IBC
Failure To Issue Notice Is “Larger Than An Ordinary Procedural Breach”: NCLAT Sets Aside Ex Parte NCLT Order
An ex parte order passed without issuing notice cannot be sustained, the National Company Law Appellate Tribunal (NCLAT) has held, setting aside a Mumbai NCLT order that had allowed a preferential transaction application in the liquidation of Euro Ceramics Ltd. A bench of Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka said that omission to direct notice is larger than some procedural breach.“It is only when notice is directed on any application or petition, the tribunal...
Former District Judge Deep Chandra Joshi To Serve As Acting President Of NCLT
The Ministry of Corporate Affairs on Friday has notified that Shri Deep Chandra Joshi, Former District Judge, has been appointed as the Acting President of the National Company Law Tribunal with effect from 14 February 2026. He is currently the senior-most member of the NCLT.As per the notification, this follows after the tenure of Justice (Retired) Ramalingam Sudhakar as President of NCLT on 13 February 2026. Invoking Section 415 (1) of the Companies Act, 2013, the Ministry clarified that Deep...
'Not Unknown to Law': Telangana High Court Upholds Reserve Price Reduction After Repeated Failed SARFAESI Auctions
The Telangana High Court has recently upheld the phased reduction of the reserve price fixed for the auction sale of a mortgaged immovable property under the SARFAESI Act and dismissed writ petitions filed by the borrower. A Division Bench of Justice Moushumi Bhattacharya and Justice Gadi Praveen Kumar affirmed the order of the Debts Recovery Appellate Tribunal and observed that “the process of marking down of the Reserve Price is not unknown to law.” The Bench examined Rule 8(5) of the...
NCLT Guwahati Quashes Income Tax Reassessment Against Maxim Infrastructure For Pre-CIRP Dues
The National Company Law Tribunal (NCLT), Guwahati Bench, has ruled that the Income Tax Department cannot reopen tax assessments for dues it failed to claim during a company's insolvency process.A coram comprising Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh on January 15, allowed an application filed by Maxim Infrastructure & Real Estate Pvt. Ltd. It quashed reassessment proceedings for Assessment Year 2018–19.“Since the Respondent failed to lodge its claim...
Mere Accounting Treatment Of Spectrum As 'Asset' Does Not Bring It Within IBC Framework: Supreme Court
The Supreme Court on Friday held that mere treatment of telecom spectrum as an “intangible asset” in the financial statements of telecom service providers (TSPs) does not bring it within the sweep of the Insolvency and Bankruptcy Code (IBC), observing that spectrum remains a natural resource held by the Union of India in public trust. “Merely because spectrum can be treated as an 'asset' on the basis of certain attributes, such as possession and usage, lease and assignment, claim and liability...
NCLT Need Not Separately Examine RP's Opinion On PUFE Transactions While Avoidance Pleas Are Pending: NCLAT
The National Company Law Appellate Tribunal (NCLAT) has held that the issue of formation and determination of opinion by a resolution professional in respect of preferential, undervalued, extortionate, and fraudulent (PUFE) transactions cannot be examined at the threshold level on a stand-alone basis while the avoidance applications are pending consideration before the adjudicating authority. A bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra...
NCLAT Says Timing Of Stamp Paper Purchase And Loan Agreement Execution Not Ground To Reject Insolvency Plea
Holding that the purchase of stamp paper and subsequent execution of a loan agreement cannot be any relevant consideration for rejecting a CIRP plea, the National Company Law Appellate Tribunal at Delhi has set aside the dismissal of an insolvency plea. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “The observation of the Adjudicating Authority that the stamp paper was purchased on 12.02.2025 and agreement was executed on 01.03.2025 can not be any...
NCLAT Holds Debt Not Time Barred In Rajeshwari Cotspin CIRP, Says Threshold Cannot Be Confined to Last Invoice
Holding that the claim was not time barred and that all the invoices had to be considered for determining the statutory threshold, the National Company Law Appellate Tribunal dismissed an appeal against the admission of insolvency proceedings against Rajeshwari Cotspin Ltd. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “Thus, threshold has to be determined on basis of the invoices taking all the invoices and cannot confine to only last invoice of Rs. 19...
Bank's Classification Of Debt As NPA For Balance Sheet Purposes Not Decisive For Limitation Under IBC: Supreme Court
The Supreme Court on Thursday observed that the manner in which a bank classifies a loan as a non-performing asset for accounting or provisioning purposes does not determine the starting point of limitation under the Insolvency and Bankruptcy Code, particularly where the debt has been restructured and acknowledged in fresh agreements. “In our view, how a bank classifies its debt for managing its balance sheet is not a factor determining the starting point of limitation more so, when the debt...
No Overlapping Secured Interest Between Homebuyers And Financier Where Builder Is Liable: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai, recently held that in a real estate insolvency, homebuyers' and a housing finance company's secured interests cannot overlap. Where the builder has undertaken repayment obligations, the financier's interest must be protected. A Bench comprising Judicial Member Ashish Kalia and Technical Member Sanjiv Dutt, on 29 January allowed an application filed by GIC Housing Finance Ltd. in the corporate insolvency resolution process (CIRP) of Karrm...
NCLT Allahabad Reserves Verdict On Vedanta Plea Against CoC Approval Of Adani's JAL Plan
The National Company Law Tribunal at Allahabad has reserved its orders on Vedanta Limited's challenge to the Committee of Creditors' approval of Adani Enterprises' resolution plan for insolvent Jaiprakash Associates Limited. Vedanta was one of the resolution applicants in the process. The matter was heard by Judicial Member Praveen Gupta and Technical Member Ashish Verma, who reserved orders after hearing Vedanta and the Resolution Professional. Vedanta has sought a direction to send the...
Interest Mentioned In Invoice Cannot Be Counted For IBC Threshold Without Binding Agreement: NCLT Kochi
The National Company Law Tribunal (NCLT) at Kochi has dismissed an insolvency petition after holding that an operational creditor cannot rely solely on an interest clause printed on invoices to inflate the claim amount and cross the statutory Rs. 1 crore threshold under the Insolvency and Bankruptcy Code, in the absence of any binding agreement for payment of interest. Judicial Member Vinay Goel rejected a Section 9 plea filed by Savino Ceramic Private Limited against Fontana Impex Private...