IBC
Operational Creditors Cannot Seek Resolution Plan Disclosure At Pre-Approval Stage: NCLT Ahmedabad In JAL CIRP
The Allahabad Bench of the National Company Law Tribunal (NCLT) has recently held that operational creditors cannot seek disclosure of a resolution plan or liquidation value at the pre-approval stage under the Insolvency and Bankruptcy Code while rejecting a plea arising out of the insolvency of JaiPrakash Associates Limited.Notably, The resolution plan for the company was approved on March 17 in separate proceedings and is under challenge before the National Company Law Appellate Tribunal.A...
Default Is A Singular Event, Not Continuing: NCLAT Sets Aside Insolvency Admission Against Deccan Chronicle Guarantor
The National Company Law Appellate Tribunal (NCLAT) at Chennai recently rejected a creditor's attempt to treat a loan default as a “continuing guarantee” to overcome limitation, holding that default under the Insolvency and Bankruptcy Code is a singular event that cannot be stretched to revive time-barred proceedings, especially where the demand notice itself records a specific date of default A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain...
NCLAT Rejects Successful Bidder's Plea For Post-Sale Reliefs In Veda Biofuel Liquidation
The National Company Law Appellate Tribunal (NCLAT) at Chennai has recently upheld the rejection of post-sale reliefs sought by MS Biotech Pvt. Ltd., finding that a bidder who enters an auction on an “as is where is” basis cannot later turn around and ask for concessions beyond what was agreed. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain dismissed the company's appeal against the NCLT, Amravati Bench order dated July 3, 2025. MS Biotech had...
IBC Moratorium Can't Revive Missed Written Statement Deadline: Delhi High Court
The Delhi High Court has recently held that filing an application under Order VII Rule 11 of the Code of Civil Procedure, which allows a defendant to seek rejection of a plaint at the threshold on legal grounds, cannot revive the statutory period for filing a written statement once it has expired. The court clarified that this position would apply even in a case where the defendant had invoked insolvency proceedings under the Insolvency and Bankruptcy Code. A bench of Justice Mini Pushkarna...
Judicial Custody Of Appellant No Ground To Extend IBC Limitation: NCLAT In Alps Leisure Liquidation
The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently dismissed two applications as time-barred, holding that judicial custody cannot be used to bypass the statutory limitation period under the Insolvency and Bankruptcy Code. The appellate tribunal clarified that Section 61 of the IBC permits condonation only up to 15 days beyond the initial 30-day limitation period and does not allow any extension beyond this outer limit, even if the appellant was in judicial custody. ...
Satinder Singh Bhasin Could Not Use IBC Limitation To Shield ₹50 Crore Bail Deposit From BIIPL: Supreme Court
The Supreme Court on Thursday, while considering pleas seeking cancellation of bail granted to Satinder Singh Bhasin, rejected his contention that the Interim Resolution Professional (IRP) of Bhasin Infotech and Infrastructure Pvt. Ltd. (BIIPL), of which he is a director, could not question the Rs.50 crore deposited as a bail condition due to the two-year look-back period under the Insolvency and Bankruptcy Code.It found that the amount that had been deposited for securing the bail was sourced...
NCLT Ahmedabad Keeps MAHAGENCO's Termination Of Gensol's ₹292.5 Crore EPC Contract Inoperative During CIRP
The Ahmedabad Bench of the National Company Law Tribunal (NCLT) has held that Maharashtra State Power Generation Company Limited's (MAHAGENCO) termination of Gensol Engineering Limited's Rs 292.5 crore EPC contract will remain inoperative during the company's insolvency process. The order by a bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma came on an application filed by Resolution Professional Keshav Khaneja, who sought to restrain MAHAGENCO from giving effect to the...
Supreme Court Dismisses BCCI Review Against Order Setting Aside NCLAT Decision Closing Byju's CIRP
The Supreme Court recently dismissed a review petition filed by the Board of Control for Cricket in India (BCCI) against its October 23, 2024 ruling in the Byju's insolvency case.In that ruling, the court had set aside the National Company Law Appellate Tribunal's approval of a post-admission settlement in the corporate insolvency resolution process of Think & Learn Pvt. Ltd., Byju's parent company. It had also held that once insolvency proceedings are admitted, they cannot be withdrawn...
Purchaser Cannot Avoid Liabilities Voluntarily Accepted At Auction: NCLT Hyderabad
The Hyderabad Bench of the National Company Law Tribunal (NCLT) on 11 March, held that a purchaser of assets in a liquidation auction cannot resile from liabilities voluntarily accepted at the time of purchase, including outstanding electricity dues. A Bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri dismissed the application filed by Sri Lakshminarasimha Oil Mills Pvt Ltd, and refused to direct the Northern Power Distribution Company of Telangana to grant a...
LiveLawBiz IBC Quarterly Digest: January - March 2026
SUPREME COURTPromise To Arrange Funds In Case of Default Does Not Make Promoter A Guarantor: Supreme CourtCase Title: UV Asset Reconstruction Company Limited v. Electrosteel Castings Limited Citation: 2026 LLBiz SC 3 Case Number: Civil Appeal No. 9701 of 2024The Supreme Court of India has held that a promoter's promise to arrange funds to help a borrower meet financial covenants does not amount to a contract of guarantee under the Indian Contract Act and cannot be used to fasten...
Abstention Not Consent: NCLT Ahmedabad Rejects Archon Engicon Guarantors' Resolution Plan For Failing 75% Vote
The National Company Law Tribunal (NCLT) at Ahmedabad has recently held that abstention by creditors cannot be treated as consent while voting on a repayment plan under the Insolvency and Bankruptcy Code, 2016, and rejected a proposal submitted by personal guarantors for failing to meet the mandatory voting threshold. A coram of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma found that the plan received only 21.35% votes in favour, while 20.14% voted against, 42.60% of the...
Going Concern Sale Not Same As Resolution Plan, No Automatic Waiver Of Dues: NCLT Ahmedabad
The National Company Law Tribunal (NCLT) at Ahmedabad has held that a purchaser who takes over a corporate debtor as a going concern during liquidation cannot automatically walk away from past liabilities or statutory dues, making it clear that such a transaction does not stand on the same footing as a resolution plan under the Insolvency and Bankruptcy Code. The finding came on an application by the successful auction purchaser of Camerich Papers Private Limited. The company had been sold as a...