IBC
Advance Paid Under Land-Development MoU Not Financial Debt, Can't Trigger CIRP: NCLAT
The National Company Law Appellate Tribunal at Delhi recently held that advance amounts paid under a 2013 land development Memorandum of Understanding for acquiring and amalgamating land in Noida were not financial debt under the Insolvency and Bankruptcy Code and upheld the dismissal of insolvency applications filed by Airwil JKM Infrastructure Pvt. Ltd. and JKM Infrastructure Pvt. Ltd. against Cadillac Infotech Pvt. Ltd. The appeals arose from the rejection of the pleas filed to initiate...
NCLT Cannot Alter Capital Structure Proposed By Successful Auction Purchaser If Legally Compliant: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that the adjudicating authority (NCLT) has no jurisdiction to modify the capital structure proposed by a successful auction purchaser, particularly when neither the stakeholders nor the liquidator objected and the proposal was not shown to violate any law. In an order pronounced on November 20, Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Arun Baroka observed that the powers of the Adjudicating...
NCLT Defers Order On Riju Ravindran's Plea Against Glas Trust's Aakash Rights Issue Funding Plan; Subscription Closes Today
The National Company Law Tribunal at Bengaluru on Friday deferred its order on former Byju's promoter Riju Ravindran's interim 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 (Byju's) participation in Aakash Educational Services Limited's ongoing rights issue. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada will now pronounce the...
IBBI Issues Fresh Guidelines For Appointment of Insolvency Professionals
In order to reduce administrative delays in appointing of Resolution Professionals, the Insolvency and Bankruptcy Board of India (IBBI) on Friday issued fresh guidelines to streamline how insolvency professionals (IPs) are shortlisted and appointed across tribunals from January 1, 2026. Under the new framework, only IPs with a clean record and a valid Authorisation for Assignment through the entire panel period will be considered. This means, An IP can be included in the panel only if no...
Personal Criminal Liability Of Directors U/S 138 NI Act Survives Corporate Liquidation Under IBC: Himachal Pradesh High Court
The Himachal Pradesh High Court has reiterated that liquidation of a company under the IBC does not shield its directors from personal criminal liability in cheque bounce cases under Section 138 of the Negotiable Instruments Act, 1881(“N.I Act”) “15. ….Therefore, the orders passed by the learned Trial Court ordering the continuation of the proceedings against accused nos. 2 and 3 cannot be faulted.” Justice Rakesh Kainthla dismissed two petitions filed under Section 482 CrPC by...
NCLT Approves Piramal Fund's Move to Set Off Losses With Rs 200-Crore Securities Premium
The National Company Law Tribunal at Mumbai on Monday approved Piramal Fund Management Pvt. Ltd.'s plan to utilise Rs 200 crore (Rupees Two Hundred Crore Only) from its Securities Premium Account to wipe out accumulated losses, clearing the company's capital-reduction proposal under the Companies Act. A coram of Judicial Member KR Saji Kumar and Technical Member Anil Raj Chellan recorded that “neither any objector has come before this Tribunal to oppose the Scheme nor has any party controverted...
Security Deposit Is Not Operational Debt; Non-Refund Cannot Trigger CIRP: NCLT Delhi
The National Company Law Tribunal (NCLT) at Delhi has recently ruled that the non-refund of a contractual security deposit meant only as collateral cannot be treated as operational debt and cannot be used to initiate corporate insolvency proceedings. A coram of Judicial Member Mahendra Khandelwal and Technical Member Anu Jagmohan Singh said the security deposit paid in this case “as collateral security, held exclusively to ensure performance and execution of delivery obligations in the...
Date Of Default For Guarantors Is When Guarantee Is Invoked, Not When Loan Turns NPA: NCLT Mumbai
The National Company Law Tribunal at Mumbai has recently held that the date of default for a personal guarantor starts from the date on which the guarantee is invoked, and not from the date on which the borrower's loan account is declared a non performing asset, adding that a notice issued under the SARFAESI Act may be considered for determining this date. A coram of Judicial Member K R Saji Kumar and Technical Member Anil Raj Chellan made the finding while hearing a personal insolvency...
NCLT Mumbai Approves Times Group's Plan To Demerge Non-Publishing Businesses Into New Company
The National Company Law Tribunal (NCLT) at Mumbai on Wednesday approved Bennett, Coleman & Company Ltd's (BCCL) also knows as Times Group's proposal to demerge its non-publishing businesses into its wholly owned subsidiary, Times Horizon Pvt. Ltd. (THPL).The order was passed by coram comprising of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar which sanctioned the composite scheme of arrangement under Sections 230–232 of the Companies Act. The tribunal noted...
Pendency Of Proceedings Elsewhere No Ground For Delay; NCLT Kochi Rejects Customs' Claim Filed 787 Days Late
The National Company Law Tribunal (NCLT) at Kochi has recently held that the pendency of an appeal or any other proceeding before a different forum cannot be a valid ground for missing the strict deadlines for filing claims under the Insolvency and Bankruptcy Code (IBC), while refusing to condone a delay of 787 days by the Customs Department A coram of Judicial Member Vinay Goel and Technical Member Madhu Sinha observed, "The pendency of an appeal or other proceeding before a different forum...
Breach of Settlement Instalments Cannot Trigger Insolvency Proceedings: NCLT Kolkata
The National Company Law Tribunal (NCLT) at Kolkata has recently held that it is not a forum to recover money arising from a default in instalments under a settlement agreement, and that such a breach cannot be treated as an operational debt to trigger CIRP under the Insolvency and Bankruptcy Code. A coram of Judicial Member Bidisha Banerjee and Technical Member Siddharth Mishra dismissed the petition filed by a contractor who had sought to initiate insolvency proceedings against...
NCLT Bengaluru Reserves Order On Riju Ravindran's Plea Against Glas Trust's Aakash Right Issue Funding Plan
The National Company Law Tribunal (NCLT), Bengaluru, on Wednesday reserved its order on an interim plea sought by Riju Ravindran, former promoter of Think and Learn Pvt Ltd (Byju's), challenging the Committee of Creditors' (CoC) approval of a Compulsorily Convertible Debenture (CCD) structure proposed by Glas Trust to fund TLPL's participation in Aakash Educational Services Ltd's (AESL) ongoing rights issue.The matter was heard by a coram comprising Judicial Member Sunil Kumar Aggarwal, and...