NCLT Bengaluru Rejects EPFO Claim For PF Dues In Dunlop Polymers Insolvency

The National Company Law Tribunal (NCLT) at Bengaluru has dismissed an application filed by the Regional Provident Fund Commissioner (Legal) in the insolvency proceedings of Dunlop Polymers Private Limited. The tribunal held that EPFO cannot seek remittance of provident fund dues during the moratorium when its claim has not been admitted in the Corporate Insolvency Resolution Process. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada held that the relief...

Subsequent Ratification Of Power of Attorney By IMC And Fresh Board Validates SEFL's CIRP Plea Against Roadwings: NCLAT

The National Company Law Appellate Tribunal has recently held that the power of attorney issued to an officer of Srei Equipment Finance Limited to initiate and defend legal proceedings, including proceedings under the Insolvency and Bankruptcy Code, remained valid despite the discharge of its administrator. The tribunal said the authorisation survived the discharge of the administrator because it was ratified by the Implementation and Monitoring Committee and later by the newly...

NCLAT Condones 3-Day Delay In Filing Appeal As NCLT Order Uploaded Eight Months After Pronouncement

The National Company Law Appellate Tribunal (NCLAT) has condoned a delay in filing an appeal against an order passed in an interlocutory application after noting that the National Company Law Tribunal's order was uploaded nearly eight months after it was pronounced, and that the delay attributable to the appellant was only three days. The order in an application filed in the insolvency proceedings of Unibera Developers Private Limited was pronounced by the National Company Law Tribunal, New...

NCLAT Dismisses CIRP Plea Against Strategic Credit Capital, Says Section 7 IBC Barred For Financial Service Provider

The National Company Law Appellate Tribunal (NCLAT) at Delhi recently dismissed an appeal filed by Religare Finvest Limited against the National Company Law Tribunal's order rejecting its Section 7 insolvency plea against Strategic Credit Capital Pvt. Ltd. A bench of Judicial Member Justice N. Seshasayee and Technical Members Arun Baroka and Indevar Pandey held that insolvency proceedings cannot be initiated against a Financial Service Provider. The tribunal observed, “We do not find the...

NCLT Chennai Dismisses Liquidator's Plea, Says Director's Mortgage Of Personal Property To Bank Not Fraudulent

The National Company Law Tribunal (NCLT) at Chennai has dismissed an application filed by the liquidator of Srivatsa International Private Limited alleging that the company's suspended directors committed fraud by mortgaging a property to Yes Bank. A coram comprising Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy held that offering property as collateral to secure credit for the corporate debtor's business operations does not by itself amount to fraudulent...

'Not an Ordinary Business Transaction': NCLAT Upholds Order Treating ₹19.66 Lakh Paid To Director As Preferential

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently upheld an order holding that payments of Rs.19.66 lakh made to a suspended director of a company were preferential transactions under Section 43 of the Insolvency and Bankruptcy Code. Dismissing two appeals filed by Jasvinder Singh Makan, the tribunal said repayment of unsecured loans to a director during financial distress cannot be treated as a routine business transaction. "Repayment of unsecured loans to a director...

S. 7 IBC | Corporate Debtor's Inability To Pay Not Relevant For CIRP Plea Admission: Supreme Court

The Supreme Court on Wednesday reaffirmed that the Adjudicating Authority cannot refuse to admit a financial creditor's plea under Section 7 of the Insolvency and Bankruptcy Code on the ground of the corporate debtor's inability to pay. The only question at the admission stage is whether a financial debt exists and whether there has been a default. The inability of the corporate debtor to pay is not required to be examined at this stage. Dismissing an appeal filed by Power Trust, promoter...

Active DIN Status Not Sufficient To Establish Eligibility To Submit Resolution Plan Under IBC: NCLT Indore

The National Company Law Tribunal (NCLT) at Indore has held that mere reflection of a Director Identification Number (DIN) as “Approved/Active” on the MCA portal is not sufficient to establish eligibility to submit a resolution plan under Section 29A of the Insolvency and Bankruptcy Code (IBC). The tribunal dismissed an application filed by Carnet Elias Fernandes, Suspended Management/Promoter of GEI Power Limited, challenging the Resolution Professional's decision declaring him ineligible to...

NCLAT Says COVID Limitation Ruling Not Properly Considered In Encore ARC's CIRP Against Pandhe Constructions

The National Company Law Appellate Tribunal (NCLAT) has set aside an order of the NCLT Mumbai bench that had dismissed a CIRP plea filed by Encore Asset Reconstruction Company Pvt Ltd against Pandhe Constructions Pvt Ltd as time-barred. The appellate tribunal held that the NCLT misapplied the Supreme Court's COVID-19 limitation directions and failed to properly consider acknowledgment of debt under Section 18 of the Limitation Act. A bench of Judicial Member Justice Mohd. Faiz Alam Khan and...

NCLT Mumbai Admits Insolvency Plea Against Reliance Ornatus Over ₹133.88 Crore Default

The National Company Law Tribunal (NCLT), Mumbai has admitted an insolvency application filed by Creative Ashtech Engineering Projects Private Limited against Reliance Ornatus Enterprises and Ventures Private Limited Ventures Private Limited, holding that a financial debt of Rs. 133.88 crore and default stood established.A bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar held, “In view of the aforesaid findings, this Application bearing C.P. (IB) No. 176/MB/2025 filed...

Resolution Professional Cannot Seek Removal Of Statutory Lien Created Before CIRP: NCLT Mumbai

The National Company Law Tribunal at Mumbai has held that while the Insolvency and Bankruptcy Code mandates a resolution professional to preserve and take control of the assets of the corporate debtor, it does not confer any specific authority to seek removal of statutory attachments or liens lawfully created prior to commencement of the insolvency.On February 13, a bench comprising Judicial Member Mohan Prasad Tiwari and Technical Member Charanjeet Singh Gulati held that a statutory lien...

Municipal Dues Cannot Be Recovered From Auction Purchaser After IBC Liquidation: Calcutta High Court

The Calcutta High Court has held that once liquidation proceedings commence under the Insolvency and Bankruptcy Code, municipal dues must be dealt with strictly within the framework of the Code and cannot be enforced independently against auction purchasers through contractual clauses such as “as is where is” or “whatever there is." Such clauses generally mean that a buyer takes the property in its existing physical and legal condition, along with all visible defects, risks, and liabilities...