IBC
Calcutta High Court Sets Aside Order Treating WBIDC As Unsecured Creditor In Eastern Explosives Liquidation
The Calcutta High Court has recently set aside an order of a single judge of the court's original side, which upheld the official liquidator's decision treating the West Bengal Industrial Development Corporation Ltd. (WBIDC) as an unsecured creditor in the liquidation of Eastern Explosives and Chemicals Ltd.The Court held that once charge documents were submitted prior to adjudication of claims, the official liquidator was bound to consider WBIDC as a secured creditor.“A creditor, of a company...
NCLT Mumbai Lifts Interim Injunction Over HDIL Land, Holds Relief Cannot Survive Without Jurisdiction
On 9 February, the National Company Law Tribunal (NCLT), Mumbai, lifted an interim injunction that had blocked third-party rights over land linked to Housing Development and Infrastructure Ltd (HDIL), ruling that the Tribunal cannot extend temporary protection if it lacks jurisdiction to grant final relief. A Bench comprising Judicial Member Sushil Mahadeorao Kochey heard the matter following a reference under Section 419(5) of the Companies Act, arising from a split decision in an earlier...
NCLT Ahmedabad Slaps ₹1 Lakh Costs On Sintex-BAPL Creditor, Upholds Finality Of Resolution Plan
On 9 February, the National Company Law Tribunal Ahmedabad, (NCLT) dismissed an operational creditor's request for full payment after the resolution plan for Sintex-BAPL Limited, a plastic products maker, was approved. A Bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma, imposed exemplary costs of Rs. 1,00,000 on the applicant, Ganesh Electricals, for pursuing litigation against settled law, holding that a concluded Corporate Insolvency Resolution Process...
NABARD Refinance Receivables Are Third-Party Assets, Not Part Of Corporate Debtor's Insolvency Estate: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently held that receivables from refinance transactions extended by National Bank for Agriculture and Rural Development (NABARD) are third-party assets held in trust and cannot form part of the borrower's insolvency estate.A coram of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held that NABARD's statutory rights under Section 29 of the NABARD Act are not waived merely because it filed its claim in...
Supreme Court Upholds NCLAT Order Entrusting NBCC To Complete Stalled Supertech Housing Projects
The Supreme Court recently dismissed a batch of appeals challenging directions issued by the National Company Law Appellate Tribunal (NCLAT) to involve NBCC (India) Ltd for completion of stalled housing projects of Supertech Ltd, declining to interfere with the appellate tribunal's approach. A bench of Chief Justice Surya Kant and Justice Joymalya Bagchi held that the NCLAT's decision in evolving a mechanism to protect the interests of homebuyers and ensure completion of long-delayed projects...
Inconsistent Default Dates In SARFAESI And IBC Demand Notices To Guarantor Not Fatal To Insolvency Plea: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has recently observed that default under the Insolvency and Bankruptcy Code is a factual state of non-payment and minor variations in the dates of default in notices issued under SARFAESI and the Insolvency and Bankruptcy Code to a personal guarantor cannot defeat insolvency proceedings when the debt and failure to pay are otherwise clearly established. A coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar was...
Inter-Creditor Agreement For Coordinated Action Does Not Bar Insolvency Plea By Single Lender: NCLT Hyderabad
The National Company Law Tribunal (NCLT) at Hyderabad has recently observed that an Inter-Creditor Agreement meant to ensure coordinated action among consortium lenders does not prevent an individual financial creditor from initiating insolvency proceedings, even as it declined to admit the petition on the facts of the present case.A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri observed: “In view of the overriding effect of the IBC, the Inter-Creditor Agreement that...
Guarantor Liability Co-Extensive With Borrower, Can't Be Made Contingent By Balance Sheet Entries: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently observed that a corporate guarantor cannot avoid insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code by describing its guarantee obligation as a “contingent liability” in its balance sheets. The tribunal observed that in law, a guarantor's liability is co-extensive with that of the principal borrower, and that what matters for limitation is acknowledgement of liability, not the accounting...
CIRP Can Be Initiated Only On Default, Not On Apprehension Of Inability To Pay: NCLT Ahmedabad
A corporate insolvency resolution process can be initiated only upon the occurrence of default and not on a mere apprehension of inability to pay debts, the National Company Law Tribunal, Ahmedabad Bench, has held while rejecting a voluntary insolvency application filed by a textile company under Section 10 of the Insolvency and Bankruptcy Code. The matter was heard by a coram comprising Judicial Member Chitra Hankare and Technical Member Dr. Velamur G. Venkata Chalapathy. Rejecting the plea,...
Liquidator Can Defend Pending Civil Suits Filed Before Liquidation Under IBC: Bombay High Court
The Bombay High Court has recently held that a liquidator can be impleaded and can defend a civil suit instituted prior to the commencement of liquidation proceedings, observing that the Insolvency and Bankruptcy Code, 2016 does not bar the continuation of such pending suits. “Since Liquidator can sue, I do not see any reason why Liquidator cannot defend an action on behalf of the corporate debtor” Justice Sandeep V. Marne observed.The court clarified that Section 33(5) of the IBC bars...
LiveLawBiz IBC Weekly Digest: February 2 To February 7, 2026
SUPREME COURTSingle Insolvency Petition Against Intrinsically Linked Real Estate Companies Maintainable: Supreme CourtCase Title : Satinder Singh Bhasin v. Col Gautam Mullick and Ors Case Number : Civil Appeal No.13628 of 2025 CITATION : 2026 LLBiz SC 37The Supreme Court on Monday upheld insolvency proceedings against two closely linked real estate companies, holding that a single insolvency petition can be maintained against multiple corporate entities under the...
NCLT Mumbai Admits Personal Insolvency Plea Against Frost International's Guarantor Over ₹671.56 Crore Default
The National Company Law Tribunal (NCLT) at Mumbai has admitted personal insolvency resolution proceedings against Poonam Anoop Wadhera, the personal guarantor of Frost International Limited, in connection with a default of Rs 671.56 crore A coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar admitted the petition filed by Canara Bank Limited under Section 95 of the Insolvency and Bankruptcy Code. “Considering the above facts and circumstances and upon perusal...