NCLAT Upholds Order Directing Golden Tobacco Directors To Pay ₹6.92 Lakh Over Non-Deposit Of Salary Deductions

The National Company Law Appellate Tribunal (NCLAT) at Delhi has upheld the liability of former directors of Golden Tobacco Ltd. for failing to deposit employee salary deductions with a credit society. It held that diversion of such funds, even without personal gain, may constitute fraudulent conduct under Section 66 of the Insolvency and Bankruptcy Code. The appellate tribunal dismissed a challenge to an order of the National Company Law Tribunal, Ahmedabad. That order had directed the...

Supreme Court Pulls Up RP, CoC Of Xalta Food For Defaulting On ₹50.55 Lakh Monthly Compensatory Rent

The Supreme Court on Thursday came down heavily on the Resolution Professional (RP) and Committee of Creditors (CoC) of Xalta Food and Beverages Pvt. Ltd. for failing to honour their statement on oath and resolution to pay monthly compensatory rent of about ₹50.55 lakh to the lessor, Prerna Singh, noting that despite such commitment, only partial payment of ₹33.83 lakh was made for April 2026. A Bench of Justices J.B. Pardiwala and K.V. Viswanathan reprimanded the RP and the CoC for failing to...

NCLAT Sets Aside NCLT Delhi Order Sending Adel Landmarks Plan Back to CoC, Flags Unwarranted Interference

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently set aside an order of the National Company Law Tribunal that had sent the resolution plan of real estate developers, Adel Landmarks Ltd., back to the Committee of Creditors for reconsideration. The appellate tribunal held that the direction amounted to an "unwarranted" interference with the commercial wisdom of the creditors, even though the plan had already been approved with an 82.66% voting share after multiple rounds...

NCLAT Upholds Rejection Of CIRP Plea Against National Textile Corporation Over Pre-Existing Wage Dispute

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently upheld the rejection of an insolvency plea filed by Rashtriya Mill Mazdoor Sangh against National Textile Corporation Ltd., finding that disputes over wage dues were already pending, indicating a pre-existing dispute between the parties. A Bench of Justice Ashok Bhushan and Technical Member Barun Mitra observed, “The scope of Section 9 of IBC cannot be bent to use it as an instrument for debt recovery as the focus of IBC...

Supreme Court Flags Delay In Resolution Plan Approvals By NCLT, Seeks Data From Principal Bench, IBBI

Flagging delays in approval of resolution plans, the Supreme Court on Thursday sought details from the National Company Law Tribunal's Principal Bench in New Delhi and nationwide data from the Insolvency and Bankruptcy Board of India (IBBI).A Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan directed the NCLT's Principal Bench to provide the following details: “(i) How many applications for approval of resolution plans are pending? (ii) For how long are such applications pending? ...

NCLT Bengaluru Admits CIRP Against Vivimed Labs Over ₹2.78 Crore Operational Debt

The National Company Law Tribunal, Bengaluru, has admitted CIRP against Vivimed Labs Ltd., a listed pharma company, for default of operational debt of Rs. 2.78 crore (inclusive of interest) in a petition filed by Blue Cube Germany Assets GmbH & Co KG. The bench, comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada, made it clear that a company cannot avoid insolvency proceedings simply because a civil court has already passed a decree or because...

Dissenting Financial Creditor Cannot Interfere Between SRA and RP After Plan Approval: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi has held that a dissenting financial creditor cannot interfere in issues between the Successful Resolution Applicant (SRA) and the Resolution Professional after approval of a resolution plan. The tribunal dismissed an impleadment application filed by Kerala Financial Corporation in proceedings relating to implementation of the approved plan for Samson and Sons Builders and Developers Pvt. Ltd. Clarifying the limited rights of dissenting...

NCLT Hyderabad Sets Aside Rejection of BEML's ₹2.57 Crore Claim in BEML Midwest CIRP, Orders Reverification

The National Company Law Tribunal (NCLT), Hyderabad, has recently set aside the rejection of a Rs.2.57 crore claim filed by BEML Limited against BEML Midwest Limited, finding that the liquidator's decision was not based on a complete and proper examination of the material on record and that the claim needed verification. The bench of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri said that incomplete documentation by itself could not end the matter and that the claim had to be...

NCLT Mumbai Admits APRN Enterprises Insolvency Case, Emphasises Courts Cannot Rewrite Contracts

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 6 April held that courts and tribunals cannot rewrite contracts and must enforce the bargain as agreed between parties, unless the agreement is vitiated by fraud, coercion, or illegality. A Bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar admitted an insolvency application filed by APRN Enterprises Pvt Ltd against Marveledge Realtors Pvt Ltd. It observed: “Courts cannot rewrite contracts for the parties and...

Auction Of Corporate Debtor's Assets Under Depositors Act During IBC Moratorium Void: NCLT Indore

On 8 April, the Indore Bench of the National Company Law Tribunal (NCLT) set aside the auction of Suvidha Farming Ltd.'s assets conducted under the Chhattisgarh Protection of Interest of Depositors Act, 2005, holding that the sale was void as it took place during the moratorium period under the Insolvency and Bankruptcy Code (IBC), 2016. A Bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta directed restoration of possession of the property to the Liquidator....

NCLT Kochi Approves Associated Alcohols' Resolution Plan For SDF Industries Revival

The National Company Law Tribunal at Kochi on Thursday approved a resolution plan submitted by Associated Alcohols & Breweries Limited for the revival of SDF Industries Limited.A coram of Judicial Member Vinay Goel allowed the application filed by the Resolution Professional of SDF Industries, noting that the plan had been approved by the Committee of Creditors with a 100% voting share and complied with all statutory requirements.The Corporate Insolvency Resolution Process against SDF...

Supreme Court Dismisses Paharpur Plea Against Sinnar Thermal Power, Bars Arbitral Award Execution Post CIRP

The Supreme Court on Friday dismissed the special leave petition filed by Paharpur Cooling Towers Ltd. against Sinnar Thermal Power Ltd., effectively affirming the Delhi High Court's order dated February 11, which held that once a resolution plan is approved under the Insolvency and Bankruptcy Code (IBC), claims cannot be pursued through parallel arbitral award execution proceedings.A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe, after hearing the parties, dismissed the...