Related Parties Misused Insolvency To Wipe Out Public Shareholding, NCLAT Sets Aside Techindia CIRP

The National Company Law Appellate Tribunal (NCLAT) at Delhi has set aside insolvency proceedings against Techindia Nirman Limited, holding that the Corporate Insolvency Resolution Process was fraudulently and collusively initiated by a related-party financial creditor to wipe out public shareholding. It imposed a cost of Rs 25 lakh on the financial creditor for abusing the insolvency framework. A coram comprising Judicial Member Justice Mohd. Faiz Alam Khan and Technical Members Arun Baroka...

Ex-Director Cannot Claim Oppression For Lapses During His Tenure: NCLT Ahmedabad

The National Company Law Tribunal (NCLT) at Ahmedabad has recently observed that a director who actively managed a company cannot allege oppression for irregularities that took place during his own tenure. A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma, while examining allegations of siphoning of funds, falsification of accounts and mismanagement in DB Shapriya Construction Ltd., said “Having been an active participant in the management of the Company, the...

LiveLawBiz: Business Law Daily Round-Up: December 18, 2025

TAX Centre Notifies Reallocation Of Territorial Jurisdiction Of DRTs In West Bengal Under RDB ActService Tax | Windmill Installation, Commissioning Services Construable As 'Input Service', Credit Admissible: Gujarat High CourtCustoms Act | No Time Bar For Shipping Bill Conversion Under Section 149: CESTAT MumbaiIPRCommercial Courts Act Bars Intra-Court Appeals In Patent Disputes: Madras High Court Bombay High Court Bars Sale of Cough Syrup Under 'CEFDON' Mark, Citing Similarity With 'CEDON'Delhi...

Auction Purchaser Cannot Be Compelled To Clear Previous Owner's Dues: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has held that an auction purchaser under the Insolvency and Bankruptcy Code cannot be compelled to clear the previous owner's outstanding dues, in a dispute arising from the transfer of a flat sold during liquidation proceedings.The ruling came on an application filed by AJS Impex Private Limited, the auction purchaser, against the respondent society, in relation to a unit sold from the assets of Archisha Steels Private Limited, the corporate...

NBFC Retains Financial Service Provider Status Despite Lending Ban, Insolvency Only On RBI's Plea: NCLAT

The National Company Law Appellate Tribunal (NCLAT), New Delhi, has held that a non-banking financial company does not lose its status as a financial service provider merely because the Reserve Bank of India has barred it from fresh lending. As a result, such an entity continues to remain outside creditor-initiated insolvency proceedings under the Insolvency and Bankruptcy Code.A bench headed by Chairman Justice Ashok Bhushan and Technical Member Barun Mitra dismissed an appeal filed by Equitas...

Debenture Trustees Are Financial Service Providers, Insolvency Plea Not Maintainable: NCLT Mumbai

The National Company Law Tribunal at Mumbai has recently reiterated that debenture trustees are Financial Service Providers, and therefore insolvency proceedings under the Insolvency and Bankruptcy Code are not maintainable against them, dismissing a plea filed against Centbank Financial Services Ltd. A coram of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar, in an order dated November 21, 2025, ruled that entities registered with the Securities and Exchange Board of India as...

Insolvency Cannot Be Withdrawn After Liquidation Begins: NCLAT Reaffirms

The National Company Law Appellate Tribunal at Chennai has reiterated that an insolvency case cannot be withdrawn once liquidation has begun, holding that the law allows withdrawal only during the resolution stage and not after a liquidation order is passed. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain dismissed an appeal on Wednesday , filed by Narayan Maheshwari, promoter of Veerganapathi Steels Pvt Ltd. Maheshwari had sought withdrawal of...

NCLT Rejects Belated Bidder Plea To Call Lenders' Meeting To Reopen EOI In Sebacic Insolvency

The National Company Law Tribunal (NCLT) at Ahmedabad has rejected a plea filed by Dysetuff Industries Ltd seeking directions to convene a special meeting of the Committee of Creditors (CoC) to reopen the Expression of Interest (EOI) process in the insolvency of Sebacic India Ltd, holding that Corporate Insolvency Resolution Process (CIRP) timelines cannot be relaxed once they have expired. Dysetuff Industries, which described itself as a prospective resolution applicant, had approached the...

Failure To Serve Guarantor Insolvency Plea On RP Not Curable If It Prejudices Creditor Rights: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi recently held that failure to serve copies of insolvency petitions on the tribunal-appointed resolution professional cannot be treated as a curable procedural lapse when it prejudices creditor rights. On this basis, the Appellate Tribunal dismissed appeals filed by personal guarantors of a corporate borrower for loans extended by Bank of Baroda, and upheld the rejection of their insolvency petitions. In insolvency cases...

Adjudicating Authority Cannot Allow Arbitration During IBC Moratorium: NCLT Chandigarh

The National Company Law Tribunal (NCLT) at Chandigarh has recently held that the adjudicating authority (NCLT) cannot direct the continuation of pending arbitration proceedings during the moratorium under Section 14 of the Insolvency and Bankruptcy Code. It ruled that such a direction would be beyond the tribunal's jurisdiction under Section 60(5) and would defeat the purpose of the moratorium. A bench of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal passed the ruling...

Del Credere Agent Who Bears Buyer Default Risk Is Operational Creditor Under IBC: NCLAT Reaffirms

The National Company Law Appellate Tribunal (NCLAT) at New Delhi on Wednesday reiterated that a Del Credere Agent, an agent who guarantees payment to the supplier and bears the risk if the buyer defaults, is an operational creditor under the Insolvency and Bankruptcy Code and can initiate insolvency proceedings to recover unpaid dues. A bench of Judicial Member Justice Yogesh Khanna and Technical Member Indevar Pandey dismissed an appeal filed by the suspended director of Kirtiman Cements and...

LiveLawBiz: Business Law Daily Round-Up: December 17, 2025

TAX Commission Earned On Sale Of Agricultural Produce Attracts Service Tax Under 'Business Auxiliary Service': CESTAT AhmedabadService Tax | Extended Limitation Cannot Be Invoked Without Mens Rea, Deliberate Intent To Evade Duty To Be Proven: CESTAT ChandigarhNon-Availability Of GSTAT Cannot Be Used To Bypass Mandatory Pre-Deposit U/S 112(8) CGST Act: Orissa High CourtGST | Cannot Seek Pre-Arrest Bail At Stage Of Summons, Delhi High Court Dismisses Plea By Tobacco TraderCESTAT Delhi Cancels...