NCLAT Reduces ₹1 Lakh Cost To ₹10 Thousand On Unity SFB For Delay In Paying RP Fee

The National Company Law Appellate Tribunal (NCLAT) at Delhi recently reduced the cost imposed on Unity Small Finance Bank from Rs 1 lakh to Rs 10,000 in each case for a delay of nearly three weeks in paying the fee of a resolution professional appointed in insolvency proceedings against a personal guarantor. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held, “We are of the view that it was well within the discretion of the Adjudicating Authority to impose...

NCLAT Says It Cannot Allow Insolvency Appeal On Settlement, Corrects 'Inadvertent Error' In Earlier Order

The National Company Law Appellate Tribunal (NCLAT) at Delhi recently clarified that once insolvency proceedings have commenced, they cannot be brought to an end merely on the basis of a private settlement between parties and must follow the statutory process before the adjudicating authority. A bench of Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka clarified this while correcting an error in its earlier order. “Therefore, even assuming that the applicant has made any...

NCLT Mumbai Approves Rs. 730 Crore Resolution Plan For Rajesh Business And Leisure Hotels

The National Company Law Tribunal (NCLT) in Mumbai has approved a Rs. 730 crore resolution plan for Rajesh Business and Leisure Hotels Pvt Ltd, submitted by a consortium of Rare Asset Reconstruction Limited and Check-Inn Hotels Pvt Ltd. A bench of Judicial Member Ashish Kalia and Technical Member Sanjiv Dutt was dealing with an application filed by the resolution professional seeking approval of the plan, which had been cleared with a 100% voting share of the committee of creditors. The...

NCLT Delhi Directs Indian Bank Senior Officer To Appear In Nimitiya Hotel CIRP Over RP Replacement Dispute

The National Company Law Tribunal (NCLT) at Delhi has recently directed a senior officer of Indian Bank to appear in person after finding that the bank filed a 60 page affidavit far beyond a limited clarification it had sought in a dispute over replacing the resolution professional of Nimitiya Hotel and Resorts Limited. A bench of Judicial Member Justice Jyotsna Sharma and Technical Member Reena Sinha Puri said, “The affidavit contains many facts which are beyond the scope of the direction...

Homebuyer Who Has Paid Full Consideration And Is In Possession Entitled To Sale Deed: NCLT Kochi

The Kochi Bench of the National Company Law Tribunal (NCLT) on 23 April, held that a homebuyer who has paid the entire consideration and is placed in possession of the property is entitled to execution of the sale deed, and such property cannot form part of the liquidation estate of the corporate debtor under the Insolvency and Bankruptcy Code framework. A Bench comprising Judicial Member Vinay Goel allowed an application filed by Tom Thomas seeking execution and registration of a sale deed in...

Late CIRP Claims Under IBC Cannot Be Entertained After CoC Process Resolution Plan: NCLAT Chennai

The Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) on 9 April, held that claims which are not filed and substantiated in accordance with the Insolvency and Bankruptcy Code, 2016 and the Corporate Insolvency Resolution Process (CIRP) Regulations cannot be entertained at an advanced stage of the CIRP, particularly after the resolution plan has been processed by the Committee of Creditors (CoC). The Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical...

NCLT Holds Kanoovi Foods Directors, Third Parties Liable For ₹58.27 Cr Siphoning Under Section 66 IBC

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 20 April, held a forensic audit in Kanoovi Foods Pvt. Ltd. established diversion of funds and fraudulent as well as wrongful trading, attracting liability under Section 66 of the Insolvency and Bankruptcy Code, 2016 (IBC), against promoters, directors, and associated third parties. A Bench comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma directed the company to restore Rs. 58.27 crore to the assets of...

IBBI Imposes ₹5 Lakh Penalty On IRP In Bhasin Infotech CIRP For Not Seeking NCLAT Clarification

The Insolvency and Bankruptcy Board of India's (IBBI) Disciplinary Committee (DC) on 21 April, imposed a penalty of Rs 5 lakh on Insolvency Professional Mukesh Gupta for lapses in diligence during the Corporate Insolvency Resolution Process (CIRP) of Bhasin Infotech and Infrastructure Pvt. Ltd. Whole Time Member Sandip Garg, passing the order, held that Gupta failed to promptly seek clarification from the National Company Law Appellate Tribunal (NCLAT) on the scope of his authority after an...

NCLT Mumbai Orders Liquidation Of Quality Care Dialysis After Multiple Attempts Yield No Resolution Plan

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 21 April 2026 ordered liquidation of Quality Care Dialysis Private Limited under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, after it received no resolution plan despite repeated attempts during the Corporate Insolvency Resolution Process (CIRP). A Bench of Judicial Member Nilesh Sharma and Technical Member Charanjeet Singh Gulati allowed the application that the Resolution Professional, Ms. Sapna Pankaj Chourasia,...

NCLT Hyderabad Rejects Insolvency Plea Against Madhucon Over Disputed Debt, Inconsistent Claims

The National Company Law Tribunal (NCLT) at Hyderabad has dismissed a corporate insolvency plea filed by Sri Balaji Associates against Madhucon Projects Ltd. for an alleged operational debt of Rs.83.84 lakh. It held that material inconsistencies in the computation of debt, along with a pre-existing dispute, meant the claim could not be admitted under the Insolvency and Bankruptcy Code, 2016. The bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri found that the...

NCLT Mumbai Orders Income Tax Dept To Lift Lien On Deep Star Alloys Bank Accounts During Moratorium

The Mumbai Bench of the National Company Law Tribunal (NCLT) has directed the Income Tax Department to lift the lien on the bank accounts of Deep Star Alloys and Steels Private Limited, which is currently undergoing insolvency proceedings, making it clear that once a moratorium is in force, no action can be taken against the company's assets under any other law. The bench recorded: “Accordingly, we are of the view that claim of the Income Tax Department having been already admitted by the RP,...

Insolvency Process Has Far-Reaching Consequences, Cannot Be Used To Enforce Money Decrees: Supreme Court

The 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 Narasimha and Alok Aradhe observed that, “The insolvency process is a remedy with far-reaching consequences and must be reserved for cases of genuine insolvency or financial distress, not for the enforcement of money decrees.” The Division Bench allowed an appeal against a...