High Court Should Not Have Directed Delay Condonation After Dismissing Writ Against NCLT Order: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Chennai has observed that a High Court should not have directed exclusion of time or condonation of delay after declining to entertain a writ petition on the ground of availability of an alternative statutory remedy under the Insolvency and Bankruptcy Code (IBC).A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain held.“Therefore, for all practical purposes when the Hon'ble High Court has observed...

Limitation For Action Against Personal Guarantor Begins Only On Clear Invocation Of Guarantee: NCLAT Chennai

The Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) on 9 April 2026 held that limitation for initiating insolvency proceedings against a personal guarantor under Section 95 of the Insolvency and Bankruptcy Code, 2016 starts only when the guarantee is clearly and unequivocally invoked, and not from earlier communications that only show default or an intention to recall the loan. A Bench comprising Judicial Member Justice Sharad Kumar Sharma upheld the order of the NCLT,...

NCLAT Issues Notice On Shikhar Dhawan's Appeal Against Rejection Of CIRP Plea Against Absolute Legends Sports

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Friday issued notice in an appeal filed by cricketer Shikhar Dhawan challenging the rejection of his insolvency plea against Absolute Legends Sports Private Limited. The appellate tribunal will examine whether Dhawan's claim for unpaid player fees for his participation in the Legends League Cricket qualifies as an operational debt and whether the National Company Law Tribunal (NCLT) was right in holding that the debt was not due...

NCLAT Rejects Guarantor's Plea of Ignorance of Order Appointing Bankruptcy Trustee After Participating In Proceedings

The National Company Law Appellate Tribunal (NCLAT) at Chennai has dismissed an appeal filed by a personal guarantor to MBS Impex Pvt. Ltd. as barred by limitation, holding that his plea of gaining knowledge of the order at a later date was untenable since he had participated in the proceedings and that the delay of 32 days was beyond the condonable limit prescribed under law. A Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Memer Jatindranath Swain observed,...

Monitoring Committee Cannot Revisit Approved Resolution Plan Or Alter Distribution Mechanism: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has reiterated that a Monitoring Committee constituted under a resolution plan cannot assume the role of the Committee of Creditors (CoC) or the Adjudicating Authority to revisit or modify the terms of an already approved resolution plan. The tribunal dismissed an appeal filed by assenting financial creditors challenging the order of the NCLT, Cuttack Bench, which had directed payment to a dissenting financial creditor in...

Loss-Making Companies Can Pay Shareholders During Capital Reduction: NCLT Chennai

The Chennai Bench of the National Company Law Tribunal (NCLT) has reiterated that even loss-making companies are legally permitted to pay shareholders during a capital reduction exercise under Section 66 of the Companies Act, 2013, observing that such decisions fall within the commercial wisdom of shareholders. The coram of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam said there is no bar in law on a company with accumulated losses returning capital to its...

Multi-State Co-Operative Societies Can Bid In CIRP Only If Bye-Laws Allow, Is In Same Line Of Business: Supreme Court

The Supreme Court on Thursday held that a multi-state co-operative society cannot submit a resolution plan under the Insolvency and Bankruptcy Code unless the investment is permitted by its bye-laws and falls either in a subsidiary institution or in the “same line of business”. The court clarified that under Section 64(d) of the Multi-State Co-operative Societies Act, 2002, an MSCS can invest its funds only in a subsidiary institution or in an entity engaged in the same line of business, and...

CoC-Approved Resolution Plan Can Be Rejected If It Violates IBC: NCLT Kochi

The National Company Law Tribunal (NCLT) Kochi Bench has held that even an approved resolution plan cannot be approved if it fails to meet the mandatory requirements under Section 30(2) of the Insolvency and Bankruptcy Code, 2016, sending back plans for two real estate projects of Samson and Sons Builders and Developers Pvt Ltd to the Committee of Creditors for reconsideration. A coram of Judicial Member Vinay Goel said, “Even where a Resolution Plan has been approved by the Committee of...

Part Payment Of Debt After Filing CIRP Plea Won't Affect IBC Threshold: NCLT Mumbai

The Mumbai bench of the National Company Law Tribunal (NCLT) has held that part-payments made by a corporate debtor after the filing of a Section 9 application under the Insolvency and Bankruptcy Code will not defeat the CIRP threshold. A bench of judicial member Nilesh Sharma and technical member Sameer Kakar reiterated, “…we hold that the threshold under Section 4 of Code is required to be made at the time of filing of application under Section 9 and even if some payment is made by...

Dispatch Of Statutory Demand Notice to Last Known Address Constitutes Valid Service: NCLT Hyderabad

The Hyderabad National Company Law Tribunal (NCLT) held that sending a statutory demand notice to the last known address of a personal guarantor constitutes valid service under the Insolvency and Bankruptcy Code, 2016, even if the notice is returned unserved. A Bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri admitted a petition filed by Punjab National Bank under Section 95 of the Code to initiate the Personal Insolvency Resolution Process (PIRP) against Smt....

NCLT Bengaluru Appoints RP From IBBI Panel In FineFacilis Personal Guarantor Insolvency

The National Company Law Tribunal (NCLT), Bengaluru, on 30 March 2026, appointed Kondisetty Kumar Dushyantha as the Resolution Professional (RP) in insolvency proceedings initiated by Asset Reconstruction Company (India) Ltd (ARCIL) against the personal guarantor of FineFacilis Management Pvt Ltd. A Bench comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada rejected the guarantor, Vasudevan Sathyamoorthy's challenge alleging non-compliance with Section 97...

NCLT Mumbai Dismisses Insolvency Plea Against Eros Over 'English Vinglish,' 'Ki And Ka' Profit-Sharing Dispute

The National Company Law Tribunal (NCLT) at Mumbai on Tuesday dismissed an insolvency application filed by Gutz Feel Film Production LLP against Eros International Media Ltd over an alleged default of Rs. 3.33 crore arising from profit-sharing agreements for the films “English Vinglish” and “Ki and Ka”. Holding that the claim arose from a profit-sharing arrangement, which does not qualify as an operational debt under the Insolvency and Bankruptcy Code, a bench of Judicial Member Ashish Kalia...