Section 101 IBC Moratorium Temporary, Creditors Free To Recover After Expiry: Delhi High Court

The Delhi High Court on 13 April held that the moratorium under Section 101 of the Insolvency and Bankruptcy Code, 2016 (IBC) in personal insolvency is temporary and time-bound, and once it ceases, creditors regain the right to pursue recovery and execution proceedings. Justice Harish Vaidyanathan Shankar made this observation while allowing continuation of execution proceedings in Vistra ITCL (India) Ltd. v. Pranav Ansal & Anr., where the decree holder sought to recover an arbitral award...

Failure To Deposit EPF Dues On Time Is A Penal Offence, Later Payment Irrelevant: Orissa High Court

The Orissa High Court has held that subsequent payment of employees' provident fund dues does not extinguish criminal liability for prior default, and such payment cannot be a ground to quash criminal proceedings. A Single-Judge Bench of Dr Justice Sanjeeb K Panigrahi, by order dated 13 March, refused to quash criminal proceedings against the former director of Cosboard Industries Pvt. Ltd. He held: “The offence committed by the petitioner is grave endangering the Right to pension and...

NCLT Rejects CIRP Plea Against Electrotherm Over Pre-Existing Dispute

The National Company Law Tribunal (NCLT) at Ahmedabad has rejected a CIRP plea against Electrotherm (India) Ltd. over an operational debt of about Rs. 5.70 crore, finding that the claim was tied up in disputes raised well before the insolvency notice.The order was passed by the bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma.A.T. Trade Overseas Pvt. Ltd., which moved the tribunal on July 7, 2025, said the dues arose from supplies of coal, iron ore pellets and billets...

SARFAESI Enforcement Cannot Be Invoked After Debt Is Extinguished Under IBC: Orissa High Court

The Orissa High Court has held that Section 31 of the SARFAESI Act cannot operate as an independent source of enforcement power once a resolution plan under the Insolvency and Bankruptcy Code extinguishes the underlying debt.Section 31 excludes certain secured assets and transactions from the Act's enforcement mechanism, meaning SARFAESI recovery powers do not apply to them.A Single Judge Bench of Justice Sanjeeb K. Panigrahi allowed a writ petition by Sree Metaliks Limited, Keonjhar against the...

Debt Denominated In Foreign Currency Must Be Converted At Invoice Date Rate For IBC Threshold: NCLT Ahmedabad

The Ahmedabad bench of the National Company Law Tribunal has recently held that where an operational debt is denominated in foreign currency, the exchange rate on the date of the invoice must be used to determine whether the Rs. 1 crore threshold under the Insolvency and Bankruptcy Code is met. On applying this, the Tribunal found that the amount fell below Rs. 1 crore and dismissed the petition as not maintainable. The bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma...

CoC's Commercial Wisdom Cannot Override IBC Mandates In Early Dissolution Plea: NCLT Mumbai

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 2 April, held that the Committee of Creditors' (CoC) commercial wisdom cannot override mandatory requirements under the Insolvency and Bankruptcy Code, 2016, especially when key steps under the CIRP process remain incomplete. A Bench comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Sanjiv Dutt emphasised that early dissolution cannot be ordered merely on the CoC's recommendation or on cost considerations,...

Calcutta High Court Flags Prima Facie Fraud In CIRP Against Alchemist Group, Seeks Reports From CBI, ED And SEBI

The Calcutta High Court recently directed the CBI, Enforcement Directorate (ED), and SEBI, which are already examining the affairs of the Alchemist Group amid allegations of running ponzi-style schemes, to file fresh status reports to examine whether the corporate insolvency process (CIRP) was fraudulently initiated. The court also asked them to look into the movement of funds abroad, possible round-tripping through foreign entities, and protection of investor assets. It noted a prima facie...

Legal Representatives Can Maintain Oppression Petitions Without Membership Registration: NCLT Mumbai

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 7 April 2026 held that legal representatives of a deceased shareholder can pursue proceedings for oppression and mismanagement under Sections 241 and 242 of the Companies Act, 2013, even if they are not registered as members of the company. A Bench of Judicial Member Nilesh Sharma and Technical Member Charanjeet Singh Gulati held that legal representatives may step into the shoes of the deceased shareholder for continuing such...

LiveLawBiz IBC Weekly Digest: April 13 - April 18

SUPREME COURT Appeal Filed By Suspended Director In Corporate Debtor's Name Not Maintainable After IRP Appointment: Supreme CourtCase Title : Nitendra Kumar Tomer, Suspended Director, Ambro Asia Private Limited versus Unox S.P.A. and another Case Number : Civil Appeal No. 3607 of 2026 CITATION : 2026 LLBiz SC 150The Supreme Court has dismissed an appeal filed by a suspended director of Ambro Asia Pvt. Ltd., holding that once an Interim Resolution Professional...

Freezing Bank Accounts Of Corporate Debtor During Insolvency Violates Moratorium: NCLT Ahmedabad

The National Company Law Tribunal (NCLT) at Ahmedabad has held that freezing a company's bank accounts during insolvency violates the moratorium under the Insolvency and Bankruptcy Code, directing IDBI Bank to lift all liens and restore operations in the accounts of Wind World (India) Ltd. Setting out the effect of such action, the Ahmedabad bench of the tribunal, comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma, said, “Due to lien and subsequent freezing of the...

NCLAT Upholds Rejection Of CIRP Plea Against S Square Cargo, Excludes Invoice-Based Interest From Debt

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently upheld the dismissal of a Section 9 CIRP application filed by Shivani Enterprises against S Square Cargo Movers Pvt. Ltd. It held that the interest component reflected in the invoices was not mutually agreed between the parties and could not be included in the operational debt. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held: "When the payment of interest is not found to have been...

NCLAT Refuses To Halt Carnival Techno Park CIRP, Says Fraud Plea Cannot Reopen Finding Of Default

The National Company Law Appellate Tribunal (NCLAT) has refused to halt insolvency proceedings against Carnival Techno Park Pvt. Ltd., holding that Canara Bank cannot challenge the existence of debt and default through a plea alleging fraudulent initiation of the process.A Bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra said the bank failed to show any fraud in the initiation of the process. Emphasising the scope of the provision, the tribunal observed: “Law is...