ET: Jet Airways: Irish lessor moves NCLT seeking to take back Boeing 777

23 August 2019: Irish aircraft leasing firm Fleet Ireland, which had leased the impounded Boeing B777 plane to the defunct Jet Airways, Friday moved the NCLT seeking a recall of the tribunal’s July 5 order that directed DGCA not to deregister the aircraft on the ground that it is an affected party and thus needs to be heard.

The aircraft was seized by a European cargo operator at the Amsterdam airport end March for non-payment of dues. Following this, a Dutch court had ordered bankruptcy proceedings against the airline in May.

The tribunal adjourned the matter to September 3.

The bankruptcy tribunal had on July 5, prevented the Directorate General of Civil Aviation from deregistering the Boeing 777 plane, which has been under the possession of a Dutch cargo provider since April.

After the airline was taken to NCLT on June 17, the Dutch company had moved an application to the DGCA seeking to de-register the aircraft.

When the NCLT resumed hearing the case on July 5, the RP sought a direction to DGCA against de-registration of the plane citing the moratorium under the bankruptcy process.

Meanwhile, the RP informed the tribunal that about 200 employees have consented to the terms of the agreement on salary payments. The RP also sought a direction to the lenders on interim financing so that a portion of the pending salaries could be paid.

The tribunal comprising VP Singh and Rajesh Sharma directed the RP to file a fresh application in this regard.

The Economic Times reported

ET: NCLT orders Emaar MGF Land to file its reply by August 30

23 August 2019: The National Company Law Tribunal (NCLT) Delhi on Tuesday had issued a notice to Emaar MGF Land ordering it to file its reply by August 30 in cases filed by some home buyers.

On January 24, 2019, NCLT-Delhi initiated corporate insolvency resolution process (CIRP) against Emaar MGF Land. However, on February 1, 2019 Hadi Mohd Taher Badri, director of Emaar MGF Land, had moved National Company Law Appellate Tribunal (NCLAT) against the order informing them that they have settled the case with the home buyer which filed the insolvency case.

Other home buyers who had filed similar cases, however, pleaded that the company should settle the case with all the buyers and not just one. They moved Supreme Court (SC) against the company.

In March 2019, NCLAT allowed home buyers to file interlocutory applications through their representatives while adjourned the matter saying that let the Supreme Court first decide the issue.

The SC on March 29, 2019, had set aside the CIRP initiated against the Emaar MGF Land.

However considering the SC’s recent order where it upheld the constitutional validity of Section 5(8) (f) of the Insolvency & Bankruptcy Code, NCLT issued notice on August 20, 2019 to the company in relation to the cases filed by other home buyers.

The Economic Times reported

ET: NCLT asks why IRP should not be initiated against Ansal Hi-Tech

23 August 2019: The National Company Law Tribunal (NCLT) Delhi on August 19 issued a show-cause notice to Ansal Hi-Tech Township asking why the corporate insolvency resolution process be not initiated against them.

The court asked the company to file their response by 21 August 2019.

The order relates to Sushant Megapolis, a project situated in Greater Noida, where the buyer had booked a plot. The project is yet to be delivered.

The buyer is being represented by advocate Piyush Singh and Aditya Parolia.

The project, launched in 2007, offered a mix of apartments, villas and residential plots.

The Economic Times reported

TOI: NCLAT asks CoC to approve resolution plan for Dighi Port in 3 weeks

23 August 2019: The National Company Law Appellate Tribunal (NCLAT) has asked the Committee of Creditors of Dighi Port Ltd to approve a resolution plan for the debt-ridden firm within three weeks.

A two-member NCLAT bench, headed by Chairperson Justice S J Mukhopadhaya, also directed the Committee of Creditors (CoC) to evaluate the proposal submitted by its promoters. “While approving so, the CoC will consider as to whether the plan as may be approved is better than the proposal as given by the promoters/appellant, taking into consideration the viability and feasibility and financial matrix of all resolution plans,” the NCLAT said. “It is accepted that the matter will be decided within three weeks,” it added.

Dighi Port, which is being developed by Balaji Infra Projects in the Raigad district of Maharashtra, is going through insolvency resolution process and — Adani Ports and Special Economic Zone Ltd (APSEZ) and Jawaharlal Nehru Port Trust (JNPT) were among bidders.

The CoC had earlier informed the NCLAT that total claims filed by the financial creditors against Dighi Port is more than Rs 3,000 crore. During the last hearing on July 24, 2019, the NCLAT had allowed Dighi Port Director Vishal Vijay Kalantri and other promoters to negotiate with the CoC and operational creditors to bring the company out of insolvency proceedings. However, the NCLAT observed in its hearing on Wednesday this week that though four weeks have passed, no settlement has been reached. Counsel appearing for the promoter group informed the NCLAT that the matter has been pending consideration of the CoC. While APSEZ submitted that its resolution plan has already been filed which should be considered by the CoC.

The appellate tribunal observed that considering the amendments in section 12 of the IBC (Insolvency & Bakruptcy Code), it was ” not inclined to give any time to the parties” and intend to hear the case on merit. It also gave promoters to settle the matter within two weeks with the CoC. “In the meantime, pending such settlement, the CoC will consider all the plans pending before it and after taking into consideration the viability and feasibility and other terms as fixed by the court… will approve one or the other plan,” said the NCLAT. Earlier, the lenders had rejected the resolution plan filed by APSEZ and approved JNPT bid. However, later APSEZ moved to NCLAT by filing an appeal against it.

Earlier, on July 10, the NCLAT had said that until its further orders, the NCLT will not pass any order of liquidation. Dighi Port is facing insolvency proceedings after the Mumbai bench of the National Company Law Tribunal (NCLT) allowed recovery plea by DBM Geotechnics and Constructions Pvt Ltd, one of its operational creditor for non-payment of construction of multi-purpose berth on March 25, 2018. KRH MKJ

The Times of India reported

ET: Tussle on over global oil assets of Videocon

23 August 2019: The overseas oilfield assets of Videocon group are caught in the crossfire as legal owner Videocon Oil Ventures and beneficial owner Videocon Industries are at odds over selling them, forcing the bankruptcy court to demand clarity on who gets to be the owner.

Videocon Industries had earlier this week requested the National Company Law Tribunal (NCLT) to include Videocon Energy Brazil Ltd and Videocon Indonesia Nunukan Inc in the ongoing corporate insolvency resolution process, after its lenders invited bids for these assets to recover part of their debt.

But VOVL has come out favouring sale of the assets, particularly the Indonesian asset in which an Indonesian government firm owns majority and Bharat Petroleum Corporation (BPCL) holds a minority stake.

“Contract pertains to Indonesia and now VIL is requesting the Indian jurisdiction to pass an order,” counsel representing VOVL and BPCL told the bankruptcy court. “If the order is passed in their favour, maybe BPCL being an Indian company may not have any rights over the assets, but the Indonesian company will not be bound by the order.”

If the assets are not sold, the share which would have otherwise come to the Indian company will go to an Indonesian firm, which puts more than Rs 100 crore of national money in jeopardy, the counsel said.

Videocon holds 23% stake in Videocon Indonesia Nunukan while BPCL’s Bharat PetroResources owns 12.5% and Pertamina Hulu Energi Offshore owns remaining stake.

Oil being a sovereign asset, it belongs to the government of Indonesia. When the RBI came out with a circular on February 12, 2018 prescribing rules for recognising one-day default by large corporates, VOVL had taken it to the Supreme Court.

The Economic Times reported

TOI: Pune builder bids for revival of Lavasa hil station project

23 August 2019: City-based developer Aniruddha Deshpande is among the three realtors bidding to revive the hill station project of Lavasa Corporation Limited, facing bankruptcy.

The National Company Law Tribunal (NCLT) would take a final decision on awarding the project by September 30. UV Assets Reconstructions Company Limited (UVARCL) from New Delhi and Developer Group India Private Limited (Developer group) from Gurgaon are the two other bidders.

The presentation of the resolution plans was made in the Committee of Creditors’ meeting held on August 19, a source said. After the bid is awarded, the final closure should take place by the end of December.

Deshpande told TOI that he was aware of the present condition of the Lavasa project as he was an investor in it in 2007. He later sold his shares to Hindustan Construction Company (HCC). Deshpande said he was sure about reviving the project in Lavasa.

The realtor said he had committed for the bid on his individual capacity and not on behalf of the City Corporation Limited that has the Amanora project.

“I am aware of the Lavasa project and I have expressed my interest. The decision will be taken by the National Company Law Tribunal (NCLT),” he said, adding that the issues of homebuyers should be resolved once the bid was awarded.

The NCLT had in August last year accepted a petition of the creditors of Lavasa Corporation Limited (LCL) to declare the company bankrupt. It appointed a resolution professional to find solution to the financial crisis being faced by the LCL. Till June, the resolution professional did not receive any bids for taking over the project.

According to sources, LCL owed Rs 5,559.14 crore to financial creditors and around Rs 400 crore to the property buyers in the project.

Lavasa resident Suresh Goswami, who had launched the online petition to revive Lavasa hill station, said those who had complete knowledge of the project could help revive it. “Deshpande has experience in creating quality and eco-friendly homes and is known for his integrated township such as Amanora city. We are hopeful that the best bidder will win and help revive the area,” said Goswami.

“The resolution professional must ensure that the homebuyers do not end up as losers. The maximum impact will be on those who have not been given possession despite having invested most of their savings in the project. Out of 3,378 residential units, only 1,283 have been completed and handed over. Another 2,090 are under construction. Of them, only 1,225 have been sold,” he added.

The Lavasa residents earlier sent a petition to the Prime Minister, requesting the central ministry of housing and urban affairs to revive the hill station under the Smart Cities Mission project.

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HL: DREAM PROJECT

Lavasa was given the hill station title by the state in 2002

The project envisaged a new city on the banks of Varasgaon dam

AMENITIES GALORE

Spread over 10,500 acres, it encompasses 18 villages

2,200 apartments and villas, hotels, numerous city amenities and convention centre constructed

THE TROUBLE

The project ran into hurdles in 2010 when then Union environment minister Jairam Ramesh imposed a moratorium on the construction activity in Lavasa City, which was lifted in 2012

Multiple PILs were filed in Bombay high court over alleged environment rule violations and acquisition of land from tribals

The project comes under Pune Metropolitan Region Development Authority

It also questioned why there was no development plan as per the Hill Station Policy

The Times of India reported