Supreme Court Refuses To Interfere With NCLAT Order Rejecting EPFO Claim Made After Liquidation Commencement

The Supreme Court has recently dismissed an appeal filed by the Employees' Provident Fund Organisation, declining to interfere with a ruling of the National Company Law Appellate Tribunal on the treatment of claims in liquidation. A Bench of Justices Sanjay Kumar and K. Vinod Chandran said it found “no good ground and reason” to interfere with the NCLAT judgment dated September 24, 2024. The dispute arose from the liquidation of Khushi Foods Limited, which began on October 9, 2019. During the...

495-Day Delay Is 'Gross Negligence': NCLAT Rejects Cethar Liquidator's Plea To Amend Avoidance Application

The National Company Law Appellate Tribunal at Chennai has dismissed an appeal filed by the liquidator of Cethar Limited, refusing to excuse a 495-day delay in amending an avoidance application filed during a company's insolvency proceedings. The tribunal held that the delay amounted to “gross negligence” and could not be condoned by relying on Section 148 of the Code of Civil Procedure, a provision that allows courts to extend procedural timelines but limits such extension to 30 days. A...

Supreme Court Stays Insolvency Of Lotus 300 Developer, Seeks Response On Why CBI Probe Should Not Be Ordered

The Supreme Court on Tuesday stayed the ongoing corporate insolvency resolution process against Hacienda Projects Private Ltd, the developer of the Lotus 300 housing project at Sector 107, Noida. It issued notice in appeals filed by the Lotus 300 Apartment Owners' Association challenging orders of the National Company Law Appellate tribunal. “In the meantime, the CIRP process shall remain stayed.”, the court said.A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi, Vipul M....

Jet Airways Liquidation: NCLT Directs Distribution Of Sale Proceeds Despite Pending Workmen Claims

The National Company Law Tribunal (NCLT) at Mumbai has directed the liquidator of Jet Airways (India) Ltd to proceed with the distribution of liquidation proceeds under the Insolvency and Bankruptcy Code, holding that indefinite deferment of distribution defeats the objective of timely value realisation. “Indefinite deferment of distribution, particularly in a liquidation that has already witnessed significant delay, runs contrary to the object of timely value realisation and distribution...

IBC Monthly Digest: January 2026

SUPREME COURTPromise To Arrange Funds In Case of Default Does Not Make Promoter A Guarantor: Supreme CourtCase Title: UV Asset Reconstruction Company Limited v. Electrosteel Castings Limited Citation: 2026 LLBiz SC 3 Case Number: Civil Appeal No. 9701 of 2024The Supreme Court of India has held that a promoter's promise to arrange funds to help a borrower meet financial covenants does not amount to a contract of guarantee under the Indian Contract Act and cannot be used to fasten...

NCLT Ahmedabad Issues Contempt Notices Against Sai Infinium Over Unwarranted Allegations In CIRP Recall Plea

The National Company Law Tribunal (NCLT) at Ahmedabad has directed issuance of contempt notices to Sai Infinium Limited and its representatives after holding that a recall plea contained “contemptuous” allegations against the Bench. The tribunal also rejected the recall plea.. A coram of Judicial Member Chitra Hankare and Technical Member Dr. Velamur G. Venkata Chalapathy made the observation while dismissing an application filed by the corporate debtor seeking recall of an ex...

Single Insolvency Petition Against Intrinsically Linked Real Estate Companies Maintainable: Supreme Court

The 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 Insolvency and Bankruptcy Code, 2016, where the companies are intrinsically linked in the same project. A Division Bench of Justice Sanjay Kumar and Justice K. Vinod Chandran dismissed appeals filed by the erstwhile directors of Grand Venezia Commercial Towers Private Limited and...

Attachment During Insolvency Unenforceable, But NCLT Kochi Cannot Lift Consumer Forum Order

The National Company Law Tribunal (NCLT) at Kochi has recently held that an attachment ordered by the Kerala State Consumer Disputes Redressal Commission during an insolvency moratorium is legally unenforceable but said it lacks jurisdiction to itself remove or set aside the attachment. A bench led by Judicial Member Vinay Goel said the attachment could not survive the moratorium or the approval of the resolution plan of the corporate debtor, under which the claim had already been dealt with. ...

Allotment In Proposed Realty Project Without Fund Disbursement By Claimants Is Not Financial Debt: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has dismissed six applications seeking recognition as financial creditors in the insolvency of E-Commerce Magnum Solution Ltd. It held that a purported allotment in a proposed real estate project, without proof of disbursement, does not create a financial debt under the Insolvency and Bankruptcy Code.“Merely producing a copy of the purported allotment letter will not by itself create a financial debt under Section 5(8) of the Code without...

NCLT Ahmedabad Extends Blu-Smart Mobility Insolvency Process By 90 Days

The National Company Law Tribunal (NCLT) at Ahmedabad has granted an additional 90 days to complete the insolvency process of Blu-Smart Mobility Limited, extending the deadline beyond January 24, 2026. The insolvency proceedings against the company had begun on July 28, 2025, after the tribunal admitted a petition filed by Catalyst Trusteeship Limited under Section 7 of the Insolvency and Bankruptcy Code. The case was filed on behalf of financial creditors. The original 180-day period was...

NCLAT Upholds Insolvency Admission Against Karanja Terminal Over ₹330 Crore Default

The National Company Law Appellate Tribunal has upheld the initiation of insolvency proceedings against Karanja Terminal & Logistics Private Limited, a port operator, after rejecting its claim that a proposed settlement with lenders had stalled insolvency action. A bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra agreed with the National Company Law Tribunal that the corporate insolvency resolution process was rightly admitted. The tribunal said the...

IBC Weekly Digest: January 26 to February 1

SUPREME COURTSupreme Court Asks NCLT To Re-Examine RP Appointment In Finefacilis Personal Guarantor InsolvencyCase Title : Samman Capital Limited v. Vasudevan Sathyamoorthy & Anr. Case Number : Civil Appeal No. 555/2026 CITATION : 2026 LLBiz SC 29The Supreme Court recently sent the issue of appointing a resolution professional in insolvency proceedings against a personal guarantor of Finefacilis Management Private Limited on a plea by Samman Capital back to the...