IBC
NCLT Mumbai Rejects Resolution Professional's Two Fraudulent Transaction Pleas In RCIL Insolvency
The Mumbai bench of the National Company Law Tribunal has dismissed two applications filed by the Resolution Professional of Reliance Communications Infrastructure Ltd (RCIL), which alleged fraudulent transactions involving Netizen Engineering Pvt Ltd (NEPL) and RCIL's wholly owned subsidiary, Worldtel Tamil Nadu Pvt Ltd (WTPL). The tribunal found that the transactions did not increase the corporate debtor's liabilities. It also found that the assignment of receivables to WTPL did not reduce...
Liquidator's Sale Of Corporate Debtor's Shell Entity Valid After Creditor Consultation: NCLAT New Delhi
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 14 June held that a liquidator can sell the shell legal entity of a corporate debtor through public auction during liquidation after consulting creditors, where all assets of the corporate debtor have already been realised and dissolution is the only remaining option. Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha upheld the sale of Abhijeet MADC Nagpur Energy Pvt. Ltd.'s legal entity,...
IBC Cannot Be Used to Validate Illegal Constructions Or Defeat Town Planning Laws: NCLAT
The National Company Law Appellate Tribunal (NCLAT) in Delhi has held that while a corporate debtor's subsisting contractual and development rights under a hire-purchase agreement may constitute assets under the Insolvency and Bankruptcy Code (IBC), the insolvency process cannot be used to legitimise unauthorised construction or defeat statutory town planning laws. A bench of Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Naresh Salecha observed: “We emphasise that...
Article 227 Cannot Be Used To Bypass NCLAT Remedy Against NCLT Orders: Kerala High Court
The Kerala High Court on 14 July held that parties cannot invoke the High Court's supervisory jurisdiction under Article 227 of the Constitution to challenge orders passed by the National Company Law Tribunal (NCLT) when the Insolvency and Bankruptcy Code, 2016 provides an effective statutory appellate remedy before the National Company Law Appellate Tribunal (NCLAT). Justice T.R. Ravi dismissed a petition filed by Erattupetta Municipality, observing: “When a person chooses not to take any...
NCLT Records Highest-Ever First-Quarter Performance Under IBC, Approves 78 Resolution Plans
The National Company Law Tribunals (NCLT) across the country have recorded their highest-ever first-quarter performance under the Insolvency and Bankruptcy Code (IBC), approving 78 resolution plans between April and June 2026, according to a performance report issued by its Registrar on July 13, 2026. The 78 resolution plans, involving an aggregate approved value of ₹5,517.66 crore, surpassed the previous first-quarter high of 73 approvals recorded during April-June 2024. During the...
NCLAT New Delhi Upholds CIRP Against Simbhaoli Sugar, Holds Farmers' Claims Must Be Considered
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 13 July upheld the admission of Corporate Insolvency Resolution Process (CIRP) against Simbhaoli Sugar Limited, holding that the insolvency proceedings were initiated independently of the Reserve Bank of India (RBI) circular later struck down by the Supreme Court. Officiating Chairperson Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra dismissed appeals filed against the order of the Allahabad Bench of the...
Acknowledged Interest On ICDs Forms Part Of Financial Debt Under IBC: NCLAT New Delhi
On 13 July, the New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) held that acknowledged interest on Inter Corporate Deposits (ICDs) forms part of “financial debt” under the Insolvency and Bankruptcy Code, 2016 (IBC). Judicial Member Justice N Seshasayee, along with Technical Members Indevar Pandey and Arun Baroka, allowed an appeal filed by Wild Dreams Trading Company Pvt. Ltd. against the Chandigarh Bench of the National Company Law Tribunal (NCLT), which had rejected its...
Pre-2016 DRT Recovery Certificate Cannot Trigger Insolvency Under Presidency Towns Insolvency Act: Supreme Court
The Supreme Court on Monday held that a recovery certificate issued by a Debt Recovery Tribunal (DRT) before the 2016 amendment to the Recovery of Debts and Bankruptcy Act cannot be treated as a decree or order for initiating insolvency proceedings under the Bombay's Presidency Towns Insolvency Act, 1909. Dismissing HDFC Bank's appeal, the court observed that Parliament recognised such equivalence only through the 2016 amendment. A bench of Justices Dipankar Datta and Satish Chandra Sharma...
CIRP Not Maintainable Against Company Struck Off From Register: NCLT Mumbai
The Mumbai Bench of the National Company Law Tribunal (NCLT) has reiterated that a Corporate Insolvency Resolution Process (CIRP) cannot be initiated against a company whose name has already been struck off from the register of companies. It observed that once the company's certificate of incorporation is cancelled, it no longer remains a "corporate person" under the Insolvency and Bankruptcy Code. A bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar dismissed Adamji...
Equity Investment Without Repayment Obligation Does Not Qualify As Financial Debt: NCLAT New Delhi
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 1 July held that an amount advanced under a Subscription and Shareholders Agreement (SSA) towards purchase of equity shares and convertible warrants does not qualify as “financial debt” under the Insolvency and Bankruptcy Code, 2016 (IBC), unless the agreement creates a repayment obligation. Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Ajai Das Mehrotra dismissed Metamorphosis Trading LLP's appeal...
Delayed Homebuyer Claim Cannot Be Rejected When RP Failed To Verify Records: NCLAT New Delhi
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 30 June held that a genuine homebuyer cannot be denied the benefit of an approved resolution plan merely because the homebuyer filed the claim belatedly, when the delay occurred due to the Resolution Professional's (RP) failure to identify and notify the homebuyer despite the corporate debtor's records reflecting the allotment. Judicial Member Justice N Seshasayee and Technical Members Arun Baroka and Indevar Pandey...
LiveLawBiz IBC Weekly Digest: July 6 - July 11, 2026
HIGH COURT Suit Filed During IBC Interim Moratorium Attracts Rejection Of Plaint Provision Under CPC: Calcutta High Court Case Title : Ambootia Tea Exports Private Limited & Ors. Vs. Sri Rani Sati Abasan Private Limited Case Number : AD COM 3 of 2026 CITATION : 2026 LLBiz HC (CAL) 167The Calcutta High Court has held that a court cannot entertain a suit instituted during the operation of an interim moratorium under the Insolvency and Bankruptcy Code where the statutory bar applies. It...