IBC
NCLT Kolkata Admits Application U/S 7 Of IBC Against Jain Infraprojects, Gives Two-Month Settlement Window
The National Company Law Tribunal, bench of Siddharth Mishra (Technical Member) and Bidisha Banerjee (Judicial Member), Kolkata admitted a section 7 petition filed by IDBI Bank against Jain Infraprojects Limited, while granting the Corporate Debtor a two-month window for settlement.The tribunal observed that IDBI Bank had misrepresented the status of the One-Time Settlement before the Tribunal during earlier hearings, which led to matter being prematurely reserved for orders on 3rd April,2025,...
Liquidator Cannot Be Penalized For Event Outside His Control: NCLT Kolkata Permits Exclusion Of Time Spent In Procedural Compliance
The National Company Law Tribunal, Kolkata Bench, comprising Justice Bidisha Banerjee (Member-Judicial) and Siddharth Mishra (Member-Technical), has permitted exclusion of time spent in complying with judicial orders and directions of the stakeholder body, saying that the liquidator cannot be penalized for an event outside his control. The liquidation order of the corporate debtor was passed, and a liquidator was appointed under section 34(1) of the IBC. In the 2 SCC meeting, it was...
BIFR Scheme Under SICA Stands Superceded After Enforcement Of IBC, Benefits Can't Be Claimed After Approval Of Resolution Plan: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Mohammad Faiz Alam Khan and Mr. Naresh Salecha (Technical Member) has held that an unresolved claim under the Board for Industrial & Financial Reconstruction (BIFR) scheme constitutes a claim under Section 3(6) of the IBC and should be dealt with within the Code. The failure of the BIFR scheme does not create an independent cause of action; therefore, benefits under the BIFR scheme cannot be claimed after...
Equity Investment Made Through Commercial MoU Doesn't Qualify As Operational Debt: NCLT Hyderabad
The National Company Law Tribunal, Hyderabad Bench, comprising Mr. Rajee Bhardwaj (Member-Judicial) and Mr. Sanjay Puri (Member-Technical), has held that an equity investment with conditional repayment made through a commercial memorandum of understanding (MoU) doesn't qualify as operational debt. The present application was filed by the operational creditor u/s 9 read with rule 6 of the IBC, seeking initiation of CIRP of the corporate debtor, alleging default of Rs. 2.75 Cr. An ...
Delhi High Court Transfers Winding-Up Petitions Against Vigneshwara Developwell Pvt Ltd To NCLT
The Delhi High Court has transferred winding-up petitions filed against Vigneshwara Developwell Pvt Ltd to the NCLT. The petition was filed under Sections 433(e), 434, and 439 of the Companies Act, 1956, seeking winding up of the respondent company due to its inability to pay the debt of the petitioner. During the pendency of the petition, an application was filed for the transfer of the matter to NCLT, New Delhi and the court was pleased to transfer the matter. The Companies...
Termination Of Concession Agreement Does Not Discharge Corporate Debtor's Repayment Obligations When Unrelated To Its Default: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain and Mr. Naresh Salecha (Technical Member) has held that termination of a Concession Agreement by the Government of Maharashtra does not discharge the Corporate Debtor from its repayment obligations, especially when such termination has no relation to the default committed by the Corporate Debtor. The present appeal has been filed under section 61 of the Insolvency and Bankruptcy Code, 2016...
RTI Response Reveals Judicial & Technical Member Vacancies In NCLT Amid Concerns Over Case Backlog
In an RTI filed by an advocate, it has been revealed that multiple vacancies are unfilled within the National Company Law Tribunals (NCLT), despite the pendency of a high number of cases. The application (Reg. No. MOCAF/R/E/25/01140, dated 12.09.2025) was filed with the Ministry of Corporate Affairs asking for details of pending cases, vacancies of judicial & technical members, and recruitment procedures in NCLT and NCLAT. Subsequently, the application was transferred under section...
IDBI Trusteeship Can Initiate CIRP If There Is Valid Authorization From Assignee Of Debt: NCLAT New Delhi
The NCLAT, Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has held that a security trustee can file a section 7 application seeking initiation of the CIRP if there is a valid authorization from the assignee of the debt. The present appeal was filed by the suspended director challenging the impugned order passed by the NCLT, Mumbai, court-II, admitting the section 7 application filed by the IDBI Trusteeship. The main issue...
Debt Can Be Established Through Any Documentary Evidence Under Regulation 8(2) Of CIRP Regulations, Written Contract Not Needed: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain, Justice Mohd Faiz Alam Khan and Mr. Naresh Salecha (Technical Member) has held that a written contract is not a precondition to prove the existence of a legally payable debt. If other documentary evidence listed under Regulation 8(2) of the CIRP Regulations is available and clearly shows that the debt exists, it is sufficient to file an insolvency application. The present appeal has been...
Workmen Can Claim Dues After Layoff Only If They Continued To Work After Notice Was Issued By Corporate Debtor: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain, Justice Mohd Faiz Alam Khan and Mr. Indevar Pandey (Technical Member) has held that if the workmen or employees fail to prove that they actually worked after a layoff notice was issued by the corporate debtor, they are not entitled to claim any dues for the period after the layoff. Such dues can only be claimed if they continued to work despite the layoff notice. The present appeal has...
EPFO Dues From Pre-CIRP Period Cannot Be Claimed Based On Assessment Made During Moratorium: NCLAT New Delhi
The NCLAT, Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial) and Mr. Naresh Salecha (Member-Technical), has held that EPFO dues of the pre-CIRP period cannot be claimed based on assessments made during the imposition of the moratorium. The appeal was filed by the RPFC-II, challenging the NCLT, Ahmedabad order, rejecting the application for setting aside the communication of the resolution professional, and rejecting the claim. The corporate debtor...
NCLT Cannot Allow Alternate Prayers After Rejecting Main Prayer Without Cogent Reasons: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Yogesh Khanna (Member-Judicial) and Ajai Das Mehrotra (Member-Technical), has held that the adjudicating authority cannot reject the main prayer without cogent reasons and allow the alternative prayers. The appeal was filed against the order of the NCLT, Mumbai Bench. The appellant argued that the adjudicating authority has erred in directing the meeting of the unsecured creditors of...