IBC
Subsequent Liquidation Order Cannot Bar Plea Alleging Fraudulent CIRP: NCLT Allahabad
The Allahabad bench of the National Company Law Tribunal (NCLT) has held that a subsequent liquidation order cannot bar adjudication of allegations that an insolvency process was initiated fraudulently or with malicious intent.The bench of Judicial Member Praveen Gupta and Technical Member Ashish Verma observed, “...the allegations under Section 65 were raised during the subsistence of the CIRP itself; they formed the basis of proceedings initiated by the erstwhile RP; and they remained...
Ahmedabad NCLT Orders Liquidation Of Shriram Cements, Holds SRA Cannot Rewrite Approved Plan
The Ahmedabad National Company Law Tribunal (NCLT) on 22 July ordered liquidation of Shriram Cements Limited after holding that the Successful Resolution Applicant (SRA) failed to implement the Resolution Plan approved under the Insolvency and Bankruptcy Code, 2016 (IBC), and could not make its obligations conditional on resolution of a pending land dispute or release of a Bank Guarantee. A Bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma held that the SRA had submitted...
Separate CIRP Cannot Be Initiated For Project When Developer Is Already Undergoing CIRP: NCLT Bengaluru
The National Company Law Tribunal (NCLT) at Bengaluru has held that a separate Corporate Insolvency Resolution Process (CIRP) cannot be initiated for a particular real estate project when the developer as a whole is already undergoing CIRP.The ruling came while dismissing a homebuyer's insolvency plea against Buoyant Technology Constellations Private Limited, who argued that his claim arose exclusively from the Mantri Manyata Energia project.A coram of Judicial Member Sunil Kumar Aggarwal and...
NCLT Jaipur Replaces RP In Dropbase Liquidation, Says CIRP Beyond 330 Days Is Serious Lapse
The Jaipur National Company Law Tribunal (NCLT) on 17 July ordered liquidation of Dropbase Software Private Limited and replacing Resolution Professional Rajneesh Sharma with Anubha Singh as the Liquidator, citing his failure to adhere to the CIRP timeline. A Bench of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar held that continuing the Corporate Insolvency Resolution Process (CIRP) beyond the statutory period without following the prescribed procedure amounts to a “serious...
Bombay High Court Sentences Insolvent To Jail For Concealing Bank Accounts, Rejects Limitation Defence
The Bombay High Court on 7 August held insolvent Pallav Sheth guilty of contempt under Section 33(4) of the Insolvency Act, 1909 for wilfully failing to disclose his assets and bank accounts to the Official Assignee, and sentenced him to one month's simple imprisonment with a fine of Rs. 2,000, with one week's further imprisonment in default. Justice N.J. Jamadar observed that an insolvent who makes positive statements on oath concealing assets and bank accounts cannot later invoke limitation...
Time-Barred Insolvency Plea Can Be Rejected Without RP Appointment: NCLAT New Delhi
On 7 August, the New Delhi National Company Law Appellate Tribunal (NCLAT) held that the National Company Law Tribunal (NCLT) can reject a personal guarantor's insolvency application at the threshold if it is ex facie barred by limitation, without first appointing a Resolution Professional (RP) under Section 97 of the Insolvency and Bankruptcy Code, 2016 (IBC). A Bench of Judicial Member Justice Mohd Faiz Alam Khan with Technical Members Arun Baroka and Indevar Pandey dismissed the appeal...
NCLT Chennai Dissolves Ashok Leyland-John Deere JV After 8-Year Voluntary Liquidation
The Chennai National Company Law Tribunal (NCLT) on 16 July ordered the dissolution of Ashok Leyland John Deere Construction Equipment Company Private Limited after finding that the company had completely wound up its affairs and liquidated all its assets. A Bench comprising Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam passed the order under Section 59(7) of the Insolvency and Bankruptcy Code, 2016 (which empowers the Tribunal to order dissolution after completion...
LiveLawBiz IBC Weekly Digest: August 3 - August 8, 2026
HIGH COURTIBC Amendment Removing Interim Moratorium For Personal Guarantors Applies To Pending Cases: Bombay High CourtCase Title : Tata Capital Financial Services Limited v. Neel Motors LLP and OrsCase Number : Commercial Arbitration Petition No. 620 of 2021CITATION : 2026 LLBiz HC(BOM) 430The Bombay High Court has ruled that a recent amendment removing the automatic interim moratorium available to personal guarantors to corporate debtors under the Insolvency and Bankruptcy Code applies even...
NCLT Chennai Admits Ozone Projects To CIRP Over ₹212 Cr Default, Says Trustee Can Initiate Proceedings
The Chennai National Company Law Tribunal (NCLT) has held that a financial creditor can invoke Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) where the existence of financial debt and default is established, and that a pending appeal against the insolvency proceedings does not prevent the Tribunal from deciding the petition. A Bench comprising Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam...
NCLT Ahemdabad Rejects Jindal SMI's Insolvency Plea Against Astron Packaging As Principal Dues Paid
The Ahmedabad bench of the National Company Law Tribunal (NCLT) has rejected an insolvency petition filed by Jindal SMI Coated Products Limited against Astron Packaging Limited, finding that Astron had paid ₹3.23 crore against principal dues of ₹2.97 crore. The court further observed that the amount remaining after treating the payment towards principal was below the statutory threshold under the Insolvency and Bankruptcy Code (IBC).The bench comprising Judicial Member Chitra Hankare and...
NCLAT Dismisses Tropical Ventures' Plea To Halt Distribution Of INCAB Resolution Plan Funds
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently dismissed an application filed by Tropical Ventures Company Ltd. seeking to prevent distribution of funds under Vedanta Ltd.'s resolution plan for INCAB Industries Ltd.Tropical filed the application while its challenge to the NCLAT's June 30, 2026, judgment was pending before the Supreme Court. It wanted the amount under the resolution plan to be kept in an interest-bearing account until its ₹295 crore claim was finally...
NCLAT Allows Party To Contest Ex-Parte Proceedings, Says Parties Shouldn't Be Penalised For Counsel's Mistakes
The National Company Law Appellate Tribunal (NCLAT), New Delhi, has observed that an advocate's duty extends beyond diligently conducting a case.It includes maintaining regular communication with the client and informing them about the status of proceedings.A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha made the observation while setting aside an NCLT order that had dismissed an application seeking recall of an order setting proceedings...