Reliance Capital Insolvency: NCLAT Issues Notice On SEBI's Challenge To Plan Clause Allegedly Shielding Subsidiary From Penalties

The National Company Law Appellate Tribunal on Friday issued notice on SEBI's appeal challenging an NCLT Mumbai order that refused to recall or clarify a paragraph in the Reliance Capital resolution plan which, according to SEBI, is being misused to claim that all liabilities of the company's subsidiaries also stand extinguished. SEBI says this interpretation is being deployed by a subsidiary Reliance Exchangenext Limited to avoid a Rs 25 lakh penalty imposed on it for allegedly taking part in...

NCLT Bengaluru Admits Cauvery Neeravari Nigam To Insolvency Over ₹9.36 Crore Default

The National Company Law Tribunal (NCLT) at Bengaluru on Wednesday admitted a Karnataka government undertaking Cauvery Neeravari Nigam Limited into the Corporate Insolvency Resolution Process for a default of over Rs 9.36 crores. The bench of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada, while admitting an insolvency plea filed by project contractor and operational creditor SPML Infra, said “It hardly matters that the respondent is a going concern or a Govt...

LiveLawBiz: Business Law Daily Round-Up: December 11, 2025

TAXRailway Receipts & STTG Certificates Are Valid Documents For Availing CENVAT Credit Before 27.08.2014: CESTAT Kolkata'Did Not Apply Mind': Gujarat High Court Quashes Tax Authority's Order Refusing To Condone Delay In Filing Return Due To COVID Pandemic Customs Act | 'Prohibition Includes Restriction': CESTAT Chennai Holds S.111(d) Covers Both Complete & Partial Restricted Imports ITC Cannot Be Denied For Non-Filing Of TRAN-1 Due To Transition Issues When GST Regime Came Into Effect:...

Unauthorised Residents Association Cannot Trigger CIRP If Individual Homebuyers Miss Debt Threshold: NCLT Delhi

The National Company Law Tribunal (NCLT) at New Delhi has recently held that a Residents Welfare Association that is not authorised by individual homebuyers cannot initiate a corporate insolvency process on their behalf, particularly when those homebuyers do not individually meet the minimum debt threshold under the Insolvency and Bankruptcy Code. A coram of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Atul Chaturvedi said the Code requires strict compliance with...

Objections To Constitution of CoC Cannot Defeat RP's Plea To Reverse Preferential Deals: NCLT Ahmedabad

The National Company Law Tribunal (NCLT) at Ahmedabad has held that objections to the constitution of the Committee of Creditors cannot be used to block a Resolution Professional's application under Section 43 of the Insolvency and Bankruptcy Code seeking to avoid and reverse preferential transactions.The tribunal said that avoidance proceedings are meant to protect the corporate debtor's estate and “cannot be defeated by unsubstantiated conspiracy theories,” especially when the challenge to the...

SARFAESI Sale Cannot Proceed If Sale Certificate Is Not Issued Before IBC Moratorium: Bombay High Court

The Bombay High Court on Wednesday held that a secured creditor cannot proceed with a SARFAESI sale once an interim moratorium under the Insolvency and Bankruptcy Code comes into force. It rulled that the Union Bank of India was not entitled to accept balance payments or issue a sale certificate after the personal insolvency process against the borrower had commenced. In an order passed on December 10, Justices R I Chagla and Farhan P Dubash held that “the secured creditor could not have...

Amounts Shown As 'Other Advances' In Company's Balance Sheet Not Financial Debt Under IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that amounts shown in a company's balance sheet as “other advances”, including sums advanced years earlier without any repayment demand, do not qualify as borrowings and cannot therefore give rise to a financial debt under the Insolvency and Bankruptcy Code A coram of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra delivered the ruling on December 10, 2025, while dismissing appeals filed by...

NCLT Can Order Forfeiture Of Entire Deposit If Purchaser Of Liquidation Assets Defaults In Payments : Supreme Court

The Supreme Court held that if a purchaser defaults on payment for assets acquired in liquidation under a judicially supervised sale, the entire amount already deposited may be forfeited. It further clarified that Section 74 of the Indian Contract Act, 1872 cannot be invoked to seek a refund, as no contract exists between the purchaser and the liquidator, the sale being conducted under the authority and supervision of the Adjudicating Authority. “the appellant had no justifiable claim to seek...

NCLT Mumbai Rejects RP's Plea To Recover ₹325 Crore Paid To Ericsson During RCom Insolvency

The National Company Law Tribunal (NCLT) at Mumbai has recently refused to order Swedish Equipment Manufacturer Ericsson India Private Limited to return nearly Rs 325 crore that was paid to it during the insolvency proceedings of Reliance Telecom Ltd and Reliance Communications Ltd, two Anil Ambani led companies undergoing corporate insolvency resolution. The payments were made not as part of the insolvency process but to comply with Supreme Court directions issued in contempt proceedings...

LiveLawBiz: Business Law Daily Round-Up: December 10, 2025

TAXSubway Franchisee Hiked Base Prices To Neutralise ITC Loss, Amounted To Profiteering; 18% Interest Can't Apply Retrospectively: GSTATSupplying AI-Powered IT Infra Services, Content To USA Corp By Indian Counterpart Is 'Export' Not 'Intermediary' : Gujarat High Court"₹41664 Crores ITC Fraud Via Non-Existing Entities, Fake Invoices": Centre Flags Rising GST Evasion In Rajya Sabha Separate Proceedings Under Customs Act Not Permissible Once CBLR Proceedings Are Initiated: CESTAT Kolkata Customs...

NCLT Delhi Admits Canara Bank's Insolvency Plea Against Equinox Over ₹372 Crore Guarantee Default

The National Company Law Tribunal (NCLT) at New Delhi has admitted Canara Bank's insolvency petition against Equinox India Developments Limited, earlier known as Indiabulls Real Estate Limited, for defaulting on Rs 372.35 crore for loans extended to Sinnar Thermal Power Limited for its coal-based thermal power project in Maharashtra. The tribunal rejected the company's claim that the case could not proceed because the alleged default took place during the Covid-19 suspension period under the...

Undertakings To Infuse Equity Or Retain Control Not Guarantees; NCLT Delhi Dismisses CIRP Plea Against RattanIndia

The National Company Law Tribunal at Delhi has dismissed Canara Bank's insolvency petition against RattanIndia Enterprises Limited, holding that promoter undertakings relating to equity infusion and management control do not constitute a corporate guarantee or a financial debt under the Insolvency and Bankruptcy Code. A bench of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Atul Chaturvedi delivered the order on December 9 while considering the bank's attempt to...