NCLT Chandigarh Orders Handover Of Aabha Industries Factory To RP, Says Arbitral Award Hit By IBC Moratorium

The Chandigarh bench of the National Company Law Tribunal (NCLT) has directed Neel-Rattan Enterprises Pvt. Ltd. and its directors to hand over possession, custody, and control of factory premises and related assets belonging to Aabha Industries Limited to the resolution professional, holding that continued enforcement of an arbitral award allowing their occupation could not continue during the insolvency moratorium.“The Tribunal further observes that the principle underlying Section 14 of the...

NCLT Mumbai Rejects Johnson Screens' Insolvency Plea Against Shapoorji Pallonji

The Mumbai bench of the National Company Law Tribunal on Tuesday dismissed a plea by Johnson Screens (India) Pvt Ltd to initiate corporate insolvency resolution process against construction major Shapoorji Pallonji and Company Pvt Ltd over an alleged operational debt of Rs 1.05 crore. Relying on a recent three-member NCLAT ruling in Ajay Rana (Director of Erstwhile Sarika Industries Pvt. Ltd.) v Sanjay Kumar Goel and Ors., which held that a unilateral interest clause in invoices cannot be...

Statutory Charge Cannot Be Waived By Marking 'N.A.' Against Security Interest In CIRP Claim Form: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that where a statute creates a charge, it cannot be treated as waived merely because a statutory authority marked “N.A.” against security interest in the prescribed insolvency claim form, unless the statute itself permits such waiver. Partly allowing an appeal by the Assistant Commissioner of State Tax, Vapi, in the CIRP of Vinergy International Pvt Ltd, the tribunal held that Gujarat VAT dues must be treated as the claim of...

Personal Guarantor Cannot Escape Liability Due To Creditor's Withdrawal from CIRP: NCLT Jaipur

The Jaipur Bench of the National Company Law Tribunal (NCLT) has held that withdrawal of a creditor's claim in the corporate insolvency resolution process (CIRP) of a corporate debtor does not, by itself, extinguish the liability of a personal guarantor under an independent contract of guarantee. Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar dismissed the application filed by Hemant Kumar Bohra, personal guarantor of Bohra Industries Limited (BIL), challenging the admission...

NCLAT Upholds Chamber Constructions' Liquidation, Says Parallel CIRP Against Borrower And Guarantor Maintainable

The National Company Law Appellate Tribunal (NCLAT) at Delhi has upheld the liquidation of Chamber Constructions Pvt Ltd. It held that simultaneous insolvency proceedings can continue against principal borrower RNA Corp and Chamber Constructions, which had furnished a corporate guarantee for the same debt. “Hon'ble Supreme Court has delivered its judgement in ICICI Bank Ltd. v. Era Infrastructure (India) Ltd.; 2026 SCC Online SC 314 on 26.02.2026, and has not barred holding simultaneous CIRP...

Statutory Auditor Not Part Of Company Management, Cannot Be Compelled To Assist RP Under IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a statutory auditor, as an independent professional and not part of a company's management, cannot be compelled under Section 19 of the Insolvency and Bankruptcy Code to assist a resolution professional in the same manner as company personnel. “A statutory auditor is a professional who by the very nature of the audit to be undertaken cannot be associated with the company whose affairs he is to audit. On the contrary, a...

NCLAT Says Gemini Engi Fab Can't Cite Delay, Quality Disputes After Itself Quantifying Dues; Upholds CIRP

The National Company Law Appellate Tribunal (NCLAT) in Delhi has upheld insolvency proceedings against Gemini Engi. Fab. Private Limited. The tribunal held that the company could not rely on disputes over delayed deliveries and defective goods to resist the case after it had itself quantified deductions for those issues and reflected a balance amount payable to the supplier. “Since the issues related to quality and delay are governed by the contractual terms and conditions of the work order,...

Santosh Devcon Shareholder's Multi-Forum Relief Bid Was 'Forum Choosing,' Not Forum Shopping: NCLT Indore

The National Company Law Tribunal (NCLT) in Indore has rejected Santosh Devcon Pvt. Ltd.'s objection that shareholder Sunil Mandwani was forum shopping by pursuing remedies before multiple fora in a dispute over the alleged reduction of his stake, holding that the company law case raised a distinct cause of action. “The present petition has been filed under Sections 241 and 242 of the Companies Act, 2013 alleging oppression by illegal reduction of the Applicant's shareholding and suppressive...

NCLAT Refuses To Condonе 193-Day Delay, Says Registry Need Not Identify All Defective Documents

The National Company Law Appellate Tribunal (NCLAT) has refused to condone a 193-day delay in refiling an insolvency appeal by Walchandnagar Industries Limited, holding that the appellant could not blame the Registry for repeatedly pointing out defects in its filings, including handwritten pages requiring typed copies and Hindi-language documents needing English translations. "The Applicant having filed the appeal petition themselves were fully aware of the hand-written and vernacular-based...

Resolution Professional Need Not Consult CoC To Appoint Professionals To Assist In CIRP : NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has observed that a Resolution Professional need not consult the Committee of Creditors before appointing professionals such as transaction auditors to assist in the corporate insolvency resolution process. The ruling came while rejecting KSS Ltd. directors' objection in a preferential transaction case arising from transfers to the company's sister concerns. “Further Regulation 27 (2) of CIRP regulations 2016, provides that the RP...

NCLT Kolkata Refuses Consolidation Of Group Companies' CIRPs Over Advanced Stage Of One Insolvency Process

The Kolkata Bench of the National Company Law Tribunal (NCLT) has refused to consolidate the corporate insolvency resolution processes (CIRPs) of Sarita Steel & Power Limited and Ankit Metal & Power Limited, holding that Ankit Metal's resolution process had already reached an advanced stage with multiple plans evaluated. “The assets are interconnected, but the CIRP of Ankit Metal has reached an advanced stage with multiple resolution plans already evaluated. The CIRP of Sarita Steel is...

Corporate Debtor Cannot Be Directly Dissolved Under IBC Without Liquidation: NCLT Mumbai

The Mumbai bench of the National Company Law Tribunal (NCLT) has held that a corporate debtor cannot be directly dissolved under the Insolvency and Bankruptcy Code without first undergoing the insolvency and liquidation process. The bench of Judicial Member K. R. Saji Kumar and Technical Member Anil Raj Chellan observed: “A plain reading of Section 54 makes it clear that an application for dissolution of the Corporate Debtor is to be filed by the Liquidator and not by the IRP/RP of the...