• UGI USER
  • Jun 10, 2024
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“NCLT BEGINS INSOLVENCY PROCEEDINGS AGAINST HIMALAYAN MINERAL WATERS, APPOINTS IRP”

Why in the news?

  • The NCLT has initiated insolvency proceedings against Himalayan Mineral Waters following a default on a corporate guarantee for Leel Electricals, as per Jammu & Kashmir Bank’s plea.
  • Bhoopesh Gupta has been appointed as the interim resolution professional for the firm’s Corporate Insolvency Resolution Process (CIRP).
source:scribd

About National Company Law Tribunal (NCLT):

  • Nature: Quasi-judicial authority for corporate civil disputes under the Companies Act, 2013.
  • Establishment Date: Constituted on 1 June 2016.
  • Origin: Based on recommendations from the Balakrishna Eradi committee on insolvency and winding up of companies.
  • Insolvency Authority: Adjudicating authority for insolvency resolution of companies and LLPs under the Insolvency and Bankruptcy Code, 2016.
About Insolvency and Bankruptcy Code, 2016:

●     Consolidates and amends India’s bankruptcy laws. Addresses insolvency and bankruptcy for various entities.

●     Aims for time-bound, creditor-driven resolution.

●     Regulating Authority (IBBI): Oversees rule implementation and regulation. Comprises 10 members representing key ministries.

●     Adjudicating Authority: NCLT for companies; DRT for individuals and partnerships.