IBC
Removal Of Hypothecated Machinery During Insolvency Can Amount To Fraudulent Trading: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that removing high-value secured (hypothecated) machinery during insolvency proceedings and replacing it with substantially lower-value machinery is not a mere technical irregularity.It directly affects a company's asset base and the security and recovery prospects of its creditors.The bench of Judicial Member Justice Sharad Kumar Sharma and Technical Members Arun Baroka and Indevar Pandey made the observation while upholding...
Joint And Several Liability In Arbitral Award Does Not Extinguish Personal Guarantee: NCLAT Delhi
The National Company Law Appellate Tribunal (NCLAT), New Delhi, on 17 September held that an arbitral award providing for joint and several liability does not, by itself, alter the legal status of a Personal Guarantor or extinguish the original contract of guarantee. A Bench of Judicial Member Justice Sharad Kumar Sharma with Technical Members Arun Baroka and Indevar Pandey dismissed appeals filed by personal guarantors of Oasis Alcohol Ltd., including Ravindra Gopalkrishan Agarwal, challenging...
NCLT Mumbai Dismisses Perjury Plea Against Omkara Assets Reconstruction Over Account Differences
The National Company Law Tribunal (NCLT), Mumbai, on 3 September dismissed perjury proceedings against Omkara Assets Reconstruction Pvt Ltd, holding that alleged discrepancies in statements of account and debt records did not warrant an inquiry by a Magistrate. A Bench comprising Technical Member Prabhat Kumar and Judicial Member Sushil Mahadeorao Kochey dismissed the applications filed by Aditya Raheja under Section 340 of the Code of Criminal Procedure, 1973, in insolvency proceedings...
Mere Pendency Of Criminal Proceedings Does Not Disqualify Resolution Applicant: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has ruled that the mere pendency of criminal proceedings or an investigation does not by itself make a prospective Resolution Applicant ineligible to submit a resolution plan under the Insolvency and Bankruptcy Code, 2016 (IBC).A bench of Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Naresh Salecha observed,"Therefore, in our considered opinion, the pendency of any criminal proceedings or investigation against a...
NCLT Indore Admits Marvel Industries Insolvency Plea Against Flexituff Technology
The Indore bench of the National Company Law Tribunal (NCLT) has initiated insolvency proceedings against FIBC manufacturer Flexituff Technology International Ltd. The tribunal found that the company had acknowledged an operational debt of ₹1.92 crore, made part-payment and issued post-dated cheques towards the balance, three of which were dishonoured.The order was passed by the bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta. The operational creditor...
Delhi High Court Restores Super Bazar Writ Petition Withdrawn On Former Liquidator's Instructions
On 15 September, the Delhi High Court recalled the 18 May 2018 order dismissing The Cooperative Store Limited (Super Bazar)'s writ petition as withdrawn, after finding that its former Official Liquidator, Dr. A.K. Mishra, lacked authority to instruct the withdrawal after his tenure ended. Justice Amit Mahajan held that an Official Liquidator cannot instruct withdrawal of a writ petition after his tenure has expired, particularly where the proceedings concern substantial public money. The Bench...
Mere Commercial Association, Historical Linkage Cannot Make Entity Related Party Under IBC: NCLT Chennai
The Chennai Bench of the National Company Law Tribunal (NCLT) has held that mere commercial association, historical linkage or institutional connection cannot, by itself, make an entity a “related party” under Section 5(24) of the Insolvency and Bankruptcy Code, 2016 (IBC). A Division Bench comprising Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy on 27 July set aside the classification of SREI Equipment Finance Limited (SEFL) and SREI Infrastructure Finance...
Individual Consortium Lender Can Initiate Insolvency Proceedings Against Personal Guarantor: NCLT Delhi
The New Delhi Bench of the National Company Law Tribunal (NCLT) has held that an individual consortium lender can initiate insolvency resolution proceedings under the Insolvency and Bankruptcy Code (IBC) against a Personal Guarantor without requiring all consortium lenders to jointly institute the proceedings. Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Reena Sinha Puri rejected the objections raised by Amit Sethi, a Personal Guarantor of Santosh Overseas Limited, and...
Calcutta High Court Quashes Income-Tax Reassessment Against McNally Bharat After IBC Resolution Plan
The Calcutta High Court has quashed income-tax reassessment proceedings against McNally Bharat Engineering Company Limited, holding that the authorities failed to satisfy the statutory conditions for reopening the assessment and acted contrary to the company's NCLT-approved resolution plan. Justice Smita Das De allowed the company's writ petition and set aside the notice and order issued by the tax authorities along with all consequential proceedings. The authorities were also...
NCLT Chandigarh Allows Kay Bee Cotgin CIRP Withdrawal, Says Amended IBC Sec. 12A Applies Prospectively
The National Company Law Tribunal (NCLT) at Chandigarh, on 20 August held that the restrictions introduced by the substituted Section 12A of the Insolvency and Bankruptcy Code, 2016, apply prospectively to Corporate Insolvency Resolution Processes (CIRPs) initiated on or after 26 May 2026. A Bench comprising Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh allowed Resolution Professional Sandeep Kumar Chitkara's application to withdraw the CIRP against Kay Bee...
NCLT Delhi Dismisses Personal Guarantor's Insolvency Plea, Says It Was Filed To Take Advantage Of IBC Moratorium
The Delhi bench of the National Company Law Tribunal (NCLT) has dismissed a personal insolvency petition filed by a director and guarantor of two companies. It held that the petition was filed to take advantage of the insolvency moratorium and stall recovery proceedings already initiated by Union Bank of India.“The timing of the filing of the present petition is significant. The petition has been filed after crystallisation of recovery proceedings against the Personal Guarantor and after...
NCLT Ahmedabad Declines Gensol EV Lease RP's Plea To Repossess 70 EVs From Minder
The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 7 September declined the plea by the Resolution Professional of Gensol EV Lease Ltd. to immediately repossess 70 electric vehicles (EVs) leased to Minder EV Logistics Pvt. Ltd. and recover outstanding dues of Rs. 1.29 crore. A Bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma held that the validity of the alleged termination of the lease agreements and the parties' competing contractual claims could not be...