Economic Times
Ø 'India playing pharmacy of the world amid crisis'
Ø Government expects current account surplus in Q1 FY21
Ø CII suggests steps to improve ease of doing business
Ø 65% trucks sitting idle due to fuel prices, corruption
Ø UK to seek new powers to check foreign takeovers
Ø Debt servicing delayed due to downgrade: RCap
Ø OIL to challenge Pollution Control Board closure notice in Gauhati High Court
Business Standard
Ø Govt seeks product details to curb low quality imports from China: Sources
Ø Malls see 77% degrowth in 1st half of June, consumer sentiment low: Report
Ø Women form less than 25% of most Indian companies' board, says study
Ø Hetero to launch remdesivir at Rs 5,000-6,000/dose, Cipla to follow suit
Ø Unichem, Lupin recall high blood pressure drugs from US over quality issues
Business Line
Ø Cochin Shipyard Q4 profit up 44% to ₹138 crore
Ø Arvind Fashions to raise ₹399 cr via rights issue
Ø China accounts for two-thirds of India’s bulk drug imports
Ø Three Indian firms get nod for Covid anti-viral drugs
Ø DHFL Q4 loss widens to ₹7,635 crore on fair value changes in loan portfolio
Ø WTO: India against easing farm export tariffs amid Covid
Mint
Ø Blockades lifted, operations resume at OIL's Baghjan wells
Ø German mogul could topple Lufthansa’s $10 billion bailout
Ø Special insurance scheme for health workers extended till Sept: Govt
Ø Piramal Pharma Solutions to acquire G&W Lab’s manufacturing facility in the US
Ø Solar power generation in India plunges by a third during eclipse
Financial Express
Ø FPIs invest Rs 17,985 crore in June so far
Ø Developed land sold as plots will attract GST: AAR
Ø Punjab National Bank plans to hit capital market in Q4
Ø Ratan Tata calls for stopping online hate, bullying
Ø ITC to invest more in agri business to strengthen e-Choupal
Deccan Chronicle
Ø Hetero gets DCGI nod to launch Remdesivir for COVID-19 treatment
Ø Fuel rates hiked for 15th day; Diesel price hits record high, petrol up 35 paise
Ø ONGC may rationalise capex as COVID-19 hits project execution
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👉🏻SC stays Delhi HC order on transitional GST credit on Centre's SLP
(The Supreme Court has stayed the Delhi high court order that had allowed availing tax credits for pre-GST period up to June 30 this year)
👇🏻 👇🏻 👇🏻
https://bit.ly/3eh5YHG
👉🏻SEBI again eases compliance norms for brokers
(SEBI extended the deadline for brokers to submit reports on client funding and daily margin till July 31, in the wake of the COVID-19 crisis)
👇🏻 👇🏻 👇🏻
https://bit.ly/37IgaXm
👉🏻Govt plans to decriminalise compoundable offences under LLP Act
(MCA has proposed to decriminalise certain compoundable offences under the Limited Liability Partnership (LLP) Act, involving minor, procedural or technical violations)
👇🏻 👇🏻 👇🏻
https://bit.ly/3hLorOQ
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👉 A dedicated bankruptcy court has posted State Bank of India’s plea against Anil Ambani to June 30, in a case where the state-owned lender is trying to recover loans taken by the bankrupt Reliance Communications, which the former billionaire had personally guaranteed.
Last week, SBI had moved the insolvency court to recover more than Rs 1,200 crore from Ambani under the personal guarantee clause of the bankruptcy law.
The Mumbai bench of the National Company Law Tribunal (NCLT) on Friday allowed the lender more time to file its rejoinder to Ambani’s response. The bench was presided over by judicial member Mohammed Ajmal and technical member Ravikumar Duraisamy.
The public sector lender moved the NCLT under Section 97(3) of the Insolvency and Bankruptcy Code (IBC), seeking its intervention to direct the insolvency board to nominate a resolution professional (RP) to assess and submit a report on the assets owned by Ambani. Subsequently, the tribunal granted time till June 18 to the lawyers representing Ambani to file their reply. SBI will now file its rejoinder before June 30.
Senior counsel Venkatesh Dhond along with Ryan D’Souza is representing SBI, while Anil Ambani is represented by senior advocate Harish Salve.
👉 The National Company Law Appellate Tribunal (NCLAT) has held that the liquidation process of a company under the Insolvency and Bankruptcy Code (IBC) holds precedence over outcome of an arbitration proceeding, and therefore process under IBC shall not be stopped.
In its judgment, a three-member Bench of NCLAT held that Bharat Heavy Electricals Limited’s (BHEL) objections to liquidation of Tamil Nadu-based Surana Power were not valid as majority of secured creditors had given their consent to liquidation.
“It would be prejudicial to stall the liquidation process at the instance of a single creditor having only 26.24 per cent share (in value), in the secured assets. The respondent (BHEL) does not hold a superior charge from the rest of the secured financial creditors in the secured assets,” it said.
Surana Power, which was admitted into insolvency in January 2019, did not receive any valid resolution plans, and was therefore ordered to be liquidated by the Chennai Bench of National Company Law Tribunal (NCLT).
During the liquidation proceedings, state-run BHEL won an ex-parte arbitration award against Surana Power, which gave it lien over all the equipment and goods lying at the latter’s unit, as well as its partially or fully constructed buildings.
Following the award, BHEL, which is also one of the secured creditors, refused to give its consent for liquidation as it would have resulted in it getting lesser share according to IBC’s waterfall mechanism. BHEL’s refusal was challenged by the liquidator at the Chennai bench of NCLT.
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👉 The National Company Law Appellate Tribunal (NCLAT) has ruled that liquidation process of a company under the Insolvency and Bankruptcy Code (IBC) holds precedence over outcome of an arbitration proceeding.
A three-member Bench, headed by Justice Venugopal M, ruled that just because Bharat Heavy Electricals Limited had won an arbitration award against Surana Power, which was undergoing liquidation, the process would not be stopped to favour it. The Chennai Bench of National Company Law Tribunal (NCLT) had earlier ruled in favour of BHEL.
What does the NCLAT order mean?
In its judgment, the NCLAT set aside an order of Chennai NCLT on the grounds that BHEL’s charge over Surana Power assets were equal to the other 10 financial creditors, and therefore it could not be given precedence.
BHEL’s claim that it the first right over the assets and properties of Surana Power, was wrong as all other creditors had given the assent to liquidate the corporate debtor, the NCLAT held.
The NCLAT’s judgment essentially holds that if a corporate debtor is being liquidated, a creditor can not claim superiority over other secured creditors in the same band, and that everyone must receive their fair share by following the waterfall mechanism of liquidation.
👉 Months after approving the resolution plan of Reliance Communications (RCom), the company’s primary lender, the State Bank of India (SBI), last week approached the National Company Law Tribunal (NCLT) and sought the personally guaranteed loans taken by Anil Ambani for RCom. In May, the High Court in London asked Anil Ambani to repay $716 million (around Rs 5,000 crore) to three Chinese banks, an amount which Ambani raised for RCom through personal guarantees.
Although the junior Ambani has contested that he did not raise the loan through personal guarantees from the three Chinese banks – Industrial and Commercial Bank of China, the China Development Bank, and the Export-Import Bank of China – the court ruled in favour of the banks. During one of the hearings in this case in February, Anil Ambani told the court that his net worth has come down to zero.
According to the banks, they had provided a total loan of $925.2 million to RCom in 2012 on the agreement that Ambani had provided a personal guarantee.
As per the SBI plea, the bank wants to recover over Rs 1,200 crore from Anil Ambani under the personal guarantee clause of the Insolvency and Bankruptcy Code (IBC). As per several provisions of the IBC code, the NCLT may nominate a resolution professional for the resolution process of the personal guarantor. The tribunal has scheduled the next hearing for June 30.
In March, the creditors’ committee of RCom approved a resolution plan for RCom submitted by UV Asset Reconstruction Company Ltd. and a unit of Reliance Jio Infocomm Ltd. The bidders offered Rs 23,000 crore against the Rs 49,000 crore claimed by lenders of RCom.
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👉 The National Company Law Appellate Tribunal has set aside an NCLT order, and directed to start liquidation process of energy firm Surana Power.
A three-member NCLAT bench has rejected the contentions of state-owned Bharat Heavy Electricals Limited (BHEL), a secured creditor of the debt-ridden company. The PSU was claiming exclusive rights over the assets following an arbitration award in its favour.
The appellate tribunal said BHEL’s claim on the secured assets is not exclusive.
Moreover, ten out of eleven secured creditors of Surana Power together – representing 73.76 of the admitted claims – have already relinquished their security interest, hence, it would be prejudicial to stall the liquidation process at the insistence of one single operation creditor BHEL.
“The Secured Creditors which 73.76 per cent in value have already relinquished the Security Interest into the liquidation estate. Thus, it would be prejudicial to stall the liquidation process at the instance of a single creditor (BHEL) having only 26.24 per cent share (in value) in the secured assets,” said the NCLAT.
The appellate tribunal said as BHEL does not have a requisite 60 per cent value in secured Interest, therefore, it does not have the right to realise its security interest.
“It would be detrimental to the Liquidation process and the interest of the remaining ten Secured Creditors,” the NCLAT said.
Earlier, the Chennai bench of National Company Law Appellate Tribunal (NCLT) had admitted the insolvency plea against Surana Power on January 20, 2019. However, as no resolution plan was approved, the company was ordered to be liquidated.
During the liquidation process, BHEL succeeded in an arbitration proceeding against Surana Power and an award was passed in its favour.
Based on the arbitral award, BHEL had been granted lien over the equipment and goods lying at the site of Surana Power.
👉 The National Company Law Appellate Tribunal has set aside an NCLT order, and directed to start the liquidation process of energy firm Surana Power.
A three-member NCLAT bench has rejected the contentions of state-owned Bharat Heavy Electricals Ltd., a secured creditor of the debt-ridden company. The PSU was claiming exclusive rights over the assets following an arbitration award in its favour.
The appellate tribunal said BHEL’s claim on the secured assets is not exclusive.
Moreover, ten out of eleven secured creditors of Surana Power together - representing 73.76% of the admitted claims - have already relinquished their security interest, hence, it would be prejudicial to stall the liquidation process at the insistence of one single operation creditor BHEL.
The Secured Creditors which 73.76% in value have already relinquished the security interest into the liquidation estate. Thus, it would be prejudicial to stall the liquidation process at the instance of a single creditor having only 26.24% share in the secured assets, said the NCLAT.
The appellate tribunal said as BHEL does not have a requisite 60% value in secured interest, therefore, it does not have the right to realise its security interest.
It would be detrimental to the liquidation process and the interest of the remaining ten secured creditors, the NCLAT said.
Earlier, the Chennai bench of National Company Law Tribunal had admitted the insolvency plea against Surana Power on Jan. 20, 2019. However, as no resolution plan was approved, the company was ordered to be liquidated.
During the liquidation process, BHEL succeeded in an arbitration proceeding against Surana Power and an award was passed in its favour.
Based on the arbitral award, BHEL had been granted lien over the equipment and goods lying at the site of Surana Power.
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Finance ministry on Friday proposed putting restrictions on foreign investment in pension funds from any of India's bordering countries. Foreign investment in pension funds regulated by the Pension Fund Regulatory and Development Authority (PFRDA) is capped at 49 per cent with automatic route.
Central Board of Indirect Taxes and Customs issued a Notification No. 48/2020 – Central Tax dated June 19, 2020 regarding filing of GSTR-3B also through EVC. Companies, during the period April 21, 2020 to September 30, 2020, shall be allowed to furnish FORM GSTR-3B verified through electronic verification code.
GST: Delhi High Court upholds the claim of transitional credit in light with its earlier judgments, even after retrospective amendment in CGST Act.
Case law: SKH Sheet Metals Components Vs. UOI & Ors (Del. HC I Dt. 16.06.2020 I WP(C ) No. 13151/2019
MCA: Relaxation of time limit in filing Form CHG-1 & CHG-9 for registration/ modification of charges from 17.6.20 to 30.9.20. MCA Circular 23/2020 of 17.6.20.
MCA plans to decriminalise various provisions of the Limited Liability Partnership (LLP) Act as part of efforts to provide greater ease of doing business as well as to de-clog the criminal justice system. More than 1.45 lakh LLPs are registered under the LLP Act and a bulk of them are small and medium enterprises.
ICAI Seeking expression of interest in delivering lectures at Foundation, Intermediate and Final levels through virtual mode. Interested faculty please visit Board if Studies, ICAI.
Former governor of RBI Urjit Patel who resigned from his post in December 2018 after a tussle with the government over the central bank’s autonomy has been appointed as the chairman of the New Delhi Based economic think tank National Institute of Public Finance and Policy (NIPFP) for a period of four years.
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