IBBI Advises Insolvency Professionals To Seek ED-Attached Assets To Boost Recoveries

The Insolvency and Bankruptcy Board of India (IBBI), noting that assets of entities in insolvency are often under attachment by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), has issued a circular guiding insolvency professionals on seeking restitution of such assets. In a circular issued on November 4, addressed to all registered insolvency professionals, the board observed that restitution of attached assets can significantly enhance the value of...

Penalty Imposed By SEBI After Commencement Of Insolvency Cannot Be Admitted As Claim During CIRP: NCLT Mumbai

The NCLT, Mumbai Bench, comprising Anil Raj Chellan (Member-Technical) and K.R. Saji Kumar (Member-Judicial), has held that the penalty imposed by the SEBI post insolvency commencement cannot be admitted as a claim during CIRP. The CIRP of the corporate debtor (Medybiz Private Limited) was going on, and a moratorium was in effect. The last date of filing the claim was 22.08.2024; however, on 22.08.2024, SEBI imposed a penalty of Rs. 25 Cr. on the corporate debtor. The resolution...

Use Of Documents Scanned Through Banned 'CamScanner' App Not Grounds To Reject Section 7 IBC Petition: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench, comprising K.R. Saji Kumar (Member-Judicial) and Anil Raj Chellan (Member-Technical), has dismissed an application challenging the maintainability of the section 7 IBC petition based on the alleged inadmissibility of the photocopies/documents scanned via the banned “CamScanner” app. The present application was filed by the corporate debtor challenging the maintainability of the Section 7 application on the grounds of the...

Unpaid Salary of Whole-Time Director Constitutes Operational Debt, Can trigger CIRP: NCLT, Chennai

The National Company Law Tribunal (NCLT) at Chennai recently held that the unpaid salary dues of a whole-time director qualify as an operational debt, allowing a plea by a director seeking recovery of his unpaid salary of Rs 10.50 lakh. In an order passed on October 10, 2025, a bench comprising Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy held that being a director does not automatically bar him from filing an insolvency application as long as debt and...

NCLT Orders Dissolution of Groww Promoter Company Following Voluntary Liquidation

The National Company Law Tribunal (NCLT) at Bengaluru has ordered the dissolution of Groww AA Private Limited, a company promoted by the founders of the online investment platform Groww. This comes after the company filed a plea for voluntary liquidation, completed all required legal and financial formalities, and distributed its assets to shareholders.The fintech platform Groww (Billionbrains Garage Ventures Ltd), founded in 2016, has opened its Initial Public Offering today.In an order passed...

NCLT Mumbai Initiates Insolvency Proceedings Against Pune-Based EV Startup Tork Motors

The NCLT Mumbai has admitted an insolvency plea against Pune-based EV start-up Tork Motors, once backed by the late industrialist Ratan Tata, Bharat Forge, and Ola's Bhavish Aggarwal over a debt of Rs. 1.29 crore. It appointed Anagha Anasingaraju as the Interim Resolution Professional (IRP) until a Resolution Professional is appointed.The move follows a petition by Unaprime Investment Advisors, which claims that the company owes over Rs 1 crore in fees for professional advisory services The...

NCLT Allows Former Promoters To Pursue Oppression & Mismanagement Case Against Indian Commodity Exchange

The National Company Law Tribunal (NCLT) at Ahmedabad has allowed a plea filed by a former promoters and shareholders of Indian Commodity Exchange Limited (ICEX) to pursue a case alleging oppression and mismanagement against the commodity derivatives exchange.They had sought a waiver of the requirement that shareholders must hold at least 10 percent of a company's issued share capital to file such a petition under the Companies Act, 2013. The plea was moved by Kailash Ramkishan Gupta, a former...

Independent Directors Cannot Automatically Escape Liability For Fraud Under IBC: NCLT Mumbai

Independent directors cannot automatically escape liability for a company's alleged fraudulent transactions under Insolvency and Bankruptcy Code, the National Company Law Tribunal (NCLT), Mumbai has ruled.The tribunal said that simply holding the title of an independent or non-executive director does not protect a person from scrutiny under insolvency law without examining their culpability in the alleged fraudulent affairs of the company. In an order passed on October 31 by a coram of...

Byju's Insolvency | Supreme Court Refuses To Interfere With NCLAT Order Allowing Byju's Subsidiary Aakash To Proceed With Rights Issue

The Supreme Court on Monday refused to interfere with an order of the National Company Law Appellate Tribunal (NCLAT) which had allowed Aakash Educational Services Ltd., a subsidiary of Byju's (Think and Learn Pvt. Ltd.), to proceed with its proposed rights issue.A bench of Justice PS Narasimha and Justice Atul Chandurkar dismissed two appeals filed by US-based lender GLAS Trust Company LLC – representing Byju's US creditors, and Shailendra Ajmera – the Insolvency Resolution Professional,...

Delay Condonable When Composite Appeal Was Filed Within Limitation But Refiled Separately After Registry's Objection: NCLAT

The National Company Law Appellate Tribunal (NCLAT), New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has allowed an appeal where a composite appeal was filed within limitation, but defects were raised by the registry necessitating re-filing as separate appeals, which was beyond the period of 45 days. Initially the appellant filed a single composite appeal challenging two different orders passed by the NCLT within the limitation period of 30...

NCLT Kochi Approves Capital Reduction Of Cochin Aircraft Maintenance Company Ltd

The National Company Law Tribunal (NCLT) Kochi bench of Smt. Madhu Sinha (Member Technical) and Shri Vinay Goel (Member Judicial) allowed a petition filed by M/s. Cochin Aircraft Maintenance Company Limited under section 66 of the Companies Act seeking reduction of paid up share capital holding that no creditors or employees were affected by such reduction and the proposal was a commercial sound decision. It held that “the proposed reduction of paid-up capital is justified on commercial...

Bank Advancing Loans To Homebuyers Can't Claim Status Of Financial Creditor Against Builder In Absence Of Undertaking To Repay: NCLAT

The National Company Law Appellate Tribunal (NCLAT), New Delhi bench of Justice Ashok Bhushan and Mr. Arun Baroka (Technical Member) held that a bank disbursing loans to homebuyers cannot be treated as a financial creditor in the Corporate Insolvency Resolution Process (CIRP) of the builder, since the loan amount was sanctioned to the homebuyers and not to the corporate debtor. The Tribunal further noted that the builder had not undertaken to repay the amount to the bank in the event of ...