SARFAESI Proceedings, ED Provisional Attachment Do Not Bar CIRP: NCLT Ahmedabad

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has held that ongoing SARFAESI proceedings and provisional attachment of a secured property by the Directorate of Enforcement do not bar initiation of the Corporate Insolvency Resolution Process (CIRP) against Capbridge Venture LLP.“The contention that proceedings under the SARFAESI Act, 2002 bar the present Petition is untenable. The remedies available under the SARFAESI Act and the Insolvency and Bankruptcy Code operate in...

Bank's Internal Policies Cannot Override IBC Or RP Appointment Order: NCLT Guwahati

The Guwahati National Company Law Tribunal (NCLT) on 24 July held that a bank's internal policies cannot override the statutory scheme of the Insolvency and Bankruptcy Code, 2016 (IBC) or the Tribunal's order appointing a Resolution Professional (RP). A Bench comprising Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh made the observation while dismissing an application filed by Indian Bank seeking the replacement of Resolution Professional Sudha Sarma in the...

'Judicial Discipline' Requires HC To Refrain From Entertaining Writ Against Appealable NCLT Order: Supreme Court

The Supreme Court has set aside a Kerala High Court order that entertained a writ petition challenging an NCLT order passed during liquidation proceedings. The court held that judicial discipline requires the High Court to refrain from entertaining such a challenge when the aggrieved person can pursue an appeal under the Insolvency and Bankruptcy Code (IBC).A Bench of Justices Manoj Misra and Vijay Bishnoi observed that Section 61 of the IBC gives a broad right of appeal to any “person...

Suspended Director Status Alone Cannot Justify Harsher Standard For His Resolution Plan: NCLT Kochi

The National Company Law Tribunal (NCLT), Kochi, has recently ruled that a Resolution Plan cannot be subjected to a more onerous standard merely because it has been submitted by a suspended director.A bench of Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy observed that the plan must instead be assessed on whether the applicant is otherwise eligible under the Insolvency and Bankruptcy Code of 2016.“The mere fact that the Applicant is the Suspended Director shall not, by...

Supreme Court Issues Notice On NBCC Plea Seeking RERA Exemption For 16 Supertech Projects

The Supreme Court on Monday issued notice on National Buildings Construction Corporation (India) Ltd's plea against the National Company Law Appellate Tribunal's refusal to exempt it from statutory requirements under the Real Estate (Regulation and Development) Act, 2016 (RERA). The exemption was sought in connection with NBCC's role in completing 16 stalled Supertech Ltd projects. A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana issued a notice on the plea. The...

LiveLawBiz IBC Weekly Digest: August 10 - August 16, 2026

SUPREME COURTUnderlying Contract's Subsistence Cannot Revive Time-Barred Debt Under IBC: Supreme CourtCase Title : Srinivasa Reddy Velagala v. Sravanthi Infratech Pvt Ltd Case Number : Civil Appeal No. 876 of 2021 CITATION : 2026 LLBiz SC 272The Supreme Court on Wednesday held that the mere subsistence of an underlying contract cannot give a creditor a continuing cause of action for an IBC default that has already occurred. It consequently ruled that a time-barred debt cannot be revived...

'Law Shows Greater Sympathy To Debt-Trapped Individuals': NCLAT Gives Guarantors Fresh Chance For Relief

The National Company Law Appellate Tribunal (NCLAT), Chennai, has observed that the law shows greater sympathy towards debt-trapped individuals than debt-trapped companies. It held that this approach gives tribunals greater flexibility to consider relief from bankruptcy.It has given a family of personal guarantors a fresh opportunity to work towards repayment and seek relief from bankruptcy despite their earlier failure to submit a repayment plan.The bench of Judicial Member Justice N....

SARFAESI Notice Alone Cannot Establish Personal Guarantee Invocation Without Deed: NCLT Chandigarh

The National Company Law Tribunal (NCLT), Chandigarh bench, has ruled that a personal guarantor seeking insolvency resolution must place the underlying Deed of Guarantee on record to establish that status. A SARFAESI demand notice by itself cannot conclusively establish invocation of the guarantee when the deed is absent.A bench of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal observed, “The Deed of Guarantee is the foundational document from which the Applicant's very...

NCLT Mumbai Says ₹5 Crore EMD Cannot Be Forfeited Over Applicant's Eligibility Dispute In Morarjee CIRP

The National Company Law Tribunal (NCLT), Mumbai Bench-I has directed the return of a ₹5 crore Earnest Money Deposit (EMD) Bank Guarantee furnished by Nirmal Ujjwal Credit Co-operative Society Limited during the Corporate Insolvency Resolution Process (CIRP) of Morarjee Textiles Limited. The court held that the guarantee could not be forfeited under the Request for Resolution Plan (RFRP) without any misrepresentation or misleading statement about the society's eligibility.“Accordingly, we are of...

NCLT Mumbai Issues Bailable Warrant Against Personal Guarantor For Failing To Appear Despite Repeated Directions

The National Company Law Tribunal (NCLT), Mumbai Bench, has recently issued a bailable warrant of arrest against a personal guarantor for failing to appear before the tribunal despite clear directions to explain why the Resolution Professional's fees had not been paid.The order was passed by Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar in personal insolvency proceedings against Mahananda Udhavrao Deshkhaire under Section 94(1) of the Insolvency and Bankruptcy Code,...

Kerala High Court Expunges NCLT's Adverse Remarks Against Union Bank, Sets Aside ₹1 Lakh Cost

The Kerala High Court has expunged adverse observations made by the National Company Law Tribunal, Kochi Bench, against Union Bank of India over errors in an application seeking withdrawal of insolvency proceedings. The court also held that the bank would not be required to deposit the ₹1 lakh cost imposed by the tribunal.Justice Harisankar V. Menon observed that the bank had made mistakes in the application. These included invoking the wrong provision and not placing the settlement proposal...

Defective Or Withdrawn Liquidation Application Cannot End RP's Entitlement To Fees: NCLT Ahmedabad

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has recently held that a liquidation application that is subsequently withdrawn cannot by itself end a Resolution Professional's entitlement to remuneration if the RP continues to discharge statutory duties.The bench said a defective or withdrawn liquidation application that does not culminate in an order of liquidation cannot terminate the RP's entitlement to remuneration when he continues to function under the Insolvency and...