After NCLAT Member Recuses Over 'Higher Judiciary' Influence, Tribunal Sets Aside CIRP Order, Imposes ₹10 Lakh Cost

In a case that was transferred to the Principal Bench after a controversy over alleged attempts to influence a judicial member, the National Company Law Appellate Tribunal (NCLAT) has set aside the admission of insolvency proceedings against KLSR Infratech Ltd and dismissed a Rs 3.79-crore claim filed by A.S. Met Corp Pvt Ltd, holding that a genuine dispute existed between the parties and imposing costs of Rs 10 lakh on the operational creditor. The order was passed by the NCLAT Principal Bench...

NCLT Hyderabad Admits Insolvency Plea Against Personal Guarantor, Says Stamp Duty Defect On Guarantee No Bar

The National Company Law Tribunal (NCLT) at Hyderabad has recently reiterated that an objection based on insufficient stamp duty on a guarantee deed cannot defeat proceedings under Section 95 of the Insolvency and Bankruptcy Code, admitting a personal insolvency petition filed by Bank of Maharashtra against Nukala Savithri, personal guarantor to SVSVS Projects Private Limited. A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri heard the petition filed for initiation of...

CIRP Must Remain Confined To Single Project, Cannot Affect Other Projects: NCLAT New Delhi

The Principal Bench of the National Company Law Appellate Tribunal (NCLAT) at New Delhi, on 20 March 2026 held that a Corporate Insolvency Resolution Process (CIRP) initiated by the allottees of a single real estate project must stay confined to that project and cannot extend to other projects of the developer.A Bench comprising Judicial Member Justice Ashok Bhushan and Technical Member Barun Mitra disposed of an appeal filed by the suspended director of Raheja Developers Ltd., Navin M. Raheja,...

NCLAT Refuses To Stay Adani's Rs 15,000 Cr Resolution Plan For JAL on Vedanta's Challenge

The National Company Law Appellate Tribunal (NCLAT), Delhi, on Tuesday refused to stay the implementation of Adani's ₹15,000-crore resolution plan for Jaiprakash Associates Limited (JAL) while hearing a plea by the Vedanta Group challenging the approval of the plan by the Allahabad Bench of the National Company Law Tribunal (NCLT). The bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra said that “the implementation of the resolution plan shall go on, however, the action...

Supreme Court Rejects Recall Plea In Disposed SLP, Says Court Cannot Compare Rival Offers Before CoC Under IBC

The Supreme Court on Monday dismissed a miscellaneous application seeking recall of its February 25, 2025 order dismissing an SLP in a dispute over an agreement to sell a property of a corporate debtor, holding that a disposed Special Leave Petition cannot be reopened on the basis of subsequent developments in insolvency proceedings or rival financial offers before the Committee of Creditors.A bench of Justices Vikram Nath and Sandeep Mehta emphasized that the court cannot sit in appeal over the...

NCLAT Sets Aside NCLT Order, Holds Insolvency Plea By Sole Proprietorship Maintainable Against Birla Jewels

The National Company Law Appellate Tribunal (NCLAT) Principal Bench at New Delhi has recently allowed an appeal filed by a sole proprietorship against rejection of its insolvency plea, holding that a Section 9 application under the Insolvency and Bankruptcy Code, 2016, is maintainable at the instance of a proprietorship concern. The tribunal relied on earlier precedent to hold that proprietorship firms are competent to initiate corporate insolvency resolution process. Setting aside an order...

NCLT Indore Rejects Suspended Management Plea To Join GEI Power Resolution Plan Approval Proceedings

The Indore Bench of the National Company Law Tribunal (NCLT) has rejected a plea by the suspended management of GEI Power Ltd. seeking to take part in the proceedings where the Tribunal is considering approval of the company's resolution plan, holding that former management cannot intervene at this stage after the lenders have already approved the plan. Refusing the request, the tribunal said that allowing such participation would go against the limited role of the court at the plan approval...

Liquidation Can Be Recalled Using Inherent Powers Where Debt Is Settled: NCLT Hyderabad

The Hyderabad Bench of the National Company Law Tribunal (NCLT) on 6 March, held that even though the Insolvency and Bankruptcy Code (IBC), 2016, does not expressly provide for withdrawal of liquidation proceedings, the Tribunal can exercise its inherent powers in appropriate cases to secure the ends of justice. The Bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri recalled the liquidation process against Ravi Cranes & Movers Ltd., preventing the liquidation...

Moratorium Doesn't Extinguish The Criminal Liability In Terms Of 32A When The Plan Is Not Approved.

The Delhi High Court on 17 March 2026 held that Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC) only creates a temporary moratorium and does not extinguish criminal liability. Protection under Section 32A is available only after the approval of a resolution plan that brings about a qualifying change in management. The Bench of Justice Chandrasekharan Sudha dismissed the plea of JAS Infrastructure and Power Ltd. seeking suspension of sentence in a coal block allocation case. The...

Mere Pendency Of Arbitration Does Not Constitute Realizable Asset Or Extinguish Liability: NCLT Chandigarh

The National Company Law Tribunal (NCLT) at Chandigarh recently held that mere pendency of arbitration cannot be a ground to defer insolvency proceedings once debt and default are established. A bench of Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh while admitting a Tollways company to CIRP observed, “Mere pendency of arbitration does not constitute a realizable asset or extinguish an admitted financial liability. In contrast, the Financial Creditor has...

NCLAT Upholds Rejection Of Belated Higher Bid In Hema Automotive Liquidation, Says Fairness Not One-Way Street

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently observed that fairness in insolvency asset sales cannot be viewed from the perspective of a single bidder alone, while dismissing Sunrise Industries' appeal seeking consideration of its higher bid submitted after the deadline in the liquidation process of Hema Automotive Pvt. Ltd.The bench of Judicial Member Justice N Seshasayee and Technical Member Indevar Pandey observed that,“Fairness is a constant that works...

LiveLawBiz IBC Weekly Digest: March 15 To March 21

SUPREME COURT Supreme Court Allows Set-Off Defence Against Ujaas Energy Though Counterclaim Extinguished Under IBCCase Title : UJAAS ENERGY LTD vs WEST BENGAL POWER DEVELOPMENT CORPORATION LTD. Case Number : SLP (C) 29651 OF 2024 CITATION : 2026 LLBiz SC 122The Supreme Court on Friday allowed West Bengal Power Development Corporation Ltd. to raise a plea of set-off as a defence in arbitration proceedings against Ujaas Energy Ltd., even though its counterclaim...