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Delhi High Court Confirms Arbitral Tribunals’ Power to Direct Share Transfers in Joint Ventures

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Trending Today Delhi High Court Confirms Arbitral Tribunals’ Power to Direct Share Transfers in Joint Ventures Kerala HC Judge Questions Division Bench Interference; Refers Issue to Larger Bench Vedanta Moves Delhi High Court Over Denial of Cambay Basin Block Extension Sahara Seeks Supreme Court Nod for Property Sale to Adani; Requests Protection from Authorities India and Canada Diplomatic Row Escalates Over Alleged Involvement in Sikh Leader’s Killing Supreme Court to Review Plea on Electoral Bonds Scheme India and Bangladesh Hold High-Level Border Security Talks to Tackle Migration, Smuggling, and Water-Sharing Disputes PM Modi Launches National Urban Housing Mission 2.0: A Renewed Push for Affordable Housing Ahead of 2026 Elections MEA Rebuts NATO Chief’s Claim on Modi-Putin Call Over Ukraine, Tariffs Government Appoints Shirish Chandra Murmu as Deputy Governor of RBI: A Move Ahead of Critical Policy Review Delhi High Court Confirms Arbitral Tribunals’ Power to Direct Share Transfers in Joint Ventures Palak Singla 07 October 2025 Introduction The Delhi High Court has upheld the power of arbitral tribunals to direct the transfer of shares in joint venture disputes, reaffirming that such directions fall within the scope of arbitration when explicitly provided in a Shareholders’ Agreement (SHA). The ruling strengthens India’s position as a pro-arbitration jurisdiction and clarifies the boundary between arbitral authority and statutory company law. Background The case stemmed from a breakdown in a joint venture, where allegations of unauthorized share transfers, misuse of managerial authority, and corporate deadlocks arose between partners.One party challenged the arbitral tribunal’s direction for share transfer, arguing that such matters lie exclusively within the jurisdiction of the National Company Law Tribunal (NCLT) under the Companies Act. Court’s Reasoning The Delhi High Court ruled that arbitration derives its strength from the contractual consent of parties. Since the SHA expressly empowered the tribunal to issue orders concerning share transfers, the tribunal’s actions were within its jurisdiction. The Court emphasized: The arbitral award did not amend or override company law, but merely enforced the commercial terms agreed between the parties. Public policy and jurisdictional objections were rejected, with the Court warning that a restrictive approach to arbitral powers would undermine investor confidence and India’s arbitration-friendly stance. Implications The judgment reinforces confidence among domestic and foreign investors, assuring that arbitral tribunals can provide effective remedies in joint venture disputes.It also underlines the importance of well-drafted SHAs that clearly delegate authority to arbitrators. The ruling contributes to India’s evolving pro-arbitration jurisprudence, enhancing predictability and trust in commercial dispute resolution. Conclusion By affirming the arbitral tribunal’s authority to direct share transfers, the Delhi High Court has drawn a clear line supporting contractual autonomy and commercial efficiency in arbitration. The decision marks another step in India’s commitment to becoming a global arbitration hub. Leave a Reply Cancel Reply Logged in as Sada Law. Edit your profile. Log out? Required fields are marked * Message* Live Cases Delhi High Court Confirms Arbitral Tribunals’ Power to Direct Share Transfers in Joint Ventures Sada Law • October 7, 2025 • Live cases • No Comments Kerala HC Judge Questions Division Bench Interference; Refers Issue to Larger Bench Sada Law • October 7, 2025 • Live cases • No Comments Vedanta Moves Delhi High Court Over Denial of Cambay Basin Block Extension Sada Law • October 7, 2025 • Live cases • No Comments 1 2 3 … 5 Next »

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NCLT Admits Gensol Engineering to Insolvency Process Amid SEBI Probe and ₹992 Crore Debt

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Trending Today NCLT Admits Gensol Engineering to Insolvency Process Amid SEBI Probe and ₹992 Crore Debt Kerala High Court Raises Alarm Over Microplastics in Food Delivery Containers and Potential Health Risks Delhi High Court Denies Bail to Kashmiri Separatist Leader Shabir Shah in UAPA Terror Case Supreme Court Seeks Karnataka’s Response on Thug Life Film Ban Amid Kamal Haasan Controversy Air India Flight AI171 Crash: 265 Dead, 1 Survivor in Ahmedabad Tragedy Involving Boeing 787 LEGAL INTERNSHIP OPPORTUNITY AT ADITI MOHONI LEGAL JOB OPPORTUNITY AT INDIAMART LEGAL INTERNSHIP OPPORTUNITY AT SHURUWAT FOUNDATION CALL FOR PAPERS BY JAI JAGAT SUMMIT INTERNSHIP OPPORTUNITY AT CHAMBERS OF SUSHANT SINGH ADV. NCLT Admits Gensol Engineering to Insolvency Process Amid SEBI Probe and ₹992 Crore Debt PRABHAT KUMAR BILTORIA 15 June 2025 The National Company Law Tribunal (NCLT) has admitted Gensol Engineering into insolvency proceedings after serious regulatory findings by SEBI and a ₹992 crore debt crisis. Learn how this impacts the EV sector and stakeholders like BluSmart, IREDA, and PFC. NCLT Approves Insolvency Proceedings Against Gensol Engineering On June 13, 2025, the National Company Law Tribunal (NCLT) in Ahmedabad officially admitted an insolvency application filed by the Indian Renewable Energy Development Agency (IREDA) against Gensol Engineering Limited, the parent company of BluSmart, a notable name in India’s electric vehicle (EV) ecosystem. Judicial Panel Rejects IREDA’s RP Recommendation A coram led by Judicial Member Shammi Khan and Technical Member Sanjeev Kumar ruled in favor of initiating the corporate insolvency resolution process but declined IREDA’s suggested resolution professional (RP), opting instead for one from the Insolvency and Bankruptcy Board of India (IBBI) list. Gensol’s Troubles Began With SEBI’s Interim Order The case’s roots trace back to April 15, when SEBI issued an interim order alleging Gensol had diverted public and borrowed funds toward unrelated luxury assets, such as a high-end apartment. The order also noted the use of forged documents—including “no objection certificates”—submitted to credit rating agencies. Exaggerated EV Claims and Regulatory Action SEBI accused Gensol of misleading investors with inflated EV procurement figures, even though actual production was minimal. As a result, the company’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, were barred from participating in the securities market and from holding executive positions. SEBI’s Actions Upheld by the Securities Appellate Tribunal On May 7, the Securities Appellate Tribunal (SAT) declined to stay SEBI’s order. Gensol was instructed to respond to the interim findings, and SEBI was directed to pass a final order within four weeks of the hearing. NCLT Freezes Accounts and Orders Asset Disclosure By May 28, the NCLT had frozen Gensol’s bank and demat accounts, restricted trading of its securities, and ordered detailed asset disclosures. These measures extended to 16 related entities and their respective promoters. Ministry of Corporate Affairs Joins the Legal Proceedings The Ministry of Corporate Affairs (MCA) submitted a separate petition against Gensol and affiliated companies under Sections 241, 242, and 246, along with Section 339 of the Companies Act, 2013, citing severe corporate governance violations and misappropriation of funds. Debts Recovery Tribunal Freezes Assets Worth ₹992 Crore Meanwhile, the Debts Recovery Tribunal (DRT) in Delhi granted interim relief to both IREDA and Power Finance Corporation (PFC) in three separate recovery suits totaling over ₹992 crore. The DRT ordered a freeze on secured assets, seizure of EVs, and prohibition on transferring intellectual property owned by BluSmart. Delhi High Court Also Engaged in the Legal Tangle Multiple lessors have approached the Delhi High Court seeking protection for the electric vehicles leased to BluSmart amid ongoing legal uncertainty. Leave a Reply Cancel Reply Logged in as Sada Law. Edit your profile. Log out? Required fields are marked * Message* Live Cases NCLT Admits Gensol Engineering to Insolvency Process Amid SEBI Probe and ₹992 Crore Debt Sada Law • June 15, 2025 • Live cases • No Comments Kerala High Court Raises Alarm Over Microplastics in Food Delivery Containers and Potential Health Risks Sada Law • June 15, 2025 • Live cases • No Comments Delhi High Court Denies Bail to Kashmiri Separatist Leader Shabir Shah in UAPA Terror Case Sada Law • June 15, 2025 • Live cases • No Comments 1 2 3 … 5 Next »

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NPAC to Host Conference on Insolvency and Bankruptcy Code: Reflecting on a Decade and Planning the Future

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Trending Today Supreme Court Upholds ₹1 Lakh Fine on Odisha PSC Over Judicial Exam Evaluation Error NPAC to Host Conference on Insolvency and Bankruptcy Code: Reflecting on a Decade and Planning the Future Delhi High Court Orders Mohak Mangal to Remove Defamatory Content Targeting ANI Supreme Court Issues Notice on Byju’s Insolvency Case Appeals by BCCI and Riju Raveendran Arunachal Pradesh: Exploring Its Rich Tribal Heritage, Natural Beauty, and Development Challenges JOB OPPORTUNITY AT DSA LEGAL LEGAL JOB OPPORTUNITY AT TRENTAR PRIVATE LIMITED JOB OPPORTUNITY AT UGRO CAPITAL LTD JOB OPPORTUNITY AT LIS PARTNERS MOCK TRIAL COMPETITION BY MAIMS, DELHI NPAC to Host Conference on Insolvency and Bankruptcy Code: Reflecting on a Decade and Planning the Future PRABHAT KUMAR BILTORIA 01 June 2025 Join the NPAC conference in Chennai on June 7, 2025, as top legal minds, policymakers, and insolvency professionals gather to reflect on a decade of the Insolvency and Bankruptcy Code, 2016, and chart its future roadmap. NPAC to Host High-Impact Conference on Insolvency and Bankruptcy Code, 2016 in Chennai The Nani Palkhivala Arbitration Centre (NPAC) is set to organize a prestigious one-day conference on June 7, 2025 (Saturday) in Chennai. Titled “Insolvency and Bankruptcy Code, 2016: A Retrospective and Roadmap for the Future”, this event aims to foster insightful discussions among legal professionals, scholars, and policymakers on the decade-long impact of the Insolvency and Bankruptcy Code (IBC) in India. The IBC: A Decade of Economic Reform Introduced in 2016, the IBC marked a transformative phase in India’s economic reform agenda. As it approaches its tenth anniversary, the code’s implementation, evolution, and contribution to India’s commercial and financial ecosystem take center stage. The conference will examine its judicial interpretations, operational challenges, and future prospects. Key Topics and Discussions This international event will feature in-depth sessions led by eminent experts from the judiciary, regulatory authorities, legal academia, and the insolvency sector. Attendees can expect insightful discussions on: The evolution of the IBC ecosystem since 2016 Landmark rulings by courts impacting insolvency jurisprudence Comparative insights from global insolvency frameworks Synergies between arbitration, mediation, and insolvency Group insolvency and enterprise resolution mechanisms Trends in resolution strategies and value maximization Conference Highlights Distinguished Speakers: Judges from the Supreme Court and High Courts of India, Members of the NCLT, senior advocates, and noted insolvency professionals International Perspective: Comparative analyses on cross-border insolvency frameworks Networking Opportunities: Build connections with industry experts across the insolvency and legal ecosystem Why Attend? This is a must-attend event for insolvency professionals, lawyers, academics, and business leaders seeking to understand the strategic direction of insolvency law in India and globally. Whether you’re a practitioner or policy enthusiast, the conference offers a platform to engage with the latest trends, reforms, and best practices shaping the IBC landscape. Register and Stay Informed Don’t miss this opportunity to be part of a crucial dialogue on the future of India’s insolvency regime. For more details on registration, agenda, and speakers, visit the official NPAC website. Leave a Reply Cancel Reply Logged in as Sada Law. Edit your profile. Log out? Required fields are marked * Message* Live Cases Supreme Court Upholds ₹1 Lakh Fine on Odisha PSC Over Judicial Exam Evaluation Error Supreme Court Upholds ₹1 Lakh Fine on Odisha PSC Over Judicial Exam Evaluation Error Sada Law • June 1, 2025 • Live cases • No Comments NPAC to Host Conference on Insolvency and Bankruptcy Code: Reflecting on a Decade and Planning the Future NPAC to Host Conference on Insolvency and Bankruptcy Code: Reflecting on a Decade and Planning the Future Sada Law • June 1, 2025 • Live cases • No Comments Delhi High Court Orders Mohak Mangal to Remove Defamatory Content Targeting ANI Delhi High Court Orders Mohak Mangal to Remove Defamatory Content Targeting ANI Sada Law • June 1, 2025 • Live cases • No Comments 1 2 3 … 5 Next »

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NCLT Dismisses Insolvency Plea Against Dunzo Filed by Invoice Discounters

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Trending Today NCLT Dismisses Insolvency Plea Against Dunzo Filed by Invoice Discounters Supreme Court Urges Elite Couple to Resolve Child Custody Dispute Over Coffee Second Bomb Threat in a Week Disrupts Mumbai Airport Operations Supreme Court Collegium Recommends Three New Justices, Appoints Five High Court Chief Justices in Historic Reshuffle JOB OPPORTUNITY AT CHAMBERS OF SHAHRUKH EJAZ JOB OPPORTUNITY AT KANDIVALI EDUCATION SOCIETY’S SHRI JAYANTILAL H. PATEL LAW COLLEGE JOB OPPORTUNITY AT GEHI LAW JOB OPPORTUNITY AT CHAMBERS OF ADV. SHASHI PRATAP SINGH LEGAL JOB OPPORTUNITY AT CHAMBERS OF AKSHAY MOHILEY INTERNSHIP OPPORTUNITY AT A&N LAW OFFICES LLP NCLT Dismisses Insolvency Plea Against Dunzo Filed by Invoice Discounters PRABAHAT KUMAR BILTORIA 28 May 2025 The National Company Law Tribunal (NCLT) has dismissed an insolvency plea against Dunzo filed by invoice discounters. Learn more about the legal proceedings, creditor claims, and Dunzo’s ongoing financial troubles. NCLT Dismisses Insolvency Petition Filed by Invoice Discounters Against Dunzo On 27 May 2025, the National Company Law Tribunal (NCLT) in Bengaluru rejected an insolvency petition filed by invoice discounters against Dunzo, a prominent player in the quick commerce industry. Tribunal Finds Petition Against Dunzo Not Maintainable The plea was filed by invoice discounters associated with Dunzo Digital, claiming partial non-payment of dues. However, the bench—comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radha Krishna Sreepada—ruled that the petition was not maintainable. This verdict was delivered after multiple delays spanning over six weeks. Dunzo Faces Multiple Insolvency Petitions from Creditors Despite this dismissal, Dunzo is still battling multiple insolvency applications filed by various creditors. Here are the key players involved: Invoice Discounters: Filed an application alleging that Dunzo had fulfilled only 50% of its payment obligations. The specific amount in question remains undisclosed. Velvin Packaging Solutions: This eco-friendly packaging company filed an insolvency plea in November 2023. The NCLT has issued notices to Dunzo in response. Betterplace Safety Solutions: An operational creditor that initiated proceedings in February 2024, citing unpaid dues of ₹4 crore. These were for services including background checks, asset management, recruitment of delivery personnel, and merchandise supply. NCLT Questions Dunzo’s Delayed Responses The Tribunal has expressed concern over Dunzo’s delays in responding to these legal proceedings. In September 2024, the NCLT noted that Dunzo failed to submit its replies despite being granted extra time—resulting in forfeiture of its right to respond. Although Dunzo’s legal counsel requested further time due to ongoing settlement talks, the NCLT emphasized that any settlement should be initiated by the creditor and required a joint affidavit within 48 hours. Dunzo’s Ongoing Financial Crisis and Vendor Dues Dunzo is currently navigating a significant liquidity crunch, which has led to delayed salary payments, unpaid vendor dues, and workforce reductions. In FY 2023, Dunzo reported losses amounting to ₹1,801.8 crore. Major Vendors Serving Legal Notices to Dunzo Several prominent vendors have served legal notices to Dunzo, demanding repayment of dues totaling ₹11.4 crore. These vendors include: Google India Facebook India Glance Koo Cupshup Conclusion Although the NCLT rejected the invoice discounters’ petition, Dunzo remains under pressure from multiple legal and financial fronts. The company’s struggle to resolve its liabilities and stabilize operations continues to attract regulatory attention. Leave a Reply Cancel Reply Logged in as Sada Law. Edit your profile. Log out? Required fields are marked * Message* Live Cases NCLT Dismisses Insolvency Plea Against Dunzo Filed by Invoice Discounters NCLT Dismisses Insolvency Plea Against Dunzo Filed by Invoice Discounters Sada Law • May 28, 2025 • Live cases • No Comments Supreme Court Urges Elite Couple to Resolve Child Custody Dispute Over Coffee Supreme Court Urges Elite Couple to Resolve Child Custody Dispute Over Coffee Sada Law • May 28, 2025 • Live cases • No Comments Second Bomb Threat in a Week Disrupts Mumbai Airport Operations Second Bomb Threat in a Week Disrupts Mumbai Airport Operations Sada Law • May 28, 2025 • Live cases • No Comments 1 2 3 … 5 Next »

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Supreme Court Halts BPSL Liquidation to Allow JSW Steel Review Petition

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Trending Today Supreme Court Halts BPSL Liquidation to Allow JSW Steel Review Petition Kerala High Court Seeks State’s Reply on ED Officer’s Bail in ₹2 Crore Bribery Case Bombay High Court Halts Mumbai Airport’s Bid to Replace Turkish Ground Handler Celebi Amid Security Clearance Dispute Supreme Court Allows Prosecution to Submit Omitted Evidence After Chargesheet Under Certain Conditions Supreme Court Upholds ‘One-State-One-Unit’ Policy, Dismisses Vidarbha Hockey Association’s Membership Plea Karnataka to Challenge Rs 3,011 Crore TDR Compensation to Mysuru Royal Family in Supreme Court Can Lokayukta Challenge Administrative Tribunal Rulings? Supreme Court Leaves Legal Question Open JOB OPPORTUNITY AT COGNYTE, GURUGRAM LEGAL JOB OPPORTUNITY AT ADV CHAND CHOPRA LEGAL JOB OPPORTUNITY AT NLU DELHI Supreme Court Halts BPSL Liquidation to Allow JSW Steel Review Petition Prabhat Kumar biltoria 27 May 2025 The Supreme Court of India has directed the maintenance of status quo on the liquidation proceedings of Bhushan Steel & Power Ltd (BPSL), giving JSW Steel an opportunity to submit a review petition. This development comes after JSW Steel’s resolution plan for BPSL was rejected by the Supreme Court on May 2, 2025. Supreme Court’s Order on Bhushan Steel Liquidation A bench comprising Justices BV Nagarathna and Satish Sharma issued the order, emphasizing fairness and justice. The court noted that advancing the liquidation process before JSW Steel files a review petition could jeopardize their legal rights. Therefore, the Supreme Court halted the liquidation proceedings before the National Company Law Tribunal (NCLT), allowing JSW Steel time to challenge the earlier ruling. JSW Steel’s Legal Position and Timeline Senior advocate Neeraj Kishan Kaul, representing JSW Steel, highlighted that the NCLT had initiated the appointment of a liquidator even before the deadline for submitting JSW’s review petition, set for June 2, 2025. Kaul stressed that the case is complex and requires careful examination since the resolution plan was proposed four years ago and the company remains profitable. The NCLT is scheduled to hear the matter shortly, with the Supreme Court’s status quo order aimed at preventing further complications if a liquidator is appointed prematurely. Insights from the Solicitor General and Other Legal Representatives Indian Solicitor General Tushar Mehta proposed postponing proceedings until June 10, 2025, to accommodate the Committee of Creditors (CoC) and all parties involved. Justice Nagarathna noted that review petitions typically aren’t considered during judicial vacations, underlining procedural challenges. Mehta also criticized past financial irregularities tied to the case, pointing to complications involving foreign banks and prior fund misappropriations. Meanwhile, Sanjay Singhal, former promoter of BPSL, faced scrutiny over alleged malpractices, with his legal team opposing JSW Steel’s petition. Supreme Court’s Clarification on Review Petition and Status Quo Justice Nagarathna clarified that the court’s status quo order does not comment on the merits of the case but solely serves justice and procedural fairness. JSW Steel committed to filing its review petition within the stipulated legal timeframe. The Supreme Court emphasized maintaining the current state of liquidation proceedings before the NCLT to avoid further legal conflicts. Background: JSW Steel’s Rejected Resolution Plan JSW Steel’s ₹19,700 crore resolution plan for BPSL was rejected by the Supreme Court for violating Sections 30(2) and 31(2) of the Insolvency and Bankruptcy Code (IBC). Justices Bela M. Trivedi and Satish Chandra Sharma ruled that the Committee of Creditors (CoC) acted unlawfully by approving the plan. Following this, the Supreme Court ordered the liquidation of Bhushan Steel under Section 33 of the IBC. Sanjay Singhal petitioned the Delhi NCLT to implement the liquidation, urging the tribunal to enforce the Supreme Court’s decision fully. Conclusion: What’s Next for Bhushan Steel and JSW Steel? The Supreme Court’s order to maintain status quo temporarily halts Bhushan Steel’s liquidation, offering JSW Steel a vital window to submit a review petition. This ongoing legal battle highlights significant aspects of India’s insolvency process and the enforcement of the Insolvency and Bankruptcy Code. The outcome of this case will have far-reaching implications for stakeholders, creditors, and the Indian steel industry. Leave a Reply Cancel Reply Logged in as Sada Law. Edit your profile. Log out? Required fields are marked * Message* Case Laws Supreme Court Rules Cheque Dishonour Is Not a Continuing Cause for Arbitration Under Section 138 NI Act Supreme Court Rules Cheque Dishonour Is Not a Continuing Cause for Arbitration Under Section 138 NI Act Sada Law • May 25, 2025 • Case law • No Comments Supreme Court Urges Compounding in Cheque Bounce Cases: M/S New Win Export vs A. Subramaniam (2024) Supreme Court Urges Compounding in Cheque Bounce Cases: M/S New Win Export vs A. Subramaniam (2024) Sada Law • May 25, 2025 • Case law • No Comments Supreme Court Quashes FIR Against Professor for WhatsApp Status on Article 370 and Pakistan Independence Day Supreme Court Quashes FIR Against Professor for WhatsApp Status on Article 370 and Pakistan Independence Day Sada Law • May 25, 2025 • Case law • No Comments 1 2 3 … 5 Next »

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NCLT Rejects Insolvency Plea Against Zomato Over Payment Dispute

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Trending Today NCLT Rejects Insolvency Plea Against Zomato Over Payment Dispute Actor Hansika Motwani files a motion in the Bombay High Court to quash a FIR after being booked in a Section 498A case. Supreme Court slams Telangana CM for “making mockery” of anti-defection law Union Minister Kiren Rijiju: The Waqf Amendment Bill Is Prospective Rather Than Retrospective Supreme Court of India Significance of mitigating factors when awarding the death penalty. The Supreme Court permits the petitioner to get involved in ongoing proceedings but rejects another petition contesting the Places of Worship Act. Punjab & Haryana High Court: Child in Womb During Accident Is Subject To Reimbursement Under MV Act What it implies signifies Sam Altman claims that OpenAI’s GPUs are “melting” over Ghibli-style AI art Soldiers brave icy winds while we sip on hot cappuccinos: Delhi High Court slams denial of disability pension: Gurminder Singh, Punjab Advocate General, Steps Down NCLT Rejects Insolvency Plea Against Zomato Over Payment Dispute NITU KUMARI 04 Apr 2025 Update: 03 Apr 2025 Summary The National Company Law Tribunal (NCLT) has dismissed a petition seeking to initiate insolvency proceedings against food delivery giant Zomato for alleged non-payment of dues. The plea, filed by B2B apparel manufacturer Nona Lifestyle, was rejected on grounds of being “not maintainable.” A lawsuit seeking corporate insolvency resolution process (CIRP) against Zomato for alleged non-payment of dues was dismissed by the National Company Law Tribunal (NCLT) on Thursday. Context of the Conflict For Zomato’s workers and delivery partners, Nona Lifestyle provided uniforms and merchandise, including ICC World Cup 2023 jerseys. Zomato allegedly pushed Nona for lower prices, refused to accept delivery, and delayed payments even though it completed a portion of the contract, according to the business. In order to provide uniforms for its workers and delivery partners, as well as items for the ICC World Cup 2023, Nona Lifestyle had partnered with Zomato. During the World Cup, the business had a campaign prepared. The Respective Parties’ Arguments According to the petition, during 2023, Zomato placed many orders for a variety of clothing goods, such as World Cup jerseys, rider t-shirts, and pants. Nona Lifestyle asserted that by producing and partially delivering the ordered goods, it had fulfilled its duties. Nonetheless, the business claimed that Zomato routinely missed payments and neglected to deliver a sizable amount of the ordered goods. Nona claims that Zomato used “threats and warnings” to pressure Nona Lifestyle into providing discounted prices, frequently postponed payments, and returned goods due to a shortage of storage space. Zomato allegedly declined to take delivery of the remaining World Cup jerseys, according to Nona Lifestyle, who also claimed that the campaign had failed since the clothing was custom-made and hence useless for other uses. Zomato refuted these allegations, arguing that Nona Lifestyle had repeatedly missed delivery deadlines and that penalties had been imposed in accordance with their contract. Zomato claims that Nona Lifestyle’s unilateral alteration of delivery timetables was the reason the campaign failed. Zomato stated that these delays caused “substantial reputational and goodwill damage” to our company. In November 2024, the insolvency plea was dropped for non-prosecution, even though it was scheduled for hearing in October 2024. A petition to restore the insolvency plea was then submitted. Advocate Tanu Singhal, who represented Nona Lifestyle at the hearing of the restoration petition today, informed the NCLT that she was unable to attend because of a mix-up. Singhal countered that a request could not be rejected on such extremely technical grounds because this was a technical one. The NCLT’s Ruling Before submitting the plea, Nona Lifestyle neglected to provide the required legal notice under Section 8 of the Insolvency and Bankruptcy Code (IBC), 2016. A coram of Judicial Member Ashok Kumar Bharadwaj and Technical Member Reena Sinha Puri dismissed the petition filed by B2B apparel manufacturer Nona Lifestyle seeking restoration of the insolvency plea filed by it last year. “Having heard the petitioner on two different dates, we satisfied ourselves regarding the maintainability of the plea. Since we are satisfied that the petition itself is not maintainable we are not inclined to entertain the IA,” the NCLT held. The case had previously been dismissed for non-prosecution, but the NCLT refused to restore it because the petition did not comply with procedural criteria. Nona’s attorney referred to the objection as a “hyper-technical” issue, while Zomato’s legal team contended that the petition was unlawful because it lacked adequate notice. Nonetheless, the tribunal dismissed the plea because it upheld the legal requirement to follow due process. This decision emphasizes how crucial it is to follow the IBC’s procedural requirements when starting insolvency proceedings. The Bench however noted that “a perusal of the precedents and law revealed that an operational creditor must issue notice in a prescribed manner to the corporate debtor. It is clear that the notice shall be in a prescribed format. In the absence of a notice in a prescribed format.” Thus, it ruled that in the absence of a notice in a prescribed manner, the plea is not maintainable. The NCLT noted that since the CIRP plea is itself not maintainable, they are not inclined to entertain a petition to restore it. Thus, the tribunal dismissed the plea. Leave a Reply Cancel Reply Logged in as sadalawpublications@gmail.com. Edit your profile. Log out? Required fields are marked * Message* Live Cases NCLT Rejects Insolvency Plea Against Zomato Over Payment Dispute NCLT Rejects Insolvency Plea Against Zomato Over Payment Dispute sadalawpublications@gmail.com • April 4, 2025 • Live cases • No Comments Actor Hansika Motwani files a motion in the Bombay High Court to quash a FIR after being booked in a Section 498A case. Actor Hansika Motwani files a motion in the Bombay High Court to quash a FIR after being booked in a Section 498A case. sadalawpublications@gmail.com • April 4, 2025 • Live cases • No Comments Supreme Court slams Telangana CM for “making mockery” of anti-defection law Supreme Court slams Telangana CM for “making mockery” of anti-defection law sadalawpublications@gmail.com •

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