Corporate Debtor Cannot Use Dispute Between Lenders To Delay Insolvency Proceedings: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi bench has ruled that a borrower cannot use a dispute between consortium lenders over restructuring to block insolvency proceedings. This is so when the financial debt and default are otherwise established.“The Corporate Debtor cannot be permitted to take advantage of an inter se dispute between the Financial Creditors so as to delay or defeat the insolvency proceedings,” Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy...

NCLT President Can Transfer Cases Across Territorial Jurisdictions: NCLAT

The National Company Law Appellate Tribunal (NCLAT), New Delhi has ruled that the President of the National Company Law Tribunal (NCLT) can transfer a case from one bench to another even when the benches are in different territorial jurisdictions.The bench comprising Judicial Member Justice Sharad Kumar Sharma, Technical Member Arun Baroka and Technical Member Indevar Pandey held that Rule 16(d) of the NCLT Rules, 2016 does not restrict the President's power to transfers within the same...

Deposit Made 'Without Prejudice' Cannot By Itself Amount To Admission Of Debt In CIRP Proceedings: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi, has ruled that a deposit expressly made “without prejudice” to a debtor's rights and contentions cannot, by itself, be treated as an unconditional admission of liability.The bench of Judicial Member Justice N. Seshasayee and Technical Member Indevar Pandey observed, “A deposit expressly made without prejudice cannot, by itself, be treated as an unconditional admission of a liability, particularly when the appellant had already raised...

IBC Appeal Limitation Runs From NCLAT Order, Not Receipt Of Certified Copy: Supreme Court

The Supreme Court has recently ruled that the limitation period for an appeal against an NCLAT order would run from the date the order is provided, and not from the date a certified copy is obtained.“Assuming that under the NCLAT Rules, 2016, there is an obligation to provide copy of the order to the parties, the period of limitation would run from the date when the order is provided under NCLAT Rules, 2016, and not from the date when certified copy is obtained,” a Division Bench of Justice...

NCLAT Delhi Says Resolution Applicant's Death Is Not Liquidation Ground, Revives Genius Exports CIRP

On 9 September, the National Company Law Appellate Tribunal (NCLAT), New Delhi held that the death of a resolution applicant before approval of a resolution plan does not, by itself, justify liquidation of the corporate debtor, particularly when a withdrawal application under Section 12A of the Insolvency and Bankruptcy Code, 2016 (IBC) based on a settlement is pending.A Bench comprising Judicial Member Justice N Seshasayee and Technical Member Indevar Pandey set aside the liquidation order...

'Clean Slate' Protection U/S 32A IBC Extends To Going Concern Buyers During Liquidation: NCLAT Delhi

The Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 9 September held that the “clean slate” protection under Section 32A of the Insolvency and Bankruptcy Code, 2016 (IBC) extends to buyers who purchase a corporate debtor as a going concern during liquidation.A Bench comprising Judicial Member Justice N Seshasayee and Technical Member Arun Baroka allowed an appeal filed by Amitkumar Rishi Kumar Bhabhda, who had purchased Seam Industries Ltd. (corporate debtor) as a...

NCLAT Quashes Guarantor Insolvency Proceedings Filed Before Different NCLT Bench Than CIRP

The National Company Law Appellate Tribunal (NCLAT) at New Delhi, has quashed insolvency proceedings against a personal guarantor after finding that the corporate debtor's Corporate Insolvency Resolution Process (CIRP) was pending before another NCLT Bench.The bench of Judicial Member Justice Sharad Kumar Sharma and Technical Members Arun Baroka and Indevar Pandey held that where the CIRP of a corporate debtor is pending before one NCLT Bench, proceedings concerning its personal guarantor must...

NCLT Ahmedabad Rejects A.R. Company's Insolvency Plea Against Sadbhav Engineering

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 19 August dismissed an insolvency petition filed by A.R. Company against Sadbhav Engineering Limited over unpaid dues arising from the supply of road and building construction materials. A Bench comprising Judicial Member Chitra Hankare and Technical Member Dr V.G. Venkata Chalapathy observed: “The claim arising from the alleged breach of the MOU has to be pursued in accordance with the remedies contemplated under the MOU and...

Supreme Court Issues Notice In Plea Against NCLAT Order Treating Deregistered NBFC As Financial Service Provider

The Supreme Court on Thursday issued notice on a challenge to a National Company Law Appellate Tribunal (NCLAT) ruling that refused to allow an NBFC to initiate insolvency proceedings against itself. The tribunal held that the company remained a financial service provider despite cancellation of its Reserve Bank of India (RBI) registration under the Insolvency and Bankruptcy Code (IBC).The NCLAT, in its April 9, 2026, order, upheld the National Company Law Tribunal (NCLT), Hyderabad Bench's...

Cloud Storage Sale-and-Leaseback Qualifies As Financial Lease Under IBC: NCLT Allahabad

The National Company Law Tribunal, Allahabad Bench has held that a sale-and-leaseback arrangement created through two linked agreements constituted a “financial lease” under the Insolvency and Bankruptcy Code, 2016. The arrangement involved applicants first purchasing cloud storage units from Vuenow Marketing Services Limited (VMSL) and then leasing the same units to Zebyte Rental Planet Private Limited for 10 years in return for monthly payments.The court observed, “In view of the foregoing...

IBC Section 96 Moratorium Is Debtor-Centric, Not Debt-Specific: NCLT Guwahati

The National Company Law Tribunal (NCLT) at Guwahati on 14 August held that the interim moratorium under Section 96 of the Insolvency and Bankruptcy Code, 2016 (IBC) protects a personal guarantor as a whole, and not just against a particular debt. It therefore barred a fresh insolvency application against the guarantor while an earlier application was pending. A Bench comprising Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh, rejected UCO Bank's insolvency petition...

Liquidator Cannot Admit Unadjudicated PF Dues Based On Departmental Estimates: NCLT Ahmedabad

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 17 August 2026 held that uncrystallised and provisional provident fund demands cannot be enforced in liquidation, upholding the Liquidator's decision to admit only Rs. 1.68 lakh of provident fund dues and reject the balance claim of Rs. 1.77 crore.A Bench comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma held that a statutory authority cannot require a Liquidator to admit a claim merely because the amount...