Raw Material Advances Made During Insolvency To Keep the Company Running Are CIRP Costs: NCLT Delhi

The National Company Law Tribunal (NCLT) at New Delhi has held that advances paid for the supply of raw material under a job work arrangement can be treated as corporate insolvency resolution process costs if they were necessary to keep the corporate debtor functioning as a going concern during CIRP. A coram of President Justice Ramalingam Sudhakar and Technical Member Ravindra Chaturvedi was dealing with a dispute between Teneron Limited, a supplier of aluminium raw material, and Metenere...

Balance Sheet Debt Entry Without Disclaimer Extends Limitation For IBC Plea: NCLT Kolkata Reaffirms

The National Company Law Tribunal (NCLT) at Kolkata has admitted an insolvency petition filed by ICICI Bank against clothing company Anuj Textiles Private Limited. It reiterated that acknowledgements of debt recorded in the company's balance sheet were sufficient to extend the limitation period. A bench of Judicial Member Bidisha Banerjee and Technical Member Siddharth Mishra held that the acknowledgements in the company's records kept the debt alive. The tribunal observed, “Since there has...

LiveLawBiz: Business Law Daily Round-Up: December 30, 2025

TAX Taxpayers To Be Barred From Filing GSTR-3B Return For Excess GST ITC Claims: GSTN Issues AdvisoryService Tax | Co-Op Society Paying Rent Arrears To Local Municipality For Gas Transportation Pipeline Not Liable Under Reverse Charge : CESTAT AhmedabadProfit From Securitisation/Sell-Down Of Loan Receivables Not Taxable As Service: CESTAT ChennaiExcise | Cutting/Slitting HR-CR Coils Not Manufacturing; Duty Paid On Non-Excisable Activity Cannot Make It Excisable: CESTAT ChennaiAI-Powered MIKO-3...

Guarantee Need Not Be Invoked For Guarantor To Seek Personal Insolvency: NCLT Indore

The National Company Law Tribunal (NCLT) at Indore has held that a personal guarantor can invoke insolvency proceedings against himself or herself under the Insolvency and Bankruptcy Code once a default occurs, even if the lender has not invoked the personal guarantee. A coram of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta said that Section 94 allows an individual debtor, including a personal guarantor, to approach the tribunal upon default. It clarified that...

Interest Cannot Be Claimed Solely On Parity With Other Creditors Without Contractual Proof: NCLT Indore

The National Company Law Tribunal (NCLT) at Indore has recently ruled that interest on an unsecured financial claim cannot be allowed merely because interest has been admitted in the claim of another unsecured creditor. The tribunal held that interest can be admitted only where there is a clear contractual or documentary basis reflected in the corporate debtor's records. A coram of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta observed that, “the claim of...

NCLT Chandigarh Says It Cannot Decide On Property Title, Fraud Or Authenticity Of Board Resolutions

The National Company Law Tribunal (NCLT) Chandigarh has recently held that its insolvency jurisdiction cannot be used to decide disputes over property ownership, allegations of fraud, or the authenticity of board resolutions. The court ruled that such issues squarely fall under the purview of civil court. A bench of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal, while examining the scope of the tribunal's jurisdiction under section 60(5) of the Code, observed, “The...

Share Purchase Dues Between Exiting And Erstwhile Shareholders Not Financial Debt: NCLT Indore

The National Company Law Appellate Tribunal (NCLT) at Indore has held that consideration paid for the purchase of shares between outgoing and incoming shareholders is a personal equity transaction and cannot be treated as a financial debt against the company under the Insolvency and Bankruptcy Code. A coram of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta ruled that amounts paid towards share purchase consideration lack the essential characteristics of debt. ...

NCLAT Holds Appeal Delay Deemed Condoned Due To Registry Error, Refuses To Recall Insolvency Admission

The National Company Law Appellate Tribunal (NCLAT) at Delhi held that a three-day delay in filing an insolvency appeal stood deemed to have been condoned due to a registry error, and on that basis refused to recall its earlier order admitting insolvency proceedings. A coram comprising Judicial Member Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra, passed the order on December 19, 2025. It dismissed a recall application filed by Akshay Techforge Private Limited and upheld its May...

LiveLawBiz: Business Law Daily Round-Up: December 29, 2025

TAX APVAT | Value Added Tax Not Leviable On Offshore Sales Beyond Territorial Waters: Andhra Pradesh High CourtIncome Tax Act | Delhi High Court Sets Aside Reassessment Against MakeMyTrip Over ₹50 Crore Receipt, Cites Vague S.148A NoticesBombay High Court Upholds 18% Interest Levy On Delayed VAT Payment, Says Interest Levied Automatically Once Payment Is DelayedPunjab & Haryana High Court Bars 'Negative Blocking' Of ITC Beyond Available Credit Under Rule 86A CGST RulesEntity Recognised As...

NCLT Kolkata Approves Ambuja Housing's ₹34 Crore Plan to Revive Riverbank Developers

The National Company Law Tribunal (NCLT) at Kolkata has admitted and approved Ambuja Housing and Urban Infrastructure Company Ltd.'s resolution plea against Riverbank Developers, clearing a Rs 34 crore plan to revive the insolvent real estate firm. The decision provides a path forward for the "Usshar Project," a massive residential development involving more than 2,400 homebuyers who were affected by the company's financial distress. A coram of Judicial Member Bidisha Banerjee and Technical...

Interest Free Maintenance Security Collected From Homebuyers By Builder Not Financial Debt: NCLT Jaipur

The National Company Law Tribunal, Jaipur Bench has recently held that Interest Free Maintenance Security collected by a builder from flat buyers is not a financial debt under the Insolvency and Bankruptcy Code, 2016. Thus, it ruled that a residential welfare society cannot trigger insolvency proceedings on the basis of such maintenance-related claims.A coram of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar dismissed the plea filed by SDC Green Park Residential Welfare...

IBC Annual Digest 2025 Part 2

Supreme Court IBC Moratorium Doesn't Bar Voluntary Surrender Of Corporate Debtor's Leased Property To Lessor: Supreme Court Cause Title: Sincere Securities Private Limited & Ors. Versus Chandrakant Khemka & Ors. Citation : 2025 LiveLaw (SC) 774 The Supreme Court on Tuesday (August 5) held that the moratorium under the Insolvency and Bankruptcy Code, 2016 (IBC), does not bar the voluntary handover of property leased by the corporate debtor to the lessors if retaining the...