LiveLawBiz IBC Weekly Digest: March 30 - April 4

SUPREME COURT Vedanta Moves Supreme Court Against NCLAT Refusal To Stay Implementation Of Adani's JAL Resolution PlanCase Title : Vedanta Limited vs Bhuvan Madan Case Number : Diary No. 18505 of 2026Vedanta Ltd has moved the Supreme Court assailing the National Company Law Appellate Tribunal's order declining interim relief against implementation of Adani Enterprises' resolution plan for Jaiprakash Associates Ltd. The plan, approved by the NCLT on March 17, 2026, with...

NCLT Ahmedabad Rejects Company's Own Insolvency Plea As Tactic To Stall Recovery By Lenders

The National Company Law Tribunal (NCLT) at Ahmedabad has refused to admit a company's own insolvency plea, holding that the move showed a “lack of bona fide intent” and was a “tactical measure to frustrate recovery proceedings” initiated by lenders. A coram of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma said that even where debt and default are established, admission is “not so mechanical as to permit admission of every application,” and the tribunal must examine whether...

Chit Fund Firms Are Financial Service Providers; Insolvency Plea Not Maintainable: NCLT Hyderabad

The National Company Law Tribunal (NCLT) at Hyderabad has held that chit fund companies are financial service providers under the Insolvency and Bankruptcy Code and cannot be treated as corporate debtors for insolvency proceedings. It dismissed a plea filed by Siply Services Private Limited against IBG Echits India Private Limited. A bench of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri said, “ it is evident that a company carrying on the business of chit funds is engaged...

RCIL Insolvency: Bank Of Baroda Moves Supreme Court Against NCLAT Ruling On ₹195 Crore Reliance Bhutan Loan

Bank of Baroda has approached the Supreme Court in the insolvency of Reliance Communications Infrastructure Ltd (RCIL), questioning an NCLAT ruling that lenders cannot revisit a resolution plan after it has been approved. The dispute centers on a Rs 195 crore Reliance Bhutan Loan and how it is to be distributed among creditors. At the heart of the case is a decision taken by the Committee of Creditors (CoC) to reallocate this loan in favour of dissenting financial creditors. Bank of Baroda had...

Limiting CIRP Negotiations To Higher-Ranked Bidders Not Arbitrary If As Per RFRP: NCLT Indore

The National Company Law Tribunal (NCLT) Indore Bench has held that restricting negotiations in a corporate insolvency resolution process to higher-ranked bidders is valid where it flows from the bidding framework and serves the objective of value maximisation. A coram of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta in the CIRP of Soya Industries observed that “the Corporate Insolvency Resolution Process (CIRP) was conducted strictly in accordance with the...

NCLT Bengaluru Refuses To Examine FEMA Issues In Aakash–Byju's Rights Issue Dispute, Says Outside IBC Jurisdiction

The Bengaluru bench of the National Company Law Tribunal (NCLT) has refused to examine questions relating to foreign exchange law compliance in a dispute arising from the Aakash Educational Services–Byju's rights issue. It held that such issues fall outside its jurisdiction under the Insolvency and Bankruptcy Code.The order was passed on Tuesday by a bench of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada. It came on an application filed by Aakash Educational...

NCLT Amaravati Bench Admits Insolvency Plea Against Kallam Textiles Over ₹210 Crore Default

The National Company Law Tribunal's Amravati Bench has admitted Union Bank of India's insolvency plea against Kallam Textiles Ltd. over a default exceeding Rs 210 crore. The Bench of Judicial Member Kishore Vemulapalli and Technical Member Umesh Kumar Shukla said there was no reason to refuse admission once debt and default were clearly established. It rejected the company's claim that the proceedings were being used merely for recovery. Kallam Textiles, incorporated in 1992, had been availing...

Amounts Deposited Pursuant To Court Orders Remain Assets Of The Corporate Debtor: Bombay High Court

The Bombay High Court on 6 April held that amounts deposited in Court under judicial orders remain assets of the corporate debtor, even if they arise from encashment of a bank guarantee after the commencement of insolvency proceedings. A Division Bench of Justices Anil L. Pansare and Nivedita P. Mehta directed the release of the deposited amount to the Resolution Professional of Morarjee Textiles Ltd, rejecting the claim of D.C. Weaving Mills Pvt Ltd, which had sought withdrawal of the amount...

Moratorium Under Section 14 IBC Does Not Protect Personal Guarantors: NCLT Chandigarh

The Chandigarh Bench of the National Company Law Tribunal (NCLT) on 18 March held that the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 does not extend to personal guarantors of a corporate debtor and therefore allows creditors to continue proceedings against them even during the pendency of the corporate insolvency resolution process (CIRP). A Bench comprising Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal admitted insolvency petitions filed...

Liability For Fraudulent Trading Under IBC Cannot Be Determined Mechanically: NCLT Amaravati

The National Company Law Tribunal (NCLT), Amaravati, has held that liability for fraudulent trading under Section 66 of the Insolvency and Bankruptcy Code cannot be determined through a mechanical or formula-based approach and must instead rest on a detailed examination of financial records and transactions.A Bench of Judicial Member Kishore Vemulapalli and Technical Member Umesh Kumar Shukla observed that fixing liability based merely on contractual percentages or competing claims without...

IBC Moratorium For Guarantors Won't Shield Borrower Without Pending CIRP: Bombay High Court

The Bombay High Court on Monday held that moratoriums under the Insolvency and Bankruptcy Code (IBC) in favour of guarantors cannot be used to block recovery proceedings against a principal borrower. The court allowed IL&FS Financial Services Ltd.'s Rs 203.66 crore suit to proceed against Serveall Constructions Pvt Ltd in a case involving HDIL promoters Rakesh Wadhawan and Sarang Wadhawan. “Therefore, the benefit of the interim moratorium under Section 96 in the IRP proceedings for the...

No Eviction While Lease Dispute Pending: NCLAT Grants Relief To Rose Constructions

The National Company Law Appellate Tribunal (NCLAT) in Delhi has set aside an order against Rose Constructions, holding that it cannot be treated as an encroacher while its claim of lawful possession under a lease deed is still pending adjudication. A bench of Judicial Member Justice N. Seshasayee and Technical members Arun Baroka and Indevar Pandey said, “There are two aspects: (a) I.A. 1197 of 2019 which is premised on the legitimacy of the lease deed dated 20.12.2017 and other is I.A. 2738...