IBC
Calcutta High Court Bars WBSEDCL From Seeking Pre-CIRP Late Surcharge From SRA For New Electricity Connection
The Calcutta High Court has recently held that West Bengal State Electricity Distribution Company Limited (WBSEDCL) could not insist that Pinax Paper Mills Private Limited pay pre-CIRP Late Payment Surcharge (LPSC) before granting a fresh electricity connection after approval of the company's resolution plan. Justice Ravi Krishan Kapur held that the successful resolution applicant was entitled to the benefit of the "clean slate" principle and that claims not forming part of the approved...
GST Compliance Services During CIRP Qualify As IRP Costs, But Fees Must Be Reasonable: NCLT Kolkata
The National Company Law Tribunal (NCLT) at Kolkata has held that GST compliance services rendered during a corporate insolvency resolution process may form part of insolvency resolution process costs when they are necessary for running the corporate debtor as a going concern. However, the tribunal declined to direct payment of an additional claim of ₹6.48 lakh after finding the fees sought were unreasonable in light of the work performed. A coram of Judicial Member Bidisha Banerjee and...
NCLT Allahabad Clears GSW Enterprises' ₹95 Crore Resolution Plan For Hind Agro Industries
The Allahabad bench of the National Company Law Tribunal (NCLT) has approved the resolution plan submitted by G.S.W. Enterprises Private Limited for Hind Agro Industries Limited. The plan provides for payment of ₹95 crore towards settlement of stakeholder claims. It also envisages ₹200 crore towards working capital and capital expenditure over a five-year period. The bench of Judicial Member Praveen Gupta and Technical Member Ashish Verma passed the order. The tribunal observed that once...
NCLT Ahmedabad Orders Return Of Leased EVs In Gensol EV Lease's Insolvency
The Ahmedabad bench of the National Company Law Tribunal (NCLT) has directed Omega Seiki Mobility Private Limited to hand over the remaining leased electric vehicles in its possession, custody, or control belonging to Gensol EV Lease Limited, which is undergoing insolvency proceedings.While directing it to return the leased electric vehicles, the tribunal declined to decide Gensol EV Lease Limited's claim for about ₹1.14 crore in dues. It left the rival monetary claims open. The bench of...
NCLT Ahmedabad Refuses To Reverse Debtor's Transfer As Preferential Transaction, Says It Was Bank's Unilateral Act
The Ahmedabad bench of the National Company Law Tribunal (NCLT) has dismissed an application by Bank of Baroda, acting on behalf of the lenders of Sintex Prefab & Infra Ltd (SPIL), seeking reversal of a ₹26.79 crore transfer from the company's account as a preferential transaction. The tribunal found that the transfer was not shown to have been initiated, authorised or directed by the corporate debtor and was instead a unilateral act of IDBI Bank. A bench of Judicial Member Shammi Khan...
Dues Arising From TReDS Transactions Are Operational Debt, Not Financial Debt: NCLT Jaipur
The National Company Law Tribunal (NCLT) at Jaipur has dismissed Bank of Maharashtra's insolvency plea (section 7) against Ashiana Ispat Limited. The tribunal held that dues arising from invoice discounting transactions undertaken through the Trade Receivables Discounting System (TReDS) were operational debt and not financial debt. The order was passed by Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar. The tribunal observed:“The definition of Operational Creditor includes...
IBC Approval Does Not Auto-Delete ROC Charges, Companies Act Procedure Must Be Followed: NCLT Jaipur
The Jaipur Bench of the National Company Law Tribunal on 22 June ruled that approval of a resolution plan under the Insolvency and Bankruptcy Code, 2016 does not automatically delete pre-CIRP charge entries from the records maintained by the Registrar of Companies. Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar held that parties must still follow the statutory procedure under the Companies Act, 2013 for satisfaction or modification of such charges and partly allowed the...
Developer's Insolvency Cannot Block Housing Society's Bid For Conveyance Of Land And Building: Bombay High Court
A housing society's application for deemed conveyance of land and building cannot be put on hold merely because insolvency proceedings are pending against a developer, the Bombay High Court has held. The court ruled that a moratorium under the Insolvency and Bankruptcy Code (IBC) does not prevent authorities from deciding such applications under the Maharashtra Ownership Flats Act (MOFA). Justice Sandeep V. Marne set aside an order that had rejected a deemed conveyance application filed by...
Voizzit Entities Move Supreme Court Against Kerala HC Order Refusing Probe Into BYJU'S Insolvency Process
Two companies linked to the BYJU'S insolvency dispute, Voizzit Technology Pvt Ltd and Voizzit Information Technology LLC, have approached the Supreme Court. They are challenging a Kerala High Court judgment that refused to direct the CBI, Enforcement Directorate (ED) and National Investigation Agency (NIA) to investigate alleged irregularities in the insolvency resolution process of BYJU'S parent company, Think & Learn Pvt. Ltd. The special leave petition challenges a June 12, 2026...
NCLAT Chennai Sets Aside NCLT Kochi Order Archiving Section 9 Plea, Grants One-Time Rectification Window
On 10 June, the Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) allowed an appeal filed by Raychem RPG Pvt Ltd, set aside the order of the National Company Law Tribunal (NCLT), Kochi Bench, and directed grant of a final opportunity to rectify defects, subject to payment of costs of Rs. 50,000. Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain emphasised that procedural defects in filing a Section 9 insolvency petition cannot, by themselves,...
NCLT Mumbai Initiates CIRP Against Longrange Commodities, Admits ₹90.54 Crore UCO Bank Petition
On 12 June, the Mumbai Bench of the National Company Law Tribunal (NCLT) admitted Longrange Commodities Pvt Ltd into the Corporate Insolvency Resolution Process on a petition filed by UCO Bank over a default of Rs. 90.54 crore and appointed Kuldeep Tank as the Interim Resolution Professional. Judicial Member Nilesh Sharma and Technical Member Sameer Kakar held that a Section 7 petition under the Insolvency and Bankruptcy Code, 2016 is maintainable where the financial creditor establishes...
NCLAT Upholds NCLT Order Allowing Liquidator To Challenge JDA, GPA Termination Before Civil Court.
The National Company Law Appellate Tribunal (NCLAT) at Chennai has upheld an order allowing the liquidator of a company under liquidation to approach a civil court to challenge the unilateral termination of a Joint Development Agreement (JDA) and cancellation of a General Power of Attorney (GPA) relating to the Manapakkam project. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain found no error in the National Company Law Tribunal's decision granting...