Fixed Deposit Of Corporate Debtor Cannot Be Withheld After Resolution Plan Approval If No Claim Filed: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has recently held that a fixed deposit forming part of the corporate debtor's assets in the Information Memorandum cannot be withheld after approval of a resolution plan when no claim asserting lien or security was filed during the corporate insolvency resolution process.A coram of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held that claims not asserted during CIRP stand extinguished once the resolution plan is approved...

NCLAT Dismisses Sri Bajrang Wind Park Insolvency Plea Against Inox Wind Over Pre-Existing Dispute

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has dismissed an appeal filed by Sri Bajrang Wind Park Developers challenging the rejection of its Section 9 insolvency petition against Inox Wind Infrastructure Services Limited. The tribunal held that email correspondence and reconciliation discussions between the parties showed the existence of a pre-existing dispute. A coram of Judicial Member Justice N Seshasayee and Technical Member Arun Baroka held, “From the pleadings...

Financial Hardship No Ground To Reject Insolvency Plea Once Default Is Established: NCLT Jaipur

The National Company Law Tribunal (NCLT) at Jaipur has observed that financial hardship and liquidity constraints are not legally recognised grounds to reject an insolvency petition once default is established under Section 9 of the Insolvency and Bankruptcy Code, 2016. A coram of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar admitted an application filed by Epicrop Organics Limited and initiated the Corporate Insolvency Resolution Process (CIRP) against Cropberry Foods...

Balance Sheet Acknowledgment Of Debt Extends Limitation; NCLAT Upholds IDBI's Insolvency Plea Against HIL

Reiterating that acknowledgment of liability in balance sheets extends limitation under Section 18 of the Limitation Act, the National Company Law Appellate Tribunal has upheld the admission of IDBI Bank's Section 7 insolvency application against Hindustan Insecticides Limited. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held that the insolvency application was not barred by limitation, as the corporate debtor had acknowledged the subsisting liability in its...

NCLT Ahmedabad Denies Secured Creditor Priority To State Tax Dept. In Diamond Power Liquidation

The National Company Law Tribunal (NCLT) at Ahmedabad, has recently reiterated that priority in liquidation is governed strictly by Section 53 of the Insolvency and Bankruptcy Code (IBC), while dismissing a plea by the State Tax Officer to be treated as a secured creditor in the liquidation of Diamond Power Transformer Ltd. “The priority of claims during liquidation is governed strictly by Section 53 and no deviation is permissible based on general statutory charges created under other...

LiveLawBiz IBC Monthly Digest: February 2026

SUPREME COURTSingle Insolvency Petition Against Intrinsically Linked Real Estate Companies Maintainable: Supreme CourtCase Title : Satinder Singh Bhasin v. Col Gautam Mullick and Ors Case Number : Civil Appeal No.13628 of 2025 CITATION : 2026 LLBiz SC 37The Supreme Court on Monday upheld insolvency proceedings against two closely linked real estate companies, holding that a single insolvency petition can be maintained against multiple corporate entities under the...

Judicial Custody Of MD No Ground To Claim Natural Justice Violation If Counsel Appeared: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently observed that the principle of natural justice is not violated merely because the Managing Director of a corporate debtor was in judicial custody during insolvency proceedings, where the company was duly represented by counsel. A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey observed: “The Appellant being in custody from 25.10.2025 till 26.11.2025 cannot be any ground for alleging...

Winding Up Petitions Transferred From High Court To NCLT Cannot Be Admitted Mechanically: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that a winding up petition transferred from a High Court to the National Company Law Tribunal under the Insolvency and Bankruptcy Code cannot be admitted mechanically. Even if the High Court had already admitted the winding up petition, the NCLT must independently examine whether the requirements for admission under Section 9 of the Code are satisfied. A bench of Chairperson Justice Ashok Bhushan and Technical...

NCLAT Holds Section 198 Cannot Be Used To Extend IBC Appeal Deadline, Rejects IBBI's 103-Day Delay

The National Company Law Appellate Tribunal (NCLAT) has held that a provision allowing delay to be excused when the Insolvency and Bankruptcy Board of India fails to perform a statutory duty cannot be used to extend the strict deadline for filing appeals under the Insolvency and Bankruptcy Code. A bench of Justice Ashok Bhushan and Technical Member Indevar Pandey observed, “The said provision of Section 198 can have no relevance with regard to Section 61 of the IBC, which provides for...

IBBI Suspends Byju's Former Resolution Professional Pankaj Srivastava For Three Years

The Disciplinary Committee of the Insolvency and Bankruptcy Board of India has suspended the registration of insolvency professional Pankaj Srivastava for three years, holding that he improperly reconstituted the Committee of Creditors in the insolvency of Think and Learn Private Limited, the parent company of the ed-tech firm Byju's, and misled the Adjudicating Authority. In its order dated February 24, 2026, the Committee, comprising Whole Time Members Bhushan Kumar Sinha and Jayanti...

IBC Proceedings Cannot Become Evidentiary Trial: NCLT Kochi Refuses To Summon Corporate Debtor's Lessor

The National Company Law Tribunal at Kochi has recently observed that insolvency proceedings cannot be converted into a full-fledged evidentiary trial. It ruled that powers under Section 424 of the Companies Act, 2013 cannot be used to reopen the commercial evaluation undertaken by the Committee of Creditors. Dismissing an application filed by an unsuccessful resolution applicant in the insolvency process of Attukal Devi Institute of Medical Sciences Limited, Judicial Member Vinay Goel held...

LiveLawBiz IBC Weekly Digest: February 22 To February 28

SUPREME COURTByju's CoC Moves Supreme Court After NCLAT Refuses Impleadment In GLAS Trust Removal PleaToday, the Committee of Creditors (CoC) of Byju's parent company Think & Learn Pvt Ltd, moved the Supreme Court challenging an order passed by the Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) on 24 February 2026. On 24 February, the NCLAT had held that although the CoC may litigate in its own name under the IBC, it was not a necessary party to the plea seeking...