Latest news with #NCLAT
Time of India
2 days ago
- Business
- Time of India
In a relief to Vedanta, NCLAT stays orders against company's demerger
Photo/Agencies NEW DELHI: In a relief to Vedanta, the appellate tribunal NCLAT has stayed the National Company Law Tribunal orders against the demerger of the multinational mining company into separate entities and subsequent listing. The Mumbai bench of NCLT had on March 4 rejected the first motion petition moved for the composite scheme of arrangement between Vedanta in the matter of Talwandi Sabo Power (TSPL), observing that material facts have not been disclosed regarding its debt obligations, which was against the Companies Act. This was immediately challenged before the NCLAT, which earlier this week stayed the order passed by the NCLT bench till its next hearing, scheduled on Aug 4, 2025. The appellate tribunal said: "Issues raised before us need to be considered at length and presently in view of the submissions made the scheme is severable and thus in case the stay is not granted to the impugned order it may affect the second motion application filed in respect of other three transferor companies pending in different tribunals." A two-member NCLAT bench also agreed to the proposal of submission of a bank guarantee of Rs 1,245 crore claimed by its creditor Sepco Electric Power Construction Corporation, without prejudice to their rights. The first motion application is usually filed before the NCLT by the transferor and transferee companies. The second motion then follows after the first motion is granted, allowing for the court to fully evaluate the scheme. agencies Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
3 days ago
- Business
- Economic Times
NCLAT stays order against Vedanta's power business demerger
Vedanta Ltd received an interim stay from NCLAT on NCLT's order rejecting the demerger of its power business and merger with TSPL. The stay is conditional and allows Vedanta to proceed with its strategic reorganization. NCLAT cited the need to consider the issues at length and the potential impact on other pending demerger applications. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi, Appellate tribunal NCLAT has granted an interim stay on an order of the National Company Law Tribunal ( NCLT ) rejecting demerger of Vedanta 's power business and its merger with resultant entity Talwandi Sabo Power Ltd (TSPL).The order came as a relief to Vedanta Ltd which is in the process of demerging its businesses into separate a filing to BSE, Vedanta said the NCLAT order dated May 27, 2025 granted an interim stay on the order passed by the NCLT's Mumbai bench dated March 4, 2025 "to the extent it relates to the rejection of the scheme", subject to fulfilling the conditions mentioned in the said that it remains committed to its strategic reorganisation plan and continues to work towards unlocking long-term value for all stakeholders.A two-member NCLAT bench said "the issues raised before us need to be considered at length and presently in view of the submissions made the scheme is severable and thus in case the stay is not granted to the impugned order, it may affect the second motion application filed in respect of other three transferor companies pending in different tribunals".The matter has been listed for the next hearing on August the Mumbai bench of NCLT had dismissed the petition of TSPL on the demerger scheme after objections were raised by SEPCO, a creditor of NCLT had observed "material facts have not been disclosed by the applicant company, violating Section 230 (2)(a) of the Companies Act, 2013, which in our considered opinion is bound to prejudice the public interest at large".The NCLT's ruling came after China-based SEPCO Electric Power Construction Corporation objected to the demerger, saying the power unit had deliberately excluded their outstanding debt of Rs 1,251 crore from the list of alleged that TSPL had concealed the information about its liabilities."This has been done deliberately to defeat SEPCO's rights," the NCLT had to a Vedanta spokesperson, the NCLT ruling pertained only to the TSPL application and the power business undertaking and does not impact or alter the progress of the other business undertakings proposed to be was listed as an unsecured creditor to the extent of Rs 1,251 crore, which would constitute more than 75 per cent of the unsecured debt by value, and as a result of the same, the vote by SEPCO itself would have been against the scheme, potentially impacting the interest of tribunal had said that the non-disclosure of such a significant liability could prejudice the interests of creditors and shareholders, and the valuation of TSPL conducted without factoring in SEPCO's claim was flawed and could impact public scheme, filed under Sections 230 to 232 of the Companies Act, 2013, involved the demerger of Vedanta's business verticals into five separate entities-- Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, Vedanta Base Metals and Vedanta Iron and was aimed to create independent, globally competitive companies, each focusing on its core business and attracting specialised investors and boards of the respective companies had approved the scheme between September and October Agarwal-led Vedanta Ltd is expecting to complete the demerger of its businesses by September-end this year. PTI
Time of India
4 days ago
- Business
- Time of India
Byju's Insolvency Proceedings: Supreme Court to Review Byju's Insolvency Settlement Case Against BCCI, ET LegalWorld
The Supreme Court on Thursday agreed to hear a petition filed by the promoters of tech company Byju's, seeking to uphold a pre-Corporate Insolvency Resolution Process (pre-CoC) settlement in the company's insolvency proceedings. The promoters' lawyers challenged the decision by the Chennai-bench of National Company Law Appellate Tribunal (NCLAT) that denied withdrawal of insolvency proceedings initiated by the Board of Control for Cricket in India (BCCI) despite a full and final settlement of dues prior to the constitution of the Committee of Creditors (CoC). The matter came up for hearing before a bench of Justices Vikram Nath and Sanjay Kumar which issued notice to respondents, including the BCCI, seeking their responses to the plea. Advt "Issue notice," said the bench and added "the prayer for interim relief to be considered on the next date fixed i.e. July 21, 2025".Presenting the arguments for the petitioner, senior counsel K K Venugopal said that a settlement of Rs 158 crore between Byju's and the BCCI was fully agreed upon, paid and formally communicated to the Interim Resolution Professional (IRP) well before the CoC was further on the argument, senior counsel Guru Krishna Kumar sought relief saying, "The Resolution Professional handling Think & Learn (BYJU's ) insolvency in India has withdrawn legal proceedings in the US initiated by Think and Learn against the lenders. This is leading to substantial assets of the company in the US being disposed off."In a judgement delivered on October 23 last year, the apex court had set aside the NCLAT verdict that had halted the insolvency proceedings against the embattled ed-tech firm and held that US creditor firm Glas Trust Company LLC would have the locus to top court verdict had also come as a jolt for the BCCI as it annulled the NCLAT's order approving Rs 158.9 crore dues settlement of Byju's with the cricket apex court had directed the cricket board to deposit the settlement amount of Rs 158.9 crore with the committee of creditors (CoC).It had held that the US firm, being the creditor, had the locus to intervene in matters relating to the corporate insolvency proceedings at National Company Law Tribunal (NCLT), NCLAT and in the apex court as an affected party. PTI Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Download ETLegalWorld App Get Realtime updates Save your favourite articles Scan to download App
Time of India
4 days ago
- Business
- Time of India
Supreme Court refuses to stay Byju's insolvency proceedings
The Supreme Court on Thursday agreed to hear a petition filed by the promoters of tech company Byju's, seeking to uphold a pre-Corporate Insolvency Resolution Process (pre-CoC) settlement in the company's insolvency proceedings. The promoters' lawyers challenged the decision by the Chennai-bench of National Company Law Appellate Tribunal (NCLAT) that denied withdrawal of insolvency proceedings initiated by the Board of Control for Cricket in India (BCCI) despite a full and final settlement of dues prior to the constitution of the Committee of Creditors (CoC). The matter came up for hearing before a bench of Justices Vikram Nath and Sanjay Kumar which issued notice to respondents, including the BCCI, seeking their responses to the plea. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Spacious Sundeck 3 to 5 BHK Flats @ ₹3.22Cr+ in Vashi Goodwill Wisteria Learn More Undo by Taboola by Taboola "Issue notice," said the bench and added "the prayer for interim relief to be considered on the next date fixed i.e. July 21, 2025". Presenting the arguments for the petitioner, senior counsel K K Venugopal said that a settlement of Rs 158 crore between Byju's and the BCCI was fully agreed upon, paid and formally communicated to the Interim Resolution Professional (IRP) well before the CoC was constituted. Live Events Building further on the argument, senior counsel Guru Krishna Kumar sought relief saying, "The Resolution Professional handling Think & Learn (BYJU's ) insolvency in India has withdrawn legal proceedings in the US initiated by Think and Learn against the lenders. This is leading to substantial assets of the company in the US being disposed off." Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories In a judgement delivered on October 23 last year, the apex court had set aside the NCLAT verdict that had halted the insolvency proceedings against the embattled ed-tech firm and held that US creditor firm Glas Trust Company LLC would have the locus to intervene. The top court verdict had also come as a jolt for the BCCI as it annulled the NCLAT's order approving Rs 158.9 crore dues settlement of Byju's with the cricket board. The apex court had directed the cricket board to deposit the settlement amount of Rs 158.9 crore with the committee of creditors (CoC). It had held that the US firm, being the creditor, had the locus to intervene in matters relating to the corporate insolvency proceedings at National Company Law Tribunal (NCLT), NCLAT and in the apex court as an affected party. PTI
Economic Times
4 days ago
- Business
- Economic Times
Vedanta gets NCLAT relief on demerger plan, shares edge up
Vedanta Ltd on Thursday received a crucial lifeline for its demerger plans, with the National Company Law Appellate Tribunal (NCLAT) granting an interim stay on a previous order by the National Company Law Tribunal (NCLT) that had rejected the scheme. ADVERTISEMENT Following the development, Vedanta shares rose 0.46% to ₹448.90 on the BSE. In a regulatory filing, the company said the appellate tribunal's order puts on hold the NCLT's March 4 ruling 'to the extent it relates to the rejection of the Scheme,' subject to certain conditions outlined by NCLAT. The company said it remains committed to its strategic reorganisation plan and continues to work towards unlocking long-term value for all stakeholders. The mining-to-metals conglomerate is in the process of restructuring its sprawling business into independent verticals, with plans to spin off its aluminium, oil & gas, power, and steel divisions into separate listed entities. These businesses are currently housed under Vedanta Ltd, the Indian arm of London-based Vedanta Resources. Citing pending approvals from regulatory bodies and the NCLT, the company had earlier extended its demerger deadline from March 31 to September 30, 2025. ADVERTISEMENT Under the plan, Vedanta shareholders will receive one share in each of the newly carved-out companies for every share they hold. The overall shareholding structure will remain unchanged.
