................... R-59 Bhash Software Labs Pvt. Ltd v M/s Mobme Wireless Solutions Ltd. Company Appeal (AT) (Insv) No. 79 of 2017 ...................................................... R-88 Bimla Kothari and Ors v Unitech Limited Along with other applications, NCLT/ND/CA 41/2016 & CP 124/2016 & ors ............................. R-154 Binani Industries Limited v. Mr. Vijay Kumar V. Iyer & Anr. [Contempt Case (AT) No. 04 of 2018 : Company Appeal (AT) (Insolvency) No. 82 of 2018] ................................................................................ R-92 Black Pear Hotels Pvt. Ltd v Planet M Retail Ltd. ..................................................... R-89 Blue Stampings & Forgings Ltd. v. BMM Ispat Ltd. & Anr. [Company Appeal (AT) (Insolvency) No. 160 of 2018] ..................................... R-131 Brijesh Kumar Agarwal (Director & Shareholder of M/s Kunj Forgings Pvt. Ltd.) v. Punjab National Bank [Company Appeal (AT) (Insolvency) No. 312 of 2018] ..................................... R-108 Byram Pestonji Gariwala v. UBOI ............................................................................. R-18 Canara Bank v Deccan Chronicle Holidays Limited Company Appeal (AT) (Insv) No. 147 of 2017 .................................................... R-56 Chand Khan [Managing Director of CK Infrastructures Ltd.] v. RCI Industries & Technologies Ltd. [Company Appeal (AT) (Insolvency) No. 307 of 2017] .................................... R-128 Chandu Laxman Chavan v. Union of India & Ors. [Company Appeal (AT) (Insolvency) No. 15 of 2018] ......................................... R-96 Cherntex Materials Pvt. Limited , NCLT/AHM /4.7.2017 ....................................... R-161 Chirag Gada v. Bank of Baroda & Anr. [Company Appeal (AT) (Insolvency) No. 71 of 2018] ....................................... R-104 D.R. Balakrishna Raja v Indian Bank M/s B.K.R. Hotels & Resorts Pvt Ltd. Company Appeal (AT) (Insv) No. 123 of 2017 ...................................... R-63 Darshan Jewel Tools Private Limited, TCP No. 58/2015 ......................................... R-146 lxii

NCLT, NCLAT and Supreme Court Rulings

Della Constructions Pvt Ltd. v MIs Rei Agro Ltd & Anr Company Appeal (AT) (Insv) No. 35 of 2017...................................................... R-54 Devendra Padamchand Jain (Resolution Professional of VNR Infrastructures Limited - Corporate Debtor) v 1.State Bank of India, 2.State Bank of Hyderabad, 3.Indian Overseas Bank, 4.Punjab National Bank, 5.Bank of India, 6.Bank of Baroda, 7.IFCI Limited, 8.IFCI Factors Limited, 9.VNR Infrastructure Limited, 10.Insolvency and Bankruptcy Board of India, [Company Appeal (AT) (Insolvency) No. 177 of 2017] .................................... R-106 Dr. H. N. Nagaraj (shareholder of M/s. Live 100 Hospital Pvt. Ltd.) v.

Edelweiss Asset Reconstruction Company Ltd. & Anr. [Company Appeal (AT) (Insolvency) No. 210 of 2018] .................................... R-112 Dr. Subba Rao Pavuluri v Gagan Aerospace Limited, NCLT/HYD/CA73/2016 .................................................................................... R-159 Durlum India Pvt. Ltd. v. M/s Sharma Kalypso Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 351 of 2018] .................................... R-133 Eicher Motors Ltd v Adesh Kaur and Ors. (2018) 207 Comp Cas 150 (NCLAT) ............................................................................................................ R-142 Elecon Engineering Co. Ltd. v. Ducon Technologies (I) Pvt. Ltd. [I.A. No. 29 of 2018] : [Company Appeal (AT) (Insolvency) No. 14 of 2018] ......................................................................................................... R-100 Ellora Paper Mills Limited & Anr v Ajithnath Steels Pvt. Ltd. Company Appeal (AT) (Insv) No 122 of 2017 ..................................................... R-57 Engenious Engineering Pvt. Ltd. v Onaex Natura Pvt Ltd. Company Appeal (AT) (Insv) No. 249 of 2017 .................................................... R-49 Era Infra Engineering Ltd. v Prideco Commercial Projects Pvt. Ltd. Company Appeal (AT) (Insv) No. 31 of 2017...................................................... R-52 Explo Media Pvt. Ltd. v. Ambience Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 20 of 2018] ...................................... R-129 Forech India Pvt. Ltd. v Edelweiss Assets Reconstruction Company Ltd. & Anr. Company Appeal (AT) (Insv) No. 202 of 2017 ................................ R-70 Gay Printers v. Pawan Buildwell Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 17 & 18 of 2018] ............................ R-126 Gurdeep Singh Sahani v Berger Paints India Ltd & Ors. Company Appeal (AT) (Insv) No. 294 of 2017 .................................................... R-40 Hasmukh Bachubhai Baraiya v Symphomy Limited and Ors (2018) 209 Comp Cas 605 (NCLT) AHM .......................................................... R-140 Hasmukh Bachubhai Baraiya v Symphomy Limited and Ors (2018) 209 Comp Cas 621 (NCLAT) ................................................................. R-141 Hind Motors India Ltd. v Adjudicating Authority NCLT, Chandigarh.

Company Appeal (AT) (Insv) No. 11 of 2017...................................................... R-76 ICICI Bank Ltd. v. 1. Oceanic Tropical Fruits Pvt. Ltd. 2. State Bank of India 3. Central Bank of India 4. Mr. C. Balasubramanian5.

lxiii

NCLT and NCLAT Law Practice and Procedure, 6e

Venkataramana Nagarajan [Company Appeal (AT) (Insolvency) No. 113 & 114 of 2018] ............................ R-93 ICICI Bank Ltd. v Innoventive Industries Ltd. ........................................................... R-28 Impex Ferro Tech Limited v Agarwal Coal Corporation Private Limited .................................................................................................................. R-14 Indiabulls Housing Finance Ltd. v. Shree Ram Urban Infrastructure Ltd. [Company Appeal (AT) (Insolvency) No. 252 of 2018] ..................................... R-130 Indian Bank & Ors. (FC) v. Kadevi Industries Ltd. & Ors. ...................................... R-111 Indian Overseas Bank & Ors. v. Kamineni Steel & Power India Pvt. Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 335 of 2017].................... R-96 Indian Overseas Bank vs Mr. Dinkar T. Venkatsubramaniam Resolution Professional for Amtek Auto Ltd. Company Appeal (AT) (Insv) No. 267 of 2017 .................................................... R-58 Innoventive Industries Ltd. v ICICI Bank & Anr. ............................................ R-30, R-31 Interport Global Logistics Private Limited v Netzland Wireless India Pvt. Ltd. And Ors., 2016 SCC Online NCLT 408 (MUM) ................................. R-155 Jai Mahal Hotels P Limited v. Rajkumar Devraj [2015] 193 comp cas 214 (SC) ........................................................................... R-140 JEKPL Private Limited v Export Import Bank of India Company Appeal (AT) (Insv) No. 188 of 2017 .................................................................... R-41 JK Jute Mill Mazdoor Morcha v Juggilal Kamlapat Jute Mills Co. Ltd. Company Appeal (AT) (Insv) No. 82 of 2017 ...................................................... R-85 JK Jute Mills Company Limited v M/s Surendra Trading Company. ........................ R-18 Jord Engineers India Ltd. v Valia & Company.

Company Appeal (AT) (Insv) No. 158 of 2017 .................................................... R-88 K. Kishan v Vijay Nirman Company Private Limited.

[Civil Appeal No. 21824/2017) ............................................................................ R-38 K.S. Rangasamy v. State Bank of India & Anr. [Company Appeal (AT) (Insolvency) No. 83 of 2017] ....................................... R-121 Kadevi Industries Ltd. (Through Shareholder Mr. Malapaka Purushottam) v. Indian Bank & Ors.(FC) [Company Appeal (AT) (Insolvency) No. 135 of 2018] ..................................... R-111 Kaliber Associates Pvt. Ltd. v Tripat Kaur Company Appeal (AT) (Insv) No. 52 of 2017 ...................................................... R-72 Kamal Dutta v. Anubhuti Aggarwal & anr.

[Company Appeal (AT) (Insolvency) No. 329 of 2018] .................................... R-127 Kamal Kumar Kandpal [Ex-Director of Leption Projects (P) Ltd.] v.

Sanghvi Movers Ltd. & Anr. [Company Appeal (AT) (Insolvency) No. 273 of 2018] ................................................................................................. R-129 Kamineni Steel & Power India Pvt. Ltd. v. Indian Bank & Ors. [Company Appeal (AT) (Insolvency) No. 45 of 2018] ......................................... R-97 Kamlesh Kalidas Shah v State Bank of India (2018) 207 Comp Cas 243 (NCLT) – ND .......................................................... R-142 lxiv

NCLT, NCLAT and Supreme Court Rulings

Kanti Commercial Pvt. Ltd. v. Edelweiss Asset Reconstruction Co. Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 250 of 2018] ................. R-109 Kashinath Rajgharia v Vishnu Properties & Industries P Limited , 2017 SCC Online NCLT 976 ............................................................................. R-156 Kee Projects Limited v Sharda Rawat Company Appeal (AT) (Insv) No. 139 of 2017 .................................................... R-42 Kirusa Software Private Limited v Mobilox Innovations Private Limited ............................................................................................. R-22, R-23, R-83 KKV Naga Prasad v Lanco Infratech Ltd. Company Appeal (AT) (Insv) No. 10 of 2017...................................................... R-88 Ksheeraabad Constructions PVT Ltd v M/s Vijay Nirman Company Pvt Ltd [Civil Appeal No. 21825 of 2017] ........................................................... R-37 Kusum Products Ltd. v. Union of India [Company Appeal (AT) (Insolvency) No. 69 of 2018] ........................................ R-96 Lanka Venkata Naga Muralidhar v Vestal Educational Services Private Limited and Ors (2018) 206 Com Cas 370 (NCLT) HYD ..................... R-143 Leo Duct Engineers & Consultants ltd. v 1. Canara Bank, 2.Standard Chatered Bank Company Appeal (AT) (Insv) No. 100 of 2017 ........................... R-77 Lokhandwala Kataria Construction Private Ltd v Nisus Finance and Investment managers LLP .......................................................................... R-27, R-28 Macquarie Bank Limited v Shilpi Cable Technologies Ltd. ............................ R-15, R-17 Madhur Engineers Pvt Ltd. & Anr v Facor Steels Ltd. Company Appeal (AT) (Insv) No. 136 of 2017 ................................................... R-75 Madhya Pradesh Industrial Development Corporation Limited, Company Appeal NO. 232 of 2017 .................................................................... R-153 Mahesh Kumar Panwar, (Director of M/s. Mega Soft Infrastructure Pvt. Ltd.) v. Abhishek Anand (Resolution Professional) [Company Appeal (AT) (Insolvency) No. 117 of 2018] ...................................... R-98 Mahesh Kumar Sureka v. SBER Bank & Ors. [Company Appeal (AT) (Insolvency) No. 319 of 2017] .................................... R-117 MCL Global Steel Pvt ltd. v M/s Essar Projects India Ltd. & Anr. Company Appeal (AT) (Insv) No. 26 of 2017 ...................................................... R-45 Meyer Apparel Ltd & Anr vs M/s Surbhi Body Products Pvt Ltd. Company Appeal (AT) (Insv) No. 33 of 2017...................................................... R-48 Meyer Apparel Ltd & Anr v M/s Godolo & Godolo Exports Pvt Ltd. Company Appeal (AT) (Insv) No. 34 of 2017...................................................... R-49 Mindtree Exports Private Limited v M/s Ashmita Multitrade Private Limited & Anr Company Appeal (AT) (Insv) No. 98 of 2017 ............................. R-74 Mitcon Consultancy & Engineering Services Pvt. Ltd. v. M/s Vitthal Corporations Ltd. [Company Appeal (AT) (Insolvency) No. 101 of 2018] ................................................................................................................... R-132 Mobilox Innovations Private Limited v Kirusa Software Private Limited ................................................................................................................. R-24 lxv

NCLT and NCLAT Law Practice and Procedure, 6e

Mohan Paul v. City Hospital P. Ltd. And Ors. [2017] 203 comp cas 516 (NCLT) Chennai ........................................................ R-139 Mona Pharmachem v Uttara Foods & Feed Private Limited ...................................... R-14 Mothers Pride Dairy India Private Ltd v Portrait Advertising and Marketing Pvt Ltd ................................................................................................. R-28 MRF Ltd. And Ors. v Oriental Insurance Co. Ltd and Ors. [2017] 204 Comp Cas 16 (NCLAT) ................................................................... R-140 National Engineering Industries Ltd. v. Cimmco Birla Ltd. [Company Appeal (AT) (Insolvency) No. 151 of 2018] ....................................... R-99 Neelkanth Township & Construction Pvt Ltd. v Urban Infrastructure Trustee Limited ........................................................................................... R-34, R-36 Neeraj Bhatia (Director of M/s. Summit Aviation Pvt. Ltd.) v.

Davinder Ahluwalia; Mrs. Mamta Ahluwalia; M/s. Summit Aviation Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 142 of 2018] .................................... R-123 Neeraj Gupta (Suspended Director & Shareholder of M/s Sardhana Papers Pvt. Ltd.) v. M/s Raj Duplex Pvt. Ltd. & Anr. [CA(AT)(Insolvency) No. 247 of 2018] ............................................................. R-130 Nikhil Mehta & Sons v AMR Infrastructure Ltd. Company Appeal (AT) (Insv) No. 07 of 2017 ...................................................... R-64 Nisheet Ranjan v. Letstrak Tech Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 350 of 2018] ..................................... R-136 Nisheet Ranjan v. Letstrak Tech Pvt. Ltd. [CP- (IB)32/2018] ................................. R-134 P.K Ores Pvt Limited v Tractors India Private Limited.

Company Appeal (AT) (Insv) No. 56 of 2017 ...................................................... R-80 Palogix Infrastructure Private Limited v ICICI Bank Limited Company Appeal (AT) (Insv) No. 30 of 2017 ...................................................... R-60 Parag Gupta & Associates v B.K. Educational Services Pvt. Ltd. ................... R-36, R-37 PEC Ltd. Through Shri Indra Vikram Singh v M/s Sree Gangadhar Steels Ltd Company Appeal (AT) (Insv) No. 236 of 2017 ................................... R-53 PEC Ltd. Through Shri Indra Vikram Singh v Sree Ramakrishna Alloys Ltd. Company Appeal (AT) (Insv) No. 225 of 2017 ................................. R-53 PEC Ltd. v M/s Sree Gangadhar Steels Ltd. Company Appeal (AT) (Insv) No. 121 of 2017 .................................................... R-55 PEC Ltd. v M/s Sree Ramakrishna Alloys Ltd. Company Appeal (AT) (Insv) No. 120 of 2017 .................................................... R-54 Phadnis Properties Limited , Application No. 416, 573/MAH/2017 ........................ R-145 Philips India Ltd v Goodwill Hospital & Research Centre Ltd. Company Appeal (AT) (Insv) No. 14 of 2017 ...................................................... R-49 Philips India Ltd v Karina Healthcare Pvt. Ltd. Company Appeal (AT) (Insv) No. 15 of 2017 ...................................................... R-49 Plethico Pharmaceuticals Limited , NCLT/AHM/CP 47/2017 & Ors. ..................... R-152

lxvi

NCLT, NCLAT and Supreme Court Rulings

Poorani Nagarajan (Shareholder in M/s Infinitas Energy Solutions Pvt. Ltd. v Indian Bank & Ors. Company Appeal (AT) (Insv) No. 318 of 2017 .................................................... R-59 Pr. Commissioner of Income-tax-7 v. M/s. Modern Terry Towels Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 192 of 2018] ........................... R-99 Pradeep Kothari (Director of M/s. Kothari Industrial Corporation Limited) v. Mr. A. Pandian & Anr. [Company Appeal (AT) (Insolvency) No. 11 of 2018] ..................................... R-125 Pratik Gupta (Director & Shareholder of M/s Petrolube India Ltd.) v.

M/s Columbia Petro Chem. Pvt. Ltd. M/s Columbia Petro Chem.

Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 133 of 2018] ...................... R-137 Prem Anand v Prisha Corporate Services Private Limited, 2016 SCC Online CLB 167 ................................................................................ R-156 R.B.Synthetics & Anr. v. Bee Ceelene Textile Mills Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 106 of 2018] .................................... R-108 R.G Shaw & Sons Private Limited & Anr v M/s Naviplast Traders Private Limited & Ors. Company Appeal (AT) (Insv) No. 63 of 2017...................................................... R-60 Rajendra Kapoor v Anil Kumar (Interim Reslution Professional & Ors.) Company Appeal (AT) (Insv) No. 198 of 2017 ........................................... R-80 Rajesh Kapoor v Tirupati Balaji Hotel P Limited [2017] 204 Comp Cas 303 (NCLT) Allahabad................................................... R-140 Rajit Mehra v. Punjab National Bank & Anr. [Company Appeal (AT) (Insolvency) No. 102 of 2018] .................................... R-119 Rajit Mehra v. Punjab National Bank & Anr. [Company Appeal (AT) (Insolvency) No. 83 of 2018] ...................................... R-120 Ramalakshmi v Texline Fabrics India P Limited and Ors. (2018) 206 Com Cas 430 (NCLT) Chennai ........................................................ R-145 Ranjeet Karnal v. Bell Finvest (India) Limited [Company Appeal (AT) (Insolvency) No. 68 of 2018] ...................................... R-121 Resolution Professional Raghu Babu Gunturu v. Kadevi Industries Ltd. & Ors. (Corporate Debtor) [Company Appeal (AT) (Insolvency) No. 129 of 2018] .................................... R-111 Royal Twinkle Star Club Limited NCLT/Mum/ 3.11.2017, Appl/576/MAH/2017.................................................. R-145 Rubina Chadha & Anr. v AMR Infrastructure Ltd and Sajive Kanwar v AMR Infrastructure Ltd. Company Appeal (AT) (Insv) No. 8 of 2017 & Company Appeal (AT) (Insv) No. 12 of 2017........................... R-43 S. Ramesh v South Travancore Hindu College Association (2018) 206 Com Cas 415 (NCLT) Chennai ........................................................ R-144 S. Ravi Srinivas. (SBI) v. M/s Super Agri Seeds Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 124 of 2018] .................................... R-101

lxvii

NCLT and NCLAT Law Practice and Procedure, 6e

S3 Electrical & Electronics Private Ltd v Brian Lau Company Appeal (AT) (Insv) No. 186 of 2017 .................................................... R-52 Sandeep Kumar Gupta, Resolution Professional v. Stewarts & Lloyds of India Ltd. & Anr. [Company Appeal (AT) (Insolvency) No. 263 of 2017] ..................................... R-104 Sandeep Kumar Gupta, Resolution Professional v. Stewarts & Lloyds of India Ltd. & Anr. [Company Appeal (AT) (Insolvency) No. 303 of 2017] ..................................... R-105 Sandeep Reddy & Anr v Jaycon Infrastructure Ltd. Company Appeal (AT) (Insv) No. 228 of 2017 .................................................... R-87 Satish Mittal v Ozone Builders & Developers Pvt. Ltd. Company Appeal (AT) (Insv) No. 75 of 2017 ...................................................... R-87 Satyaprakash Aggarwal & Ors. v. Vistar Metal Industries Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 136 of 2018] ..................................... R-112 Schweitzer Systemtek India Pvt. Ltd v Phoenix ARC Pvt. Ltd. & Ors. Company Appeal (AT) (Insv) No. 129 of 2017 .................................................... R-76 Seema Gupta v Supreme Infrastructure India Ltd. & Ors. Company Appeal (AT) (Insv) No. 53 of 2017 ...................................................... R-87 Senthil Kumar Karmegam v 1. Dolphin Offshore Enterprises (Mauritius) Pvt. Ltd, 2. Unison Engineering & Construction Ovt. Ltd. Company Appeal (AT) (Insv) No. 154 of 2017 ............................................ R-81 Seth Thakurdas Khinvraj Rathi v. M/s Cals Refineries Ltd. [Company Appeal (AT) (Insolvency) No. 333 of 2018] ..................................... R-102 Shilpi Cable Technologies Ltd. v Macquarie Bank Limited ...................................... R-16 Shravan Kumar Visnoi v. M/s Crown Alba Writing Instrument Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 253 of 2018] ............................... R-94 Shree Ganesh Jewellery House (I) Ltd. v. Abhishek Stock Broking Services Pvt. Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 78 of 2018] ....................................... R-118 Shreyans Realtors Pvt. Ltd. & Anr. v. Saroj Realtors & Developers Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 311 of 2018 ....................... R-109 Smart Timing Steel Ltd. Creditor v National Steel and Agro Industries Ltd. Company Appeal (AT) (Insv) No. 28 of 2017 .............................................. R-81 Sree Metalliks Ltd v M/s Srei Equipments Finance Ltd. Company Appeal (AT) (Insv) No. 3 of 2017 ........................................................ R-41 Sriram Compounds Pvt. Ltd. v. Shiva Drums Pvt. Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 46 of 2018] ......................................... R-97 SRS Limited, NCLT/CHD/CA 106/2017 & Ors and CP 121/2016 ......................... R-150 SRS Limited, NCLT/CHD/CP 21/2017 & Ors ......................................................... R-150 Starlog Enterprises Limited v ICICI Bank Ltd. Company Appeal (AT) (Insv) No. 5 of 2017 ........................................................ R-70

lxviii

NCLT, NCLAT and Supreme Court Rulings

State Bank of India (FC) v. 1. Mr. V. Ramakrishnan 2. M/s Veesons Energy Systems Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 213 of 2017] .................................... R-102 State Bank of India v. Debashish Nanda [Company Appeal (AT) (Insolvency) No. 49 of 2018] ...................................... R-114 State Bank of India v. SKC Retails Ltd. Through IRP & anr.

[Company Appeal (AT) (Insolvency) No. 08 & 43 of 2018] ............................ R-123 State Bank of India v. Tech Magacorp International Pvt. Ltd. Through IRP & anr. [Company Appeal (AT) (Insolvency) No. 09 of 2018] .................... R-123 State Bank of India v S. Muthuraju & Ors. Company Appeal (AT) (Insv) No. 105 of 2017 .................................................... R-40 Status Clothing Company Limited, CP No. 141/2016 ............................................. R-147 Steamline Industries Ltd. v Tecpro Systems Ltd. & Anr. Company Appeal (AT) (Insv) No. 229 of 2017 .................................................... R-53 Steel Konnect (India) Pvt. Ltd. v Hero Fincorp Ltd. Company Appeal (AT) (Insv) No. 51 of 2017...................................................... R-72 Sumeet Ahuja v Union Bank of India & Anr. Company Appeal (AT) (Insv) No. 128 of 2017 .................................................... R-75 Sunil Sen v Symphony Limited and Ors. (2018) 209 Comp Cas 624 (NCLAT) ................................................................. R-141 Suprabha Protective Products Pvt. Ltd v. Phoenix Trading & Consulting Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 345 of 2018] .................................... R-131 Surendra Trading Company. v M/s. J.K Jute Mills Company Limited and Others. ............................................................................................................ R-20 T. Vinayak Ravi Reddy v Canara Bank & Anr. Company Appeal (AT) (Insv) No. 110 of 2017 .................................................... R-41 T.R Jawahar & Anr v Edelweiss Asset & Anr. Company Appeal (AT) (Insv) No. 274 of 2017 .................................................... R-63 Teknow Consultants & Engineers Pvt Ltd. v M/s Bharat Heavy Electricals Limited Company Appeal (AT) (Insv) No. 224 of 2017 .......... R-38, R-40 The State Trading Corporation of India Ltd. v. Gandhar Oil Refinery India Ltd. [Company Appeal (AT) (Insolvency) No. 236 of 2018] .................... R-137 Tomorrows Sales Agency Pvt. Ltd. (Successful Resolution Applicant) v. Rajiv Khurana (Resolution Professional for Power Himalayas Ltd. & Ors.) [Company Appeal (AT) (Insolvency) No. 162 of 2018] ..................................... R-103 Transparent Technologies Pvt Ltd. v Multi Trade. Company Appeal (AT) (Insv) No. 207 of 2017............................................................................... R-45 Unigreen Global Private Limited v 1. Punjab National Bank, 2.Corporation Bank., 3. Vijaya Bank, 4.Oriental Bank of Commerce, Company Appeal (AT) (Insv) No. 81 of 2017 ................................ R-78

lxix

NCLT and NCLAT Law Practice and Procedure, 6e

Unimark Remedies Ltd v Ashok Alco Chem Ltd. Company Appeal (AT) (Insv) No. 45 of 2017 ...................................................... R-44 United Seamless Tabulaar Pvt. Ltd. v. Kamineni Steel & Power India Pvt. Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 23 of 2018] ......................................... R-97 Urban Infrastructure Trustee Limited v Neelkanth Township & Construction Pvt Ltd. .................................................................................. R-31, R-32 Uttam Galva Metallics Ltd. v. State Bank of India [Company Appeal (AT) (Insolvency) No. 315 of 2018] ..................................... R-110 Uttam Galva Steels Limited v DF Deutsche Forfait AG & Anr. Company Appeal (AT) (Insv) No. 39 of 2017 ...................................................... R-83 Uttam Value Steels Ltd. v. State Bank of India [Company Appeal (AT) (Insolvency) No. 316 of 2018] ..................................... R-110 Uttara Foods And Feeds Private Limited v Mona Pharmachem ................................ R-15 V.G. Peterson v O V Forbes [AIR 1963 SC 692] ..................................................... R-139 Valecha Engineering Limited, IA NO. 17 of 2017 in TCP/5/74(2)/2016 ............................................................ R-145 Variar Benefit Fund Limited , NCLT/CHd/CA/130/2017 ........................................ R-149 Vivo Mobile India Private Limited, NCLT/CHD/ /14.12.2017, CP/156/2017 ............................................................ R-162 West Bengal Essential Commodities Supply Corporation Ltd. v Bank of Maharashtra Company Appeal (AT) (Insv) No. 90 of 2017 ............................. R-82

lxx

Table of cases 1. Mintri Tea Company Limited., 2.Bhaveh Mintri, 3. Purnima Mintri, Shiwaani Mintri. v Punjab National Bank.

Company Appeal (AT) (Insv) No. 237 of 2017 .................................................... R-69 63 Moons Technologies Limited v Union of India & ors (NCLAT order dated 9/3/2017-Company Appeal (AT)-3/2017) ........................................ 23.10 Achenbach Buschhutten GmbH & Co. v Arcotech Ltd. Company Appeal (AT) (Insv) No. 97 of 2017 ...................................................................... R-82 Additional Registrar of Companies v Perfect Benefit Fund Ltd. [(1999) 97 Comp. Case 731 (Madras)] .................................................................. 9.26 Adelaide Electric Co. v Prudential Assurance 1934 A.C. 122 ...................................... 6.9 Adesh Kaur v Eicher Motors and Ors (2018) 207 Com Cas 144 (NCLT) ND ...................................................... R-141, 7.30 Adi Pherozshah Gandhi v H.M. Seervai, Advocate General of Maharashtra, Bombay [MANU/SC/0044/1970, AIR1971SC385, (1970)2SCC484, [1971]1SCR863 ......................................................................... 21.8 Aditya Enterprises v Rajratan Exim Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 335 of 2018] .................................... R-107 Aditya Kumar Jajodia v Srei Infrastructure Finance Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 292 & 293 of 2018] ........................ R-115 Aditya Raheja (GStaad Hotels Pvt. Ltd.) v Heritage Marble Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 248 of 2018] .................................... R-136 Agarwal Coal Corporation Private Limited v Impex Ferro Tech Limited ....................................................................................................... R-13, R-14 Ajit Singh v Union of India(Civil Writ 710-D of 1966)............................................ 13.85 Alabama New Orleans, Texas & Pacific Junction Railway In re: (1981) 1 Ch 213 at 238, 239 (CA) ....................................................................... 13.25 Alchemist Asset Reconstruction Company Limited v Hotel Goudavan Pvt. Ltd. and Ors. .................................................................................................. R-27 Ali Jawab Ameerhasan Rizvi v Indo French Biotech Enterprise Ltd. [(2000) 25 SCL 272 (Bombay)] ............................................................................ 9.26 Allahabad Bank v Srei Infrastructure Finance Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 324 of 2017] .................................... R-116 Allied Media Network Pvt. Ltd. v Sunraa Media Ltd. Company Appeal (AT) (Insolvency) No. 226 of 2017 ................................ R-43, 3.15 Alpha & Omega Diagnostics (India) Ltd. v Asset Reconstruction Company of India Ltd. & Ors. Company Appeal (AT) (Insv) No. 116 of 2017 .................................................................................................... R-78 Amchem Prods., Inc. v Windsor, 521 U.S. 591, 617 (1997) ....................................... 15.4

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Ammonia Supplies Corpn. (P) Ltd. v Modern Plastic Containers (P) Ltd. MANU/SC/0585/1998 : 1998 (7) SCC 105.................................................... 7.20 Ammonia Supplies Corporation P Limited v Modern Plastic Container P Limited (AIR 1998 SC 3153) ................................................................. R-140, 7.29 Amrit Lal Seth v Seth Hotels Private Limited (2009) 148 Com Cases 651. ................................................................................. 14.29 ANG Industries Ltd v 1. Shah Brothers Ispat Pvt. Ltd. 2. Ashok Leyland Ltd., [Company Appeal (AT) (Insolvency) No. 109 of 2018] ................................................................................................................. R-90 Anil Mahindroo & Anr v Earth Iconioc Infrastructure (P) Limited.

Company Appeal (AT) (Insv) No. 74 of 2017 ...................................................... R-50 Anil.R.Chhabria v Finolex Industries Ltd [2009]99 Comp Cas 168(CLB) .............................................................................. 7.25 Annapurna Infrastructure Pvt. Ltd. and Anr. v SORIL Infra Resources Ltd. Company Appeal (AT) (Insv) No. 32 of 2017 .............................................. R-84 Ansal Housing and Construction Limited, CP/109/2016/3.10.2016 ............... R-155, 9.34 Ansal Properties and Infrastructure Ltd., [CLB- DEL: CP 25/9/2014] ....................... 9.25 Ardor Global Pvt. Ltd v Nirma Industries Pvt Ltd. Company Appeal (AT) (Insv) No. 137 of 2017 .................................................... R-74 ARG Auto Components (P.) Ltd. v Atlas Pet Plas Industries Ltd. MANU/CL/0001/2015: [2015]126CLA12(CLB) : [2015]130SCL77(CLB) ......................................................................................... 7.21 Arunachalam Muthu v Nafan BV [MANU/MH/1954/2012: 2013 (2) ALLMR 127 : 2013 (7) Bom CR 407 : [2013] 115 CLA 252 (Bom) : [2013] 179 CompCas 249 (Bom) : [2013] 119 SCL 434 (Bom)], ................................................................................. 21.6 Asian Natural Resources (India) Ltd v IDBI Bank Limited and Bhatia Global Trading Ltd. v IDBI Bank Ltd. Company Appeal (AT) (Insv) No. 60 of 2017 & Company Appeal (AT) (Insv) No. 62 of 2017 ................................................................................... R-54 Atlas Cycles (Haryana) Limited , NCLT/ND/CP/111 ..................................... R-154, 9.34 Atul Mittal [Director of APS Buildtech Pvt. Ltd. - (Corporate Debtor)] v Khushal Infratech Pvt. Ltd. & Anr. [Company Appeal (AT) (Insolvency) No. 86 of 2018] .............................................................................. R-113 B and A Packaging India Ltd. v.Amrex Marketing P. Ltd. and Ors., [2017] 203 comp cas 454 (NCLT) Kolkata. .............................................. R-139, 7.28 B.K. Educational Services Pvt. Ltd. v Parag Gupta & Associates.............................. R-37 Bachan Singh v Dhian Das, AIR 1974 SC 708 ......................................................... 21.27 Bagree Cereals (P.) Ltd. and Ors. v Hanuman Prasad Bagri and Ors. [MANU/WB/0256/2000 : [2001]105CompCas465(Cal) : (2001)2CompLJ397(Cal) : 105CWN729] ........................................................... 14.20 Bajaj Auto Limited v N.K.Firodia [1971] 41 Comp Cas 1(SC) .................................. 7.23

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Table of cases

Bajaj Auto Ltd. v N.K. Firodia MANU/SC/0036/1970 : 1970 (2) SCC 550, 557 .......................................................................................... 7.20 Bajaj Auto Ltd. v Western Maharashtra Development Corporation Ltd MANU/MH/0820/2015 : 2015(4)ARBLR470(Bom): 2015 (4) Bom CR499 ............................................................................................ 7.34 Bangalore Turf Club Ltd. v Union of India [MANU/KA/3515/2014 : 2015 (2) AKR 82 : (2015) 277 CTR (Kar) 221 : ILR 2015 KARNATAKA 1825 : [2015] 228 TAXMAN 234 (Kar)] .................................. 21.29 Bank of New York Mellon London Branch v Zenith Infotech Limited [CIVIL APPEAL NO.3055 OF 2017(Arising out of S.L.P.(C) No.1587 of 2015)] ....................................................................................... R-21, 3.24 Basawaraj & Anor v Spl. Land Acquisition officer AIR 2014 SC 746 : (2013) 14 SCC 81, Civil Appeal No.6974 of 2013 ................................................................................................................. 21.19 Bede Steamship Company Limited [1970] 1 Ch 123 (CA) ......................................... 7.24 Bennet Coleman & Co. v Union of India 1997 (MANU/MH/0054/1977 : 47 Comp.Cases 92 Paras 116 onwards) ..................... 14.34 Besto Tradelink Pvt. Ltd. v SAL Steel Ltd. [CP - (IB)94/2017] .............................. R-133 Bhagavan Das Dhananjaya Das v UOI and ROC, W.P.No.25455 of 2017, In the High Court of Judicature at Madras...................... 5.27 Bharamgouda Adgouda Patil and Ors. v Sanjay Founders Pvt. Ltd. and Ors. MANU/MH/1866/2015, CP 17 of 2007 ................................................................ 7.21 Bharat's; Dinesh Vrajlal Lakhani v Parke Davis (India) Ltd. (2003) 47 SCL 80 (Bom): (2005) 124 Comp Cas 728 (Bom) ............................. 13.25 Bharti Defence and Infrastructure Limited v Edelweiss Asset Reconstruction Company Limited. Company Appeal (AT) (Insv) No.71 of 2017 ....................................................................................................... R-59 Bhash Software Labs Pvt. Ltd v Mobme Wireless Solutions Ltd. Company Appeal (AT) (Insv) No. 79 of 2017...................................................... R-88 Billcare Ltd [CLB-Delhi: CP NO. 76 (MB) 2015]...................................................... 9.23 Bimla Kothari and Ors v Unitech Limited Along with other applications, NCLT/ND/CA 41/2016 & CP 124/2016 & ors .................... R-154, 9.34 Binani Industries Limited v Vijay Kumar V. Iyer & Anr. [Contempt Case (AT) No. 04 of 2018 : Company Appeal (AT) (Insolvency) No. 82 of 2018]..................................................................................................... R-92 Birla Cotsyn India Ltd., [CLB-Mum: CA 5 of 2015] .................................................. 9.25 Black Pear Hotels Pvt. Ltd v Planet M Retail Ltd. ..................................................... R-89 Blue Stampings & Forgings Ltd. v BMM Ispat Ltd. & Anr. [Company Appeal (AT) (Insolvency) No. 160 of 2018] ...................................................... R-131 Brijesh Kumar Agarwal (Director & Shareholder of Kunj Forgings Pvt. Ltd.) v Punjab National Bank [Company Appeal (AT) (Insolvency) No. 312 of 2018]............................................................................ R-108

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Brijesh Kumar v State of Haryana & Ors., MANU/SC/0217/2014 : AIR 2014 SC 1612 ....................................................... 21.20 British and American Trustee and Financial Corporation Limited v Couper [(1894) A.C. 399 (HL)] ............................................................................. 8.12 Brown Ex. p. Debtor v Official Receiver, In Re, [1943] Ch. D. D. 177 ...................... 21.9 Budhia Swain v Gopinath Deb - (1999) 4 Supreme Court Cases 396 ........................... 4.8 Bushell v Faith [1970] AC 1099 .................................................................................... 6.7 Byram Pestonji Gariwala v UBOI .............................................................................. R-18 Canara Bank v Deccan Chronicle Holidays Limited Company Appeal (AT) (Insv) No. 147 of 2017 ................................................................................. R-56 Cannanore Whole Body C.T. Scan and Research Centre Pvt.Ltd. and Ors. v Saibunnisa S.V. [C.A. No. 129/167/SRB of 1997; MANU/CL/0024/1998].......................................................................................... 10.6 Chand Khan [Managing Director of CK Infrastructures Ltd.] v RCI Industries & Technologies Ltd. [Company Appeal (AT) (Insolvency) No. 307 of 2017] ........................................................................... R-128 Chand Mall Pincha v Hathi Mall Pincha (1999) 35 Com Cases 368 ......................... 21.25 Chander Krishan Gupta v Pannalal Girdhari Lal Pvt. Ltd. and Ors. [MANU/DE/0242/1981 : [1984]55CompCas702(Delhi) : 1982(3)DRJ295] ............................................................................ 14.21, 14.18, 14.40 Chandu Laxman Chavan v Union of India & Ors. [Company Appeal (AT) (Insolvency) No. 15 of 2018] ........................................ R-96 Cherntex Materials Pvt. Limited , NCLT/AHM /4.7.2017 ............................ R-161, 11.13 Chirag Gada v Bank of Baroda & Anr. [Company Appeal (AT) (Insolvency) No. 71 of 2018] .............................................................................. R-104 Cine & Supply Corpn. (P.) Ltd., In re [2002] 35 SCL 683 ........................................ 14.41 CIT v Scindia Steam Navigation Co. Ltd. AIR 1961 SC 1633 : MANU/SC/0194/1961 : [1961]42 ITR 589 (SC)................................................. 21.27 CIT-8 v Registrar of Companies and Ors (Company Petition 643 of 2014) .................................................................................................................. 3.17 Cumbrian Newspapers Group Ltd v Cumberland & Westmorland Herald Newspaper & Printing Co Ltd [1986] BCLC 286 ........................................ 6.6 D.R. Balakrishna Raja v Indian Bank B.K.R. Hotels & Resorts Pvt Ltd. Company Appeal (AT) (Insv) No. 123 of 2017 ............................................ R-63 Dadu Dayal Mahasabha v Sukhdev Arya (1990) 1 Supreme Court Cases 189 ......................................................................... 4.8 Darshan Jewel Tools Private Limited, TCP No. 58/2015 ................................ R-146, 9.28 Deccan Cements Ltd v Geekay Exim (India) Ltd. [2002]112 Comp cas 616(CLB) ............................................................................. 7.25 Della Constructions Pvt Ltd. v MIs Rei Agro Ltd & Anr Company Appeal (AT) (Insv) No. 35 of 2017 ...................................................................... R-54 Devendra Padamchand Jain (Resolution Professional of VNR Infrastructures Limited - Corporate Debtor) v 1.State Bank of lxxiv

Table of cases

India, 2.State Bank of Hyderabad, 3.Indian Overseas Bank, 4.Punjab National Bank, 5.Bank of India, 6.Bank of Baroda, 7.IFCI Limited, 8.IFCI Factors Limited, 9.VNR Infrastructure Limited, 10.Insolvency and Bankruptcy Board of India, [Company Appeal (AT) (Insolvency) No. 177 of 2017] .................................... R-106 Dinesh Gandhi v Bayer Diagnostics India Limited [2002] 111 Comp Cas 547 (CLB).......................................................................... 7.22 Dinesh Vrajlal Lakhani v Parke Davis (India) Ltd. (2003) 47 SCL 80 (Bom): (2005) 124 Comp Cas 728 (Bom) ............................. 13.25 Dr. H. N. Nagaraj (shareholder of Live 100 Hospital Pvt. Ltd.) v Edelweiss Asset Reconstruction Company Ltd. & Anr. [Company Appeal (AT) (Insolvency) No. 210 of 2018] ...................................................... R-112 Dr. Subba Rao Pavuluri v Gagan Aerospace Limited, NCLT/HYD/CA73/2016 ......................................................................... R-159, 10.10 Durlum India Pvt. Ltd. v Sharma Kalypso Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 351 of 2018] .................................... R-133 Eicher Motors Ltd v Adesh Kaur and Ors. (2018) 207 Comp Cas 150 (NCLAT) ........................................................ R-142, 7.30 EITA India Ltd. AIR 1997 Cal 208 ........................................................................... 13.88 Elder Pharmaceutical Limited [CLB- MUM :CA – 50/2014] ..................................... 9.23 Elder's Case, AIR 1952 SC 49................................................................................... 14.18 Elecon Engineering Co. Ltd. v Ducon Technologies (I) Pvt. Ltd. [I.A. No. 29 of 2018] : [Company Appeal (AT) (Insolvency) No. 14 of 2018]................................................................................................... R-100 Eley v Positive Government Security Life Assurance Co Ltd, 1 Ex D 88 ................................................................................................................. 6.7 Ellora Paper Mills Limited & Anr v Ajithnath Steels Pvt. Ltd. Company Appeal (AT) (Insv) No 122 of 2017 ..................................................... R-57 Engenious Engineering Pvt. Ltd. v Onaex Natura Pvt Ltd. Company Appeal (AT) (Insv) No. 249 of 2017 .................................................................... R-49 Era Infra Engineering Ltd. v Prideco Commercial Projects Pvt. Ltd. Company Appeal (AT) (Insv) No. 31 of 2017...................................................... R-52 Esha Bhattacharjee v Managing Committee of Raghunathpur Nafar Academy & Ors., [MANU/SC/0932/2013, 2013 AIR SCW 6158] ..................... 21.15 Essar Steel Ltd. v Unknown [2006]130CompCas123(Guj) : (2006)5CompLJ83(Guj) : [2005]59SCL457(Guj) : MANU/GJ/0085/2005) ............................................................................................ 6.9 Explo Media Pvt. Ltd. v Ambience Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 20 of 2018].............................................................................. R-129 Exports Pvt. Ltd. v T.V. Chandran [MANU/KE/0078/1993].................................... 14.18 Eye Foundation Ltd. v Lasik Centre (India) P. Ltd. [MANU/TN/2220/2012 : (2013) 176 Com. Cases 345 (Mad))] ............................ 13.8

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Forech India Pvt. Ltd. v Edelweiss Assets Reconstruction Company Ltd. & Anr. Company Appeal (AT) (Insv) No. 202 of 2017 ................................ R-70 Foss v Harbottle (1843) 67 ER 189 : (1843) 2 Hare 461 ............................................. 14.3 Futura Polyesters Ltd. [CLB-MUM: CP – 53/2014] ................................................... 9.24 Ganga Bai v Vijay Kumar and Ors. [MANU/SC/0020/1974: (1974) 2 SCC 393] ......................................................... 23.9 Gangabai v Ratankumar - AIR 1983 Bombay 291 ........................................................ 4.8 Gaurishankar Neeklanth Kalyani and Ors. v Sulochana Neeklanth Kalyani and Ors. MANU/CL/0020/2015, CLB-Mum ........................................... 7.19 Gay Printers v Pawan Buildwell Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 17 & 18 of 2018] .................................................................... R-126 Girdharlal Nathubhai Dalal v K.C. Agro Pvt. Ltd. and Ors. [MANU/CL/0038/2015........................................................................................ 14.34 Girish Kumar Kharia v Industrial Forge and Engineering Co. Ltd. and Ors. (1999(3)BLJR1755 : [2001]103CompCas150(Patna) : MANU/BH/0057/1999) ......................................................................................... 6.10 Greenhalgh v Arderne Cinemas [1946] 1 All. E.R 512 CA .......................................... 6.9 Gulabrai Kalidas Naik And Ors. v Laxmidas Lailubhai Patel MANU/GJ/0001/1978 : 1978 48 Comp Cas 438 Guj .......................................... 14.30 Gurdeep Singh Sahani v Berger Paints India Ltd & Ors. Company Appeal (AT) (Insv) No. 294 of 2017 .................................................................... R-40 Hansberry v Lee, 311 U.S. 32, 41, 61 S.Ct. 115, 118 (1940) ...................................... 15.3 Hasmukh Bachubhai Baraiya v Symphomy Limited and Ors (2018) 209 Comp Cas 605 (NCLT) AHM ................................................. R-140, 7.28 Hasmukh Bachubhai Baraiya v Symphomy Limited and Ors (2018) 209 Comp Cas 621 (NCLAT) ........................................................ R-141, 7.29 Hind Motors India Ltd. v Adjudicating Authority NCLT, Chandigarh.

Company Appeal (AT) (Insv) No. 11 of 2017 ...................................................... R-76 Hindustan Lever Employees Union v Hindustan Lever Ltd., and Miheer H. Mafatlal Industries Ltd. ...................................................................... 13.27 Hindustan Lever Employees’ Union v Hindustan Lever Ltd. (1994) 14 CLA 397 (Bom)................................................................................... 13.25 Hindusthan Commercial Bank Ltd. v Hindusthan General Electrical Corporation Ltd (AIR1960Cal637: 64CWN458 : 64CWN458 : MANU/WB/0172/1960) ........................................................................................ 6.15 Hoare and Co. Ltd. and Reduced, In Re, ((1910) W. N. 87, Nevile J.,) ...................... 6.16 Hriday Nath Roy v Ram Chandra, (A.I.R. 1921 Cal. 34) ............................................ 23.2 Hungerford Divestment Trust Ltd., Re v Turner Morrison & Co. Ltd. [1972 (I) Cal, 286] ................................................................................................. 23.5 ICICI Bank Ltd. v 1. Oceanic Tropical Fruits Pvt. Ltd. 2. State Bank of India 3. Central Bank of India 4. C. Balasubramanian5.

Venkataramana Nagarajan [Company Appeal (AT) (Insolvency) No. 113 & 114 of 2018] ........................................................................................ R-93 lxxvi

Table of cases

ICICI Bank Ltd. v Innoventive Industries Ltd. .......................................................... R-28 Idea India ka Innovations Private Limited v Registrar of Companies Mumbai, CP No. 116/252/NCLT/MB/MAH/2018 ................................................ 5.43 Impex Ferro Tech Limited v Agarwal Coal Corporation Private Limited ................................................................................................................. R-14 Indiabulls Housing Finance Ltd. v Shree Ram Urban Infrastructure Ltd. [Company Appeal (AT) (Insolvency) No. 252 of 2018] ............................. R-130 Indian Bank & Ors. (FC) v Kadevi Industries Ltd. & Ors. ...................................... R-111 Indian Bank v Satyam Fibres (India) Pvt. Ltd. - (1996) 5 Supreme Court Cases 550 ....................................................................................................... 4.7 Indian Overseas Bank & Ors. v Kamineni Steel & Power India Pvt. Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 335 of 2017] ................... R-96 Indian Overseas Bank vs Dinkar T. Venkatsubramaniam Resolution Professional for Amtek Auto Ltd. Company Appeal (AT) (Insv) No. 267 of 2017 .................................................................................................... R-58 Innoventive Industries Ltd. v ICICI Bank & Anr. ............................................ R-30, R-31 Interport Global Logistics Private Limited v Netzland Wireless India Pvt. Ltd. And Ors., 2016 SCC Online NCLT 408 (MUM)........................ R-155, 10.7 Jai Mahal Hotels P Limited v Rajkumar Devraj [2015] 193 comp cas 214 (SC) .................................................................. R-140, 7.28 Jai Mahal Hotels Pvt. Ltd. v Rajkumar Devraj and Ors. 2015(10) SCALE 14 : MANU/SC/1059/2015 ....................................................... 7.19 Jai Prakash Association Ltd. [CLB – DEL: CA 25/10/2015] ...................................... 9.25 JEKPL Private Limited v Export Import Bank of India Company Appeal (AT) (Insv) No. 188 of 2017 .................................................................... R-41 JK Jute Mill Mazdoor Morcha v Juggilal Kamlapat Jute Mills Co. Ltd. Company Appeal (AT) (Insv) No. 82 of 2017...................................................... R-85 JK Jute Mills Company Limited v Surendra Trading Company. ............................... R-18 Jord Engineers India Ltd. v Valia & Company. Company Appeal (AT) (Insv) No. 158 of 2017.......................................................................................... R-88 Jorhat Tea and Industries (P) Ltd v State of Meghalaya [(2006) 72 SCL 310 (Gauhati)] ............................................................................. 9.26 JVA Trading Pvt. Limited and C&S Electric Ltd Company Application No.A.l/PB/2017order dated 13th January 2017 by Principle Bench of NCLT .................................................................................... 13.21 K. Kishan v Vijay Nirman Company Private Limited.

[Civil Appeal No. 21824/2017) ............................................................................ R-38 K. Radhakrishnan v Thirumani Asphalts and Felts (P) Ltd., [MANU/TN/0129/1998, 1998(1) CTC 682].......................................................... 23.8 K.S. Rangasamy v State Bank of India & Anr. [Company Appeal (AT) (Insolvency) No. 83 of 2017]..................................................................... R-121

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Kadevi Industries Ltd. (Through Shareholder Malapaka Purushottam) v Indian Bank & Ors.(FC) [Company Appeal (AT) (Insolvency) No. 135 of 2018] ............................................................................ R-111 Kailash Singh v State of U.P. and Ors. [MANU/UP/1196/2015] .............................. 21.11 Kaliber Associates Pvt. Ltd. v Tripat Kaur Company Appeal (AT) (Insv) No. 52 of 2017 ................................................................................... R-72 Kamal Dutta v Anubhuti Aggarwal & anr. [Company Appeal (AT) (Insolvency) No. 329 of 2018] .................................................................. R-127 Kamal Kumar Kandpal [Ex-Director of Leption Projects (P) Ltd.] v Sanghvi Movers Ltd. & Anr. [Company Appeal (AT) (Insolvency) No. 273 of 2018] ................................................................................................. R-129 Kamineni Steel & Power India Pvt. Ltd. v Indian Bank & Ors. [Company Appeal (AT) (Insolvency) No. 45 of 2018] ......................................... R-97 Kamlesh Kalidas Shah v State Bank of India (2018) 207 Comp Cas 243 (NCLT) – ND ................................................. R-142, 7.30 Kanti Commercial Pvt. Ltd. v Edelweiss Asset Reconstruction Co. Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 250 of 2018].................. R-109 Kashinath Rajgharia v Vishnu Properties & Industries P Limited , 2017 SCC Online NCLT 976 ..................................................................... R-156, 10.8 Kee Projects Limited v Sharda Rawat Company Appeal (AT) (Insv) No. 139 of 2017 .................................................................................................... R-42 Kerala High Court in R. Prakasam v Sree Narayana Dharma Paripalana Yogam [[1980] 50 Comp Cas 611] ...................................................... 10.6 Killick Nixon Limited v Dhanraj Mills Pvt. Ltd. [1983] 54 Comp Cas 432 (Bom) ............................................................................ 7.23 Kirusa Software Private Limited v Mobilox Innovations Private Limited .............................................................................................. R-22, R-23, R-83 Kitson, Ex. p. Sugden (Thomas) and Sons Ltd., In Re, [1911] 2 K. B. 109 ................................................................................................. 21.9 KKV Naga Prasad v Lanco Infratech Ltd. Company Appeal (AT) (Insv) No. 10 of 2017 ............................................................................................ R-88 Konathala Sriramulu v Board of Revenue (C.T.) AIR 1965 Andhra Pradesh 395 ................................................................................ 4.8 Ksheeraabad Constructions PVT Ltd v Vijay Nirman Company Pvt Ltd [Civil Appeal No. 21825 of 2017] ........................................................................ R-37 Kumar Exporters P. Ltd. v Naini Oxygen and Acetylene Gas Ltd. [1986] 60 Comp Cas 984 (All) .............................................................................. 7.25 Kusum Products Ltd. v Union of India [Company Appeal (AT) (Insolvency) No. 69 of 2018] ................................................................................ R-96 Lakshmidhar Misra v Rangalal MANU/PR/0121/1934............................................. 21.26 Lamb Ex., p. Board of Traded, In Re, [1894] 2 Q. B. D. 805 per Lord Esher .................................................................... 21.9 Landeros v Flood, 17 Cal. 3d 399, 551 P.2d 389 97 ALR 3d 324 ............................... 15.4 lxxviii

Table of cases

Lanka Venkata Naga Muralidhar v Vestal Educational Services Private Limited and Ors (2018) 206 Com Cas 370 (NCLT) HYD ............ R-143, 7.31 Leo Duct Engineers & Consultants ltd. v 1. Canara Bank, 2.Standard Chatered Bank Company Appeal (AT) (Insv) No. 100 of 2017 ........................... R-77 Lokhandwala Kataria Construction Private Ltd v Nisus Finance And Investment managers LLP .......................................................................... R-27, R-28 Luxmi Tea Co. Limited v Pradip Kumar Sarkar MANU/SC/0290/1989 : 1989 Supp. (2) SCC 656................................................ 7.20 M. Sampath v AKMN Cylinders Pvt. Ltd. [(1998) 29 CLA 455 (CLB-SB)] ........................................................................... 10.6 M.G. Amirthalingam v Gudiyatham Textiles Private Ltd. [1972] 42 Comp Cas 350 (Mad) ............................................................................ 7.25 M.S.D.C. Radharamanan v M.S.D. Chandrashekhar MANU/SC/1342/2008 : 2008 (143) Comp.Cases 97 (SC) : 2008 (1) UJ SC 0583 (paras 15 and 17)............................................................... 14.34 Mace v Van Ru Credit Corp., 109 F.3d 388, 344 (7th Cir. 1997) ............................... 15.4 Macquarie Bank Limited v Shilpi Cable Technologies Ltd. ............................ R-15, R-17 Madhur Engineers Pvt Ltd. & Anr v Facor Steels Ltd. Company Appeal (AT) (Insv) No. 136 of 2017 .................................................................... R-75 Madhya Pradesh Industrial Development Corporation Limited , Company Appeal NO. 232 of 2017 ........................................................... R-153, 9.33 Madras Bar Association v Union of India (UOI) and Ors. [2015VII AD (S.C.) 229 : [2015]126CLA111(SC) : (2015)3CompLJ1(SC) : (2015)4MLJ184(SC) : 2015(6)SCALE331: [2015]131SCL26(SC): MANU/SC/0610/2015 ............... 1.7, 1.9 Mahaamba Investment Limited v IDI Limited (2001) 105 CompCase 16 ...................................................................................... 3.11 Maharani Lalita Rajya Lakshmi v Indian Motor Company (Hazaribagh) ltd. AIR 1962 Cal 127 : 1962 32 CompCas 207 Cal : 66 CWN 63 ........................................................... 14.40 Mahesh Kumar Panwar, (Director of Mega Soft Infrastructure Pvt. Ltd.) v Abhishek Anand (Resolution Professional) [Company Appeal (AT) (Insolvency) No. 117 of 2018] ........................................................ R-98 Mahesh Kumar Sureka v SBER Bank & Ors. [Company Appeal (AT) (Insolvency) No. 319 of 2017]............................................................................ R-117 Mangalore Chemicals and Fertilizers Ltd. , In Re, [MANU/CL/0005/1994 : [1994] 79 CompCas 551 (CLB)] [CLB(SRB) Company Petition No. 60/80A/SRB/93 dated 08.12.1993] .......................................................................................................... 19.17 Manibhai Hathibhai Patel v C.W.E. Arbuthnot [MANU/MH/0123/1946 : AIR 1947 Bom 413 : 1947(49) BOMLR 454]....................................................................................................... 21.28

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Manohar Lal Chopra v Bahadur Rao Raja Seth Hiralal MANU/SC/0056/1961 : AIR 1962 SC 527 ............................................................. 4.8 Manoharan v Sivarajan & Ors. [MANU/SC/1192/2013, (2014) 4 SCC 163] ............................................................................................... 21.16 Maruti Udyog Ltd v Pentamedia Graphics Ltd [2002]111Comp Cas 56(CLB) ............................................................................... 7.25 Mathew Michael v TEKOY (India) Ltd. [1990] 69 Comp Cas 145 (Ker).............................................................................. 7.24 Mayyar Fabrics Ltd., [CLB-MUM-CA 10/2014] ........................................................ 9.24 MCL Global Steel Pvt ltd. v Essar Projects India Ltd. & Anr. Company Appeal (AT) (Insv) No. 26 of 2017 ...................................................... R-45 Meenakshi Mills Co. Ltd. v CIT, AIR 1957 SC 49 ................................................... 21.25 Mekaster Valves and Engineering Services Private Limited MANU/GJ/0354/2008 : [2009] Comp. Cases 593 ................................................. 13.8 Meyer Apparel Ltd & Anr vs Surbhi Body Products Pvt Ltd. Company Appeal (AT) (Insv) No. 33 of 2017 ...................................................... R-48 Meyer Apparel Ltd & Anr v Godolo & Godolo Exports Pvt Ltd. Company Appeal (AT) (Insv) No. 34 of 2017 ...................................................... R-49 Meyer's case, AIR 1965 SC 381 ................................................................................ 14.18 Miheer H. Mafatlal v Mafatlal Industries Ltd. (1996) 87 Com Cases 792(SC) ................................................................................ 6.8 Mindtree Exports Private Limited v Ashmita Multitrade Private Limited & Anr Company Appeal (AT) (Insv) No. 98 of 2017 ............................. R-74 Mitcon Consultancy & Engineering Services Pvt. Ltd. v Vitthal Corporations Ltd. [Company Appeal (AT) (Insolvency) No. 101 of 2018] ................................................................................................. R-132 Mobilox Innovations Private Limited v Kirusa Software Private Limited .................................................................................................................. R-24 Mohan Paul v City Hospital P. Ltd. And Ors. [2017] 203 comp cas 516 (NCLT) Chennai ............................................... R-139, 7.28 Mona Pharmachem v Uttara Foods & Feed Private Limited ...................................... R-14 Mothers Pride Dairy India Private Ltd v Portrait Advertising and Marketing Pvt Ltd ................................................................................................. R-28 MRF Ltd. And Ors. v Oriental Insurance Co. Ltd and Ors. [2017] 204 Comp Cas 16 (NCLAT) .......................................................... R-140, 7.28 Mysore Cements Limited MANU/KA/0013/2009 : [2009] 150 Comp. Cases 623. ................................................................................ 13.8 N.R. Harikumar v WW Apparels (India) Private Limited and Ors. [MANU/TN/0894/2015 : 2015-2-LW987 : (2015)5MLJ422] ........................ 6.5, 7.18 Nafar Chandra Pal v Shukur (1918) 45 IA 183 at 187 .............................................. 21.27 National Engineering Industries Ltd. v Cimmco Birla Ltd. [Company Appeal (AT) (Insolvency) No. 151 of 2018] ....................................... R-99

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National Insurance Co. Ltd. [MANU/SC/0314/1998 : [1998] 2 SCR 1199] ............................................................................................... 23.9 National Textile Corporation (Uttar Pradesh) Ltd. v Swadeshi Polytex Ltd. and Ors. [Company Petition No. 9/167/97-CLB; MANU/CL/0018/1998] ......................................................................................... 10.4 Needle Industries (India) Ltd. v Needle Industries Newey (India) holdings Limited MANU/SC/0050/1981 : AIR 1981 SC 1298 (paras 171 and 172) ............................................................................................. 14.34 Neelkanth Township and Construction Private Limited v Urban Infrastructure Trustees Limited .................................................................. R-34, R-36 Neeraj Bhatia (Director of Summit Aviation Pvt. Ltd.) v Davinder Ahluwalia; Mamta Ahluwalia; Summit Aviation Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 142 of 2018].................................... R-123 Neeraj Gupta (Suspended Director & Shareholder of Sardhana Papers Pvt. Ltd.) v Raj Duplex Pvt. Ltd. & Anr. [CA(AT)(Insolvency) No. 247 of 2018]................................................................................................. R-130 Neo Finance Pvt. Ltd. and Ors. v Rakesh Soni and Ors. MANU/CL/0040/2015, C.P. No. 15 of 2014(CLB-MUM) ................................... 7.20 Net 4 India Ltd. [CLB-DEL: CP 10/1/2015] ............................................................... 9.24 Nikhil Mehta & Sons v AMR Infrastructure Ltd. Company Appeal (AT) (Insv) No. 07 of 2017................................................................................... R-64 Nisheet Ranjan v Letstrak Tech Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 350 of 2018]............................................................................ R-136 Nisheet Ranjan v Letstrak Tech Pvt. Ltd. [CP- (IB) 32/2018] ................................. R-134 P.K Ores Pvt Limited v Tractors India Private Limited. Company Appeal (AT) (Insv) No. 56 of 2017 ...................................................................... R-80 Pallavi Gems Pvt Ltd & Anr v Haresh N Mataliya & ors (NCLAT order dated 22/3/2017- Company Appeal (AT) No. 73/2017) ............................. 23.11 Palogix Infrastructure Private Limited v ICICI Bank Limited Company Appeal (AT) (Insv) No. 30 of 2017...................................................... R-60 Parag Gupta & Associates v B.K. Educational Services Pvt. Ltd. ................... R-36, R-37 PEC Ltd. Through Shri Indra Vikram Singh v Sree Gangadhar Steels Ltd Company Appeal (AT) (Insv) No. 236 of 2017 ............................................. R-53 PEC Ltd. Through Shri Indra Vikram Singh v Sree Ramakrishna Alloys Ltd. Company Appeal (AT) (Insv) No. 225 of 2017................................. R-53 PEC Ltd. v Sree Gangadhar Steels Ltd. Company Appeal (AT) (Insv) No. 121 of 2017 .................................................................................................... R-55 PEC Ltd. v Sree Ramakrishna Alloys Ltd. Company Appeal (AT) (Insv) No. 120 of 2017.......................................................................................... R-54 Phadnis Properties Limited, Application No. 416, 573/MAH/2017................ R-145, 9.27 Philips India Ltd v Goodwill Hospital & Research Centre Ltd. Company Appeal (AT) (Insv) No. 14 of 2017...................................................... R-49

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Philips India Ltd v Karina Healthcare Pvt. Ltd. Company Appeal (AT) (Insv) No. 15 of 2017 ............................................................................................ R-49 Plethico Pharmaceuticals Limited , NCLT/AHM/CP 47/2017 & Ors. ............ R-152, 9.32 PMP Auto Industries Limited, In Re, MANU/MH/0112/1991 : [1994] 80 Comp. Cases 289 ................................................................................... 13.8 Poole and Ors v National Bank of China Limited [(1907) A.C. 229 (HL)] .......................................................................................... 8.12 Poorani Nagarajan (Shareholder in Infinitas Energy Solutions Pvt. Ltd. v Indian Bank & Ors. Company Appeal (AT) (Insv) No. 318 of 2017 .................................................................................................... R-59 PPI Enterprises Private Limited & Ors. v Registrar of Companies (2015 SCC OnLine Del 13748) ............................................................................. 5.14 Pr. Commissioner of Income-tax-7 v Modern Terry Towels Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 192 of 2018] ............................... R-99 Pradeep Kothari (Director of Kothari Industrial Corporation Limited) v A. Pandian & Anr. [Company Appeal (AT) (Insolvency) No. 11 of 2018] .................................................................................................. R-125 Prag Bosini Synthetics Limited v 3A Capital Limited (NCLAT order 11/7/2016) ..................................................................................... 3.21 Pratibha Industries Ltd., [CLB-Mum :CA - 21/2015] ................................................. 9.24 Pratik Gupta (Director & Shareholder of Petrolube India Ltd.) v Columbia Petro Chem. Pvt. Ltd. Columbia Petro Chem. Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 133 of 2018] ..................................... R-137 Prem Anand v Prisha Corporate Services Private Limited, 2016 SCC Online CLB 167 ....................................................................... R-156, 10.7 Purnima Manthena and Ors. v Renuka Datla and Ors.[MANU/SC/1121/2015] .................................................................................. 21.5 Pushpa Katoch v Manu Maharani Hotels Ltd. - (2001) 34 SCL 298 ............................. 4.8 R. v London County Keepers of the Peace and Justices [1890] 20 Q. B. D. 357 .......................................................................................... 21.9 R.B.Synthetics & Anr. v Bee Ceelene Textile Mills Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 106 of 2018] ..................................... R-108 R.G Shaw & Sons Private Limited & Anr v Naviplast Traders Private Limited & Ors. Company Appeal (AT) (Insv) No. 63 of 2017 ............................. R-60 Rajendra Kapoor v Anil Kumar (Interim Reslution Professional & Ors.) Company Appeal (AT) (Insv) No. 198 of 2017 ........................................... R-80 Rajesh Kapoor v Tirupati Balaji Hotel P Limited [2017] 204 Comp Cas 303 (NCLT) Allahabad .......................................... R-140, 7.28 Rajesh Patil v Moonshine Films Pvt. Ltd. (2008) 141 CompCas 482 CLB : (2006) 6 CompLJ 161 CLB ....................................................................... 14.30 Rajit Mehra v Punjab National Bank & Anr. [Company Appeal (AT) (Insolvency) No. 102 of 2018] ..................................... R-119

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Rajit Mehra v Punjab National Bank & Anr. [Company Appeal (AT) (Insolvency) No. 83 of 2018] ...................................... R-120 Rajmundhry Electrict Corporation v Nageshwar Rao [AIR (1956) SC 213] ........................................................................................... 14.29 Rallis India Limited, In Re, [IV (2005) BC 187 : 2005 (3) BomCR 618 : 2005 125 CompCas 268 Bom : (2005) 5 CompLJ 234 Bom : 2005 59 SCL 219 Bom] .................................................................................................... 8.9 Ram Chandra Singh v Savitri Devi - 2004-2-L. W. 70 ................................................. 4.7 Ramalakshmi v Texline Fabrics India P Limited and Ors. (2018) 206 Com Cas 430 (NCLT) Chennai ............................................... R-145, 7.32 Rampuria Cotton Mills Ltd. , In Re, AIR1959Cal253 : 63CWN11 : 63CWN11 : MANU/WB/0063/1959 ..................................................................... 6.19 Rangpur Tea Associations Limited v Makkanlal Samaddar [1973] 43 Comp Cas 58 (Cal) ................................................................................ 7.23 Ranjeet Karnal v Bell Finvest (India) Limited [Company Appeal (AT) (Insolvency) No. 68 of 2018] ...................................... R-121 Ravalgaon Sugar Farms Ltd., [CLB Mum:CA - 9/2015] ............................................ 9.24 Resolution Professional Raghu Babu Gunturu v Kadevi Industries Ltd. & Ors. (Corporate Debtor) [Company Appeal (AT) (Insolvency) No. 129 of 2018]................................................................................................. R-111 Sri Ramdas Motor Transport Ltd. v Karedla Suryanarayana and others MANU/AP/0922/2001 : (2002) 110 Comp.Cases 193 (Paragraph 116 onwards) ....................................................................................................... 14.34 Rishima SA Investments LLC v Registrar of Companies, West Bengal & ors. (2017 SCC OnLine Cal 350) ...................................................................... 5.15 Royal Twinkle Star Club Limited NCLT/Mum/ 3.11.2017, Appl/576/MAH/2017................................................................................. R-145, 9.27 Rubina Chadha & Anr. v AMR Infrastructure Ltd and Sajive Kanwar v AMR Infrastructure Ltd. Company Appeal (AT) (Insv) No. 8 of 2017 & Company Appeal (AT) (Insv) No. 12 of 2017........................... R-43 S. Ramesh v South Travancore Hindu College Association (2018) 206 Com Cas 415 (NCLT) Chennai ............................................... R-144, 7.32 S. Ravi Srinivas. (SBI) v Super Agri Seeds Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 124 of 2018] .................................... R-101 S3 Electrical & Electronics Private Ltd v Brian Lau Company Appeal (AT) (Insv) No. 186 of 2017 .................................................... R-52 Sabari Inn Pvt. Ltd. v Rameesh Associates Pvt. Ltd. Company Appeal (AT) (Insolvency) No. 117 of 2017 .......................................... 3.14 Sandeep Kumar Gupta, Resolution Professional v Stewarts & Lloyds of India Ltd. & Anr. [Company Appeal (AT) (Insolvency) No. 263 of 2017] .................................... R-104

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Sandeep Kumar Gupta, Resolution Professional v Stewarts & Lloyds of India Ltd. & Anr. [Company Appeal (AT) (Insolvency) No. 303 of 2017] ..................................... R-105 Sandeep Reddy & Anr v Jaycon Infrastructure Ltd. Company Appeal (AT) (Insv) No. 228 of 2017 .................................................... R-87 Sandeep Singh and Anr. v Registrar of Companies and ors.

W.P.(C) 11381/2017 & CM 46432-46433/2017, in the High Court of Delhi at New Delhi ............................................................................................ 5.25 Sandvik Asia Limited v Bharat Kumar Padamsi and Ors. [2009] 92 SCL 272................................................................................................. 8.11 Sangramsinh P. Gaekwad and Ors. v Shantadevi P. Gaekwad (Dead) thr. Lrs. and Ors. [MANU/SC/0052/2005 : AIR 2005 SC 809 : [2005] 123 CompCas 566 (SC) : (2005) 3 CompLJ 385 (SC) : JT 2005 (1) SC 581 : 2005 (2) SCALE 46 : (2005) 11 SCC 314 : [2005] 57 SCL 476 (SC) : [2005] 2 SCR 624 : 2005 (1) UJ 284].......................... 14.8 Sanjay Mukim v United Spirit Limited and Ors. [MANU/CL/0046/2015, C.P. No. 7/2014-CB(Mad)] ............................................ 7.14 Sardar Sarovar Narmada Nigam Ltd. [CLB MUM: CA 7/2015] ................................ 9.24 Satish Mittal v Ozone Builders & Developers Pvt. Ltd. Company Appeal (AT) (Insv) No. 75 of 2017 ...................................................... R-87 Satyanarayana Rathi v Annamalaiar Textiles Private Limited [1999] 95 Comp Cas 386 (CLB) ............................................................................ 7.24 Satyaprakash Aggarwal & Ors. v Vistar Metal Industries Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 136 of 2018] ..................................... R-112 Schweitzer Systemtek India Pvt. Ltd v Phoenix ARC Pvt. Ltd. & Ors. Company Appeal (AT) (Insv) No. 129 of 2017 .................................................... R-76 Scottish Co-Operative Wholesale Society Limited v Meyer [1959] AC 324 ....................................................................................................... 14.6 Secretary of State for India in Council v Rameswaram Devasthanam MANU/PR/0121/1934, (1934) 3 AWR 713, 38CWN533, (1934)ILR 57PR652, 1934-39-LW613, 61M.I.A.163 ......................................... 21.26 Seema Gupta v Supreme Infrastructure India Ltd. & Ors. Company Appeal (AT) (Insv) No. 53 of 2017 ...................................................... R-87 Senthil Kumar Karmegam v 1. Dolphin Offshore Enterprises (Mauritius) Pvt. Ltd, 2. Unison Engineering & Construction Ovt. Ltd. Company Appeal (AT) (Insv) No. 154 of 2017 ............................................ R-81 Serum Institute of India v Inderjit Properties Private Limited (2006) 129 CompCas 757 CLB, 2005 64 SCL 33 CLB ....................................... 14.30 Seth Thakurdas Khinvraj Rathi v Cals Refineries Ltd. [Company Appeal (AT) (Insolvency) No. 333 of 2018] ..................................... R-102 Shailendrajit Charanjit Rai & anr v The Registrar of Companies, Maharashtra, Mumbai & anr. Writ Petition No. 148 of 2018 ................................ 5.20

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Shailesh Prabhudas Mehta v Calico Dyeing and Printing Mills Limited [1994] 80 Comp Cas 64(SC) .................................................................... 7.22 Shanti Kumar R. Chanji v Home Insurance Co. of New York, MANU/SC/0017/1974MANU/SC/0017/1974: AIR 1974 SC 1719 .................... 21.12 Shanti Prasad Jain v Kalinga Tubes Ltd. [MANU/SC/0368/1965 : AIR 1965 SC 1535 : [1965] 35 Comp Cas 351(SC) : (1965) 1 Comp LJ 193 (SC) : [1965] 2 SCR 720] ......................... 14.17, 14.18, 14.34 Shapoorji Pallonji Finance Limited v Mideast (India) Ltd. [2002] 110 Comp Cas 868 (CLB).......................................................................... 7.23 Shaw Wallace and Co. Ltd. v Union of India (UOI) [MANU/WB/0376/1998 : 2CWN11 : (1999)ILR 2Cal429] ................ 4.7, 7.11, 13.59 Sheikh Rahim Bux v Sheikh Muhammad Jamshed Ali [MANU/WB/0382/1953, (1955) ILR 1Cal25] .................................................... 21.20 Shilpi Cable Technologies Ltd. v Macquarie Bank Limited ...................................... R-16 Shobha Kirloskar & ors v Ghatge Patil Industries Ltd, CP 106/2014 : CLB(MUM), order dated 25 November 2014 ..................................................... 14.30 Shravan Kumar Visnoi v Crown Alba Writing Instrument Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 253 of 2018] ...................................... R-94 Shree Ganesh Jewellery House (I) Ltd. v Abhishek Stock Broking Services Pvt. Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 78 of 2018]................................................................................................... R-118 Shreyans Realtors Pvt. Ltd. & Anr. v Saroj Realtors & Developers Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 311 of 2018 ....................... R-109 Shyama Prasad Mudrarka v Calcutta Stock Exchange Association Ltd. [2002] 108 Comp Cas 703 (CLB).......................................................................... 7.26 Side-hotham Ex. J. Sidebotham, In Re, (1880) 14 Ch. D. 458 C.A. ........................... 21.9 Sindhri Iron Foundry (P) Ltd. , In Re, [l964 (34) C.C.510] ........................................ 23.5 Sivakumar Spinning Mills Pvt., Ltd. v Shanmughavelayutham and Ors. [MANU/TN/3760/2009 : 2009 (6) CTC 847] .............................................. 21.25 Smart Timing Steel Ltd. Creditor v National Steel and Agro Industries Ltd. Company Appeal (AT) (Insv) No. 28 of 2017 .............................................. R-81 Sovereign Life Assurance Company v Dodd [(1892) 2 QB 573(CA)] ..................... 13.16 Spindel Fabrik Suessen v Suessen Textile Bearing Limited (1989) 2 CORPT. LA. 202 (BOMBAY), ................................................................ 6.9 Sree Metalliks Ltd v Srei Equipments Finance Ltd. Company Appeal (AT) (Insv) No. 3 of 2017..................................................................................... R-41 Sriram Compounds Pvt. Ltd. v Shiva Drums Pvt. Ltd. & Ors. [Company Appeal (AT) (Insolvency) No. 46 of 2018] ........................................ R-97 SRS Limited, NCLT/CHD/CP 21/2017 & Ors ............................................... R-150, 9.30 Standard Chartered Bank v Andhra Bank Financial Services Ltd. MANU/SC/2534/2006 : 2006 (6) SCC 94 ............................................................. 7.20 Starlog Enterprises Limited v ICICI Bank Ltd. Company Appeal (AT) (Insv) No. 5 of 2017........................................................ R-70 lxxxv

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State Bank of India (FC) v 1.V. Ramakrishnan 2. Veesons Energy Systems Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 213 of 2017] ................................................................................................................... R-102 State Bank of India v Debashish Nanda [Company Appeal (AT) (Insolvency) No. 49 of 2018] ....................................... R-114 State Bank of India v SKC Retails Ltd. Through IRP & anr.

[Company Appeal (AT) (Insolvency) No. 08 & 43 of 2018] ............................. R-123 State Bank of India v Tech Magacorp International Pvt. Ltd. Through IRP & anr. [Company Appeal (AT) (Insolvency) No. 09 of 2018] .................... R-123 State Bank of India v S. Muthuraju & Ors. Company Appeal (AT) (Insv) No. 105 of 2017 .................................................... R-40 State of Karnataka v Mysore Coffee Curing Works Ltd. [19841 55 Comp Cas 70 ........................................................................................ 6.17 State of Rajasthan & Ors. v Union of India & Ors., MANU/SC/0370/1977MANU/SC/0370/1977 : AIR 1977 SC 1361 ................... 21.12 Status Clothing Company Limited, CP No. 141/2016..................................... R-147, 9.28 Steamline Industries Ltd. v Tecpro Systems Ltd. & Anr. Company Appeal (AT) (Insv) No. 229 of 2017 .................................................................... R-53 Steel Konnect (India) Pvt. Ltd. v Hero Fincorp Ltd. Company Appeal (AT) (Insv) No. 51 of 2017 ...................................................... R-72 Strdiewell Leathers (P) Ltd. v Bhankarpur Simbhaoli Beverages (P) Ltd. [1994 (79) C.C. 139] ...................................................................................... 23.7 Sulochana Amma v Narayanan Nair [MANU/SC/0047/1994 : 1994 ECR 195 (SC)] .............................................................................................. 23.9 Sumeet Ahuja v Union Bank of India & Anr. Company Appeal (AT) (Insv) No. 128 of 2017 .................................................... R-75 Sunil Sen v Symphony Limited and Ors. (2018) 209 Comp Cas 624 (NCLAT) ........................................................ R-141, 7.29 Suprabha Protective Products Pvt. Ltd v Phoenix Trading & Consulting Pvt. Ltd. [Company Appeal (AT) (Insolvency) No. 345 of 2018] ............................................................................................................... R-131 Surendra Trading Company. v J.K Jute Mills Company Limited and Others. ................................................................................................................... R-20 T. Vinayak Ravi Reddy v Canara Bank & Anr. Company Appeal (AT) (Insv) No. 110 of 2017 .................................................... R-41 T.R Jawahar & Anr v Edelweiss Asset & Anr. Company Appeal (AT) (Insv) No. 274 of 2017 .................................................... R-63 Tarlok Chand Khanna v Raj Kumar Kapoor [1983] 54 Comp Cas 12 (Delhi) ............................................................................. 7.23 Teknow Consultants & Engineers Pvt Ltd. v Bharat Heavy Electricals Limited Company Appeal (AT) (Insv) No. 224 of 2017 ............................ R-38, R-40 Thapar Agro Mills Ltd [(1998) 93 Comp. Case (CLB – NB)] .................................... 9.26

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The Madras High Court in Nungambakkam Dhanarakshaka Saswaiha Nidhi Limited v Registrar of Companies [1972] 42 Comp Cas 632 ....................................................................................... 10.6 The Registrar of Companies Maharashtra Mumbai & Anr. v Shailendrajit Charanjit Rai & Anr. SLP (C) Nos. 18693 – 18703/018, SC ................................................................... 5.22 The Securities & Exchange Board of India (SEBI) v Sterlite Industries (India) Ltd MANU/MH/0339/2002 : [2003]113CompCas273(Bom) : [2003]45SCL475(Bom) ..................................... 13.9 The South India Insurance Co., Ltd. v Lakshmi - AIR 1967 MDS 464 ........................ 4.8 The State Trading Corporation of India Ltd. v Gandhar Oil Refinery India Ltd. [Company Appeal (AT) (Insolvency) No. 236 of 2018] .................... R-137 Thiruvalluvar Velanmai Kazhagam (P) Ltd. v M.K. Seethai Achi [1988 (64) C.C. 304].............................................................................................. 23.6 Tomorrows Sales Agency Pvt. Ltd. (Successful Resolution Applicant) v Rajiv Khurana (Resolution Professional for Power Himalayas Ltd. & Ors.) [Company Appeal (AT) (Insolvency) No. 162 of 2018] ................................................................................................................... R-103 Transparent Technologies Pvt Ltd. v Multi Trade.

Company Appeal (AT) (Insv) No. 207 of 2017 .................................................... R-45 Ultrafilter (India) Pvt. Ltd. v Ultrafilter GmbH [2002] 38 SCL 573. ........................ 14.41 Unigreen Global Private Limited v 1. Punjab National Bank, 2.Corporation Bank., 3. Vijaya Bank, 4.Oriental Bank of Commerce, Company Appeal (AT) (Insv) No. 81 of 2017 .................................. R-78 Unimark Remedies Ltd v Ashok Alco Chem Ltd. Company Appeal (AT) (Insv) No. 45 of 2017...................................................... R-44 Union of India (UOI) v Sterlite Industries (India) Ltd. ............................................... 13.9 Union of India v Company Law Board, Mumbai Bench and Others [MANU/MH/2163/2013, 2014(7)BomCR630 : [2013]181CompCas290 (Bom), [2014]123SCL199 (Bom)] ............................... 14.34 Union of India v R. Gandhi, President, Madras Bar Association [MANU/SC/0378/2010 : (2010)2CompLJ577(SC) : 2010(3)CTC517 : 2010(261)ELT3(S.C.) : JT2010(5)SC553(1) : (2010)4MLJ734(SC) : 2010(5)SCALE514 : (2010)11SCC1 : [2010]100SCL142(SC) : 2010(6)UJ2945] ....................................................... 1.6, 1.9 Unitech Ltd. [CLB- DEL:CP 10/18/2015] .................................................................. 9.24 United Bank of India v United India Credit & Development Co. Ltd. 47 CC 689 ............................................................................................................ 13.88 United India Insurance Co. Ltd. v Rajendra Singh AIR 2000 Supreme Court 1165 ............................................................................... 4.8 United Seamless Tabulaar Pvt. Ltd. v Kamineni Steel & Power India Pvt. Ltd. & Ors.[Company Appeal (AT) (Insolvency) No. 23 of 2018] ..................................................................................................................... R-97

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Urban Infrastructure Trustee Limited v Neelkanth Township & Construction Pvt Ltd. .................................................................................. R-31, R-32 Uttam Galva Metallics Ltd. v State Bank of India [Company Appeal (AT) (Insolvency) No. 315 of 2018] ..................................... R-110 Uttam Galva Steels Limited v DF Deutsche Forfait AG & Anr. Company Appeal (AT) (Insv) No. 39 of 2017 ...................................................... R-83 Uttam Value Steels Ltd. v State Bank of India [Company Appeal (AT) (Insolvency) No. 316 of 2018] ..................................... R-110 Uttara Foods And Feeds Private Limited v Mona Pharmachem ................................ R-15 V. Balachandran v Union of India and another [1993 (76) C.C.67] ............................ 23.6 V.B. Rangaraj v V.B. Gopalakrishnan and Ors. MANU/SC/0076/1992, AIR1992 SC453 : [1992]73Comp Cas201(SC) : JT1991(4)SC430 : (1992)IIMLJ11(SC) : 1991(2)SCALE1135 : (1992)1SCC160 : [1991]Supp3SCR1 ................................................................................................. 7.26 V.G. Peterson v O V Forbes [AIR 1963 SC 692] ............................................ R-139, 7.28 V.S. Krishnan and Ors. v Respondent: Westfort Hi-tech Hospital Ltd. and Ors. [2(2008)CLT823 : [2008]142CompCas235(SC) : (2008)2CompLJ1(SC) : ILR2008(2)Kerala253 : 2008-4-LW356, (2008)2MLJ1192(SC) : 2008(3)SCALE184 : (2008)3SCC363 : [2008]83SCL44(SC)] .................................................................................. 14.7, 14.18 Valecha Engineering Limited, IA NO. 17 of 2017 in TCP/5/74(2)/2016 ...................................................................................... R-145, 9.27 Van Gemert v Boeing Co., 259 F. Supp. 125 (S.D.N.Y. 1966) ................................... 15.5 Vankamamidi Venkata Subba Rao v Chatlapalli Seetharamaratna Ranganayakamma [MANU/SC/0800/1997: [1997]3SCR530] .............................. 23.7 Vardhman Publishers Limited v Mathrubhumi Printing and Publishing Company Limited [1991] 71 Comp Cas 1(Ker)..................................................... 7.22 Variar Benefit Fund Limited , NCLT/CHd/CA/130/2017 ............................... R-149, 9.30 Vasant Investment Corporation Limited v Official Liquidator, Colaba Land and Mill Co. Ltd, MANU/MH/0074/1979 : (1981) 51 Comp. Case 20. ..................................................................................... 13.8 Vikas Jalan v Hyderabad Industries Limited [1997] 88 Comp Cas 551 (CLB) ............................................................................ 7.24 Vilasini Jayaprakash v St. Mary’s Finance Ltd. [(2000) 99 Comp. Case (Kerala)]........................................................................... 9.26 Vivo Mobile India Private Limited, NCLT/CHD/ /14.12.2017, CP/156/2017 ............................................................................................ R-162, 11.14 Wali Mohammad v Mohammad Baksh MANU/PR/0054/1949 : AIR 1950 PC 56 ................................................................................................... 21.26 Wali Mohammad v Mohammad Baksh MANU/PR/0230/1929 : 1930 (32) BOMLR 380 ........................................................................................ 21.26

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West Bengal Essential Commodities Supply Corporation Ltd. v Bank of Maharashtra Company Appeal (AT) (Insv) No. 90 of 2017............................. R-82 Woods Ex. P. Ditton, In Re, [1879] 40 L. T. 297 C.A. 79 .......................................... 21.9 World Wide Agencies Pvt. Ltd. & Anr. v Margarat T. Desor & Ors. MANU/SC/0137/1990 : 1990 1 SCC 536 ........................................................... 14.30 Yogendra H. Desai v Spatial Holodynamics (India) (P.) Ltd [Company Application No. 1/167/CLB/WR/2002; MANU/CL/0059/2002........................................................................................... 10.5

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Key to reading this book Readers are requested to take a note of some of the important points before reading the book.

Overview of changes Many chapters begin with an overview of changes. This is an executive summary/snapshot of the changes brought in by Companies Act, 2013 and their impact which are discussed in detail thereafter. In winding up chapter, I have also introduced an overview of changes brought about by the Insolvency and Bankruptcy Code.

Decoding the Law “Decoding of Law” provides pertinent question inserted in the form of a box under various topics. They raise issues that are sought to be answered in subsequent paragraphs to better understand and interpret the new law in light of the changes introduced.

Applicability Under this section, the author has taken select case laws, analysed them and then tried to test their applicability/relevance to the new provisions in light of the changes introduced. It will help the readers to understand the applicability of old case laws to the new Act. Observation Interpretation of some provisions is tricky and therefore, such provisions have been analysed under “observations” where there is a possibility of multiple interpretations; or interpretation is leading to an absurdity; or constitutionality of a provision is questionable; or its applicability is unclear or the like.

Rules The NCLT and related rules published during 2016 and 2017 have been provided either as annexures to this book or in the form of a CD. Each set of Rules is given an abbreviation in the Act; for instance, rules under compromise and arrangement are referred to as M&A Rules. The abbreviations page provides full forms of these rules.

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NCLT and NCLAT Law Practice and Procedure, 6e

Procedures ● The procedures discussed under each topic in the book are based on the current rules. Only in the winding up chapter are the procedures based on draft rules as these rules are yet to be notified. ● Chapter-22 on “General Practice and Procedure” provides for the general procedure which is a default procedure to be followed under NCLT; unless expressly specified otherwise under the NCLT Rules or other rules or unless it is necessarily implied. ● Only the procedures under the company law have been discussed in this book. Other related compliances under other laws/regulations like LODR are not provided.

Further Reading This book provides a perspective of how to read the new law and the changes therein. However, the subjects like oppression and mismanagement etc. are very vast and have thousands of relevant cases and material to refer. In such chapters, a list of relevant reference material under the heading “Further Reading” has been provided, so that when a professional reads this book on the new law, the reader would also get a perspective, as to what all other books/material can be referred to.

Reference of Companies Act 2013 Unless expressly or impliedly provided otherwise, all the sections pertain to Companies Act, 2013, with one exception, viz., the chapter on Insolvency and Bankruptcy Code.

Comparison charts In addition to the above, comparison charts under the new and old Act have been extensively used in the book to make the readers understand the relevance and applicability of various sections. Where ever possible, questions and answers have been discussed on crucial topics to analyse the new provisions.

FAQ Wherever possible, questions and answers have been discussed on crucial topics to analyse new provisions.

xcii

Abbreviations 1956 Act 2010 NCLT Case 2013 Act 2015 NCLT case Apex Court Appellate Tribunal AAIFR AGM BIFR BoD Board/IBBI CA CCI CDR CEO CESTAT CFO CG CLB CPC CrPC CS DRT DRAT EOGM FEMA FY HC IAS IBC

Companies Act, 1956 Order passed on 11 May 2010 in Union of India v R Gandhi Companies Act, 2013 Madras Bar Association v Union of India (UOI) and Ors. Supreme Court NCLAT Appellate Authority for Industrial and Financial Reconstruction Annual General Meeting Board for Industrial and Financial Reconstruction Board of Directors Insolvency and Bankruptcy Board of India Chartered Accountant Competition Commission of India Corporate Debt Restructuring Chief executive officer Customs, Excise and Service Tax Appellate Tribunal Chief Financial Officer Central Government Company Law Board Civil Procedure Code Criminal Procedure Code Company Secretary Debts Recovery Tribunal Debts Recovery Appellate Tribunal Extra Ordinary General Meeting The Foreign Exchange Management Act, 1999 Financial Year High Court Indian Accounting Standards Insolvency and Bankruptcy Code, 2016 xciii

NCLT and NCLAT Law Practice and Procedure, 6e

ICAI ICSI IFRS INV Rules INC Rules IRP ITAT KMP Limitation Act LLP MCA MD MoA M&A Rules NACAS NBFC NCLAT NCLT NCLAT Rules NCLT Rules New Act NFRA O&M Old Act OL O&M Rules

OPC PAC xciv

Institute of Chartered Accountants of India Institute of Company Secretaries of India International Financial Reporting Standards Inspection, Inquiry and Investigation Draft Rules released in 2013 (No separate final rules notified – NCLT Rules apply which are discussed in relevant Chapter) Companies (Incorporation) Rules, 2014 Insolvency Resolution Process Income Tax Appellate Tribunal Key Managerial Personnel Limitation Act, 1963 (Act 36 of 1963) Limited Liability Partnership Ministry of Corporate Affairs Managing Director Memorandum of Association Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 released on 14th December 2016 and effective on 15th December 2016 National Advisory Council on Accounting Standards Non Banking Financial Companies National Company Law Appellate Tribunal National Company Law Tribunal National Company Law Appellate Tribunal Rules notified on 21st July 2016 National Company Law Tribunal Rules, 2015 notified on 21st July 2016 Companies Act, 2013 National Financial Reporting Authority Oppression and Mismanagement Companies Act, 1956 Official Liquidator Draft Companies (Prevention of Oppression and Mismanagement) Rules, 2016 issued in January 2016 (No separate final rules notified – NCLT Rules apply which are discussed in relevant Chapter) One Person Company Person Acting in Concert

Abbreviations

RBI ROC RD RSC Rules SC SEBI Section 8 companies SICA SFIO SRR Rules WOS WTD WUP Rules

Reserve of Bank of India Registrar of Companies Regional Director National Company Law Tribunal (Procedure for Reduction of Share Capital of Company) Rules, 2016 notified on 15th December 2016.

Supreme Court Securities and Exchange Board of India Charitable Companies registered under Section 8 of 2013 Act Sick Industrial Companies (Special Provisions) Act, 1985 Serious Fraud Investigation Office Draft Companies (Revival and Rehabilitation of Sick Companies) Rules, 2016 (Chapter XIX is omitted).

Wholly Owned Subsidiary Whole Time Director Draft Companies (Winding up) Rules released in 2013 (No rules notified as yet)

xcv

NCLT and NCLAT Law Practice and Procedure, 6e

xcvi

Concise Referencer

Powers of NCLT: at a glance BIFR

HC

NCLT

CLB

CG

Appendix A Powers Transferred from Court to NCLT Section nos.

(1956 Act)

Section nos.

(2013 Act)

Power

Notified Date(“ND”)/Effective Date(“ED”)

100 to 104

66(1)

To confirm reduction of share capital;

ND: 07/12/2016 ED: 15/12/2016

107

48(2)

To cancel variation of rights on appeal by dissentient shareholders;

ND: 07/12/2016 ED: 15/12/2016

243

224(2)

To hear petition for winding up of a company presented

by Central Government;

ND: 07/12/2016 ED: 15/12/2016

391

230(1)

To call meeting of creditors or members where compromise or arrangement is proposed;

ND: 07/12/2016 ED: 15/12/2016

R-1

NCLT and NCLAT Law Practice and Procedure, 6e Section nos.

(1956 Act)

Section nos.

(2013 Act)

Power

Notified Date(“ND”)/Effective Date(“ED”)

392

231(1)

To sanction compromises & arrangements;

ND: 07/12/2016 ED: 15/12/2016

394

232(1)

To call meeting of creditors or members for facilitating merger & amalgamation of companies;

ND: 07/12/2016 ED: 15/12/2016

425

270(1) and 271

To wind up a company;

ND: 07/12/2016 ED: 15/12/2016

440

306(3)(b)

To hear winding up petition where company is being wound up voluntarily

Omitted with effect from 15/11/2016

560

252

To restore the name of the company in the register of companies whose name has been struck off

ND:26/12/2016 ED:26/12/2016

583

375(3)

Powers regarding winding up of unregistered company;

ND: 07/12/2016 ED: 15/12/2016

587

373

To grant leave to initiate suits etc., after on winding up order has been made;

ND: 07/12/2016 ED: 15/12/2016

589

377

Provisions of Part cumulative;

ND: 07/12/2016 ED: 15/12/2016

635-B

218(1)

To grant approval for action proposed against any employee during investigation;

ND: 01/06/2016 ED: 01/06/2016

Appendix B Powers Transferred from CLB to NCLT Section nos. Section nos.

(1956 Act) (2013 Act)

Powers

Notified Date(“ND”)/Effective Date(“ED”)

58A(9)

73(4)

To order the company to make ND: 01/04/2014 repayment of the matured deposits ED: 01/04/2014 and loss incurred;

111

58(5)

To pass order on appeal against ND: 12/09/2013 refusal of registration of transfer or ED: 12/09/2013 transmission;

R-2

Powers of NCLT: at a glance Section nos. Section nos.

(1956 Act) (2013 Act)

Powers

Notified Date(“ND”)/Effective Date(“ED”)

111A

59(2)

To order rectification of register of ND: 12/09/2013 members; ED: 12/09/2013

117C(4)

71(10)

To order redemption of debentures ND: 01/06/2016 forthwith by payment of principal ED: 01/06/2016 and interest;

117B(4)

71(9)

To order restriction to be imposed on the company for incurring further liabilities on application of Debenture Trustee;

186

98(1)

To call meetings of members, etc.; ND: 01/06/2016 ED: 01/06/2016

196(4)

119(4)

To order inspection of minute books; ND: 01/06/2016 ED: 01/06/2016

225(3) proviso

140(4)

To restrict copies of representation i. of the auditor to be removed to be sent out;

ND: 01/06/2016 ED: 01/06/2016

ii.

Except second proviso, ND/ED for all provisions: ND: 01/04/2014 ED: 01/04/2014 ND/ED for second proviso: ND: 01/06/2016 ED: 01/06/2016

235

210(2)

To order investigation of the affairs of a company;

ND: 01/04/2014 ED: 01/04/2014

237(b)

213

To order investigation of company’s affairs in other cases;

ND: 01/06/2016 ED: 01/06/2016

247

216(2)

To order investigation of ownership of company;

ND: 01/06/2016 ED: 01/06/2016

250

222(1)

To impose restrictions on shares & ND: 01/06/2016 debentures; ED: 01/06/2016

284(4) proviso

169(4)

To restrict copies of representation ND: 01/06/2016 of the director to be removed to be ED: 01/06/2016 sent out;

396(3A)

237(4)

To assess compensation on appeal from assessment of compensation made by prescribed authority;

397, 398

242(1), (2)

To pass an order for relief in cases i. of oppression, etc.;

ND: 07/12/2016 ED: 15/12/2016 Except 242(1), ND/ED for all provisions: ND: 01/04/2014 ED: 01/04/2014 R-3

NCLT and NCLAT Law Practice and Procedure, 6e Section nos. Section nos.

(1956 Act) (2013 Act)

Powers

Notified Date(“ND”)/Effective Date(“ED”) ii.

ND/ED for second proviso: ND: 01/06/2016 ED: 01/06/2016

403

242(4)

To pass interim order;

407

243(1)(b)

To grant leave to be appointed as a ND: 01/06/2016 director, managing director or ED: 01/06/2016 manager after a person has been terminated under Section 242;

408

242(2)(k)

To make appointment(s) to prevent oppression or mismanagement;

ND: 01/06/2016 ED: 01/06/2016

621-A

441(1)

To compound of certain offences;

ND: 01/06/2016 ED: 01/06/2016

637A

459

To accord approval etc., subject to ND: 12/09/2013 conditions; ED: 12/09/2013

Schedule XI 246

ND: 01/06/2016 ED: 01/06/2016

Form in which section 539 to 544 (337 to 341 of 2013) are to apply to cases where an application is made u/s 397,398 (241 and 245 of 2013);

ND: 09/09/2016 ED: 09/09/2016

Appendix C Powers Transferred from BIFR to NCLT THE SICK INDUSTIRAL COMPANIES (SPECIAL PROVISIONS) ACT, 1985

Chapter XIX (2013 Act)

Power to revive and rehabilitate companies

Omitted with effect from 15/11/2016

Appendix D Powers Transferred from Central Government to NCLT Section nos (1956 Act)

Section nos.

(2013 Act)

Proviso to Section 31(1)

2nd Proviso to Section 14(1)

Powers Alteration of Articles to convert a public company into a private company.

This power is re-transferred to Central Government vide Companies (Amendment) Ordinance, 2018 w.e.f.

2/11/2018

R-4

Notified Date(“ND”)/Effective Date(“ED”) ND: 01/06/2016 ED: 01/06/2016

Powers of NCLT: at a glance

Appendix E New Powers of NCLT under Companies Act, 2013 Section (2013 Act)

Power

Notified Date(“ND”)/Effective Date(“ED”)

2(41) Proviso

To allow certain companies to have a different financial year.

ND: 01/04/2014 ED: 01/04/2014

This power is transferred to Central Government vide Companies (Amendment) Ordinance, 2018 w.e.f. 2/11/2018.

7(7)

Powers for deregistration of companies incorporated by false representation;

i.

Except section 7(7)(c) & section 7(7)(d), ND/ED for all provisions: ND: 01/06/2016 ED: 01/06/2016 ii. ND/ED for section 7(7)(c) & section 7(7)(d): ND: 07/12/2016 ED: 15/12/2016

8(9)

Powers in case of winding up of Charitable companies to impose conditions on transfer of remaining assets to other similar companies after winding up;

ND: 07/12/2016 ED: 15/12/2016

55(3)

To approve issue of further redeemable preference shares when a company is unable to redeem its existing unredeemed preference shares or to pay dividend thereon;

ND: 01/06/2016 ED: 01/06/2016

55(3) Proviso

To order forthwith redemption of such preference shares the holder of which have not consented to the issue of further redeemable preference shares;

ND: 01/06/2016 ED: 01/06/2016

56(4)

To make an order imposing prohibition on delivery of certificates for the securities issued by a company;

ND: 01/04/2014 ED: 01/04/2014

59(3)

To order suspension of voting rights of the holder of securities;

ND: 12/09/2013 ED: 12/09/2013

59(4)

To direct a company or depository to set right a contravention of SCRA or SEBI Act or any other law, resulting by a transfer, and rectify its registers and records;

ND: 12/09/2013 ED: 12/09/2013

61(1)(b) Proviso

To approve consolidation or division of share capital resulting in a change in voting percentage of shareholders;

ND: 01/06/2016 ED: 01/06/2016

R-5

NCLT and NCLAT Law Practice and Procedure, 6e Section (2013 Act)

Power

Notified Date(“ND”)/Effective Date(“ED”)

125(3)(d)

To sanction utilization of Investor Education and Protection Fund for reimbursement of legal expenses incurred on class action suits by members, debenture-holders or depositors;

ND: 05/09/2016 ED: 07/09/2016

130(1)

To order that the accounts were prepared in a fraudulent manner or the affairs of the company were mismanaged and to require re-opening of books of accounts;

ND: 01/06/2016 ED: 01/06/2016

131(1)

To approve voluntary revision of financial statements or Board’s Report;

ND: 01/06/2016 ED: 01/06/2016

140(5)

To order a company to change its auditors on being satisfied that the company’s auditor(s) has acted fraudulently;

ND: 01/06/2016 ED: 01/06/2016

218(1)

To approve the proposed action to be taken against any employee during the course of any investigation;

ND: 01/06/2016 ED: 01/06/2016

218(3)

To pass order on appeal from objection by the Tribunal against action to be taken against an employee;

ND: 01/06/2016 ED: 01/06/2016

221(1)

To order freezing of assets on any inquiry or investigation and to impose restrictions;

ND: 01/06/2016 ED: 01/06/2016

222(1)

To direct that the securities of a company shall be subject to certain restrictions for a period not exceeding 3 years;

ND: 01/06/2016 ED: 01/06/2016

224(2)

To entertain petition for winding up in pursuance of inspector’s report;

ND: 07/12/2016 ED: 15/12/2016

224(5)

To pass orders with regard to disgorgement of asset, property or cash or to hold any person personally liable for any fraud detected in the inspector’s report;

ND: 01/06/2016 ED: 01/06/2016

226, 1st proviso

To pass orders after inspector’s intimation of pendency of investigation proceedings;

ND: 07/12/2016 ED: 15/12/2016

230(6)

To sanction compromise or arrangement agreed to at the meeting of creditors/members ordered by the Tribunal;

ND: 07/12/2016 ED: 15/12/2016

230(9)

To dispense with calling of meeting of members/creditors for approving compromise or arrangement;

ND: 07/12/2016 ED: 15/12/2016

R-6

Powers of NCLT: at a glance Section (2013 Act)

Power

Notified Date(“ND”)/Effective Date(“ED”)

230(12)

To pass orders on an application in the event of any grievance in respect of takeover offer of companies other than listed companies;

Yet to be notified

234

To sanction merger and amalgamations between Indian Companies with Foreign companies

ND:13/04/2017 ED: 13/04/2017

236(6)

Powers in case of fast track merger

ND: 07/12/2016 ED: 15/12/2016

245

Class Action

ND: 01/06/2016 ED: 01/06/2016

Appendix F New Powers of NCLT under IBC Section of IBC

Power

Notified Date(“ND”)/Effect ive Date(“ED”)

Sec. 4 to 32

Power to initiate Corporate Insolvency Resolution Process

ND: 30/11/2016 ED: 01/12/2016

Sec. 33 to 54

Power to liquidate corporate person

ND: 09/12/2016 ED: 15/12/2016

Section 55 to 58

Power to initiate Fast Track Corporate Insolvency Resolution Process

ND: 14/06/2017 ED: 14/06/2017

Sec. 59

Voluntary winding-up

ND: 30/03/2017 ED: 01/04/2017

Appendix G New Powers of NCLT under Companies (Amendment) Act, 2017 and amended by Companies (Amendment) Ordinance, 2018 Section of Amendment Act

Power

Notified Date(“ND”)/Effect ive Date(“ED”)

Section 22(Amended Section 90 of Companies Act, 2013)

Imposition of Restriction on right of shares which owners have not disclosed information about significant beneficial owner.

ND: 13/06/2018 ED: 13/06/2018

This power is further modified vide Companies (Amendment) Ordinance, 2018 w.e.f.

2/11/2018.

R-7

NCLT and NCLAT Law Practice and Procedure, 6e

R-8

Notified Sections of IBC as on 3rd October, 20181 Appendix E Powers Transferred from Court to NCLT Section of IBC

Power

Notified Date(“ND”)/Effective Date(“ED”) PART I Preliminary

Sec 3 (1), (5), Definitions (22), (26), (28) & (37)

ND: 19/08/2016 ED: 19/08/2016

Sec 3 (2) to (4), Definitions (6) to (21), (23) to (25), (27) & (29) to (36) Sec 2(a) to (d) Applicability of Code

ND: 01/11/2016 ED: 01/11/2016 ND: 30/11/2016 ED: 01/12/2016

PART II Insolvency Resolution and Liquidation for Corporate Persons

Sec. 4 to 5

Sec.6 to 32

CHAPTER I Preliminary Power to initiate Corporate Insolvency ND: 30/11/2016 Resolution Process ED: 01/12/2016 CHAPTER II Corporate Insolvency Resolution Process Power to initiate Corporate Insolvency ND: 30/11/2016 Resolution Process ED: 01/12/2016 CHAPTER III

Sec. 33 to 54

1

Liquidation Process Power to liquidate corporate person

ND: 09/12/2016 ED: 15/12/2016

Part III dealing with individual and partnership are not notified till date.

R-9

NCLT and NCLAT Law Practice and Procedure, 6e Section of IBC

Sec 55 to 58

Sec 59

Power

Notified Date(“ND”)/Effective Date(“ED”)

CHAPTER IV Fast Track Corporate Insolvency Resolution Process Power to initiate Fast Track Corporate ND: 14/06/2017 Insolvency Resolution Process ED: 14/06/2017 CHAPTER V Voluntary Liquidation Of Corporate Persons Voluntary winding-up ND: 30/03/2017 ED: 01/04/2017

CHAPTER VI & VII Adjudicating Authority for Corporate Persons and Offences and Penalties Sec 60 to 77 Adjudicating Authority for corporate ND: 30/11/2016 persons and Offences And Penalties ED: 01/12/2016 PART IV Regulation Of Insolvency Professionals, Agencies And Information Utilities

Sec 188 to 194

Sec 196 & 197 Sec 198

CHAPTER I The Insolvency And Bankruptcy Board Of India Power under Insolvency Professionals, ND: 05/08/2016 Agencies And Information Utilities ED: 05/08/2016 CHAPTER II Powers And Functions Of The Board Power of Board ND: 01/11/2016 ED: 01/11/2016 Power to Condone the delay

ND: 30/11/2016 ED: 01/12/2016

CHAPTER III & IV Insolvency Professional Agencies And Insolvency Professionals Sec 199 to 207, Power Relating to Insolvency ND: 15/11/2016 Sec 208(2) & Professional Agencies and Insolvency ED: 15/11/2016 208(1)(c) & (e) Professional CHAPTER V Information Utilities Sec 209 to 215 & Power relating to Information Utilities Sec 216(1)

R-10

ND: 30/03/2017 ED: 01/04/2017

Notified Section of IBC as on 31st March, 2018

Section of IBC

Sec 217 to 220

Sec 221 to 222 Sec 223

Sec 225 Sec 226

Power

Notified Date(“ND”)/Effective Date(“ED”)

CHAPTER VI Inspection And Investigation Power of Investigation and Inspection. ND: 15/11/2016 ED: 15/11/2016 CHAPTER VII Finance, Accounts And Audit Grants by Central Government and ND: 19/08/2016 Board’s Fund.

ED: 19/08/2016 Accounts and Audit ND: 01/11/2016 ED: 01/11/2016 PART V Miscellaneous Power of Central Government to issue ND: 19/08/2016 directions.

ED: 19/08/2016

Sec 227

Power of Central Government to supersede Board.

Power of Central Government to notify categories of financial service providers against whom insolvency and liquidation proceedings can be initiated

Section 228 & 229

Preparation of Annual Report and ND: 1/05/2018 Budget by IBBI ED: 1/05/2018

Sec 230

Power of Delegation

Sec 231

Sec 232 Sec 233

ND: 19/08/2016 ED: 19/08/2016 ND: 1/05/2018 ED: 1/05/2018

ND: 19/08/2016 ED: 19/08/2016 No civil court shall have jurisdiction in ND: 30/11/2016 respect of any matter in which the ED: 01/12/2016 Adjudicating Authority is empowered by, or under, this Code to pass any order Members, officers and employees of ND: 19/08/2016 Board to the public servants ED: 19/08/2016 Protection of action taken in good faith. ND: 19/08/2016 ED: 19/08/2016

Sec 234 to 235

Agreements with foreign countries and ND: 30/03/2017 Letter of request to a country outside ED: 01/04/2017 India in certain cases

Sec 236 to 238

Trial of Offence by Special court.

ND: 30/11/2016 ED: 01/12/2016

R-11

NCLT and NCLAT Law Practice and Procedure, 6e Section of IBC

Power

Notified Date(“ND”)/Effective Date(“ED”) Sec 239(2) (a) to Power of Central Government to make ND: 30/11/2016 (f) rules.

ED: 01/12/2016 Sec 239 (1) & Power of Central Government to make ND: 19/08/2016 (2)(zd) rules.

ED: 19/08/2016 Sec 239 (2) (ze) to Power of Central Government to make ND: 01/11/2016 (zh) & (zl) to (zm) rules.

ED: 01/11/2016 Sec 240 (2) (a) to Power to make regulations. (zm) & (zu) to (zzzc) Sec 240(1) & Power to make regulations.

(2)(zt) Sec 241 Sec 242

ND: 19/08/2016 ED: 19/08/2016

Rules and regulations to be laid before ND: 19/08/2016 Parliament.

ED: 19/08/2016 Power to remove difficulties.

ND: 19/08/2016 ED: 19/08/2016

Sec 244, & Sec Miscellaneous 246 to 248 provisions Sec 250 & 252 Miscellaneous Sec 251, 253 to Miscellaneous Sec 255

R-12

ND: 01/11/2016 ED: 01/11/2016

and

Transitional ND: 01/11/2016 ED: 01/11/2016 ND: 01/11/2016 ED: 01/11/2016 ND: 15/11/2016 ED: 15/11/2016