NCLAT dismisses NCLT order to make MCA party to every IBC case
The National Company Law Appellate Tribunal (NCLAT) has set aside an order of the Principal Bench of NCLT that the Ministry of Corporate Affairs (MCA) will have to be made a party to every case under the Insolvency and Bankruptcy Code (IBC).
 
The appellate tribunal said that the NCLT's order dated November 22, 2019, is "beyond the power" of the tribunal and it tantamount to imposition of a new rule in a compelling fashion. 
 
The impugned order making it applicable throughout the country to all the benches of NCLT is untenable and it suffers from material irregularity and patent illegality in the eye of law, said the judgment.
 
The MCA had moved the appellate tribunal after the Principal Bench of NCLT in Delhi, in the Oriental Bank of Commerce versus Sikka Papers case, ordered that the ministry should be impleaded as a party/respondent through the Secretary so that authentic record is made available by the ministry officers for proper appreciation of the matters.
 
"As a matter of fact, there is no necessity to array the appellant/Ministry of Corporate Affairs as a party in respect of the applications filed under Sections 7, 9 or 10 of IBC for the purpose of reliable record or for appreciation of the matter," said the NCLAT judgment.
 
The three-member bench of NCLAT noted that such "wholesale, blanket and omnibus directions" cannot be issued in a single stroke.
 
Whether the Ministry of Corporate Affairs through the Secretary should be impleaded as a necessary party or as pro forma respondent before the tribunal is to be determined only on a case-to-case basis when the need of a given case arises for rumination of issues, which comes up before the respective tribunals, NCLAT said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Retail Trade Lost Rs9 Lakh Cr of Business in 60 Days: CAIT
    India's retail trade lost business of around Rs9 lakh crore during the past 60 days of the nation-wide lock-down, the Confederation of All India Traders (CAIT) said.
     
    In a statement, the traders' body also said that in the past week since the restrictions were eased on Monday, only about 5% of the business could take place and 8% of the workforce were able to resume.
     
    It further said that the loss of business also resulted in a revenue loss of about Rs1.5 lakh crore to both Central and state governments on account of GST.
     
    "The traders across the country are facing acute financial crunch and in absence of any policy support from the government are most worried about future of their business," it said.
     
    About 5 lakh outstation traders used to come Delhi to procure goods from wholesale markets of Delhi but due to non-availability of transport, the wholesale markets in Delhi remained deserted in last one week, said the statement.
     
    The shortage of labour, non-availability of transport and negligible footfall of customers is leading to acute financial crunch for traders and may also kill the retail trade of the country involving nearly 70 million traders providing employment to 400 million people and generating an annual turnover of about Rs50 lakh crore.
     
    "The crisis has further deepened because of utter neglect of traders both by Central and state governments in matter of hand-holding," it said.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    IL&FS to Sell its Entire 26% stake in OTPC; Invites EoI
    Crisis-hit Infrastructure Leasing and Financial Services (IL&FS) has decided to sell its entire 26% stake in ONGC Tripura Power Company (OTPC), its joint venture with state-run ONGC. IL&FS has expressions of interest (EoI) to divest the 26% stake, it holds through IL&FS Financial Services (IFIN) and IL&FS Energy Development Co Ltd (IEDCL). 
     
    OTPC operates a fully operational natural gas based 726.6 MW power plant located in Palatana (Tripura), supplying power to the energy deficit region of north east India. This plant is one of India's largest gas-based power project.
     
    The EoI document issued by IL&FS states, "...in order to monetise the investments made by the IL&FS Group in OTPC, expressions of interest are invited for acquisition of 26% stake held by the IL&FS Group in OTPC..."
     
    IFIN and IEDCL, both subsidiaries of IL&FS hold a 13.97% and 12.03% stake in OTPC. The other shareholders of OTPC are state-run ONGC, with 50% stake, India Infrastructure Fund-II with 23.5%, managed by Global Infrastructure Partners and the government of Tripura holding 0.5% stake.
     
     
    OTPC operates its fully operational natural gas based 726.6 MW power plant located in Palatana.  In addition to the benefit of availability of local gas wells for drawing sufficient gas, OTPC also has a load-centre advantage, with access to the energy deficit north-eastern region of India as well as Bangladesh.
     
    "Consummation of any transaction pursuant to the process initiated by this EOI will be subject to necessary approvals, including, the approval of the board and requisite corporate approvals of other relevant group companies, if applicable. Further, approvals required under applicable law or from statutory authorities under the overall supervision of Justice DK Jain (retd.), and approval of the NCLT would also be required," the EoI document states. 
     
    For bidding the IL&FS stake in OTPC, corporate bodies are required to have a minimum net worth of Rs150 crore as per the audited balance sheet as of 31 March 2019 or later.
     
    Investment funds, including private equity funds should have minimum assets under management in India of Rs600 crore as of 31 March 2019 or later, or committed funds available for investment or deployment in companies incorporated in India of at least Rs600 crores only.
     
    The EoIs have to be submitted by 5pm on 8 June 2020. 
     
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