Tag: NCLAT

The Supreme Court on Friday stayed the National Company Law Appellate Tribunal's order dismissing the Registrar of Companies (RoC) plea seeking modification of its verdict in the Tata-Cyrus Mistry matter.

In the case of Cyrus Mistry, Tata Sons has challenged the National Company Law Appellate Tribunal (NCLAT) decision in the Supreme Court. The board meeting of Tata Consultancy Services (TCS), the flagship company of the Tata group, is scheduled to take place on 9 January. In such a situation, when the Supreme Court opens on 6 January, Tata Sons' lawyers can demand an immediate hearing. On December 18, the NCLAT ordered Mistry to appoint him again as chairman of Tata Sons. Tata Sons had 4 weeks to appeal.

The two-year long battle is now over and the Supreme court has finally decided the Essar Steel Insolvency case. In the ruling the Supreme Court has set aside the NCLAT judgement and said that the power to decide how to distribute the funds are with the Committee of Creditors. It also added that the operational creditors cannot be treated in the same was as the financial Creditor. This decision will be a test for the Insolvency and Bankruptcy law of India. Earlier NCLAT in its judgement has said that the fund that would come from the bid will be distributed equally among the financial and the operational creditors. However, Supreme court has set aside the NCLAT judgement. It is a test of the Insolvency code and it will be seen how the apex court will distribute the money that would come from the resolution proceed between the class of creditors with different securities and will also see on the validity of the fix time limit for the resolution.