IBC
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...
Merely Mortgaging Property Without Lending Money Does Not Create Financial Debt : NCLT Hyderabad
The National Company Law Tribunal (NCLT) at Hyderabad has held that a person who only mortgages his property as collateral security cannot be treated as a financial creditor of the borrower if he has not advanced any money. A bench of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri said the insolvency law can be invoked only if there is a financial debt, which necessarily involves disbursal of money against consideration for time value. The tribunal observed, “A person who...
Amendment Of Date Of Default Allowed Before Final Adjudication: NCLAT Reiterates
The National Company Law Appellate Tribunal at New Delhi has recently held that amendment of the date of default in insolvency proceedings against a personal guarantor is permissible before final adjudication. It ruled that limitation must be examined when the insolvency application is decided on merits. A bench comprising Chairperson Justice Ashok Bhushan, Chairperson, and Technical Member Barun Mitra upheld an order of the NCLT, Mumbai allowing such amendment. It observed, “It is well settled...
Asset Transfers After SARFAESI Notice Void, NCLAT Upholds Order Against Aaj Ka Anand Ex-Directors
The National Company Law Appellate Tribunal (NCLAT) at New Delhi on Friday held that agreements transferring a company's business after issuance of a bank recovery notice under the SARFAESI law are void and unenforceable. A bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra upheld the order passed by the National Company Law Tribunal, Mumbai, which had cancelled a Leave and Licence Agreement and a Usage Deed executed by Aaj Ka Anand Papers Limited and directed...
LiveLawBiz: Business Law Daily Round-Up: December 19, 2025
TAX “Illegal, Arbitrary & Colourable Exercise Of Power": Karnataka High Court Quashes Consolidated GST Show Cause Notice Clubbing Multiple FYsSVLDR Scheme Can't Be Invoked For Fresh SCN Issued After Deadline Even If Arising From Same Dispute: Delhi High CourtWrit Petition Not Maintainable After GSTAT Becomes Functional; Assessees Must Avail Remedy U/S 112 GST Act: Orissa High CourtGST Act | Orissa High Court Quashes Recovery Proceedings Premised On 'Mistaken Identity' After Verifying Payment...
Refusal Of Demand Notice at MCA-Registered Office Amounts To Valid Service: NCLAT
The National Company Law Appellate Tribunal at New Delhi has ruled that a demand notice sent by an operational creditor and returned with the postal endorsement “refused” from the corporate debtor's MCA-registered office amounts to valid service under the insolvency rules. A bench of Justice Mohd Faiz Alam Khan and Technical Member Indevar Pandey set aside an order of the National Company Law Tribunal that had rejected an insolvency plea on the ground of defective service. The appellate...
GST Amnesty Relief Cannot Be Granted By Tribunal, Parties Must Approach Writ Courts: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has held that it has no jurisdiction to relax conditions or grant benefits under a statutory GST immunity or amnesty scheme. Such relief, it said, can be granted only by constitutional courts exercising writ jurisdiction. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar said the tribunal's powers under the Insolvency and Bankruptcy Code cannot be stretched to override conditions prescribed under tax amnesty...
Parliamentary Panel Pushes For Fast-Track Insolvency Courts, More NCLT Benches
A Parliamentary Standing Committee on Finance has recently recommended exploring the creation of dedicated fast-track insolvency benches for fixed periods to shoulder insolvency resolution burden of existing benches. Besides that, the committee has also highlighted urgency to increase the number of National Company Law Tribunal (NCLT) benches across India to tackle pending and growing delays in disposing cases. In its 28th report reviewing the working of the IBC, presented...
NCLT Delhi Clears First Stage of Haryana Distillery's Plan to Acquire 10 Companies
The National Company Law Tribunal (NCLT), New Delhi, has cleared the first motion of a composite scheme under which Delhi based-Haryana Distillery Limited proposes to acquire and merge 10 privately held group companies into itself. The tribunal however directed that shareholder meetings must be held even though more than 90% of shareholders had consented to the scheme. A bench of Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri held that while the Companies Act, 2013...
Suspended Director Cannot Dispute Admitted Claim After Company Initiates CIRP On Same Debt: NCLAT
The National Company Law Appellate Tribunal has held that when a company itself triggers insolvency proceedings on the basis of a bank's debt, its suspended directors cannot later turn around and claim that the lender's dues are time-barred.“When the Appellant itself claim that insolvency resolution process be initiated against the CD on the basis of debt of SBI which application was filed in the year 2025, it is not open for the Appellant to turn around and say that there is no valid claim of...
Relinquishment Of Development Rights Does Not Amount To Financial Debt: NCLT Delhi
The National Company Law Tribunal (NCLT) New Delhi, has refused to admit an insolvency plea against real estate firm Vipul Ltd, holding that the surrender of development and land-related rights under a joint development arrangement does not amount to “financial debt” under the Insolvency and Bankruptcy Code.A bench of Judicial Member Ashok Kumar Bhardwaj and Technical Member Ravindra Chaturvedi held that insolvency proceedings under Section 7 of the Code can be initiated only by a financial...
NCLT Mumbai Approves Timezone's Merger Plan To Consolidate Leisure And Entertainment Business
The National Company Law Tribunal (NCLT) at Mumbai on Thursday approved the merger of Leisure and Allied Industries India Private Limited with arcade operator Timezone Entertainment Private Limited, allowing the group to consolidate its family entertainment and leisure business under a single company. A bench of Judicial Member K R Saji Kumar and Technical Member Anil Raj Chellan held that the amalgamation met all legal requirements, observing that the “Scheme appears to be fair and reasonable...