Arbitration and Conciliation Act - During main arbitration proceedings, final relief of specific performance cannot be sought based on contingent contract, which stood abandoned because of negative covenant: HC (See 'Legal Desk') Companies Act - Petition for voluntary winding up can be allowed if whole procedure prescribed under law has been duly complied with: HC (See 'Legal Desk') GST: A Frightening but Fascinating Future world…! – Part IV (See 'TOG INSIGHT') IMA extends support for Ayushman scheme (See 'TOG News') Appointment of 5 NCLT Members subject to outcome of proceedings pending before CAT & Allahabad HC (See 'Dashboard') Naidu suggests farm sustainability & profitability over loan waiver (See 'TOG News') Telecom industry favors 5G auction in second half of 2019 (See 'TOG News') Gadkari reaffirms mission to make Chabahar port operational by 2019 (See 'TOG News') India keen to buy lithium & cobalt mines overseas (See'Corpbrief') GST: A Frightening but Fascinating Future world…! – Part III (See 'TOG INSIGHT') Panel set up to update social & economic responsibilities of business (See 'Corpbrief') Trade Marks Act - When contestants have registration of trade name in different classes but, duration of commencing business with that name is not clear, an ad interim order of injunction refraining contestant's right is not maintainable: HC (See 'Legal Desk') Companies Act - When as per terms of purchase order, title to goods are transferred to purchaser, once goods are loaded on ship then purchaser is liable to make payment even if goods are stuck with Customs: HC (See 'Legal Desk') Nokia signs five-year global IT infra & application services deal with HCL GAIL partners with Uber to catalyse CNG ecosystem in India Mega relief for power sector – Pariwartan scheme to protect value of assets (See 'Corpbrief') Govt to set up more rural Wi-Fi hotspots for better broadband connectivity (See 'Corpbrief') Adani Transmission acquires 100% equity in Ghatampur SPV Oyo starts China business with hotel rooms in 26 cities Renowned water conservationist predicts forced migration (See 'TOG News') Drive Against Shell Companies - A cul-de-sac! (See 'THE COB(WEB)' TIOL) Copyright Act - Defendant can be said to have infringed copyright of plaintiff if it sells similar goods by adopting label and packaging which is substantial reproduction of original artistic work: HC (See 'Legal Desk') SEBI Act - Restrictions from accessing securities market imposed by SEBI on director can be removed, if director is not found guilty of raising funds in violation of SEBI regulations in CBI and ED reports: SAT (See 'Legal Desk') Govt to review and come out with new plan for Air India CCI approves acquisition of Monsanto by Bayer AG u/s 31(7) of Competition Act Purchases from tribal artisans jumps by 166% in 2017-18 (See 'TOG News') EPFO subscribers to get option to hike investments in ETFs by this fiscal (See 'Corpbrief') MCA invites comments from stakeholders on introductory note and draft on Cross-Border Insolvency (See 'Cropbrief') BHEL gets Rs 1000 cr order for Emission Control equipment (See 'Corpbrief')

NCLT admits Aircel's bankruptcy plea, rejects GTL Infrastructure's intervention

Published: Mar 09, 2018


MUMBAI, MAR 9, 2018: The National Company Law Tribunal (NCLT) on Thursday admitted the bankruptcy petition filed by Aircel Ltd and rejected the intervention sought by GTL Infrastructure Ltd, an operational creditor of the Chennai-based telecom company.

GTL had earlier filed a case against Aircel in the Delhi High Court over non-payment of dues. It intervened in the bankruptcy case, arguing that the High Court in a 29 January interim order had said that separate applications had to be filed before it for issues such as sale of assets.

However, NCLT said that an operational creditor cannot intervene at this juncture (before the admission of insolvency petition) and admitted Aircel's insolvency plea.

Aircel and its subsidiaries Aircel Cellular Ltd and Dishnet Wireless Ltd together owe around Rs 50,000 cr to creditors. The combined liability of the firms towards financial creditors stands at Rs 15,545 cr and towards operational creditors at around Rs 35,000 cr.

Aircel's lawyer argued that the operator was not prohibited by the high court from filing for bankruptcy, and said the admission of the firm for insolvency proceedings required a sense of “urgency” as several stakeholders were being affected. He said the appointment of an interim resolution professional would increase the probability of maximizing the asset value instead of continuing in a distressed state.

Aircel's assets including spectrum licences and fibre, are valued at around Rs 32,362 cr.

Aircel Group had on 1 December 2017 informed the Telecom Regulatory Authority of India (TRAI) that it intended to surrender its licence in Gujarat, Maharashtra, Haryana, Himachal Pradesh, Madhya Pradesh and Uttar Pradesh (West), following which the company shut services in these circles from 31 January.