IBC
Can Arbitral Award Convert Operational Debt Into Financial Debt? NCLT Delhi Refers Issue To Tribunal President
The National Company Law Tribunal (NCLT) at Delhi, has referred to its President whether an arbitral award based on a supply contract can be treated as financial debt for initiating insolvency under the Insolvency and Bankruptcy Code. It has also sought clarity on whether a single insolvency petition under section 7 is maintainable when a creditor's claim involves both operational dues and alleged financial debt. The reference arose after a split verdict by a bench comprising Judicial Member...
NCLT Hyderabad Clears Kalburgi Cement's ₹213.41 Crore Merger Deficit Adjustment Against Securities Premium
The National Company Law Tribunal (NCLT) in Hyderabad has approved Kalburgi Cement Private Limited's move to clean up a large merger-related loss, treating it as a legitimate internal corporate decision so long as creditors are safeguarded and the statutory framework is followed. A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri has allowed the company to set off an amalgamation adjustment deficit of Rs 213.41 crore against its securities premium account,...
Mesne Profit Claims After IBC Resolution Can Proceed Only Against Former Management: Calcutta High Court
The Calcutta High Court has recently held that proceedings to calculate mesne profits can continue only against a company's former management once a resolution plan is approved under the Insolvency and Bankruptcy Code.Mesne profits refer to the claim arising from unlawfully occupying someone else's property. The court clarified that such proceedings cannot continue against the company itself or its new management after the resolution plan takes effect. A division bench of Justices Debangsu...
NCLT Delhi Cancels 9.84 lakh Neel Padam Shares After Finding Company Used Own Funds For Allotment
The National Company Law Tribunal (NCLT) at Delhi has cancelled 9.84 lakh shares and restored promoter control of Neel Padam Builders after finding that the company used its own money to create a false impression of fresh share subscriptions. A coram of Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri held that Neel Padam Builders withdrew Rs 45 lakh from its own bank account in late November 2009 and redeposited the same amount days later to match the consideration...
NCLT Clears Merger Of RedBus India Into MakeMyTrip India
The National Company Law Tribunal (NCLT), Chandigarh Bench, has approved a merger that will bring RedBus India Private Limited into MakeMyTrip (India) Private Limited. The move will allow the MakeMyTrip group to run its main Indian travel and bus ticketing businesses through a single operating company.The order was passed by a coram of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal. The bench noted that shareholders and creditors had already given their consent and...
NCLT Recalls Insolvency Over Forged Documents, Imposes ₹50 Lakh Penalty On Financial Creditor
The National Company Law Tribunal (NCLT), New Delhi, has set aside insolvency proceedings against SLR Techinfra Pvt. Ltd., a real estate and infrastructure development company, and imposed a Rs 50 lakh penalty on Endless Services Pvt. Ltd., a private services firm, for malicious and fraudulent initiation of insolvency proceedings. Recalling its earlier order admitting the Corporate Insolvency Resolution Process (CIRP), a coram of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical...
NCLAT Dismisses Tamil Nadu State Tax Dept's Belated Claim In Sri NagaNanthana Mills Liquidation
The National Company Law Appellate Tribunal (NCLAT) at Chennai has dismissed an appeal filed by the Tamil Nadu State Tax Department, holding that belated tax claims cannot be entertained once liquidation proceedings have attained finality. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain reiterated that timelines are strict under the insolvency law and a belated claim cannot be entertained. "When the liquidation process of the Corporate...
LiveLawBiz: Business Law Daily Round-Up: December 20, 2025
TaxCan GST Be Levied On Medicines Supplied During In-Patient Treatment? Delhi High Court To ExamineIncome Tax Act | S.153C Trigger Starts On Handing-Over Date, Not Search Date: Delhi High Court ITC Cannot Be Denied To Purchasing Dealer Solely Due To Retrospective Cancellation Of Supplier's GST Registration: Calcutta High Court GST Not Leviable On Interest/Penalty Charged By Chit Fund Companies For Delayed Payment Of Monthly Subscriptions: AP High Court Multiple-Noticee GST Cases Must Be...
NCLT Delhi Dismisses Diwan Spirits Insolvency Plea Against Khao Gali Restaurants
The National Company Law Tribunal (NCLT) at New Delhi, has refused to push Khao Gali Restaurants Pvt. Ltd. into insolvency on a plea by liquor wholesaler Diwan Spirits.It held that the dispute between the parties is not a clear case of non-payment but one that turns on reconciliation of accounts under the now scrapped Delhi Excise Policy 2021–22. A bench of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Atul Chaturvedi dismissed Diwan Spirits' application seeking...
Contractor Who Stayed Silent During CIRP and Liquidation Cannot Reclaim Auctioned Machinery: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has recently held that a contractor cannot seek compensation or get back machinery auctioned during liquidation if it remained silent throughout the corporate insolvency resolution process and liquidation. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar dismissed an application filed by Ahluwalia Contracts (India) Ltd., which had sought restitution and compensation for construction machinery auctioned...
Covid-Era Insolvency Protection Applies Only To Companies, Not Personal Guarantors: NCLAT Reaffirms
The National Company Law Appellate Tribunal (NCLAT) at New Delhi, has recently reiterated that that the Covid-era suspension under the Insolvency and Bankruptcy Code does not protect personal guarantors from insolvency proceedings. The appellate tribunal ruled that the suspension applies only to companies and does not bar creditors from initiating insolvency proceedings against individuals who have furnished personal guarantees A bench comprising Chairperson Justice Ashok...
NCLT Hyderabad Declares Former Deccan Chronicle Promoter T Venkatram Reddy Bankrupt
The National Company Law Tribunal (NCLT) at Hyderabad has declared Tikkavarapu Venkatram Reddy, former promoter of Deccan Chronicle Holdings Limited, the publisher of the Deccan Chronicle newspaper, bankrupt after he failed to submit a repayment plan as a personal guarantor for the company's borrowings.A bench of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri, while allowing an application filed by L&T Finance Ltd, observed, “Considering the above circumstances, and there...