OTS Proposals By Corporate Debtor Extend Limitation Against Personal Guarantors: NCLT Ahmedabad

The National Company Law Tribunal (NCLT) Ahmedabad recently held that One Time Settlement proposals made by the borrower can amount to acknowledgment of liability and extend limitation in insolvency proceedings against personal guarantors. A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed, “The OTS proposals placed on record demonstrate acknowledgment of liability within the meaning of Section 18 of the Limitation Act, 1963. Even if such proposals were...

IBBI Circular Requiring RPs To Approach PMLA Court For ED-Attached Assets Not Retrospective: NCLT Kolkata

The National Company Law Tribunal (NCLT) at Kolkata has held that the procedural requirements under the IBBI Circular dated November 4, 2025, which provides for approaching the PMLA Special Court for restitution of attached assets, cannot be applied retrospectively to defeat or delay the relief sought in the present application during an ongoing Corporate Insolvency Resolution Process (CIRP) of Kaizen Power. A coram of Judicial Member Labh Singh and Technical Member Rekha Kantilal Shah...

Insolvency Plea Against Personal Guarantor Filed During Interim Moratorium Is Void Even if Earlier Case Is Withdrawn: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Friday held that a fresh insolvency application against a personal guarantor filed during the subsistence of an interim moratorium triggered by an earlier application under the Insolvency and Bankruptcy Code is void from the outset and cannot be validated even if the earlier proceedings are later withdrawn. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra said, “The interim moratorium in Section 96 has...

No Asset Or Repayment Assessment Needed At Admission Stage For Personal Guarantor IRP: NCLT Chennai

The Chennai National Company Law Tribunal (NCLT) on 23 March held that at the stage of admission under Section 94 of the Insolvency and Bankruptcy Code, 2016, the Adjudicating Authority need not assess the repayment capacity or sufficiency of assets of a personal guarantor. A Bench comprising Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramanian admitted the petition filed by Senthil Kumar, a personal guarantor to Biogen Fertilizers India Private Limited, seeking initiation...

NCLT Ahmedabad Relies On DRT Judgment To Prove Execution Of Personal Guarantees Despite No Originals

The National Company Law Tribunal (NCLT) at Ahmedabad recently relied on a Debt Recovery Tribunal (DRT) judgment, along with prior admissions and affidavits, to hold that the execution of personal guarantees stood proved even in the absence of original documents, observing: “It is further observed that even though the original documents are not produced, the existence and execution of the guarantee stand established from (i) the judgment of the Debts Recovery Tribunal, (ii) the admission of the...

CIRP Cannot Be Revived After Resolution Plan Approval And Liquidation: NCLAT Chennai

On 18 March 2026, the Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) held that a Corporate Insolvency Resolution Process (CIRP) cannot be revived after approval of the resolution plan and initiation of liquidation. A Bench comprising Judicial Member Sharad Kumar Sharma and Technical Member Indevar Pandey, dismissed the appeal filed by Mr. G. Madhusudhan Rao, Ex-Resolution Professional and Chairman of the Monitoring Committee of Bheema Cements Limited. The Bench observed:...

Non‑Compliance Of Form FA Cannot Defeat Insolvency Settlement Backed By CoC Approval: NCLT Chennai

On 23 March, the Chennai National Company Law Tribunal (NCLT) held that non-filing of Form FA during insolvency proceedings would not defeat a settlement where all dues were satisfied and Committee of Creditors (CoC) approval was already in place. Form FA is the prescribed application to formally request withdrawal of insolvency proceedings once the parties have reached a settlement. A Bench of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam closed the...

Penal Provisions Under IBC Require Proof Of Wilful Conduct: NCLT Indore

The Indore Bench of the National Company Law Tribunal (NCLT) on 20 March, held that Sections 70, 72, and 74 of the Insolvency and Bankruptcy Code, 2016, cannot be invoked without clear and cogent evidence of wilful intent or fraudulent conduct. A Bench comprising Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta rejected an application seeking penal action against the erstwhile management of K.S. Oils Ltd. The Bench observed: “It is observed that the imposition of...

Parties Cannot Reopen Claims Invoking Tribunal's Review Powers After Plan Is Approved: NCLT Indore

The Indore Bench of the National Company Law Tribunal (NCLT) on 19 March 2026 held that once a resolution plan is approved, parties cannot reopen claim classification by invoking the Tribunal's inherent powers under Rule 11 of the NCLT Rules, 2016. A Bench comprising Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta dismissed a review application filed by the Employees' Provident Fund Organisation (EPFO), which sought to modify the order approving the resolution plan...

Acknowledgment Of Debt By Corporate Debtor Is Acknowledgment By Guarantor, Extends Limitation: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has recently held that acknowledgment of debt in a corporate debtor's financial statements extends the limitation period against personal guarantors, setting aside an order of the National Company Law Tribunal (NCLT) which had dismissed insolvency proceedings as time-barred. “We note that an acknowledgement made by a company in its balance sheet has the effect of extending the period of limitation for the purpose of Section 18 of the...

NCLAT Flags Petty Litigation By Income Tax Dept, Calls For CBDT Policy Action In IBC Case

Calling the appeal a “perfect example for wastage of valuable public resources," the National Company Law Appellate Tribunal (NCLAT) dismissed an appeal filed by the Income Tax Department in an insolvency matter and directed that the issue be brought to the notice of the Chairperson of the Central Board of Direct Taxes (CBDT) for appropriate policy action against such litigation. The appellate tribunal made the observation while upholding the approval of the resolution plan of Solar Voltaic...

After CIRP Begins, IRP Represents Corporate Debtor; Bombay HC Dismisses Suspended Director's Writ Over NCLT Order

The Bombay High Court on Thursday dismissed writ petitions filed by a suspended director of Gokul Sugar Industries Ltd and a financial creditor challenging an order of the National Company Law Tribunal refusing withdrawal of insolvency proceedings. The court held that after commencement of the corporate insolvency resolution process, the corporate debtor is represented by the interim resolution professional and not by the suspended management. The court held that no violation of principles of...