IBC
NCLAT Issues Notice On Appeal Against Stargaze Entertainment's Liquidation Order
The National Company Law Appellate Tribunal (NCLAT) at Delhi on Tuesday issued notice to Stargaze Entertainment Pvt. Ltd. a cinema exhibition company, and its Resolution Professional, Ashok Kumar Gulla on appeal filed by the Committee of Creditors (CoC) against the liquidation order.The matter was heard by the bench of Judicial Member Justice Sharad Kumar Sharma and Technical Members Arun Baroka and Indevar Pandey. The appeal was prefered against the order of the Delhi bench of the National...
LiveLawBiz IBC Weekly Digest: October 5 - October 10, 2026
SUPREME COURTSupreme Court Allows Creditor Who Suffered 99.28% Haircut In CIRP To Claim Full Set-Off In ArbitrationCase Title : Modern Asset Versus KNK Construction Private Limited. Case Number : Special Leave Petition (C) No.25068 of 2026 CITATION : 2026 LLBiz SC 329The Supreme Court has held that an operational creditor who suffered a 99.28% haircut under an approved resolution plan can use its entire ₹12.26 crore claim to set off amounts found payable to a successful resolution applicant...
Disputed Interest Does Not Bar Section 9 IBC Plea If Principal Debt Exceeds ₹1 Crore: NCLT Allahabad
The Allahabad Bench of the National Company Law Tribunal (NCLT) on 8 October held that a dispute over interest on delayed payments does not defeat insolvency proceedings when the admitted principal debt exceeds the statutory threshold under the Insolvency and Bankruptcy Code, 2016 (IBC). A Bench comprising Judicial Member Praveen Gupta and Technical Member Ashish Verma admitted a Section 9 application filed by Boston Ivy Healthcare Solutions Private Limited against Zaneka Healthcare Limited,...
Homebuyer Insolvency Threshold Must Be Based on Actual Bookings, Not Proposed Units: NCLT Kolkata
The Kolkata Bench of the National Company Law Tribunal (NCLT) on 9 October held that the threshold for admitting a homebuyer's insolvency petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), must be determined on the basis of actual bookings as they stood on the date of filing, and not proposed units. Also, that post-filing changes could not affect the assessment of the statutory threshold. A Bench of Judicial Member Bidisha Banerjee and Technical Member Rekha Kantilal...
NCLT Admits Siemens Financial Services' Plea Against Personal Guarantor, Says Prior CIRP Not Required
The Allahabad Bench of the National Company Law Tribunal (NCLT), on 9 October admitted an application filed by Siemens Financial Services Pvt. Ltd. to initiate the personal insolvency resolution process against Rasik Khandelwal, holding that a financial creditor need not exhaust its remedies against the principal borrower before initiating insolvency proceedings against a personal guarantor. A Bench comprising Judicial Member Praveen Gupta and Technical Member Ashish Verma, also clarified that...
Dissenting Secured Creditors Entitled To Minimum Payment Based On Security Value: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai, on 7 October held that a dissenting financial creditor is entitled to a minimum payment equivalent to the liquidation value of its security interest, and the Committee of Creditors (CoC) cannot cap this entitlement at the total value of the resolution plan. A Bench of Technical Member Prabhat Kumar and Judicial Member Sushil Mahadeorao Kochey considered SBI's challenge to a CoC resolution that capped the bank's payment at the total resolution...
NCLT Ahmedabad Rejects Toyota Financial's ₹23.20 Crore Claim Against Blu-Smart Over 150 Undelivered Vehicles
The Ahmedabad bench of the National Company Law Tribunal (NCLT) has recently dismissed Toyota Financial Services India Limited's challenge to the rejection of ₹23.20 crore of its claim against the resolution professional (RP) of Blu-Smart Fleet Private Limited over 150 undelivered vehicles.Judicial Member Shammi Khan and Technical Member Sanjeev Sharma upheld the RP's decision to admit ₹8.59 crore as unsecured financial debt while rejecting the disputed portion. The bench observed, “The...
NCLT Ahmedabad Admits Sharanam Infraproject To CIRP Over ₹10.35 Crore Debt, Rejects Restructuring Plea
The Ahmedabad Bench of the National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by Maruti Corporation against Sharanam Infraproject and Trading Limited over an operational debt of ₹10.35 crore.The order was passed by the bench of Judicial Member Chitra Hankare and Technical Member Dr V. G. Venkatachalapathy. The bench observed, “A restructuring proposal sought by respondent cannot be the reason for rejecting the application. Further, respondent's ledger and audited...
NCLT Ahmedabad Admits Insolvency Plea Against Gujarat Toolroom Over ₹26.20 Crore Dues
The National Company Law Tribunal (NCLT), Ahmedabad, has admitted an insolvency petition against Gujarat Toolroom Limited over unpaid operational dues of ₹26.20 crore to Naksh Steel Limited.A bench of Judicial Member Chitra Hankare and Technical Member Dr V G Venkata Chalapathy found that the debt had been acknowledged but remained unpaid due to liquidity constraints.“The date of default is reckoned as 20.01.2025. It is admitted to have not been paid due to liquidity constraints of the CD...
NCLT Ahmedabad Refuses Blanket Warranty Coverage For Gensol's Tata EV Fleet, Orders Vehicle-Wise Verification
The Ahmedabad bench of the National Company Law Tribunal (NCLT) has refused to grant blanket warranty coverage for Gensol Engineering Limited's fleet of Tata electric vehicles (EVs), directing its Resolution Professional and Tata Motors Passenger Vehicles Limited (TMPVL) to coordinate vehicle-wise verification and process eligible warranty claims under the existing terms.A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed, “The Respondent's stated readiness to...
NCLAT Refuses To Recall Order Excluding Property Eviction Delay From Resolution Plan Timeline
The National Company Law Appellate Tribunal (NCLAT) at Delhi has refused to recall its earlier order excluding delays in handing over a property from the implementation timeline of a resolution plan. It held that the successful resolution applicant should not be penalised for delays caused by the unauthorised occupation of the property by a company controlled by the suspended management's family.“The exclusion of time granted on 17.07.2026 was made precisely because the Subject Property (which...
Supreme Court Allows Creditor Who Suffered 99.28% Haircut In CIRP To Claim Full Set-Off In Arbitration
The Supreme Court has held that an operational creditor who suffered a 99.28% haircut under an approved resolution plan can use its entire ₹12.26 crore claim to set off amounts found payable to a successful resolution applicant in arbitration. The relief is limited to set-off, and the creditor cannot independently recover the extinguished claim.“However, in the more compelling circumstance of the SRA, being the very erstwhile promoters of the CD, who accepted the claim of the OC, in the CIRP...