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...

NCLAT Dismisses Personal Guarantor's Voluntary Insolvency Plea To Halt SARFAESI Recovery, Calls It Abuse

The National Company Law Appellate Tribunal (NCLAT) at Delhi has dismissed appeals by a personal guarantor who sought to halt recovery proceedings after a bank auction had already concluded, holding that his insolvency filing was not bona fide but an attempt to obstruct debt recovery. “...initiation of proceeding under Section 94 by the personal guarantor was not with object of resolution of insolvency of the personal guarantor rather it was only with the intent to somehow create hurdles in the...

NCLT Ahmedabad Orders Steel Konnect Directors To Repay ₹20.25 Crore For Operating Hidden Account

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has directed suspended directors of Steel Konnect (India) Pvt. Ltd. and a related company to contribute Rs 20.25 crore to the corporate debtor's assets after finding they operated a concealed bank account and diverted company funds, including during the insolvency process. The order was passed by Judicial Member Shammi Khan and Technical Member Sanjeev Sharma. The application was filed by liquidator Kedarram R. Laddha seeking...

Karnataka HC Says It Cannot 'Micromanage' CIRP Against Gulam Mustafa Enterprises Before NCLT Bengaluru

The Karnataka High Court has recently observed that it cannot micromanage proceedings before the National Company Law Tribunal by directing it to hear a company's applications in a particular order while hearing a petition filed by real estate developer Gulam Mustafa Enterprises Pvt. Ltd. “At the outset, this Court is of the considered view that the relief sought by the petitioner, in substance, amounts to inviting this Court to micromanage the proceedings pending before the adjudicating...

NCLAT Dismisses As Premature Kunal Structure Appeal Against Third Member Opinion Favouring Its CIRP Admission

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently declined to examine Kunal Structure India Pvt Ltd's challenge to a third member's opinion favouring its admission into the corporate insolvency resolution process. It held that the Ahmedabad bench of the National Company Law Tribunal must first pass a final order in the matter. “The opinion of third Member impugned in the Appeal is opinion, which is to be placed before the NCLT Ahmedabad Bench to pass appropriate order...

LiveLawBiz IBC Weekly Digest: May 2 - May 9, 2026

SUPREME COURT “This Will Be His Last Assignment”: Supreme Court Raps Xalta Foods RP For Defying Court's Possession Order Case Title : PRERNA SINGH VERSUS COMMITTEE OF CREDITORS & ORS. Case Number : Civil Appeal No. 2569 of 2022The Supreme Court of India on Monday directed the Superintendent of Police, Hapur, to break open locks and hand over complete possession of warehouse premises to landlord Prerna Singh, coming down heavily on Naveen Kumar Jain, the Resolution...

NCLT Mumbai Dismisses CIRP Plea Filed To Avoid Consequences Of ₹250 Crore Statutory Demands

The National Company Law Tribunal (NCLT) at Mumbai has dismissed an insolvency plea filed by Infinite Pinnacle Pvt Ltd against Mart Overseas Pvt Ltd. The tribunal held that the petition was a fraudulent application filed to get away from criminal consequences arising from statutory demands of about ₹250 crores against the corporate debtor. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar held that the petition was filed for a purpose other than the...

Running Account Entries Cannot Extend Limitation For Time-Barred Debt: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has recently held that a creditor cannot extend the limitation period for recovering a time-barred debt merely by maintaining a running account in its own books unless the debtor acknowledges the liability in writing. “The maintenance of running account of a debtor by the creditor in its books can not extend the period of limitation in respect of debt, the claim of which has become time barred, unless the said running account is acknowledged by...

NCLT Mumbai Rejects Ex-Buzz Insolvency Plea Against Future Market Networks As Debt Falls Below Rs 1 Crore

The National Company Law Tribunal (NCLT) in Mumbai has rejected an insolvency plea filed by Ex-Buzz Fire & Security Private Limited against Future Market Networks Limited, a Future Groups company. The tribunal held that the principal operational debt fell below the Rs 1 crore threshold required to trigger insolvency proceedings under the Insolvency and Bankruptcy Code. A bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar held that the principal operational debt was...

Arbitration Clause In MoU Does Not Oust Insolvency Jurisdiction Under IBC: NCLT Mumbai

Arbitration clauses in Memoranda Of Understanding (MOU) do not bar insolvency proceedings when debt and default are established, the National Company Law Tribunal's Mumbai bench has held while admitting PS IT Infrastructure & Services Ltd into insolvency. “The presence of an arbitration clause in an MoU does not oust the jurisdiction of the Adjudicating Authority while dealing with an application under Section 7 of the Code. The existence of an arbitration clause in the MoU does not bar the...

NCLAT Upholds M.D. Devcon CIRP, Says Refund-Seeking Former Homebuyers Need Not Meet 100-Homebuyer Threshold

The National Company Law Appellate Tribunal (NCLAT) has recently dismissed a challenge by a project homebuyer to the insolvency proceedings against M.D. Devcon Pvt Ltd. It held that the two allottees who initiated the case had ceased to be homebuyers after cancelling their allotment and seeking a refund and were therefore not required to meet the threshold applicable to real estate allottees filing insolvency pleas. A bench of Judicial Member Justice Yogesh Khanna and Technical Member Ajai...

Liquidator Cannot Outsource Core Duties: NCLT Hyderabad Directs Deloitte To Refund ₹7.48 Crore In Lanco Case

The National Company Law Tribunal (NCLT), Hyderabad, has held that while liquidation rules allow a liquidator to appoint professionals to assist in the process, that power cannot be used to outsource the liquidator's own statutory duties or claim payments beyond the prescribed fee structure. Applying this principle, the tribunal directed Deloitte Touche Tohmatsu India LLP to refund ₹7.48 crore to Lanco Infratech's liquidation estate. Under the liquidation framework, Regulation 7 permits a...