IBC
NCLT Chennai Admits Gangotri Textiles' CIRP Plea, Holds Pending DRT Proceedings No Bar
The National Company Law Tribunal (NCLT) at Chennai on 7 August admitted Gangotri Textiles Limited's application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC), thereby initiating Corporate Insolvency Resolution Process (CIRP) against it. A Bench comprising Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy observed: “….this Tribunal is satisfied that the Corporate Debtor has established the existence of financial debt and default and that the...
NCLT Indore Holds Mere Shareholding Overlap Can't Establish Collusion, Admits Plea Against Organic World
The Indore Bench of the National Company Law Tribunal (NCLT) on 3 August admitted a Section 7 application under the Insolvency and Bankruptcy Code, 2016 (IBC) against Organic World Private Limited over a default of approximately Rs. 2.24 crore. A Bench comprising Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta admitted the application filed by Tanay Securities & Services Private Limited, holding that mere overlap in shareholding, without anything more, could not...
'Other Creditor' Status Does Not Confer Unrestricted Right To Challenge Resolution Plan: NCLT Chandigarh
The Chandigarh Bench of the National Company Law Tribunal (NCLT) has held that merely being classified as an “Other Creditor” does not confer on such creditor an unrestricted right to challenge a resolution plan, particularly where the challenge does not arise from the creditor's own admitted claim or any legally enforceable right under the Insolvency and Bankruptcy Code (IBC). Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal made the observation while dismissing an...
LiveLawBiz IBC Weekly Digest: August 17 - August 22, 2026
SUPREME COURT 'Judicial Discipline' Requires HC To Refrain From Entertaining Writ Against Appealable NCLT Order: Supreme CourtCase Title : DAVIS KOOTTALA VARKEY & ORS. VERSUS SAMSON T. GEORGE & ORS. Case Number : SPECIAL LEAVE PETITION No.18523/2026 CITATION : 2026 LLBiz SC 278The Supreme Court has set aside a Kerala High Court order that entertained a writ petition challenging an NCLT order passed during liquidation proceedings. Supreme Court To Examine If Winding-Up Petitions...
NCLAT New Delhi Upholds Jet Airways Aircraft Sale, Dismisses Ex-Employees' Challenge
On 21 August, the New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) dismissed an appeal filed by former employees of Jet Airways (India) Limited challenging the sale of the airline's aircraft assets during liquidation. Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Arun Baroka held that the former employees, whose dues would be paid under the waterfall mechanism under Section 53 of the Insolvency and Bankruptcy Code (IBC), had no basis to challenge the...
NCLT Indore Dismisses Union Bank's Plea To Include Four Belated EOIs In JSM Devcons CIRP
The Indore National Company Law Tribunal (NCLT) dismissed Union Bank of India's plea seeking inclusion of four belated EOIs in the Corporate Insolvency Resolution Process (CIRP) of JSM Devcons India Pvt. Ltd. A Bench comprising Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta held that the Committee of Creditors (CoC), having rejected belated Expressions of Interest (EOIs) by majority vote, acted within its commercial wisdom, which is paramount under the Insolvency...
NCLT Chandigarh Sets Aside Canara Bank's SARFAESI Sale Of Mohan Rail Components' Assets
The Chandigarh Bench of the National Company Law Tribunal (NCLT) has allowed applications filed by Jaspal Singh and Narinder Kaur, suspended directors and personal guarantors of Mohan Rail Components, and set aside the sale certificate issued by Canara Bank in respect of the company's core assets on 1 January 2026. A Bench comprising Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh held that recovery proceedings under the Securitisation and Reconstruction of...
NCLT Delhi Permits Withdrawal Of Aviator ML 29641 Insolvency Plea Against SpiceJet, Imposes ₹15 Lakh Costs
The National Company Law Tribunal (NCLT), New Delhi, on 19 August allowed Aviator ML 29641 to withdraw its insolvency petition against SpiceJet Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016, but imposed costs of Rs. 15 lakh on both parties for seeking withdrawal after the matter had been reserved for orders. A Bench of Judicial Member Mahendra Khandelwal and Technical Member Anu Jagmohan Singh allowed the withdrawal under Rule 8 of the Insolvency and Bankruptcy...
NCLAT New Delhi Holds Reasonable Time Must Be Granted After PIRP Plan Approval, Sets Aside NCLT Order
The New Delhi National Company Law Appellate Tribunal (NCLAT) on 19 August held that where a repayment plan submitted by personal guarantors has been approved in principle by the sole financial creditor, reasonable time must be granted to complete the Personal Insolvency Resolution Process (PIRP), as denying such time would defeat the purpose of the process. A Bench comprising Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha set aside the Ahmedabad Bench of the...
Bombay High Court Upholds IBBI's Power To Levy 0.25% Fee On Successful Resolution Plans
The Bombay High Court on 19 August upheld the validity of Regulation 31A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, holding that the provision enabling the IBBI to levy a regulatory fee on successful resolution plans is neither ultra vires the Insolvency and Bankruptcy Code, 2016 nor violative of Article 14 of the Constitution. A Bench of Justices Manish Pitale and Shreeram V Shirsat dismissed four petitions...
IBC Amendment Excluding Personal Guarantors From Interim Moratorium Is Retroactive: Delhi High Court
The Delhi High Court on 19 August held that the amendment inserting Section 96(4) into the Insolvency and Bankruptcy Code, 2016 (IBC) is retroactive and applies to pending insolvency applications, even though the Amending Act does not expressly say so. Justice Tushar Rao Gedela held that the amendment applied to the pending Section 95 IBC application filed by IDBI Trusteeship Services Ltd. against Manish Jain, a personal guarantor to the corporate debtor, and consequently vacated the interim...
RERA Recovery Proceedings Not Automatically Illegal During CIRP: Karnataka High Court
The Karnataka High Court on 11 August held that the mere pendency of the Corporate Insolvency Resolution Process (CIRP) against a developer does not automatically render recovery proceedings initiated under another statute illegal. Justice Suraj Govindaraj dismissed the writ petition filed by M Govind Reddy and M Yashodamma challenging a public auction notice issued to enforce a Recovery Certificate under the Real Estate (Regulation and Development) Act, 2016 (RERA Act). Further, questions...