IBC
Mere Divergence Between Interim, Final Forensic Audit Reports Does Not Establish Unreliability: NCLT Indore
The National Company Law Tribunal (NCLT) at Indore has ruled that a mere divergence between a forensic auditor's interim and final reports, without any demonstrable infirmity, is not enough to disregard the final report or appoint an alternate auditor.The bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta ruled, “Mere divergence between a preliminary draft and a final report, explained by a materially expanded record, does not by itself establish...
NCLT Ahmedabad Dismisses Ricova International's Insolvency Plea Against Kraft Paper Manufacturer
The Ahmedabad bench of the National Company Law Tribunal (NCLT) has dismissed an insolvency petition filed by Panama-based Ricova International INC against Shree Narayan Kraft Paper Mill LLP.The bench comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma found that there was pre-existing dispute between the parties. Ricova had claimed an operational debt of Rs 3,81,87,186.24 (USD 4,44,192.34) for the alleged supply of waste paper (NDLKC) pursuant to various indents...
Advocates Acting As Insolvency Professionals Must Register Under GST, Pay Under Forward Charge: Delhi High Court
The Delhi High Court on Thursday held that advocates rendering services as insolvency professionals must obtain GST registration, ruling that such services are subject to the forward charge mechanism and not the reverse charge mechanism applicable to legal services provided by advocates. A bench of Justices Pratibha M. Singh and Shail Jain passed the judgment on a petition filed by advocate Kanwal Chaudhary challenging an Insolvency and Bankruptcy Board of India (IBBI) order dated March 9,...
NCLT Ahmedabad Rejects Operational Creditor's Insolvency Plea Against Tecso Project, Imposes ₹2 Lakh Cost
The Ahmedabad bench of the National Company Law Tribunal (NCLT) has dismissed Bharati Trading Enterprises Pvt. Ltd.'s insolvency petition against Vadodara-based Tecso Project Ltd. over an alleged ₹18.91 crore operational debt. The tribunal found a plausible pre-existing dispute over contractual interest, computation of the principal amount, ledger entries and supporting documents.Judicial Member Shammi Khan and Technical Member Sanjeev Sharma also imposed a ₹2 lakh penalty on Bharati Trading...
Underlying Contract's Subsistence Cannot Revive Time-Barred Debt Under IBC: Supreme Court
The 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 through insolvency proceedings.Justices J.B. Pardiwala and Manoj Misra held that the operational creditor's claims had crystallized in 2012, but it failed to pursue them within three years. The Court held that the insolvency application filed in 2018...
NCLT Launches E-Inspection, E-Certified Copy Services
The National Company Law Tribunal (NCLT) has launched e-Inspection and e-Certified Copy Services to provide advocates, litigants, and other stakeholders with faster and more convenient access to judicial records and certified copies.NCLT President Justice Anupinder Singh Grewal inaugurated the services through video conferencing on Wednesday. The services are part of the tribunal's broader digital transformation, which includes its revamped website and the ongoing e-Courts 2.0...
Later Default After Repayment Extension Cannot Revive COVID-Period Insolvency Claim: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has recently held that a creditor cannot rely on a later failure to repay after giving a company extra time when the original default occurred during the COVID-19 period.A bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar ruled that extending the repayment period does not erase or extinguish the original default.“Moreover we are of the view that as according to proviso to Section 10A, no application shall ever be filed for...
2026 IBC Amendment Excluding Security Interests Created By Operation Of Law To Apply Prospectively: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has recently held that an explanation inserted into the Insolvency and Bankruptcy Code (IBC), excluding security interests created merely by operation of law from the definition of “security interest," will operate prospectively from May 26, 2026.A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar observed that the amendment introduces a substantive restriction on the earlier definition. It cannot...
NCLT New Delhi Dismisses Vatika One On One Insolvency Plea, Holds Assured Returns Not Operational Debt
The New Delhi National Company Law Tribunal (NCLT) on 23 July held that claims for assured returns and lease rentals under Builder Buyer Agreements do not qualify as “operational debt” under the Insolvency and Bankruptcy Code, 2016 (IBC), and that individual claims must meet the statutory threshold of Rs. 1 crore under Section 4 of the Code. A Bench of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Reena Sinha Puri dismissed an insolvency petition filed against Vatika...
NCLT Ahmedabad Directs Zyngo EV Mobility To Hand Over 16 Leased EVs To Gensol EV Lease
The Ahmedabad National Company Law Tribunal (NCLT) on 27 July, partly allowed an application filed by the RP of Gensol EV Lease Ltd. and directed Zyngo EV Mobility Pvt. Ltd. to hand over 16 leased electric vehicles (EVs), along with their documents, keys and accessories. A Bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma held that a Resolution Professional (RP) can seek recovery of leased assets lying with a third party during the Corporate Insolvency Resolution Process...
NCLAT New Delhi Says IRP Cannot Keep Creditors And Homebuyers Satisfied In Real Estate Insolvency
The New Delhi National Company Law Appellate Tribunal (NCLAT) on 4 August held that an Interim Resolution Professional (IRP) cannot be expected to keep all stakeholders satisfied in a real estate insolvency process, where financial creditors and homebuyers have inherently conflicting interests. A Bench of Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha dismissed appeals seeking the replacement of the IRP in the insolvency proceedings of Swastik Homebuild Pvt....
NCLT Delhi Rejects Insolvency Plea Over Claims Based On Unilateral Invoice Payment Terms
The Delhi bench of the National Company Law Tribunal (NCLT) has rejected Kannodia Technoplast Ltd.'s insolvency petition against Kay Pee Khaini Pvt. Ltd. It held that payment terms unilaterally mentioned in invoices cannot establish default when there is no bilateral contract between the parties.The order was passed by a bench comprising Judicial Member Ashok Kumar Bhardwaj and Technical Member Banwari Lal Meena.“In the absence of there being bilateral contract stipulating the terms of payment,...