LiveLawBiz IBC Weekly Digest: April 27 To May 2

SUPREME COURT SBI Back In Reliance Infratel CoC As Supreme Court Sets Aside NCLAT Order Excluding Consortium Lenders Case Title : STATE BANK OF INDIA AND ORS. Versus DOHA BANK Q.P.S.C. AND ANR Case Number : C.A. No. 8527/2022The Supreme Court of India has allowed the appeal filed by the State Bank of India against an October 14, 2022 order of the National Company Law Appellate Tribunal, which had upheld the exclusion of SBI and other lenders from the Committee of...

Telangana High Court Holds IBC Moratorium Cannot Defeat Arbitral Proceedings, Allows Kaizen Power Appeal

The Telangana High Court on 15 April set aside a Commercial Court order that had vacated interim protection granted to Kaizen Power Limited in relation to its lease dispute with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC). A Division Bench of Justices Moushumi Bhattacharya and Gadi Praveen Kumar held that the Commercial Court proceeded on an erroneous understanding of the effect of the IBC moratorium and allowed the appeal, directing that arbitration proceedings be resumed...

“This Will Be His Last Assignment”: Supreme Court Raps Xalta Foods RP For Defying Court's Possession Order

The Supreme Court of India on Monday directed the Superintendent of Police, Hapur, to break open locks and hand over complete possession of warehouse premises to landlord Prerna Singh, coming down heavily on Naveen Kumar Jain, the Resolution Professional (RP) of Xalta Food and Beverages Pvt Ltd and holding his conduct "contemptuous." A bench of Justices J.B. Pardiwala and Vijay Bishnoi issued immediate directions after being told that despite earlier orders, only partial possession had been...

NCLAT Rejects Insolvency Plea Over Disputed, Time-Barred Advance Refund Claim

The National Company Law Appellate Tribunal (NCLAT) at Chennai, has dismissed an appeal filed by Geeta Sugars against The Indian Sugars and Refiners Ltd., upholding the rejection of its insolvency plea over a claim for a refund of advance paid for sugar, where the remaining quantity was not supplied. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain held that the claim was both disputed and time-barred. Dealing first with the issue of limitation,...

NCLAT Dismisses Vedanta's Appeal Against Approval Of Adani Enterprises' Plan For Jaiprakash Associates

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Monday dismissed Vedanta Limited's appeal challenging the approval of Adani Enterprises Limited's resolution plan for Jaiprakash Associates Limited. The tribunal upheld the Committee of Creditors' decision despite Vedanta's higher bid. A bench of Chairperson Ashok Bhushan and Technical Member Braun Mitra affirmed the March 17 order of the Allahabad bench of the National Company Law Tribunal, which had approved Adani Enterprises...

Madhya Pradesh HC Stays Arrest In Recovery Case Arising From RERA Order Against Insolvency-Bound Developer

The Madhya Pradesh High Court at Jabalpur has recently stayed the execution of an arrest warrant in recovery proceedings arising from a RERA order against a real estate developer undergoing insolvency, noting that enforcing civil jail despite a subsisting moratorium would cause serious prejudice.A bench of Justice Sanjeev S. Kalgaonkar observed, “The petitioner would be seriously prejudice, if the order regarding civil jail is executed in furtherance of the warrant of arrest despite there...

NCLT Ahmedabad Holds SARFAESI Notice Validly Invokes Guarantee But Dismisses Personal Insolvency Plea As Abuse

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has held that a SARFAESI demand notice can validly invoke a personal guarantee but dismissed a personal insolvency plea filed thereafter, finding it was not intended for insolvency resolution.The bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed this while examining a demand notice dated August 18, 2025 issued by Canara Bank under Section 13(2) of the SARFAESI Act. “Invocation of guarantee is a...

NCLT Ahmedabad Bars MIDC From Demolishing Structures on K-Lifestyle's Dombivli Plots During CIRP

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has restrained the Maharashtra Industrial Development Corporation (MIDC) from taking coercive action against K-Lifestyle & Industries Ltd during its Corporate Insolvency Resolution Process (CIRP). It held that demolition and lease termination cannot proceed during the subsistence of the moratorium. A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma said: “The contention of the Respondent that the...

Lease Termination, Eviction During IBC Moratorium Of Gujarat Hydrocarbons And Power SEZ Invalid: Gujarat HC

The Gujarat High Court has dismissed an appeal by Gujarat Industrial Development Corporation and upheld the quashing of its decision to terminate a lease and evict Gujarat Hydrocarbons and Power SEZ Ltd during insolvency proceedings. The court held that both the termination of the lease and the eviction action were “non est, illegal and bad in law” as they were taken during the moratorium period. “Given the object of Section 14(1) of the IBC' 2016, in the facts of the present case, neither the...

Supreme Court Continues Symbolic Possession Of Tower-5 By RP In Morpheus Bluebell CIRP

The Supreme Court of India has directed that the interim arrangement permitting only symbolic possession of Tower-5 by the Resolution Professional of the Morpheus Bluebell project developed by Morpheus Prodevelopers Pvt Ltd shall continue. The company is undergoing the Corporate Insolvency Resolution Process (CIRP) in the Morpheus Bluebell project. The Court was hearing an appeal filed by SGN Universal Construction Company Private Limited against the National Company Law Appellate Tribunal's...

NCLAT Upholds Rejection Of Prospective Homebuyer's Plea To Join Koncept Nirman's CIRP

The National Company Law Appellate Tribunal (NCLAT), Chennai, has held that a prospective homebuyer who relied on an unregistered agreement to purchase a flat from Koncept Nirman Private Limited cannot intervene in insolvency proceedings initiated against the company by a financial creditor. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain observed, “In the instant case, the Appellant herein doesn't owe a financial debt, at the behest of the...

Pollution Control Authorities Cannot Take Coercive Steps During IBC Moratorium: NCLT Bengaluru

The National Company Law Tribunal (NCLT) in Bengaluru has recently held that pollution control authorities cannot take coercive steps that disrupt the operations of a corporate debtor during the moratorium, even though they can continue regulatory oversight. A bench of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada held,“We are of a considered view that a distinction is required to be drawn between: Regulatory actions undertaken in public interest to ensure...