Telangana High Court bins NCLT plea for loan recovery

Hyderabad: A two-judge panel of the Telangana High Court comprising Chief Justice Ujjal Bhuyan and Justice S Nanda on Tuesday disposed of a writ petition questioning the jurisdiction of the National Company Law Tribunal (NCLT) in adjudicating a matter pertaining to recovery of a loan. The panel was dealing with a writ petition filed by […]

Hyderabad: A two-judge panel of the Telangana High Court comprising Chief Justice Ujjal Bhuyan and Justice S Nanda on Tuesday disposed of a writ petition questioning the jurisdiction of the National Company Law Tribunal (NCLT) in adjudicating a matter pertaining to recovery of a loan. The panel was dealing with a writ petition filed by Benita industries against the proceedings filed by a private respondent in the NCLT. The company informed the court that the private party had lent money to the petitioner by executing a promissory note.

The petitioner had already paid the part amount and for the remaining balance, the private respondent approached NCLT. The petitioner pointed out that the transaction of loan did not fall under the purview of the NCLT. The panel while observing that the petitioner had already filed a response in the NCLT, directed the NCLT to consider the same within two weeks. The panel accordingly disposed of the petition.

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Trade License rules questioned

The same panel heard inconclusively arguments questioning Rule 4 of Telangana Municipalities Trade License Regulation of issue and Renewal Rules 2020. The panel was dealing with a writ petition filed by Kamareddy Chambers of Commerce and Industry and others questioning the rule that was published as a government order in September 2020. The petitioners questioned the action of the government in fixing fees for grant/renewal of trade license based on the area/location of establishments. The panel while issuing notice to the respondents directed the matter to be listed along with other connected matters. The panel will hear the combined matters on September 01.