Only Contractual Guarantee Debt Relevant For IBC Section 94 Threshold: NCLT Chandigarh

The Chandigarh Bench of the National Company Law Tribunal (NCLT) on 17 April held that only debts arising from a valid contract of guarantee can be considered for determining the pecuniary threshold under Section 94 of the Insolvency and Bankruptcy Code, 2016. A Bench comprising Judicial Member Khetarbasi Biswal and Technical Member Shishir Agarwal clarified that liabilities not arising from such a guarantee or not linked to the petitioner's capacity as a personal guarantor to a corporate...

OTS Proposal Can Constitute Acknowledgment Of Debt For Limitation Under IBC: NCLT Indore

The Indore Bench of the National Company Law Tribunal (NCLT) on 13 April held that a One-Time Settlement (OTS) proposal can amount to an acknowledgment of debt for limitation under Section 95 of the Insolvency and Bankruptcy Code, 2016. Further, objections on limitation, stamping, and pending Debts Recovery Tribunal proceedings do not bar admission of insolvency proceedings against a personal guarantor at the threshold stage. A Bench comprising Judicial Member Brajendra Mani Tripathi and...

Supreme Court Pulls Up Xalta RP, CoC for Non-Compliance With ₹50.55 Lakh Monthly Rent Order; Orders Handover

The Supreme Court of India on Tuesday warned the Superintendent of Police, Hapur, of personal liability if possession of premises belonging to Prerna Singh is not handed over within a week, directing the Resolution Professional and Committee of Creditors of Xalta Food and Beverages Pvt. Ltd. to ensure compliance. The Court once again rebuked the RP and CoC for failing to comply with its April 16, 2026 order, noting that against the committed monthly rent of Rs 50.55 lakh, only Rs 33.83 lakh was...

NCLAT Sets Aside NCLT Order Allowing Late Expression Of Interest, Resolution Plan

The National Company Law Appellate Tribunal (NCLAT) in Delhi has set aside an NCLT order that allowed a delayed expression of interest (EOI) and resolution plan, ruling that a resolution applicant cannot be considered after missing the prescribed timelines. “We are of the view that order of the Adjudicating Authority directing acceptance of the late EoI of Respondent No. 5 could not be sustained and the order need to be set aside.”, the tribunal observed. A bench of Chairperson Justice...

NCLT Chennai Holds Contractual Valuation Cannot Be Reopened, Dismisses Kamarajar Port Plea

The Chennai Bench of the National Company Law Tribunal (NCLT) on 2 April 2026, dismissed an application filed by Kamarajar Port Limited seeking a fresh valuation of project assets of Sical Iron Ore Terminals Ltd., which is in liquidation. A Bench comprising Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy held that once the contractual mechanism for valuation had been triggered and concluded, it could not be reopened on the ground of subsequent deterioration...

NCLAT Upholds Insolvency Initiation Against Supertech Guarantor, Says Invalid Plea Can't Trigger Moratorium Bar

The National Company Law Appellate Tribunal (NCLAT) in Delhi has upheld the admission of an insolvency application against Mohit Arora, personal guarantor to loans taken by Supertech Ltd. and two other companies. It held that the process initiated by PNB Housing Finance cannot be blocked by a moratorium arising from another petition, which is non-est in law. “...when the IFCI petition being CP IB No. 428 of 2021 was filed on 02.06.2021 during the interim moratorium commenced by the filing of...

CoC Cannot Bypass NCLAT Directions On Potential Resolution Applicant Eligibility: NCLT Mumbai

The Mumbai Bench of the National Company Law Tribunal on 13 April held that the Committee of Creditors (CoC) cannot bypass binding directions issued by the NCLAT regarding relaxation of eligibility criteria for potential resolution applicants (PRAs) in the corporate insolvency resolution process (CIRP). The Bench comprising Judicial Member K.R. Saji Kumar and Technical Member Anil Raj Chellan further clarified that resolution applicants may revise their financial offers upwards, but shall not...

NCLAT Rejects Cosmic Ferro Alloys' Refund Claim On Revised Power Tariffs Post Resolution Plan

The National Company Law Appellate Tribunal (NCLAT) at Delhi has dismissed an appeal filed by Cosmic Ferro Alloys Ltd., the corporate debtor now under new management pursuant to an approved resolution plan, holding that no refund or adjustment arises from revised electricity tariffs after approval of the plan. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra reiterated that once the resolution plan is approved, it binds all stakeholders and settles pre-insolvency...

Distribution During CIRP Must Conform To Section 30(2) Of IBC: NCLT Mumbai

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 6 April held that it cannot use its inherent powers under Rule 11 of the NCLT Rules, 2016 to allow distribution of sale proceeds during the Corporate Insolvency Resolution Process (CIRP) without complying with Section 30(2) of the Insolvency and Bankruptcy Code (IBC). A Bench comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar rejected the Resolution Professional's plea in the CIRP of Arshiya...

NCLT Kochi Admits IMOST To Insolvency, Says International Reputation Concerns No Bar Once Default Proven

The National Company Law Tribunal (NCLT) at Kochi has admitted an insolvency petition filed by Axis Bank Limited to initiate the Corporate Insolvency Resolution Process against IMOST Academy (India) Private Limited, holding that once debt and default are established, objections based on reputational impact cannot defeat admission. A coram of Judicial Member Vinay Goel rejected the academy's contention that initiation of CIRP would adversely affect its international standing. “If the insolvency...

Sub-Contractor's Contractual Share Not Part Of IVRCL's Liquidation Estate: NCLAT Orders Release Of ₹41.76 Lakh

The National Company Law Appellate Tribunal (NCLAT) has recently directed the liquidator of IVRCL Limited to release over Rs 41 lakh to sub-contractor Imperial Coastal Infra, holding that 96% of the project receivables belonged to the sub-contractor, were held by the corporate debtor in a fiduciary capacity, and could not be treated as part of the liquidation estate or as operational debt. A Chennai Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath...

NCLT Kochi Records Interim Payment Plan To Ensure Access To Jatayupara Tourism Project

The National Company Law Tribunal (NCLT), Kochi Bench, has recently recorded and accepted an interim arrangement for payment of dues to a landowner to ensure uninterrupted access and continued operation of the Jatayupara Tourism Project (JTP), noting that denial of access would render the project unusable. The order was passed by Judicial Member Vinay Goel on an application filed by an NCLT-appointed Chartered Accountant assigned, pursuant to directions of the Supreme Court, to verify and...