COMPANY LAW
Defying CIRP Orders 'Not In Public Interest', Amounts To Civil Contempt: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has held that deliberate disobedience of its directions during a corporate insolvency resolution process (CIRP), even on the ground that the quantification of a financial creditor's claim is pending in appeal, is against public interest and amounts to civil contempt. Allowing a contempt application filed by the resolution professional (RP) of Hotel Horizon Private Limited against its suspended directors, coram of Judicial Member Sushil...
NCLT Chandigarh Clears Merger Of Alternative Fuel Company Into Lumax Group Company
The National Company Law Tribunal (NCLT) at Chandigarh has cleared the merger of Greenfuel Energy Solutions Private Limited, a Gurgaon-based manufacturer of alternative fuel system components and batteries, with Lumax Resources Private Limited, a group company of listed auto components maker Lumax Auto Technologies Limited. A bench of Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh sanctioned the scheme on January 14, 2026. The tribunal said the merger complied...
NCLT Chandigarh Clears Merger of 16 DLF Subsidiaries With Parent Company
The National Company Law Tribunal (NCLT) at Chandigarh has recently approved a scheme of amalgamation that will allow DLF Limited, a prominnet real estate company, to merge 16 of its wholly owned subsidiaries into the parent company. The order was passed on January 14, 2026, by a coram comprising Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh. While allowing the second motion petition, the tribunal said it was satisfied that the scheme complied with the law...
Financial Creditor Cannot Avoid Liquidation Costs After Settling Dues Through OTS: NCLT Bengaluru
The National Company Law Tribunal (NCLT) at Bengaluru has held that a financial creditor that participated in the liquidation process and secured its dues through a one-time settlement cannot later avoid paying its share of liquidation costs for the ime it had taken part in it. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada directed Jammu & Kashmir Bank Ltd to bear its proportionate share of liquidation expenses in the liquidation of Alpine...
Auditor Liable For Misuse Of Digital Signature By His Own Employee Under Implied Authority: NCLT Mumbai
The National Company Law Tribunal at Mumbai has clarified that a statutory auditor cannot avoid liability for fraudulent filings by claiming misuse of his digital signature certificate (DSC) by his own employee.It held that under settled principles of agency, a principal is bound by the acts of his agent carried out within the scope of implied authority.A coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar made the observation while dismissing an application by...
NCLT Mumbai Sanctions Merger Of Bayer Zydus Into Bayer Pharmaceuticals
The National Company Law Tribunal (NCLT) at Mumbai has approved the merger of Bayer Zydus Pharma Pvt Ltd into Bayer Pharmaceuticals Pvt Ltd, as part of a group-level corporate restructuring exercise.A coram of Judicial Member Lakshmi Gurung and Technical Member Hariharan Neelakanta Iyer in an order on January 9, observed that the companies complied with the applicable laws and the scheme was not prejudicial to the interest of its members or public interest.Bayer Zydus Pharma was incorporated on...
Special Court Cannot Hear Private Complaints In Companies Act Fraud Cases; Only SFIO Can File: Supreme Court
The Supreme Court on Friday held that a special court cannot entertain a private complaint in cases involving fraud under the Companies Act. It ruled that where an offence attracts punishment under the fraud provision, cognisance can be taken only on a complaint filed by the Serious Fraud Investigation Office or an authorised officer of the Central government. A Division Bench of Justice J K Maheshwari and Justice K Vinod Chandran held that offences under Section 448 of the Companies Act, which...
NCLT Orders Cadila Healthcare To Restore Shares Fraudulently Dematerialised From Two Senior Citizens
The National Company Law Tribunal (NCLT) at Ahmedabad has directed Cadila Healthcare Limited, now known as Zydus Lifesciences, to restore the shareholdings of two senior citizens after finding that their shares were fraudulently dematerialised without their consent. The tribunal also ordered the company to pay Rs 2 lakh to each of the two shareholders as costs. The order was passed by a coram of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma on pleas filed by Satya Saxena and...
NCLT Mumbai Approves Demerger Of Vedanta's Merchant Power Business Into Talwandi Sabo Power
The Mumbai bench of the National Company Law Tribunal (NCLT) on Friday approved a restructuring move within the Vedanta group, clearing the demerger of the merchant power business of Vedanta Ltd and its transfer to Talwandi Sabo Power Ltd. The order was passed on a second-motion petition filed by Talwandi Sabo Power Ltd. The coram, comprising Judicial Member Mohan Prasad Tiwari and Technical Member Charanjeet Singh Gulati, noted that all statutory requirements had been met and that the...
Kerala High Court Asks Centre To Decide Whether SNDP Yogam Is Governed By Companies Act Or Kerala NTC Act
The Kerala High Court, in a recent decision, directed the Union government to comply with a 2009 Delhi High Court order and decide if the Sree Narayana Dharma Paripalana Yogam (SNDP Yogam) is governed by the Companies Act or the Kerala Non-Trading Companies Act.The Division Bench comprising Justice Devan Ramachandran and Justice M.B. Snehalatha set aside the Single bench judgment, which had set aside a 1974 government order that granted exemption to the Yogam, a company registered under the 1882...
Failure To Follow RBI MSME Restructuring Norms Not Fatal To Financial Creditor's Insolvency Plea:NCLT Guwahati
The National Company Law Tribunal (NCLT) at Guwahati recently held that a lender's failure to follow Reserve Bank of India circulars on restructuring stressed MSME accounts does not, by itself, make an insolvency petition under the Insolvency and Bankruptcy Code (IBC) non-maintainable. In an order dated December 4, 2025, a bench consisting of Judicial Member Rammurti Kushwaha held, “While the RBI circulars do mandate a structured framework for resolution of MSME distress, the non-compliance...
Pendency Of Conciliation Proceedings Under MSME Act Does Not Bar Interim Relief U/S 9 Of A&C Act To Preserve Subject Matter: Calcutta HC
The Calcutta High Court has held that pendency of conciliation proceedings does not bar the grant of limited interim relief under section 9 of the Arbitration and Conciliation Act, 1996 ("Arbitration Act"), where such relief is essential to preserve the subject matter of the dispute. Justice Gaurang Kanth held while allowing a Section 9 application filed by Rishi Chemical Works Pvt. Ltd. (“Petitioner”), appointing a Special Officer to inspect, measure, and document the existing status...