IBC
NCLAT Upholds Gujarat VAT Dept As Secured Creditor In Sterling Lam Insolvency; Says Statutory Charge Under GVAT Act Creates Security Interest
The National Company Law Appellate Tribunal (NCLAT), Principal Bench at New Delhi, has upheld the National Company Law Tribunal (NCLT) Ahmedabad's order directing that the Gujarat State Tax Department (Department) be treated as a secured creditor in the insolvency proceedings of Sterling Lam Limited (Sterling Lam), the corporate debtor. The NCLAT affirmed that the statutory charge created by “operation of law” under Section 48 of the Gujarat Value Added Tax Act, 2023 (GVAT Act),...
Debt Arising Out of Optionally Fully Convertible Debentures Needs Case-by-Case Evaluation: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Chennai recently (November 10) held that since Optionally Fully Convertible Debentures (OFCDs) are part debt and part equity instruments, the exact liability arising from them should be determined after evaluating each situation separately.The bench, comprising Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain, was hearing an insolvency appeal filed by four personal guarantors of liquidated realty company JBM Homes...
Bankruptcy Proceedings Can Be Initiated Against Foreign Citizen Acting As Personal Guarantor: NCLT Hyderabad
The National Company Law Tribunal, Hyderabad Bench-II, has admitted the bankruptcy proceedings against Shri Yarlagadda Madhu Mohan, a personal guarantor and a US citizen, under Sections 121 and 123 of the IBC after his failure to submit a repayment plan. “……… Section 3(23) merely defines the term “person” to include “a person resident outside India.” It does not create any exception for foreign citizens, as erroneously inferred by the Respondent,” the bench observed. Further, the...
Cab-EEZ Reaches Settlement With Tata Power EV On Rs 1.9 Crore Debt Over Unmanned EV Charging Services, NCLAT Told
The National Company Law Appellate Tribunal (NCLAT) on Friday was informed that Cab-EEZ Infra Tech Ltd. and Tata Power EV Charging Solutions Ltd. have reached a settlement in the insolvency proceedings pending before the National Company Law Tribunal (NCLT) Mumbai against the electric ride hailing company. Recording the development, a bench of Chairperson Ashok Bhushan and Technical Member Barun Mitra disposed of Cab-EEZ's appeal against the insolvency appeal. Counsel for Cab-EEZ submitted...
Can Telecom Spectrum License Be Subjected To Insolvency Proceedings? Supreme Court Reserves Judgment
The Supreme Court on Friday reserved judgment in a batch of appeals challenging the National Company Law Appellate Tribunal's decision in the insolvency proceedings of Aircel and Reliance Communications holding that spectrum can be subjected to insolvency/liquidation proceedings being an intangible asset of the Corporate Debtor.The NCLAT further held that the right to use the spectrum can only be transferred in the CIRP only after clearing the spectrum-related dues to the Government.A...
NCLT Hyderabad Orders Liquidation of Maharashtra-Based Pioneer Gas Power Limited
The National Company Law Tribunal (NCLT) at Hyderabad has recently ordered the liquidation of Maharashtra-based Pioneer Gas Power Limited after all attempts to revive the company through the insolvency process failed. A bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri, in an order passed on November 11, allowed the liquidation application filed by Bright Star Resolution Professionals LLP, acting as the Resolution Professional for Pioneer Gas Power Limited.The...
NCLT Mumbai Summons Bank Of India Chairperson Over Delays In BE Billimoria Insolvency Revival
The National Company Law Tribunal at Mumbai recently summoned the Chairperson of Bank of India, MR Kumar to appear in person after expressing serious dissatisfaction over the bank's conduct in handling settlement funds and the delay in reviving insolvency proceedings against BE Billimoria & Company Limited. A coram of the Judicial Member Ashish Kalia and Technical Member Sanjiv Dutt, in an order passed on October 15 observed that the explanations given by the Bank were “unsatisfactory and...
Homebuyers With Settled Claims Can't Seek Reconstitution Of Committee Of Creditors: NCLT Kochi
The National Company Law Tribunal (NCLT) at Kochi on Wednesday said that homebuyers whose claims have been settled through the insolvency resolution process lose their stake in the corporate debtor, Samson and Sons Builders and Developers Pvt. Ltd., and therefore cannot seek the reconstitution of the Committee of Creditors (CoC). The dispute arose from a plea filed by the Nova Castle Apartment Owners' Association and the Sanctuary Apartment Owners' Association- homebuyers of two project...
NCLT Kochi Directs Deposit Of Due Security And Revenue Shares In Jatayupara Tourism Project Escrow Account
The National Company Law Tribunal, Kochi Bench, has directed the Guruchandrika Builders & Property Private Limited, Mr. Rajeev Vidyadharan, and Mrs. Padmam Rajeev, proprietor of Nanma Eatery (formerly Jatayu Merchandise), to deposit the sum of Rs. 38,32,744, into the project's common pool account. An agreement dated January 1, 2024, under which Respondents Rajeev Vidyadharan and Mrs. Padmam Rajeev agreed to deposit security and pay 20% of gross revenue as dues to Guruchandrika ...
Acknowledgment Of Debt By Principal Borrower Binds Corporate Guarantor: NCLT Delhi Admits NARCL's Insolvency Application Against Era Infra
The National Company Law Tribunal (NCLT), New Delhi Bench on 4th November 2025, admitted an insolvency application filed by the National Asset Reconstruction Company Limited (NARCL) against Era Infrastructure (India) Limited (EIL), the corporate debtor and corporate guarantor, observing that the corporate guarantee executed by EIL in favour of Bank of India was enforceable and the insolvency application was filed within the prescribed limitation period as per law. A bench of Judicial...
NCLT Kochi Denies Restoration Of Company Name Due To Prolonged Dormancy And Non-Compliance With Statutory Filing
The National Company Law Tribunal (NCLT), Kochi Bench, has denied the restoration of the company name due to prolonged dormancy and non-compliance with statutory filings. The bench of Judicial Member Vinay Goel and Technical Member Madhu Sinha observed, “The mere intention expressed by the Appellant in its appeal to regularize filings or revive the business at this stage cannot be a ground to restore the name of a company that has remained completely dormant since incorporation.” ...
