IBC
NCLT Chennai Says Parties Cannot 'Cherry-Pick' Between Arbitral Award and Settlement In Landmark Housing CIRP
Holding that parties cannot “cherry-pick” between an arbitral award and a subsequent settlement to maximize recovery, the National Company Law Tribunal (NCLT) at Chennai dismissed a plea by landowners who sought Rs. 62.72 crore despite having agreed to settle their dues at Rs. 45 crore.A bench of Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy passed the order in the insolvency of Landmark Housing Projects Chennai Private Limited, upholding the liquidator's...
Tribunal's Residuary Powers Cannot Be Invoked After Resolution Plan Approval To Reopen Issues: NCLT Kolkata
The National Company Law Tribunal at Kolkata has held that its jurisdiction cannot be invoked after approval of a resolution plan to seek disclosure of CIRP documents or reopen settled issues. A bench of Judicial Member Bidisha Banerjee and Technical Member Siddharth Mishra said that once a plan is approved, “any claims not included in the plan are generally extinguished, preventing further disputes or litigation, ensuring a 'Clean Slate' for the successful resolution applicant.” The tribunal...
NCLT Chandigarh Refuses To Restrain Sale Of White Water's Panchkula Land After CIRP Set Aside
The National Company Law Tribunal (NCLT) at Chandigarh recently held that once a corporate insolvency process is set aside and the payment directed by the Supreme Court is complied with, it cannot restrain a company from dealing with its assets in the absence of a statutory moratorium that arises only upon admission of insolvency proceedings. A Bench of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal said, “Once the CIRP is set aside and gets terminated, the CoC stands...
Mere Non-Explanation Of Fund Use Not Enough To Prove Fraudulent Trading Under IBC: NCLT Chennai
The National Company Law Tribunal (NCLT) in Chennai has held that mere non-explanation of fund utilisation or irregular accounting, without clear evidence of intent to defraud creditors, is insufficient to invoke fraudulent trading under Section 66 of the Insolvency and Bankruptcy Code. Examining the scope of Section 66, the Tribunal held that mere inability to explain fund utilisation in a business context does not meet the statutory requirement unless accompanied by clear evidence of intent...
No Appeal Lies Against Dismissal Of Contempt Plea Without Punishment: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Chennai has recently reiterated that an appeal against dismissal of a contempt petition is not maintainable where no punishment has been imposed. The bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain fater examining the Contempt of Courts Act, observed, “Section 19(1) envisages Appeal against only those orders where a punishment has been inflicted for contempt. In the instant case, no...
NCLT Delhi Admits CIRP Pleas by JC Flowers Against Rana Kapoor-Linked RAB Subsidiaries Over ₹260 Crore Default
The Delhi Bench of the National Company Law Tribunal (NCLT) has admitted four CIRP pleas filed by JC Flowers Asset Reconstruction Pvt. Ltd. against subsidiaries of RAB Enterprises (India) Private Limited, a group promoted by Rana Kapoor and Bindu Kapoor. The proceedings have been initiated under Section 7 of the Insolvency and Bankruptcy Code, 2016. The order, delivered on April 7, 2026, was passed by Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri. The four...
NCLT Bengaluru Dismisses Kingfisher Employees' Plea For Salary Dues, Says Karnataka High Court Is Proper Forum
The National Company Law Tribunal (NCLT) at Bengaluru has dismissed an application filed by former employees of Kingfisher Airlines seeking disbursement of their admitted salary dues, holding that the Karnataka High Court, which is supervising the winding-up proceedings, is the appropriate forum.A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada passed the order. 78 former pilots and staff of Kingfisher Airlines Limited filed an application before the NCLT...
Supreme Court Says Article 142 Cannot Be Invoked To Cure Illegalities In Jaipur Udyog Rehabilitation Efforts
The Supreme Court on Wednesday refused to invoke its powers under Article 142 of the Constitution, which allows it to pass orders to do complete justice, to condone illegalities in a long-running dispute involving defunct Jaipur Udyog Ltd. (JUL), directing disbursal of workers' dues estimated at over Rs. 100 crore and appointment of an administrator to oversee the process. Separately, the court directed the deposit of Rs 51 crore realised from the sale of the Kanpur unit for utilisation...
Resolution Professional Cannot Convene Creditors' Meeting Without Repayment Plan: NCLT Kochi
On 13 April, the Kochi Bench of the National Company Law Tribunal (NCLT) held that, in the absence of a repayment plan, insolvency proceedings against a personal guarantor cannot proceed to the stage of convening a creditors' meeting and the Resolution Professional must file a report recording such non-submission. A Bench comprising Judicial Member Vinay Goel observed: “Where no Repayment Plan is submitted, the Resolution Professional has no option but to refrain from convening a meeting of...
Shareholder's Loss Of Control In Hotel Project During CIRP Not Deprivation Of Property Under Article 300A: Telangana HC
The Telangana High Court has upheld the State's decision to grant consent for a change in control of a Hyderabad hotel project under an insolvency resolution plan, holding that a shareholder cannot claim a vested right to retain control over the corporate debtor and that any loss suffered is merely a commercial consequence of the insolvency process, not a deprivation of property under Article 300A. "It cannot be construed as a deprivation of property dehors the authority of law. The appellant,...
IBC| NCLT's Power To Direct Modification Of Repayment Plan Is Discretionary, Requires Material On Record: NCLAT
The National Company Law Appellate Tribunal (NCLAT), Chennai Bench, has held that the power of the Adjudicating Authority under Section 114(3) of the Insolvency and Bankruptcy Code, 2016 to direct modification of a repayment plan is not obligatory and can be exercised only when supported by material on record. The tribunal dismissed an appeal filed by a personal guarantor to loans availed by the Nithin Group of Companies from Bank of India, challenging the order of the National Company Law...
Lease Rentals Not IRPC Without CoC Nod: NCLT Chennai Rejects DBS Bank's ₹46 Crore Claim In Orchid Pharma Insolvency
The National Company Law Tribunal (NCLT) at Chennai has dismissed an application by DBS Bank India Ltd seeking over Rs. 46 crore in lease rentals and CIRP-related expenses in the insolvency of Orchid Pharma Ltd, holding that in the present case such claims cannot be treated as Insolvency Resolution Process Costs in the absence of approval by the Committee of Creditors and cannot be raised after approval of the resolution plan. A coram of Judicial Member Jyoti Kumar Tripathi and Technical Member...