IBC
LiveLawBiz IBC Half-Yearly Digest: January - June, 2026
SUPREME COURTPromise To Arrange Funds In Case of Default Does Not Make Promoter A Guarantor: Supreme CourtCase Title: UV Asset Reconstruction Company Limited v. Electrosteel Castings Limited Citation: 2026 LLBiz SC 3 Case Number: Civil Appeal No. 9701 of 2024The Supreme Court of India has held that a promoter's promise to arrange funds to help a borrower meet financial covenants does not amount to a contract of guarantee under the Indian Contract Act and cannot be used to fasten insolvency...
Supreme Court Likens AI Hallucinations To Gas Behind Bhopal Gas Tragedy, Sets Aside CIRP Orders Over Fake Case Law
The top court also directed the Bar Council of India to constitute a committee to examine issues arising from the use of artificial intelligence in legal practice and adjudication.
NCLAT Upholds Insolvency Against Butter, Ghee Maker Jhandewalas Foods
The National Company Law Appellate Tribunal (NCLAT) has recently upheld the initiation of corporate insolvency proceedings against butter and ghee manufacturer and trader Jhandewalas Foods Limited. It held that the company's defence of a pre-existing dispute over unpaid dues was not supported by credible evidence and could not prevent the insolvency process. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “In our considered view, we have no good grounds...
LiveLawBiz IBC Monthly Digest: June 2026
SUPREME COURT Supreme Court Refuses To Interfere With Interest On Adani Infra's Delayed ₹255 Crore Payment For Land Bought In Liquidation Case Title : CA RAMCHANDRA DALLARAM CHOUDHARY Versus ADANI INFRASTRUCTURE AND DEVELOPERS PRIVATE LIMITED Case Number : DIARY NO. 5988 OF 2026The Supreme Court on Monday declined to interfere with a National Company Law Appellate Tribunal (NCLAT) order directing Adani Infrastructure & Developers Pvt Ltd to pay 12% interest on...
No Artificial Procedural Obstacle Can Prevent Filing Of Additional Affidavit In CIRP Proceedings: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that a party cannot be prevented from filing an additional affidavit in proceedings that are yet to be decided on merits. It observed that such a restriction would create an "artificial procedural obstacle" and handicap a litigant in presenting its case. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Indevar Pandey observed,“We are of the view that no artificial procedural obstacle could...
Secured Creditor Can Claim Priority Only To Extent Of Available Security, Even If Debt Is Higher: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a secured creditor can claim priority in the payment of dues only to the extent of the security available in its favour. It ruled that a creditor is not automatically entitled to the entire liquidation value merely because its admitted debt exceeds that amount. The tribunal dismissed the appeals filed by Assets Care & Reconstruction Enterprise Ltd. (ACRE) and Dhankalash Distributors Pvt. Ltd. It, however, directed...
IBC Not 'Holy Ganges' To Wash Corporate Debtor's Criminality Under PMLA: NCLAT
The appellate tribunal further ruled that the Section 14 moratorium is limited to proceedings that increase a corporate debtor's debt liability and does not bar PMLA action
Jet Airways Workmen's PF, Gratuity Dues Must Be Paid, Fall Outside Liquidation Estate: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that provident fund, gratuity and pension dues owed to Jet Airways workmen must be paid as they fall outside the liquidation estate, even if no segregated funds existed on the liquidation commencement date. It also directed the liquidator to exclude the 1,656 days beyond the statutory 330-day Corporate Insolvency Resolution Process (CIRP) period while computing the 24-month look-back period under the Insolvency and...
'Floodgates' Would Open: NCLT Bengaluru Rejects Third-Party Homebuyers' Bid To Intervene Before CIRP Admission
The National Company Law Tribunal (NCLT) at Bengaluru has recently held that allowing a group of homebuyers to intervene in a developer's insolvency petition at the pre-admission stage would "amount to opening the floodgates" for objections on extraneous considerations. It reiterated that its inquiry at that stage is confined to examining the existence of a financial debt and default. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada dismissed an...
Mere Allegations Of Fraud Cannot Become A Vehicle To Reopen Every Concluded CIRP: NCLT Bengaluru
The National Company Law Tribunal at Bengaluru has reiterated that mere allegations of fraud cannot be permitted to become a vehicle for reopening every concluded Corporate Insolvency Resolution Process, especially when such allegations are founded on materials that were already available during the insolvency proceedings.A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada dismissed an application seeking to reopen CIRP and recall an already approved...
NCLT Ahmedabad Holds Sales Incentive Property Promise Not Operational Debt Under IBC, Dismisses S.9 Plea
The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 23 June 2026 dismissed an insolvency petition filed by Green Consultancy against Jhaveri Spices Pvt. Ltd., holding that a claim arising from a sales incentive scheme promising transfer of immovable property does not qualify as “operational debt” under the Insolvency and Bankruptcy Code, 2016 (IBC), and therefore cannot sustain proceedings under Section 9. Judicial Member Chitra Hankare and Technical Member Dr Velamur G Venkata...
NCLT Cuttack Calls RPs Alteration Of Creditors Claim 'Gross Dereliction' Approves Goyal Energy Resolution Plan
The National Company Law Tribunal (NCLT) at Cuttack has recently approved a resolution plan worth ₹79 crore for Goyal Energy and Steel Limited, submitted by Mumbai-based Nakshatra Asset Ventures Ltd. While approving the plan, the tribunal observed that a resolution professional cannot alter the amount claimed by a creditor in Form H (the statutory compliance certificate) without a revised claim from that creditor. The bench of Judicial Member Cheekati Radha Krishna and Technical Member...