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...

Limitation For Continuing Guarantee Runs From Enforceable-Demand Notice, Not Execution: NCLAT New Delhi

The National Company Law Appellate Tribunal at New Delhi on 25 March, held that in the case of a continuing guarantee enforceable on demand, the limitation under Section 95 of the Insolvency and Bankruptcy Code, 2016, runs from the date of the enforceable-demand notice and not from the date of execution of the guarantee document. A Bench comprising Justice N. Seshasayee and Technical Members Arun Baroka and Indevar Pandey observed:“It is far too fundamental a point that where a deed...

NCLAT New Delhi Upholds NCLT Order Cancelling Anil Syal Property Auction Over Procedural Lapses

The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 25 March, held that the auction of Anil Syal's 50% undivided share in a Uday Park residential flat was procedurally flawed due to inadequate notice, undervaluation, and lack of stakeholder consultation, justifying fresh valuation and re‑auction. A Bench of Judicial Member Justice N Seshasayee and Technical Members Arun Baroka and Indevar Pandey dismissed an appeal filed by successful bidder Akshat Gupta. It held: ...

Limitation To File Appeal Under IBC Begins From Date Of Pronouncement In Open Court: NCLAT New Delhi

The Principle Bench of the National Company Law Appellate Tribunal (NCLAT), at New Delhi on 25 March, held that the limitation period to file an appeal under Section 61(2) of the Insolvency and Bankruptcy Code, 2016, begins from the date of the pronouncement of the order in open court, not from the date of its uploading on the NCLT portal.A Bench comprising Justice N. Seshasayee and Technical Member Arun Baroka clarified that uploading constitutes only an administrative act. They held:“Uploading...

Extinguishment Of Receivables Through Accounting Entries Can Amount To Preferential Transaction Under IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Wednesday held that extinguishment of receivables through accounting entries can amount to a transfer of property under the Insolvency and Bankruptcy Code (IBC), and where such adjustments benefit related parties and reduce the corporate debtor's asset pool, the transaction may be treated as preferential under Section 43 of the Code. The bench of Judicial Member Justice N. Seshasayee and Technical Members Arun Baroka and Indevar...

Tribunal Need Not Examine Bank's Reasons For Rejecting OTS Once Debt And Default Are Established: NCLAT

The National Company Law Appellate Tribunal at Chennai has recently held it is not required to examine the reasons behind a bank's decision to reject a one-time settlement proposal while deciding whether insolvency proceedings should continue, so long as debt and default are established. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain made the observation while dismissing an appeal filed by the suspended directors of Anand Bharathi Fertilisers...