&w=3840&q=100)
NCLT a creature of statute, should stick to that: NCLT Chairperson
"Don't stretch your power beyond the statute (IBC, Company Law). We are judges, prosecutors, executioners, recovery agents," said R Sudhakar, Chairperson of the NCLT, addressing a litigant who had cited sections from criminal law during proceedings.
'I am going through the Bhushan Power and Steel Limited judgment again. We should restrict the court to the Companies Act and IBC. The Supreme Court has clearly said do not stretch your power beyond the statute. A number of applications are passed left, right and centre,' Justice Sudhakar added.
The Supreme Court, on 2 May, had declared JSW Steel Limited's resolution plan for BPSL 'illegal' and ordered the liquidation of the company—four years after it was acquired by JSW Steel under the IBC. The matter has now returned to NCLT Delhi for further resolution.
Limited Capacity
Earlier this week, during a hearing on the BPSL liquidation proceedings, Justice Sudhakar noted that the NCLT lacked the capacity to revisit large and complex bankruptcy cases resolved six years ago, given its limited resources.
'So many issues are happening in the tribunal every day. The number of benches needs to be increased. If you want to have valuable judicial time under this pressure, it's very difficult for any member to do that effectively. Even if I have to check a small application filed with all its necessary safeguards, I need more time,' he said.
'For example, in this Bhushan Steel case, I want a special bench just for this. These interlocutory applications (IAs) need to be adjudicated by a special bench, and that takes time… Where are the members?' the NCLT Chairperson asked.
He said the members of the NCLT are overburdened by the volume of cases. Several BPSL creditors and stakeholders have filed fresh claims following the Supreme Court's ruling.
'This is what I've been telling Parliament. Please double the number of members. At least this issue can't continue as it is,' Sudhakar said.
'I literally push my members to achieve what we've managed so far,' he remarked.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
34 minutes ago
- Time of India
25% upfront, remaining in 3 years: Sports City companies seek rehabilitation policy
Noida: In a bid to resolve the long-standing impasse surrounding Sports City, developers have urged UP govt to introduce a rehabilitation policy similar to the one implemented for stalled group housing projects based on recommendations of the Amitabh Kant committee. The builders have proposed to clear their recalculated dues by paying 25% within 60 days and the remaining amount over three years. The appeal comes as over 8,000 residents already occupy homes in Sports City developments across sectors 78, 79, and 150, while another 20,000 await possession. Credai (Western UP) — the umbrella of builders — highlighted that despite being on a par with other projects, Sports City developments were excluded from the state's rehabilitation policy. You Can Also Check: Noida AQI | Weather in Noida | Bank Holidays in Noida | Public Holidays in Noida Dues involving Sports City projects gained prominence after the Allahabad high court in Feb this year ordered CBI and ED investigations into the matter and asked Noida Authority to issue recovery notices to developers. While builders secured an interim stay against coercive action from the Supreme Court, subsequent clarifications allowed the Authority to proceed with the recovery of dues. The Authority, in response, issued fresh notices to the defaulting developers earlier this month. Following this, one consortium partner in a Sector 150 Sports City project — led by Lotus Green Constructions — deposited Rs 80 crore as part of its dues. In its Aug 1 letter to chief secretary SP Goyal, Credai argued that the Authority should not have issued fresh notices without first resolving outstanding issues, given that the matter was still under the Supreme Court's consideration. Credai, in the letter, flagged several anomalies in the calculation of dues. The developers argued that interest rates should align with the marginal cost of funds-based lending rate (MCLR) in keeping with govt orders. They also contested the application of commercial rates for time extension charges, given that only 0.5% of the land use was commercial. Other contentious issues, according to Credai, include the double imposition of farmer compensation and inconsistent application of zero period benefits. While some projects received waivers till 2017, others were denied similar relief, it alleged. The developers also highlighted delays in map revalidation and issuance of occupancy certificates, which affected home registrations and loan disbursements. "Due to delays in approvals, unresolved land dues, and the continuing development ban, many projects are becoming financially unviable and moving towards bankruptcy," the letter read, emphasising that the delays impacted both homebuyers and state revenue from stamp duty. Get the latest lifestyle updates on Times of India, along with Friendship Day wishes , messages and quotes !
Time of India
an hour ago
- Time of India
State moves to centralise bus services under new state-run network
Bhopal: The state is set to bring its fragmented bus services under a single state-run network by launching the "Mukhyamantri Sugam Parivahan Seva" scheme to coordinate city and inter-city transport across the state. Tired of too many ads? go ad free now The scheme, approved in April, establishes Madhya Pradesh Passenger Transport and Infrastructure Limited as the parent company, with the CM as its chair. The transport minister and chief secretary will serve as vice chairpersons. It was registered under the Companies Act on July 3. Seven regional subsidiary companies have also been formed under this state-level entity, replacing the current shareholding pattern of existing city bus companies in Bhopal, Indore, Ujjain, Jabalpur, Sagar, Rewa, and Gwalior. Under this initiative, scientific traffic surveys are being conducted in all divisions to design new bus routes and set optimal frequencies. Ujjain and Indore division surveys are in their final stages. Jabalpur and Sagar division surveys are ongoing. Surveys for Bhopal, Narmadapuram, Rewa, Shahdol, Gwalior and Chambal divisions will follow. The new service will integrate existing private bus operators into the system through a transparent govt-supervised contractual model. All buses will be operated under the supervision of the newly formed companies. Infrastructure such as bus depots, modern bus stands and bus stops will be developed in every district on a public-private partnership model. With route surveys nearly complete in Ujjain and Indore, the chief executive officers of the respective companies will begin consulting local bus operators for finalising route alignments. Sandeep Soni has been assigned the additional charge of CEO, Ujjain City Transport Services Limited. Tired of too many ads? go ad free now He is currently serving as the CEO of Ujjain Development Authority. The seven regional subsidiaries will be responsible for operating city and inter-city bus services in their respective jurisdictions. There has been a long-standing demand for better urban and inter-city transport in Madhya Pradesh. Under this initiative, the focus will be on ensuring safe, comfortable, affordable, and timely bus services for passengers.
Time of India
an hour ago
- Time of India
Guv visits disaster-affected areas in Mandi, calls for stronger disaster preparedness
1 2 Mandi: Himachal Pradesh governor Shiv Pratap Shukla visited the disaster-affected areas of Thunag, Bagsiad, and Janjehli in the Siraj assembly constituency of Mandi district on Sunday. During the visit, the governor met the affected families and distributed essential relief materials. The governor first interacted with disaster victims in Thunag and remarked that the sub-division suffered the most damage in the recent natural calamity, with extensive losses to private property, land, and livestock. He said cases amounting to over Rs 3 crore in compensation had been approved for final sanction. Commending the resilience of the local people, he said, "Despite the massive loss, the courage and determination of the residents here are truly commendable. While complete compensation for the damage is not possible, all possible assistance will be provided." He emphasised the need to consider both internal resources and additional arrangements to tackle such situations effectively. Shukla also visited the relief camp at Bagsiad and held discussions with the affected residents at the PWD Rest House in Thunag. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like TV providers are furious: this gadget gives you access to all channels Techno Mag Learn More Undo He later visited Panchayat Ghar Pakhred and reviewed the situation in the affected areas of Jhundi and Pakhred panchayats. The governor also met disaster-hit families in Janjehli and offered words of comfort. He said five truckloads of relief material had been dispatched to Mandi and one to Kullu from Raj Bhavan. He assured that more assistance would be sent promptly if requested by the district administration. Calling the calamity a major disaster, the governor said that immediate restoration is a challenge and there is a pressing need to take preventive measures to avoid such situations in the future. Referring to the Supreme Court's observations on environmental protection, he said they must be taken seriously and acted upon collectively. Leader of opposition Jai Ram Thakur, who also accompanied the governor, said the people are still in deep shock as their sources of livelihood were destroyed. He appreciated the state govt for restoring essential services like roads, electricity, and water supply through the district administration. Get the latest lifestyle updates on Times of India, along with Friendship Day wishes , messages and quotes !
