IBC
Secured Creditor Can Claim Priority Only To Extent Of Available Security, Even If Debt Is Higher: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a secured creditor can claim priority in the payment of dues only to the extent of the security available in its favour. It ruled that a creditor is not automatically entitled to the entire liquidation value merely because its admitted debt exceeds that amount. The tribunal dismissed the appeals filed by Assets Care & Reconstruction Enterprise Ltd. (ACRE) and Dhankalash Distributors Pvt. Ltd. It, however, directed...
Jet Airways Workmen's PF, Gratuity Dues Must Be Paid, Fall Outside Liquidation Estate: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that provident fund, gratuity and pension dues owed to Jet Airways workmen must be paid as they fall outside the liquidation estate, even if no segregated funds existed on the liquidation commencement date. It also directed the liquidator to exclude the 1,656 days beyond the statutory 330-day Corporate Insolvency Resolution Process (CIRP) period while computing the 24-month look-back period under the Insolvency and...
'Floodgates' Would Open: NCLT Bengaluru Rejects Third-Party Homebuyers' Bid To Intervene Before CIRP Admission
The National Company Law Tribunal (NCLT) at Bengaluru has recently held that allowing a group of homebuyers to intervene in a developer's insolvency petition at the pre-admission stage would "amount to opening the floodgates" for objections on extraneous considerations. It reiterated that its inquiry at that stage is confined to examining the existence of a financial debt and default. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada dismissed an...
Mere Allegations Of Fraud Cannot Become A Vehicle To Reopen Every Concluded CIRP: NCLT Bengaluru
The National Company Law Tribunal at Bengaluru has reiterated that mere allegations of fraud cannot be permitted to become a vehicle for reopening every concluded Corporate Insolvency Resolution Process, especially when such allegations are founded on materials that were already available during the insolvency proceedings.A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada dismissed an application seeking to reopen CIRP and recall an already approved...
NCLT Ahmedabad Holds Sales Incentive Property Promise Not Operational Debt Under IBC, Dismisses S.9 Plea
The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 23 June 2026 dismissed an insolvency petition filed by Green Consultancy against Jhaveri Spices Pvt. Ltd., holding that a claim arising from a sales incentive scheme promising transfer of immovable property does not qualify as “operational debt” under the Insolvency and Bankruptcy Code, 2016 (IBC), and therefore cannot sustain proceedings under Section 9. Judicial Member Chitra Hankare and Technical Member Dr Velamur G Venkata...
NCLT Cuttack Calls RPs Alteration Of Creditors Claim 'Gross Dereliction' Approves Goyal Energy Resolution Plan
The National Company Law Tribunal (NCLT) at Cuttack has recently approved a resolution plan worth ₹79 crore for Goyal Energy and Steel Limited, submitted by Mumbai-based Nakshatra Asset Ventures Ltd. While approving the plan, the tribunal observed that a resolution professional cannot alter the amount claimed by a creditor in Form H (the statutory compliance certificate) without a revised claim from that creditor. The bench of Judicial Member Cheekati Radha Krishna and Technical Member...
NCLT Chandigarh Rejects Samar Estates Homebuyers' Claim After They Admit Payment To Directors' Accounts
The Chandigarh Bench of the National Company Law Tribunal (NCLT) has dismissed an application filed by three homebuyers seeking recognition as financial creditors of Samar Estates Pvt. Ltd. The tribunal held that the applicants failed to establish that the disputed Rs 60 lakh had been disbursed to the corporate debtor. It noted that the applicants themselves admitted the money had been paid into the personal accounts of the company's directors. The bench of Judicial Member Khetrabasi Biswal...
NCLT Chandigarh Holds Marketing MoU Cannot Confer Homebuyer Status, Rejects ₹11 Crore Claim
The Chandigarh Bench of the National Company Law Tribunal (NCLT) on 11 June held that a marketing and sales facilitation agreement does not confer the status of a homebuyer or financial creditor in the absence of documents evidencing allotment of flats. Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal dismissed RealPro Assets Ltd.'s Rs. 11.09 crore claim against Samar Estates Pvt. Ltd., holding that it had failed to establish the existence of a financial debt. The Bench...
NCLT Allahabad Says It Cannot Determine Unadjudicated MSMED Interest Claims During CIRP
The Allahabad Bench of the National Company Law Tribunal (NCLT) has recently held that it cannot determine an unadjudicated claim for interest under the Micro, Small, and Medium Enterprises Development (MSMED) Act during the corporate insolvency resolution process if the interest liability had not been adjudicated by a competent forum before the insolvency proceedings commenced. The tribunal made the observation while dismissing an operational creditor's plea seeking to enhance its admitted...
Step-Down Subsidiary Cannot Use 'Colourable Means' To Extract Holding Company Assets In Liquidation: NCLT Chennai
A step-down subsidiary cannot use indirect or colourable means to extract assets or establish parallel claims against its holding company undergoing liquidation, the National Company Law Tribunal, Chennai, held. The tribunal made the observation while dismissing an application filed by St. John Lines PTE Limited against the liquidator of its holding company, St. John Freight Systems Limited. A coram of Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy...
NCLT Delhi Admits Insolvency Plea Against Talent Unlimited Online Services Over Rs 5.77 Crore Default
The National Company Law Tribunal (NCLT) at New Delhi has admitted an insolvency plea over a default of about Rs 5.77 crore against Talent Unlimited Online Services Private Limited, known as the parent company of Bobble AI, on secured non-convertible debentures.The tribunal held that the company's emails acknowledging its liability and inability to repay, along with the Record of Default, established the existence of a financial debt and default.The bench of Judicial Member Bachu Venkat Balaram...