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A view of the BCCI headquarters in Mumbai. The BCCI told the National Company Law Tribunal (NCLT), Bengaluru that it would move an application for withdrawal of its insolvency plea against ed-tech firm Byju’s.
| Photo Credit: The Hindu

The Board of Control for Cricket in India (BCCI) on Tuesday (November 12, 2024) told the National Company Law Tribunal (NCLT), Bengaluru that it would move an application for withdrawal of its insolvency plea against ed-tech firm Byju’s.

Last month, Supreme Court had set aside a judgement of the National Company Law Appellate Tribunal (NCLAT) allowing a ₹158 crore settlement between ed-tech firm Byju’s with the Board of Control for Cricket in India (BCCI), noting that there was “grave deviation from procedure” in bringing the case to the NCLAT itself.

The NCLAT had set aside the insolvency proceedings against Byju’s parent Think & Learn Private Limited. Byju’s U.S.-based creditor Glas Trust Company LLC had moved the apex Court against the NCLAT verdict.

The settlement was offered by Riju Raveendran, brother of Byju Raveendran from his personal assets.

On Tuesday (November 12, 2024), BCCI told the NCLT that it has communicated to Byju’s resolution professional to move an application for withdrawal of the insolvency plea and it would be done in a couple of days.

Meanwhile, Glas Trust sought for removal of the resolution professional and re-constitution of committee of creditors and its views also be heard as per the directions of the apex court.

NCLT directed all parties to make their pleadings within the next three days and posted the case for hearing on Monday.

The Mumbai bench of NCLT has appointed Debashis Nanda as the interim resolution professional suspending the board of Syska LED Lights, as per the provisions of the Insolvency & Bankruptcy Code (IBC).
| Photo Credit: Getty Images/iStockphoto

The National Company Law Tribunal (NCLT) has been directed to initiate insolvency proceedings against Syska LED Lights, admitting the plea filed by its operational creditor — Sunstar Industries.

Syska LED Lights, part of Pune-based SSK Group, operates in segments such as LED lights, personal care appliances, mobile accessories, home appliances, and smart watches.

The Mumbai bench of NCLT admitted the plea filed by Sunstar Industries, claiming total dues of ₹7.70 crore and has appointed Debashis Nanda as the interim resolution professional suspending the board of Syska LED Lights, as per the provisions of the Insolvency & Bankruptcy Code (IBC).

It rejected Syska LED Lights’ claims of a pre-existing dispute and said the email exchanged between parties establishes its liability towards its operational creditor.

“We are of the considered view that the applicant has been able to establish the existence of operational debt and its default on the part of the corporate debtor and further that the application has been filed within the period of limitation and also that there is no pre-existing dispute between the parties with regard to the transaction in question.

“Accordingly, we hold that it is a fit case for admission under Section 9 of the Code,” said a two-member bench in its order passed on Tuesday (October 8, 2024).

Earlier, NCLT also directed the initiating of the Corporate Insolvency Resolution Process (CIRP) against Syska LED Light on a petition filed by some other operational creditor. However, the CIRP was withdrawn in May 2024 after a settlement was reached.

Now, again, Syska LED Light is back to the rigours of CIRP over a petition filed by Sunstar Industries, which manufactures, designs, and fabricates electrical home appliances.

It was supplying irons on a 60-day credit period to Syska, which the SSK Group firm was selling under its own brand name.

Initially, the payment terms were duly adhered to by Syska LED Lights; however, it committed substantial default. According to the operational creditor, it defaulted on 25 invoices raised between March 2023 and July 2023.

This debt was even acknowledged on multiple occasions by the corporate debtor Syska by way of multiple emails and post-dated cheques, Sunstar Industries had claimed.

However, this was opposed by Syska during the proceedings, contending that the petition is based on falsehoods, deliberate misstatements and suppression of material facts.

It further argued that there is a pre-existing dispute between the parties with regard to the quality of the goods supplied by Sunstar Industries and the alleged misuse of IBC as a recovery mechanism and requested to dismiss the petition.

Syska also submitted that an OTS (one-time settlement) proposal was made to the applicant on August 25, 2024, which was not accepted as it was not willing to forgo the interest part of the claim.

However, a two-member NCLT bench comprising Anil Raj Chellan and Kuldip Kumar Kareer rejected Syska’s submission and said it is not disputed that Sunstar Industries has supplied goods worth ₹7.19 crore and Syska LED Lights has acknowledged its liability in an email dated November 22, 2023.

“Merely because the applicant refused to accept the OTS proposal put forth by the corporate debtor cannot be a ground to reject the application under Section 9,” said NCLT.

It further added that, if Sunstar Industries had initiated some proceedings under the Micro, Small and Medium Enterprises Development Act, 2006 for the recovery of the outstanding dues, “it does not debar the applicant” in any way from the filing the application under Section 9 of the IB Code, 2016.

“The Company Petition… is hereby admitted,” said NCLT while directing to put Syska LED Lights under the protection of moratorium under the provisions of IBC.

The 14-page NCLT order also said the supply of essential goods or services to Syska LED Lights, if continuing, shall not be terminated, suspended or interrupted during the moratorium period.

“During the CIRP period, the management of the corporate debtor (Syska) will vest in the IRP/RP. The suspended directors and employees of the corporate debtor shall provide all documents in their possession and furnish every information in their knowledge to the IRP/RP,” said NCLT.

New Delhi:

The National Company Law Tribunal (NCLT) on Monday issued notice to debt-ridden air carrier SpiceJet over the plea filed by one of its operational creditors.

A two-member NCLT bench, comprising Mahendra Khandelwal and Sanjeev Tanjan, has directed Spicejet to file a reply and list the matter for the next hearing on November 14.

SpiceJet is already facing several insolvency petitions from creditors, including Willis Lease, Aircastle Ireland Ltd, Wilmington and Celestial Aviation at NCLT and the appellate tribunal NCLAT.

The latest petition is by Techjockey Infotech Pvt Ltd, an operational creditor, filed under section 9 of the Insolvency & Bankruptcy Code, through Karanjawala & Co.

Techjockey Infotech claimed a default of nearly Rs 1.2 crore owed by SpiceJet against software services availed by them and requested to initiate a corporate insolvency resolution process (CIRP) against the air carrier.

It contended that its debt has been acknowledged by SpiceJet, though it has not been yet complied.

Earlier in June, NCLT had issued notice to SpiceJet over the petition filed by Engine Lease Finance (ELF). Based in Ireland, ELF is the world’s leading independent engine financing and leasing company and claimed a payment default of over USD 12 million (around Rs 100 crore).

The NCLT rejected the pleas of Willis Lease Finance and Wilmington Trust. Spicejet settled the case with Celestial Aviation.

The petitions filed by Aircastle and Alterna Aircraft are pending before the insolvency tribunal.

Both Wilmington Trust and Willis Lease Finance have moved the National Company Law Appellate Tribunal (NCLAT) challenging the dismissal of their insolvency plea by NCLT.

SpiceJet has raised Rs 3,000 crore through the sale of shares to qualified institutional buyers, which will provide a much-needed tailwind for the struggling airline.

Among others, the proceeds will be used for settling liabilities of creditors, including aircraft and engine lessors, engineering vendors and financiers.

Five allottees each have received more than five per cent of the shares offered in the QIP. They are Authum Investment and Infrastructure Ltd (9.33 per cent), Discovery Global Opportunity (Mauritius) Ltd (8.33 per cent), Troo Capital (6.67 per cent), Societe Generale – ODI (6.04 per cent) and Goldman Sachs (Singapore) Pte – ODI (5.33 per cent), as per another regulatory filing The carrier’s statutory dues totalled Rs 601.5 crore as of September 15 and net proceeds from the placement will also be utilised towards clearing the dues. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Rajan Bajaj, Founder and CEO, slice
| Photo Credit: The Hindu

slice, India’s leading consumer payments and lending company has received approval from the National Company Law Tribunal (NCLT) for its merger with North East Small Finance Bank (NESFB). The NCLT, Guwahati bench, has sanctioned the Scheme of Arrangement and Amalgamation involving Garagepreneurs Internet Private Limited, Quadrillion Finance Private Limited, Intergalactory Foundry Private Limited, RGVN (North East) Microfinance Limited, and North East Small Finance Bank Limited.

The approval paves way for the official merger, combining slice’s digital prowess with NESFB’s grassroots banking expertise to deliver a superior financial experience to Indian consumers. This follows critical approvals from the Competition Commission of India (CCI), the Registrar of Companies (RoC), and the Regional Director (RD), as well as no-objection certificates from the Reserve Bank of India (RBI) and the Income Tax Department. The merger will enable the combined entity to leverage advanced technology and deep community understanding, fostering financial inclusion across the nation. Customers can look forward to an expanded range of products, enhanced omni channel offerings, and a seamless banking experience.

Commenting on the approval, Rajan Bajaj, Founder and CEO, slice, said, “We are truly grateful for the trust and support of everyone and the distinguished regulatory bodies that played a pivotal role in the process. At slice, we have always prioritized our commitment to our customers. This approval reinforces our dedication to creating a highly inclusive and responsible banking environment. This merger represents not just a milestone, but a testament to our shared dedication to redefining banking experiences and expanding accessibility for all. We are excited to merge with NESFB, and together, we will continue to innovate and strengthen financial access, technology driven banking systems, and customer service.“

slice and NESFB will soon announce the effective merger date and details of the merged entity. In the coming months, both organizations will work diligently to ensure a smooth transition for all customers, employees and stakeholders, with a focus on maintaining the highest standards of service and support.

This merger represents a significant step forward in advancing financial inclusivity and setting new industry benchmarks through innovative tech solutions.

Image for representation. File
| Photo Credit: K. Pichumani

Jet Airways on May 30 said there will be a delay in declaring the financial results for the quarter and year ended March 2024, and its monitoring committee expected to meet shortly to consider the results.

“We wish to state that currently the approved resolution plan is at the implementation stage and every effort is being ensured to comply with the necessary provisions of SEBI LODR Regulations, as such a meeting of the monitoring committee will be convened at the earliest to consider and adopt the aforesaid financial results,” the airline said in a regulatory filing.

Jet Airways, which stopped flying in April 2019 due to financial crunch, is undergoing an insolvency resolution process.

The resolution plan submitted by the consortium of Murari Lal Jalan and Florian Fritsch was approved by the Mumbai bench of the National Company Law Tribunal (NCLT) in June 2021.

Subsequently, the monitoring committee was set up to oversee the implementation of the approved plan. The plan is yet to be implemented.

The committee has not considered adopted the financial results for the September and December quarters of the last financial year.

“Consequently, the audited financial results [standalone] of the company for the quarter and year ended March 31, 2024 also could not be considered and adopted by the monitoring committee.

“… a meeting will be convened shortly to consider and adopt the aforesaid financial results of the company. Accordingly, necessary intimation wrt the same will be filed with the exchanges,” the filing said.

ZEEL has, on account of Culver Max’s and BEPL’s breaches under the Merger Cooperation agreement, terminated the MCA by issuing a letter dated May 23, 2024. 
| Photo Credit: Reuters

Zee Entertainment Enterprises has sought a termination fee of $90 million (around ₹748.7 crore) from the Sony Group for calling off the $10 billion merger deal in January this year.

It has sought termination fees from two Sony Group entities — Sony Pictures Networks India (SPNI), now known as Culver Max Entertainment, and Bangla Entertainment (BEPL), according to a regulatory filing from Zee Entertainment Enterprises Limited (ZEEL) on May 24.

ZEEL has, on account of Culver Max’s and BEPL’s breaches under the Merger Cooperation agreement (MCA), terminated the MCA by issuing a letter dated May 23, 2024. “The company has sought a termination fee from Culver Max and BEPL under the provisions of the MCA,” it said.

“Culver Max and BEPL have failed to comply with their obligations under the MCA. Therefore, the company has terminated the MCA and called upon Culver Max and BEPL to pay the termination fee i.e. the aggregate amount equal to $90 million in accordance with the MCA,” it said.

Earlier on January 22, 2024, Sony Group Corporation (SGC) had said that ZEEL did not satisfy the merger conditions and initiated arbitration proceedings before the Singapore International Arbitration Centre (SIAC) claiming $90 million as termination fee.

This was contested by ZEEL before the SIAC, which denied any interim relief to the Sony group against the Indian broadcaster. ZEEL had moved the National Company Law Tribunal seeking implementation of the proposed merger and later withdrew its plea.

“We hereby wish to inform you that the company has, on account of Culver Max’s and BEPL’s breaches under the MCA, terminated the MCA by issuing a letter dated May 23, 2024, and sought a termination fee from Culver Max and BEPL in accordance with the provisions of the MCA,” the filing said. ZEEL and SPNI had entered into an agreement to merge on December 22, 2021.

On August 10, 2023 the Mumbai Bench of NCLT approved the scheme of merger of ZEEL with Sony group entities Culver Max Entertainment and BEPL, which could have created a $10 billion media entity.

However, two years after that Sony Corporation announced the termination of the agreement on January 22, 2024.

Zee Entertainment and SONY logos are displayed in this illustration taken, September 1, 2022.
| Photo Credit: Reuters

The National Company Law Tribunal (NCLT) on Tuesday accepted a petition by a Zee Entertainment shareholder seeking the merger of its Indian entity with Sony, which was called off last week despite regulatory approvals.

The Mumbai-bench of NCLT issued a notice on a petition moved by Mad Men Film Ventures, a shareholder of Zee Entertainment Enterprises (ZEEL), directing Sony Pictures Network India, now known as Culver Max, to file a reply within three weeks.

Mad Men Film Ventures on Tuesday filed the petition requesting both ZEEL and Sony to implement the merger as it was approved by the NCLT in August 2023.

The tribunal did not agree with the arguments made by the counsel stating that the approval by NCLT was conditional and depended on various conditions, which may be fulfilled or waived in writing.

NCLT has set March 12 for the next hearing on the matter.

Last week, the Sony Group Corp called off the merger with ZEEL following a stalemate over who will lead the merged entity. This merger could have otherwise created a $10 billion media enterprise in the country.

The deal stipulated that the merger was to be completed before December 21, 2023, including regulatory and other approvals with a grace period of one month to complete the transaction.

New Delhi:

Crisis-hit carrier SpiceJet can settle issues with lessors that have sought initiation of insolvency proceedings against it, the National Company Law Tribunal has suggested. The tribunal’s suggestion came amid Spicejet’s move to issue shares in lieu of dues to nine aircraft lessors.

On Tuesday, the NCLT was hearing a plea filed by Celestial Aviation Services Ltd, an operational creditor which had filed an appeal to initiate insolvency proceedings against the airline.

A two-member bench of the tribunal observed that the airline is settling with some of aeroplane lessors by converting debt into equity.

“SpiceJet seems to be settling with other lessors by giving shares, Why don’t you settle with these lessors as well?” said the bench comprising M M Khandelwal and Rahul Prasad Bhatnagar.

This was in reference to Celestial Aviation Services and four other lessors who have filed pleas against the airline.

The bench said in its opinion, it is in its best interest to settle with the lessors and suggested that all of them sit together and resolve the disputes.

The tribunal also observed that “banks have not filed insolvency petitions, only lessors have come”.

On Monday, SpiceJet announced the allotment of 4.81 crore equity shares on a preferential basis to nine of its aircraft lessors to clear outstanding dues of Rs 231 crore.

The NCLT is scheduled to hear pleas of all SpiceJet lessors on September 15.

According to regulatory filings, nine lessors who have been allotted shares include SASOF III (A13) Aviation Ireland DAC, SASOF III (A6) Aviation Ireland DAC, SASOF III (C) Aviation Ireland DAC, SASOF III (E) Aviation Ireland DAC, SASOF III (A19) Aviation Ireland DAC, SASOF II (J) Aviation Ireland DAC Citrine Aircraft Leasing Limited, Fly Aircraft Holdings Seven Limited, Fly Aircraft Holdings One Limited.