IBC
Proponent Choosing To Withdraw After Non‑Acceptance Of Scheme In Liquidation Cannot Be Forced To Pay EMD: NCLAT Chennai
The National Company Law Appellate Tribunal (NCLAT) at Chennai has ruled that a scheme proponent cannot be compelled to forfeit its Earnest Money Deposit (EMD) guarantee after choosing to withdraw once its scheme was not accepted in the liquidation process.The bench of Judicial Member Justice N Seshasayee and Technical Member Jatindranath Swain, set aside the order of the Chennai bench of the National Company Law Tribunal (NCLT) that directed deposit of Rs 2 crore into the liquidation estate....
Homebuyers Seeking Refund Through Arbitration Cannot Claim Financial Creditor Status: NCLAT New Delhi
The New Delhi National Company Law Appellate Tribunal (NCLAT) on 19 August held that homebuyers who invoke arbitration to seek refund of their investment cannot simultaneously claim the status of financial creditors under the Insolvency and Bankruptcy Code (IBC), holding that their conduct amounts to giving up their status as allottees claiming financial debt. A Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Indevar Pandey dismissed connected appeals...
Insolvency Does Not Bar Liquidator From Recovering Chit Company Dues: Madras High Court
The Madras High Court on 10 August held that the pendency of insolvency proceedings against a chit company does not prevent its Liquidator from taking steps under the Chit Funds Act, 1982 to recover amounts due to the company. Justice D. Bharatha Chakravarthy directed the Economic Offences Wing (EOW) to furnish the Liquidator of Thiripura Chits Private Limited with a complete set of investigation materials so that he could initiate recovery proceedings under the Chit Funds Act. The Bench...
NCLT Mumbai Admits ₹11.94 Cr Insolvency Plea Against Reliance Entertainment, Says Security Deposit Is Debt
The Mumbai National Company Law Tribunal (NCLT) on 19 August held that an amount advanced under a Security Deposit Agreement can constitute a financial debt under Section 5(8) of the Insolvency and Bankruptcy Code, 2016 (IBC). A Bench comprising Judicial Member Nilesh Sharma and Technical Member Sameer Kakar admitted Pen India Private Ltd's insolvency plea against Reliance Entertainment Studios Pvt Ltd over a default of Rs. 11.94 crore. It observed: “In view of the foregoing discussion, we are...
Supreme Court Stays NCLAT Order Holding NCLT Can Adjudicate Easement Dispute Linked To Liquidation Assets, Directs Mediation
The Supreme Court on Thursday stayed the operation of the National Company Law Appellate Tribunal's (NCLAT) July 29, 2026.The NCLAT held that the NCLT can adjudicate a dispute concerning an easementary right of way under the Insolvency and Bankruptcy Code where the dispute has a direct nexus with the insolvency or liquidation proceedings and affects value maximisation of the corporate debtor's assets.A 2:1 Bench of Technical Members Arun Baroka and Indevar Pandey, constituting the majority,...
Personal Insolvency Moratorium Does Not Stay Cheque-Bounce Proceedings Against Directors: Bombay High Court
The Bombay High Court has held that personal insolvency proceedings initiated by a company director do not require cheque-bounce proceedings against the director to be stayed where the dishonoured cheque was issued towards the company's debt. Justice N. J. Jamadar observed, “To put it in other words, the debt referred to in Section 96 must be a debt of the person by or against whom the insolvency resolution process is initiated under Sections 94 or 95, as the case may be.”The ruling concerned...
NCLAT Restores Insolvency Petition Dismissed After Counsel Missed Hearing
The National Company Law Appellate Tribunal (NCLAT), Delhi, has held that an insolvency petition dismissed for want of prosecution can be sought to be restored through a restoration application accompanied by a plea for condonation of delay. The tribunal ruled that a litigant should not be made to suffer when the non-appearance was due to a bona fide mistake by counsel.The bench comprised Judicial Member Justice Sharad Kumar Sharma and Technical Member Indevar Pandey.“Rule 48(2) of the NCLT...
Mere Notice Seeking Reply In SFIO Investigation Application Not Appealable: NCLAT New Delhi
On 18 August, the New Delhi National Company Law Appellate Tribunal (NCLAT) held that an order merely directing parties to issue notice and file replies does not cause immediate prejudice and cannot form the subject matter of an appeal. A Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Indevar Pandey dismissed CFM Asset Reconstruction Pvt. Ltd.'s appeal against an interim order of the Delhi Bench of the National Company Law Tribunal (NCLT). The Tribunal...
NCLAT New Delhi Dismisses Chemstar Director's Appeal Against CIRP Admission Over ₹11.87 Crore Claim
On 18 August, the New Delhi National Company Law Appellate Tribunal (NCLAT) held that the National Company Law Tribunal (NCLT) need not determine the exact quantum of dues while admitting a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), once debt and default are established and the default exceeds the statutory threshold of Rs. 1 crore. A Bench comprising Officiating Chairperson Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra made the observation while...
NCLT Guwahati Admits IL&FS Insolvency Plea, Holds Pledged Shares Dispute No Defence To Default
The Guwahati National Company Law Tribunal (NCLT) has held that a dispute over the invocation and appropriation of pledged securities cannot defeat an insolvency petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, once the existence of financial debt and default is established. A Bench of Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh made the observation while admitting an insolvency petition filed by IL&FS Financial Services Limited against...
NCLAT Dismisses Byju Raveendran's Appeal Against Glas Trust's Voting Share In BYJU'S' Committee of Creditors
The National Company Law Appellate Tribunal (NCLAT), Chennai, on Monday dismissed an appeal filed by Byju Raveendran, suspended director and promoter of Think & Learn Pvt. Ltd., challenging Glas Trust's majority voting share in the company's Committee of Creditors (CoC).The NCLT order had merely listed for hearing Byju's application challenging Glas Trust's majority voting share in the Committee of Creditors (CoC) of Think & Learn Pvt. Ltd.A bench of Judicial Member Justice N. Seshasayee...
Supreme Court To Examine If Winding-Up Petitions Transferred From HC To NCLT Must Meet IBC Threshold
The Supreme Court on Wednesday agreed to examine whether a winding-up petition filed before a High Court can be subjected to the ₹1 crore minimum default threshold under the Insolvency and Bankruptcy Code after being transferred to the National Company Law Tribunal. The case concerns winding-up proceedings instituted before the ₹1 crore threshold was introduced under the Code. The court will consider whether the threshold applicable when the proceedings were originally filed should continue...