IBC
NCLT Delhi Holds IBC Not A Recovery Mechanism, Dismisses Aidem Ventures' CIRP Petition Against NEWS24
The Principal Bench of the National Company Law Tribunal (NCLT) at Delhi, on 13 February, dismissed three petitions seeking the initiation of the Corporate Insolvency Resolution Process (CIRP) filed by Aidem Ventures against NEWS24 Broadcast India Limited, holding that the claims involved pre-existing contractual disputes and were primarily aimed at recovery of dues, not resolution of the corporate debtor. A Bench comprising President Ramalingam Sudhakar and Technical Member Ravindra Chaturvedi...
Revival Of Insolvency After Settlement Breach Not A Recovery Action: NCLT Ahmedabad
The National Company Law Tribunal (NCLT) at Ahmedabad, recently observed that when a settlement recognised by a judicial order is breached, the revival of insolvency proceedings does not amount to using the insolvency process as a recovery tool but merely restores the legal consequence that had already been adjudicated. A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma made the observation while reviving insolvency proceedings against Aksa Paper Mills Pvt. Ltd. It...
LiveLawBiz IBC Weekly Digest: March 2 To March 7
HIGH COURT Single Judicial Member Of NCLT Can Pass Orders If Authorised By President: Kerala High CourtCase Title : K.N. Narayanan v. The Registrar of Kochi Bench and Anr. Case Number : WP(C) NO. 5934 OF 2026 CITATION : 2026 LLBiz HC (KER) 45The Kerala High Court on 18 February, held that a Single Member of the National Company Law Tribunal (NCLT) can pass orders if the President of the Tribunal specifically authorises them under the proviso to Section 419(3) of...
NCLT Delhi Orders Liquidation Of Hero Electric Vehicles After Creditors Fail To Approve Resolution Plan
The New Delhi bench of the National Company Law Tribunal (NCLT) has recently ordered the liquidation of electric scooter maker Hero Electric Vehicles Pvt. Ltd. after the company's insolvency resolution process ended without approval of any resolution plan. A bench of Judicial Member Bachu Venkat Balaram Das and Technical Member Reena Sinha Puri held that once the Corporate Insolvency Resolution Process (CIRP) expires without an approved plan, liquidation must follow under the Insolvency and...
NCLAT Reaffirms IBC Proceedings Against Personal Guarantor Not Barred By SARFAESI Action
The National Company Law Appellate Tribunal (NCLAT) has reiterated that the pendency of proceedings under the SARFAESI Act does not bar the initiation of personal insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), noting that the Code overrides other laws. A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Ajai Das Mehrotra observed, “As per provisions of Section 238 of IBC, 2016, the Code overrides other laws and there is no bar of filing...
Compromise Scheme Under Companies Act Can Be Considered Only In Liquidation, Not During CIRP: NCLT Kochi
The National Company Law Tribunal (NCLT) at Kochi on Friday held that a scheme of compromise or arrangement under Section 230 of the Companies Act, 2013 cannot be considered during the corporate insolvency resolution process (CIRP) in the absence of a liquidation order. A coram of Judicial Member Vinay Goel observed that the statutory framework places schemes under Section 230 at the post-liquidation stage and dismissed the application seeking its sanction as premature. The proceedings arise...
NCLT Delhi Refuses To Initiate CIRP On Shikhar Dhawan's Plea Against Legends League Cricket Operator
The National Company Law Tribunal (NCLT) at New Delhi on Thursday refused to initiate insolvency proceedings against Absolute Legends Sports Pvt Ltd on a plea filed by Indian cricketer Shikhar Dhawan alleging a default of over Rs. 1.24 crore in unpaid player fees. Absolute Legends Sports Pvt. Ltd. owns and operates the Legends League Cricket, a franchise-based T20 tournament featuring retired international cricketers. A bench of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical...
NCLT's Residuary Jurisdiction Under IBC Cannot Be Used To Reopen NCLAT Findings: NCLT Ahmedabad
The National Company Law Tribunal (NCLT) at Ahmedabad has recently dismissed an application filed by Bhupendra Singh Rajput, holding that its jurisdiction under Section 60(5)(c) of the Insolvency and Bankruptcy Code cannot be used to reopen or circumvent findings of the National Company Law Appellate Tribunal (NCLAT). A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed, “The jurisdiction under Section 60(5)(c) is supervisory and residuary in nature and cannot be...
NCLT Kolkata Admits CIRP Against Saket Infra, Rules FRR Framework Cannot Bar Insolvency Proceedings
The National Company Law Tribunal at Kolkata on 17 February, held that the RBI's Framework for Revival and Rehabilitation (FRR) for MSMEs cannot override the Insolvency and Bankruptcy Code or prevent a financial creditor from initiating insolvency proceedings once default is established. A Bench comprising Judicial Member Bidisha Banerjee and Technical Member Siddharth Mishra observed that the plea of MSME protection was unsustainable in the absence of any contemporaneous MSME certificate...
Single Judicial Member Of NCLT Can Pass Orders If Authorised By President: Kerala High Court
The Kerala High Court on 18 February, held that a Single Member of the National Company Law Tribunal (NCLT) can pass orders if the President of the Tribunal specifically authorises them under the proviso to Section 419(3) of the Companies Act, 2013. A Bench of Justice Viju Abraham dismissed a writ petition challenging orders passed by a Single Judicial Member of the NCLT, Kochi Bench, upholding the validity of the directions. The Court observed: “It is also to be noted that though Section 419...
Tribunal Not A 'Court' Under BNSS, Cannot Order Prosecution For False Evidence: NCLT Indore
The National Company Law Tribunal at Indore ruled that it does not have jurisdiction to initiate criminal prosecution under Sections 215 and 379 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), holding that such powers are vested only in courts and not in statutory tribunals. Section 215 bars cognisance of certain offences relating to false evidence in judicial proceedings except on a complaint by the concerned court, while Section 379 lays down the procedure for such courts to conduct an...
NCLAT Dismisses Rolta Employees' Appeal Challenging Resolution Plan Payout
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently dismissed an appeal filed by former employees of Rolta India Ltd challenging the approval of the company's resolution plan, holding that the payout made to them complied with the terms recorded by the National Company Law Tribunal (NCLT) regarding payment of their dues. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra noted that the NCLT had recorded that the resolution plan would provide...