IBC
NCLAT New Delhi Upholds CIRP Against Simbhaoli Sugar, Holds Farmers' Claims Must Be Considered
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 13 July upheld the admission of Corporate Insolvency Resolution Process (CIRP) against Simbhaoli Sugar Limited, holding that the insolvency proceedings were initiated independently of the Reserve Bank of India (RBI) circular later struck down by the Supreme Court. Officiating Chairperson Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra dismissed appeals filed against the order of the Allahabad Bench of the...
Acknowledged Interest On ICDs Forms Part Of Financial Debt Under IBC: NCLAT New Delhi
On 13 July, the New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) held that acknowledged interest on Inter Corporate Deposits (ICDs) forms part of “financial debt” under the Insolvency and Bankruptcy Code, 2016 (IBC). Judicial Member Justice N Seshasayee, along with Technical Members Indevar Pandey and Arun Baroka, allowed an appeal filed by Wild Dreams Trading Company Pvt. Ltd. against the Chandigarh Bench of the National Company Law Tribunal (NCLT), which had rejected its...
Pre-2016 DRT Recovery Certificate Cannot Trigger Insolvency Under Presidency Towns Insolvency Act: Supreme Court
The Supreme Court on Monday held that a recovery certificate issued by a Debt Recovery Tribunal (DRT) before the 2016 amendment to the Recovery of Debts and Bankruptcy Act cannot be treated as a decree or order for initiating insolvency proceedings under the Bombay's Presidency Towns Insolvency Act, 1909. Dismissing HDFC Bank's appeal, the court observed that Parliament recognised such equivalence only through the 2016 amendment. A bench of Justices Dipankar Datta and Satish Chandra Sharma...
CIRP Not Maintainable Against Company Struck Off From Register: NCLT Mumbai
The Mumbai Bench of the National Company Law Tribunal (NCLT) has reiterated that a Corporate Insolvency Resolution Process (CIRP) cannot be initiated against a company whose name has already been struck off from the register of companies. It observed that once the company's certificate of incorporation is cancelled, it no longer remains a "corporate person" under the Insolvency and Bankruptcy Code. A bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar dismissed Adamji...
Equity Investment Without Repayment Obligation Does Not Qualify As Financial Debt: NCLAT New Delhi
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 1 July held that an amount advanced under a Subscription and Shareholders Agreement (SSA) towards purchase of equity shares and convertible warrants does not qualify as “financial debt” under the Insolvency and Bankruptcy Code, 2016 (IBC), unless the agreement creates a repayment obligation. Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Ajai Das Mehrotra dismissed Metamorphosis Trading LLP's appeal...
Delayed Homebuyer Claim Cannot Be Rejected When RP Failed To Verify Records: NCLAT New Delhi
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 30 June held that a genuine homebuyer cannot be denied the benefit of an approved resolution plan merely because the homebuyer filed the claim belatedly, when the delay occurred due to the Resolution Professional's (RP) failure to identify and notify the homebuyer despite the corporate debtor's records reflecting the allotment. Judicial Member Justice N Seshasayee and Technical Members Arun Baroka and Indevar Pandey...
LiveLawBiz IBC Weekly Digest: July 6 - July 11, 2026
HIGH COURT Suit Filed During IBC Interim Moratorium Attracts Rejection Of Plaint Provision Under CPC: Calcutta High Court Case Title : Ambootia Tea Exports Private Limited & Ors. Vs. Sri Rani Sati Abasan Private Limited Case Number : AD COM 3 of 2026 CITATION : 2026 LLBiz HC (CAL) 167The Calcutta High Court has held that a court cannot entertain a suit instituted during the operation of an interim moratorium under the Insolvency and Bankruptcy Code where the statutory bar applies. It...
NCLT Delhi Says Transfer Plea Cannot Be Allowed 'At Mere Asking,' Dismisses Ex-Promoter's Application
The Principal Bench of the National Company Law Tribunal (NCLT), New Delhi, has dismissed a transfer application filed by the ex-promoter of Nimitaya Hotel Resorts Ltd. seeking to move the company's insolvency proceedings from the Special Bench to another bench. The tribunal imposed costs of ₹50,000 after finding that the applicant had concealed material facts. The order was passed by NCLT President Justice Anupinder Singh Grewal who observed, “A transfer application cannot be allowed at...
NCLT Delhi Admits Indian Overseas Bank's CIRP Plea Against Mhow Ghatabill Toll Roads Over ₹117.74 Crore Default
The Principal Bench of the National Company Law Tribunal (NCLT), New Delhi, has admitted an insolvency petition filed by Indian Overseas Bank against infra company Mhow Ghatabill Toll Roads Pvt. Ltd. over an alleged default of ₹117.74 crore.The tribunal found that the bank had established the existence of a financial debt and default in repayment and that the application was filed within the prescribed limitation period. A bench of President Justice Anupinder Singh Grewal and Technical Member...
NCLT Admits Insolvency Plea Against The Moms Co. Parent Over ₹1.32 Crore Dues
The Delhi Bench of the National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by Bjain Pharmaceuticals Pvt. Ltd. against Amishi Consumer Technologies Pvt. Ltd., the company behind the personal care brand The Moms Co., which manufactures personal care products over an operational debt of ₹1.32 crore. The bench of Judicial Member Justice Jyotsna Sharma and Technical Member Anu Jagmohan Singh while admitting the plea, observed that there was no pre-existing dispute as...
NCLT Delhi Admits CIRP Plea, Holds Advance Paid For Unsupplied Goods Qualifies As Operational Debt
The Delhi Bench of the National Company Law Tribunal (NCLT) has admitted insolvency proceedings against Swadesh Green Infra Limited after holding that an advance payment made under a commercial arrangement for the supply of goods qualified as an operational debt. The tribunal found that the supplier had failed to deliver the remaining goods. A bench of Judicial Member Bachu Venkat Balaram Das and Technical Member Ravindra Chaturvedi observed: “Thus, the advance payment was not a standalone...
Companies Act, DPDP Act Cannot Fasten Liability On Third-Party Cloud Service Provider Under IBC: NCLT Bengaluru
The National Company Law Tribunal (NCLT) at Bengaluru has ruled that the Companies Act, 2013 and the Digital Personal Data Protection Act, 2023 cannot be relied upon to fasten liability on a third-party cloud service provider where there is no direct legal or contractual nexus with the corporate debtor. A bench of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada held that Amazon Web Services India Pvt. Ltd. (AWS India) and its officials could not be directed to...