IBC
Corporate Debtor Cannot Avoid Insolvency By Claiming Loan Documents Were Executed In Old Name: NCLT Mumbai
The National Company Law Tribunal at Mumbai has admitted an insolvency petition against JBS Enterprises Ltd, formerly known as JBS Enterprises Private Limited holding that a corporate debtor cannot escape liability merely because loan documents were executed in its earlier name prior to conversion from a private limited company to a public limited company.A coram of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar said that once the corporate debtor has availed and benefited from...
'Ruse To Exploit Mill Land': Bombay High Court Rejects Plea To Revive Swadeshi Mills
The Bombay High Court on Monday dismissed an application filed by Grand View Estates Pvt Ltd seeking a stay of winding up proceedings and revival of Swadeshi Mills Company Ltd, holding that the proposal was not a genuine attempt to revive the textile company but an effort to exploit its valuable mill land for real estate development. A single-judge bench of Justice Sharmila U. Deshmukh observed that the revival plan was “nothing but a ruse to obtain the valuable land for exploitation in real...
Non-Issuance Of NOC By Financial Creditor After Default Cannot Stall Insolvency: NCLT Chandigarh
The National Company Law Tribunal (NCLT) at Chandigarh has rejected a plea by homebuyers seeking dismissal of insolvency proceedings against Vatika Ltd. The tribunal held that non-issuance of a No Objection Certificate by the debenture trustee, which was required for execution and registration of conveyance deeds in favour of plot buyers, cannot by itself obstruct proceedings under Section 7 of the Insolvency and Bankruptcy Code once a financial default has occurred. The matter was heard by...
Mere Non-Payment Of Ordered Amount Not Civil Contempt, Execution Is Proper Remedy: NCLT Kochi
The National Company Law Tribunal at Kochi has recently observed that mere non-payment of amounts directed under its orders does not automatically amount to civil contempt and that execution proceedings are the appropriate remedy.A coram of Judicial Member Vinay Goel observed that contempt proceedings, being quasi-criminal in nature, cannot be routinely invoked as a substitute for execution of orders.'If contempt were to be invoked for every instance of default in payment, it would effectively...
Supreme Court Dismisses Appeal Against NCLAT Order Rejecting Insolvency Plea Against Voltas
The Supreme Court has recently refused to interfere with the National Company Law Appellate Tribunal's decision dismissing the insolvency plea filed by Air Wave Technocrafts Pvt. Ltd against Voltas Ltd, a Tata Group company engaged in air-conditioning and engineering services. A bench of Justices Sanjay Kumar and K. Vinod Chandran dismissed the civil appeal arising out of the NCLAT judgment of November 27, 2025, which had refused to admit insolvency against Voltas for for an operational...
Mere MOU For Flat Allotment Not Financial Debt Without Disbursal To Corporate Debtor: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai recently held that a payment made under an MOU for allotment of 3,000 sq ft of FSI in a proposed real estate project does not qualify as a “financial debt” under the Insolvency and Bankruptcy Code, 2016 if there is no disbursal to the corporate debtor and no element of time value of money. A Bench of Judicial Member Ashish Kalia and Technical Member Sanjiv Dutt said, “There is nothing to show that money was disbursed by the Applicant against...
NCLT Mumbai Allows Saraswat Bank To Make Clarificatory Amendments To Section 7 Petition
On 5 February 2026, the Mumbai Bench of the National Company Law Tribunal (NCLT) allowed Saraswat Co‑operative Bank Limited to amend its pending Section 7 petition against AAACORP Exim India Private Limited to correct the date of default, NPA classification date, and outstanding dues of Rs. 15.59 crore. The Bench comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Charanjeet Singh Gulati, held that that such amendments are permitted if they are clarificatory,...
IBBI Suspends Insolvency Professional's AFA For Six Months Over CIRP Without Valid Authorisation
The Insolvency and Bankruptcy Board of India (IBBI) on 19 February suspended the Authorisation for Assignment (AFA) of insolvency professional Bhim Sain Goyal for six months after finding that he undertook a Corporate Insolvency Resolution Process (CIRP) assignment without holding a valid authorisation. The matter arose from the CIRP of Suich Industries Limited, admitted by the NCLT, New Delhi Bench‑V on 19 November 2024. Goyal was appointed as the Interim Resolution Professional (IRP) through...
LiveLawBiz IBC Weekly Digest: February 16 To February 21
SUPREME COURTS. 7 IBC | Corporate Debtor's Inability To Pay Not Relevant For CIRP Plea Admission: Supreme CourtCase Title : Power Trust (Promoter of Hiranmaye Energy Ltd.) v. Bhuvan Madan (Interim Resolution Professional of Hiranmaye Energy Ltd.) & Ors. Case Number : CIVIL APPEAL NO(s).2211/2024 CITATION : 2026 LLBiz SC 73The Supreme Court on Wednesday reaffirmed that the Adjudicating Authority cannot refuse to admit a financial creditor's plea under Section 7 of...
NCLAT Reaffirms CST Dues Not Secured Debt, Sets Aside Order Rejecting Amul Industries Resolution Plan
The National Company Law Appellate Tribunal (NCLAT) at New Delhi, has recently reiterated that dues under the Central Sales Tax Act are not secured debt in insolvency proceedings. A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey set aside the orders passed by the NCLT Ahmedabad on 6 November 2025. The NCLT had rejected the resolution plan of Amul Industries Ltd. on the ground that it did not treat Central Sales Tax dues as secured debt and therefore did not...
Criminal Complaint Filed After Adverse Insolvency Order Cannot Undermine Liquidation: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently observed that criminal complaints filed after adverse insolvency orders cannot be used to undermine liquidation proceedings or defeat creditor protections under the Insolvency and Bankruptcy Code, 2016. A bench comprising Judicial Member Justice N. Seshasayee and Technical Members Arun Baroka and Indevar Pandey dismissed an appeal filed by SSMP Agro Export Private Limited and its directors against the National Company Law...
NCLAT Dismisses Mercator Guarantor's Appeal Against Insolvency Order, Calls Natural Justice Plea 'Dilatory Tactic'
The National Company Law Appellate Tribunal (NCLAT) at Delhi has upheld the admission of a personal insolvency petition filed by State Bank of India (SBI) against former Mercator Limited director Harish Kumar Mittal over dues of Rs. 236.19 crore, holding that his objection that his reply affidavit was not taken on record did not establish a violation of natural justice. A three-member bench of Judicial Member Justice N. Seshasayee and Technical Members Arun Baroka and Indevar Pandey dismissed...