IBC
Property Over Which Corporate Debtor Has No Subsisting Right Cannot Form Part Of Its CIRP: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that a corporate debtor cannot include in its Corporate Insolvency Resolution Process (CIRP) an immovable property over which it has no subsisting legal right. Setting aside an order of the National Company Law Tribunal (NCLT), Kolkata, the appellate tribunal allowed Calcutta Pinjrapole Society's plea to exclude its property from the CIRP of R.S. Iron Industries Pvt. Ltd. A bench of Chairperson Justice Ashok...
Settlement Restructuring Payment Timelines Does Not Change Nature Of Operational Debt: NCLT Chennai
The National Company Law Tribunal (NCLT) at Chennai has held that a settlement agreement that merely restructures repayment or acknowledges an existing liability does not extinguish or alter the original character of the debt. A tribunal comprising Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam observed that simply renegotiating a payment timeline does not create a completely new and independent debt. “Under Indian law, a settlement agreement that merely restructures...
Interim Stay Of CIRP Admission Does Not Extinguish Moratorium Unless Specifically Vacated: NCLAT
The tribunal further held that a second CIRP cannot be initiated against the same corporate debtor during the subsistence of an earlier CIRP and moratorium
NCLAT Delhi Holds Fraudulent Account Transfer Not Financial Debt Under IBC, Dismisses Progfin's Appeal
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 30 June held that the mere disbursal of loan funds into a fraudulent bank account does not, by itself, create a binding financial debt under the Insolvency and Bankruptcy Code, 2016. Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra dismissed Progfin Pvt. Ltd.'s appeal and upheld the National Company Law Tribunal's rejection of its Section 7 application against Ganesh Benzoplast Ltd. (GBL). The Bench...
Pending Civil Suits Cannot Be Dismissed Merely Because Insolvency Proceedings Begin Later: Calcutta High Court
The Calcutta High Court has recently held that a civil suit filed before insolvency proceedings are initiated cannot be dismissed merely because proceedings under the Insolvency and Bankruptcy Code (IBC) begin later. It observed that the law protects the insolvency process from interference but does not automatically bar civil courts from hearing pending suits. A division bench of Justice Debangsu Basak and Justice Md. Shabbar Rashidi delivered the ruling while setting aside a commercial...
Creditors Need Not Obtain Decree To File Claims Under Presidency Towns Insolvency Act: Bombay High Court
The Bombay High Court on Thursday held that a creditor does not need to obtain a decree before lodging a claim with the Official Assignee after a debtor is declared insolvent under the Presidency Towns Insolvency Act, 1909. It ruled that the Official Assignee must independently examine every claim and decide whether to admit or reject it by recording reasons in writing. Justice Jitendra Jain delivered the ruling while answering a reference on whether a creditor's claim must be supported by a...
Resolution Professional's Report Is Recommendatory In Personal Guarantor Insolvency Cases: NCLAT
The National Company Law Appellate Tribunal (NCLAT) in Chennai has held that a Resolution Professional's report in personal insolvency cases is only recommendatory and does not bind the adjudicating authority.It ruled that where debt, default, and the status of the personal guarantor are already established, the absence of such a report does not invalidate the proceedings. A coram of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain observed, “Upto the stage...
Perjury Cannot Be Invoked For Every Pleading Omission If Correct Financial Position Was Considered: NCLT Delhi
The National Company Law Tribunal (NCLT) in New Delhi has held that perjury jurisdiction cannot be invoked to penalise every pleading defect or omission. The tribunal observed that this principle applies where it has already examined the correct financial position while deciding the substantive proceedings. The bench of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Atul Chaturvedi observed, "Perjury jurisdiction cannot be invoked to penalize every pleading defect or...
NCLT Cannot Sit In Appeal Over Civil Court Consent Decree In Insolvency Proceedings: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that the National Company Law Tribunal (NCLT) cannot disregard or invalidate a consent decree passed by a competent civil court during insolvency proceedings. It ruled that if a resolution professional or financial creditors seek to challenge such a decree, they must approach the civil court. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed,“The Adjudicating Authority does not have any...
Foreign Companies Need RBI Approval To Acquire Security Interest In Indian Immovable Property: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a foreign company cannot acquire or be assigned a security interest over immovable property in India without the Reserve Bank of India's permission. Holding that no such approval had been obtained in the present case, the tribunal ruled that Mauritius-based Tropical Ventures Company Ltd. could not claim security rights over the assets of Incab Industries Ltd. A bench of Chairperson Justice Ashok Bhushan and Technical...
NCLT Chandigarh Rejects Recasting Of Claims Based On Pre-CIRP Refunds, Upholds RP Methodology
The Chandigarh Bench of the National Company Law Tribunal (NCLT) on 5 June 2026 held that homebuyers cannot reappropriate amounts refunded before commencement of the Corporate Insolvency Resolution Process (CIRP) towards interest to enhance their admitted claims. Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal dismissed applications filed by homebuyers challenging the Resolution Professional's adjustment of a pre-CIRP refund of Rs. 40,00,000 against principal instead of...
NCLAT Quashes Insolvency Admission Against Vikram Solar As Debt Falls Below ₹1 Crore
On Monday, the National Company Law Appellate Tribunal (NCLAT) set aside the admission of a Section 9 insolvency petition against Vikram Solar after both sides admitted that the debt was below the ₹1 crore threshold prescribed under the Insolvency and Bankruptcy Code (IBC). The appellate tribunal quashed the June 12, 2026 order of the Kolkata bench of the National Company Law Tribunal (NCLT), which had admitted the petition filed by Isitva Steel Pvt. Ltd. The order was passed by the bench of...