Parties Cannot Be Penalised for Lawyer's Absence: NCLAT Orders Rehearing In Sagar Power Preferential Deal Case

The National Company Law Appellate Tribunal (NCLAT) at Chennai has reaffirmed that parties cannot be penalised because their lawyer failed to appear, and has directed the National Company Law Tribunal (NCLT) Bengaluru to rehear the liquidator's application alleging preferential transactions by former directors of Sagar Power after giving them an opportunity to be heard.The appeal was filed by Narappa Manohar Reddy and Narappa Sharada Reddy, shareholders and former directors of Sagar Power...

NCLAT Dismisses Plea Challenging Investigation Into Alleged Siphoning By Exclusive Capital, Promoters

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently dismissed an appeal filed by Exclusive Capital Ltd. and its promoters, upholding the National Company Law Tribunal (NCLT) Delhi's decision directing a full investigation into the company's affairs. The probe concerns allegations that the management siphoned funds through related-party transactions and diversion of assets, including unsecured loans worth more than Rs 21 crore and luxury vehicles valued at over Rs 16 crore,...

NCLT Bengaluru Denies Interim Relief To Riju Ravindran In His Plea Against Glas Trust's Aakash Right Issue Funding Plan

The National Company Law Tribunal (NCLT) at Bengaluru on Tuesday refused to grant any interim relief in former Byju's promoter Riju Ravindran's plea challenging the Committee of Creditors' approval of a Compulsorily Convertible Debenture structure proposed by Glas Trust to fund Think and Learn Private Limited's subscription to Aakash Educational Services Limited's rights issue. The tribunal refused to grant any interim relief after having deferred its ruling on Friday, the day the rights...

Insolvency Process Can Be Withdrawn Before Formation of CoC, NCLT Chennai Reaffirms

The National Company Law Tribunal at Chennai has recently reaffirmed that a corporate insolvency resolution process (CIRP) may be withdrawn after admission but before the Committee of Creditors (CoC) is formed, while allowing the withdrawal of insolvency proceedings against Vees Properties Limited. The tribunal relied on the Supreme Court's ruling in Glas Trust Company LLC v. BYJU Raveendran, which held that withdrawal may be permitted after admission but before constitution of the CoC,...

Delay Equals Refusal, NCLT Kochi Directs Company To Transfer Shares To Legal Heir

The National Company Law Tribunal at Kochi has recently held that the prolonged delay by Whispering Kera Ecological Homestay Pvt. Ltd. in acting on a request to transmit shares of a deceased shareholder amounted to a refusal to transfer, and has directed the company to complete the transfer in favour of the surviving legal heir. The tribunal allowed the appeal filed by the shareholder's sister after finding that the company had no valid reason to withhold the transmission request. A coram of...

Bank's Adjustments From Share and Dividend Accounts During CIRP Are Void, Refundable With Interest: NCLT Ahmedabad

The National Company Law Tribunal (NCLT) at Ahmedabad has recently held that Mehsana Urban Co-operative Bank, a lender was not entitled to deduct money from the share and dividend accounts of Swastik Ceracon Limited during its insolvency process, declaring the deductions void and directing the bank to return Rs. 56 lakh with 10 per cent interest. A coram of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma held that the bank's action amounted to an unlawful recovery during a...

Insolvency Cannot Be Initiated Against Guarantor Under Section 7 Without Invoking Guarantee First: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi recently held that a financial creditor cannot directly initiate insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016, against a corporate guarantor without first invoking the guarantee in accordance with the contract and without proceeding against the principal borrower. The tribunal therefore refused to initiate insolvency proceedings against Inditrade Capital Limited and dismissed the application filed by Arthan...

Refusal Of Demand Notice By Guarantor Counts As Valid Service: NCLT Hyderabad

The National Company Law Tribunal (NCLT) at Hyderabad has recently held that refusal by a personal guarantor to accept delivery of a demand notice constitutes valid and deemed service under the Insolvency and Bankruptcy Code, 2016, and has admitted the petition filed by STCI Finance Ltd. to initiate personal insolvency proceedings against Ramnath Nandakumar, personal guarantor of Natems Sugar Pvt. Ltd. The coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri noted...

IBC | Section 7 Application Can't Be Rejected For Curable Defects In Affidavit : Supreme Court

The Supreme Court on Monday (November 24) observed that procedural defects in a Section 7 insolvency application under IBC, such as a defective affidavit, are curable and cannot be used as a basis for summary dismissal. “Mere filing of a 'defective' affidavit in support of an application would, however, not render the very application non est and liable to be rejected on that ground as it is neither an incurable nor a fundamental defect.”, observed a bench of Justices Sanjay Kumar and Alok...

NCLT Clears First Motion Toward Consolidation Of Mirae Asset Sharekhan's NBFC Operations

The National Company Law Tribunal (NCLT) at Mumbai has recently approved the initial application filed by Mirae Asset Sharekhan Financial Services Limited, the lending business formerly associated with stock broking company Sharekhan, for its merger with Mirae Asset Financial Services (India) Private Limited, facilitating consolidation of the Mirae Asset Group's non banking finance operations in line with Reserve Bank of India directions. A coram of Judicial Member Sushil Mahadeorao Kochey and...

IBBI Caps Assignments For Individual Insolvency Professionals At Ten At A Time

The Insolvency and Bankruptcy Board of India has issued the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2025, placing limits on the total number of assignments that an individual insolvency professional may handle at a given time. The regulations come into force on November 20. The amendment introduces Regulation 7B titled Number of Assignments, capping the number of assignments an individual insolvency professional may hold, at a time,...

Transfer Of Asset After Commencement Of CIRP, Even With NOC From Lender, Illegal: NCLT Allahabad

The National Company Law Tribunal (NCLT) at Allahabad has recently held that any transfer of assets after the commencement of an insolvency process is illegal, even if supported by a No Objection Certificate from a secured creditor. The tribunal said such transfers cannot be considered procedural outcomes and amount to a breach of the moratorium. The tribunal was deciding an application filed by the resolution professional of Hind Agro Industries Limited seeking restoration of vehicles (Porsche...