Emails Admitting Defects, Compensation Offers Prove Dispute: NCLAT Dismisses CIRP Plea Against Amod Stampings

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has upheld the rejection of plea seeking initiation of the corporate insolvency resolution process (CIRP) against Amod Stampings Private Limited, holding that emails admitting defective supply and offering compensation demonstrate a pre-existing dispute. A Bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “The Appellant having agreed to compensate the Corporate Debtor is also a clear...

NCLAT Upholds CIRP Against Prayag Polytech, Says NOCs For Specific Charges Don't Wipe Out Entire Debt

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently upheld the admission of insolvency proceedings against Prayag Polytech Pvt. Ltd., rejecting the company's reliance on multiple No Dues Certificates and holding that these were issued only for satisfaction of specific charges and did not extinguish its overall liability to Canara Bank. A bench of Judicial Member Justice Ashok Bhushan and technical member Barun Mitra held that the certificates relied upon by the suspended...

NCLAT Dismisses CIRP Plea By Durgapur Corporation Against Aryan Ispat, Cites Pre-Existing Dispute

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has dismissed an appeal filed by Durgapur Corporation Private Limited against Aryan Ispat & Power Private Limited, reiterating that a Section 9 application must be rejected where there exists a pre-existing dispute between the parties. “The only thing that is to be looked into is that whether there is plausible contention. In the facts of the present case, we find that plausible contention was raised by the Corporate Debtor in...

NCLAT Upholds Secured Creditor Status Of Second Charge Holder Despite Non-Registration In Mirage Ceramics CIRP

The National Company Law Appellate Tribunal (NCALT) at New Delhi has upheld the classification of Kamlesh Mehta, a second charge holder, as a secured financial creditor of the corporate debtor, Mirage Ceramics Pvt. Ltd. It held that the absence of consent from the first charge holder and non-registration of charge under Section 77 of the Companies Act, 2013 did not vitiate the second charge in the facts of the case. A bench of Judicial Member Justice Ashok Bhushan and Technical Member Barun...

Loan Restructuring Need Not Be Treated As Modification Of Charge; Original Security Remains Valid: NCLAT

The National Company Law Appellate Tribunal (NCLAT) in Delhi has held that restructuring of loan facilities does not necessarily amount to modification of charge requiring fresh registration where the underlying security remains unchanged. “We are in agreement with the approach adopted by the Ld. Adjudicating Authority in construing the term modification liberally as the same will not prejudice the security interest of existing lenders and the restructuring of the facilities done by the lender...

LiveLawBiz IBC Weekly Digest: April 20 - April 25

SUPREME COURT Insolvency Process Has Far-Reaching Consequences, Cannot Be Used To Enforce Money Decrees: Supreme Court Case Title : Anjani Technoplast Ltd v. Subh Gautam Case Number : Civil Appeal No. 8247 of 2022 CITATION : 2026 LLBiz SC 167The Supreme Court on Thursday held that insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 cannot be invoked as a substitute for execution of a civil court decree. A Bench of Justices Pamidighantam Sri...

Limitation Against Personal Guarantor Starts From Guarantee Invocation, Not Corporate Default: NCLT Kolkata

The National Company Law Tribunal (NCLT), Kolkata Bench, has reiterated that the limitation period for initiating insolvency proceedings against a personal guarantor runs from the date of invocation of the guarantee and not from the date of default of the corporate debtor. The bench of Judicial Member Bidisha Banerjee and Technical Member Rekha Kantilal Shah observed, “We rely on the judgment of the Hon'ble Supreme Court, in Civil Appeal No. 6894 of 1997 (Syndicate Bank vs. Channaverappa Beleri...

NCLAT Sets Aside Insolvency Against Palavi Synthetics Guarantors After NCLT Miscalculated Limitation

The National Company Law Appellate Tribunal (NCLAT) at Delhi has set aside the admission of insolvency proceedings against personal guarantors of Palavi Synthetics Pvt. Ltd., holding that while a recovery decree gives rise to a fresh cause of action and a fresh limitation period, the NCLT had wrongly computed that limitation. A bench of Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Naresh Salecha observed, “since the decree was passed by the JR on 15.09.2017 the limitation...

NCLAT Orders IBBI Probe Into Ritzy Chemicals RP As He Allowed CoC Vote On Plan Without Full Disclosure

The National Company Law Appellate Tribunal (NCLAT) has directed an investigation by the Insolvency and Bankruptcy Board of India into the conduct of the resolution professional in the insolvency of Ritzy Chemicals Pvt. Ltd. after allowing the committee of creditors to vote on the resolution plan without being apprised of the pendency and details of avoidance transactions. The tribunal also dismissed appeals against rejection of the resolution plan. A bench of Judicial Member Justice Mohd....

NCLAT Dismisses Appeal In Green Soul CIRP, Says SRA Consortium Cannot Be Reconstituted After Plan Approval

The National Company Law Appellate Tribunal (NCLAT) at Delhi has dismissed an appeal by the successful resolution applicant consortium in the Corporate Insolvency Resolution Process of Green Soul Ergonomics Pvt. Ltd. The tribunal held that a consortium cannot change its composition after its resolution plan has already been approved by the Committee of Creditors. “When composition of consortium is changed subsequent to approval of resolution plan, it cannot be said that evaluation...

NCLAT Restores Plea Dismissed For Non-Appearance, Accepts Counsel's SC Engagement As Explanation

Holding that counsel's appearance before the Supreme Court sufficiently explained his absence, the National Company Law Appellate Tribunal (NCLAT) restored an insolvency plea that had been dismissed for non-appearance before the National Company Law Tribunal (NCLT). The bench, comprising Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha, said: “In view of above, we are of the considered opinion that sufficient explanation has been given by the Appellant on non...

Supreme Court Asks NCLAT To Consider Whether Court-Constituted Committee Is Needed For All Supertech Projects

The Supreme court recently requested the NCLAT to examine whether a court-constituted committee should oversee all projects of Supertech Ltd or whether such monitoring should continue only for the 16 projects already entrusted to NBCC, noting the urgency arising from stalled developments.A bench of Chief Justice Surya Kant and Justice Joymalya Bagchi, while referring the issue to the appellate tribunal, said:“In this view of the matter, we request the learned NCLAT to consider the issue as...