IBC
NCLT Allahabad Approves First Motion For Demerger Of Umesh Modi Group Firm's Nutraceutical Business
The National Company Law Tribunal (NCLT) at Allahabad has approved the first motion application for a scheme of arrangement involving Umesh Modi Group's G S Pharmbutor Private Limited, for the demerger of its nutraceutical business into its wholly owned subsidiary, Modilac Private Limited. A bench of Judicial Member Praveen Gupta and Technical Member Ashish Verma passed the order on December 12, 2025, allowing the companies to move forward with the proposed restructuring. G S Pharmbutor,...
NPA Classification Applies To Borrower, Not Individual Loan Facilities : NCLT Kolkata
The National Company Law Tribunal (NCLT) at Kolkata has, relying on RBI norms, held that NPA classification is borrower-wise and not facility-wise, and that once any credit facility of a borrower is declared NPA, all facilities extended by the bank must be treated as NPA for insolvency proceedings.A coram of Judicial Member Labh Singh and Technical Member Rekha Kantilal Shah, in an order dated November 13, 2025, while deciding an insolvency application filed by Central Bank of India against SA...
Approval Of Tribunal Not Required To Appoint Monitoring Committee Chair Under IBC: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has recently held that neither the Insolvency and Bankruptcy Code nor the CIRP Regulations require tribunal approval for appointing the chairperson of a monitoring committee, and that its role is limited to ensuring that such a committee is constituted for implementation of an approved resolution plan. A monitoring committee is typically formed after approval of a resolution plan to oversee payments, asset handover, and other steps required to...
LiveLawBiz: Business Law Daily Round-Up: December 13, 2025
TAX GST | Non-Mentioning Vehicle Number In Part-B Of E-Way Bill Is Curable Defect: Karnataka High CourtGST Abolished Ad Tax, Doesn't Bar Municipal Licence Fees on Hoardings: Bombay High CourtDelhi High Court Flags Validity Of Reports In IGST Refund Denial On Export Of Mouth Fresheners/Pan Masala; Directs Expeditious ExaminationDelhi HC To Hear IndiGo's Plea For ₹900+ Crore IGST & Customs Duty Refund On Re-Imported Aircraft Parts; Customs Alleges No Double LevyITAT Mumbai Deletes Additions...
IRP Not Bound To Rely On Entity-Level Loan Documents In Project-Specific Insolvency: NCLT Bengaluru
The National Company Law Tribunal (NCLT) at Bengaluru has held that an Interim Resolution Professional may partially admit a financial creditor's claim where insolvency is confined to a single real estate project, and is not bound to mechanically accept entity-level loan claims. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada, in an order dated November 28, 2025, upheld the partial admission of a claim filed by Asset Care and Reconstruction Enterprise...
Land Record Mutation During Moratorium Not Permissible: NCLT Mumbai In Kaved Realty Case
The National Company Law Tribunal (NCLT)at Mumbai has held, in a case concerning Kaved Realty Private Limited, that mutation of land records giving effect to a revenue order cannot be carried out after commencement of insolvency proceedings, as such action violates the moratorium under the Insolvency Code. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar, while allowing an application filed by the Resolution Professional of Kaved Realty Private Limited,...
Liquidator's Role Limited To Claim Verification, Not Dispute Resolution: NCLT Kochi
The National Company Law Tribunal (NCLT) at Kochi has clarified that a liquidator's role during liquidation is limited to verification and admission of claims, and that the liquidator cannot adjudicate or resolve disputes between a claimant and the corporate debtor, particularly when such disputes are pending before an arbitral tribunal. A coram of Judicial Member Vinay Goel and Technical Member Madhu Sinha, in an order dated November 13, 2025, partly allowed an appeal filed by HLL Infra Tech...
Issuing Cheques For Another Entity's Dues Doesn't Create Operational Debt: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently held that a company cannot be pushed into insolvency merely for issuing cheques on behalf of another entity, in the absence of a direct contractual relationship with the creditor. A coram comprising Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra set aside an order of the National Company Law Tribunal, Delhi that had admitted Nayati Healthcare and Research NCR Pvt. Ltd. into insolvency on a plea filed by...
NCLAT Upholds Order Directing Dagcon's Former Directors To Contribute ₹10.54 Crore For Fraudulent Transactions
The National Company Law Appellate Tribunal (NCLAT) at New Delhi recently held that the former directors of the realty company Dagcon (India) Pvt. Ltd. must contribute Rs 10.54 crore to the company's assets for fraudulent transactions. The tribunal dismissed an appeal filed by suspended director Rana Sarkar and upheld an order of the National Company Law Tribunal at Kolkata.A bench comprising Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Naresh Salecha held, “The Resolution...
Insolvency Plea Cannot Be Admitted When Information Utility Records Dispute: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT) held that a record of dispute in an Information Utility obligates the tribunal to reject an insolvency application filed by an operational creditor.A bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra set aside the order initiating insolvency against OFB Tech Pvt. Ltd. on an appeal filed by the company's suspended director.The appellate tribunal held that “When there is record of dispute in the Information...
LiveLawBiz: Business Law Daily Round-Up: December 12, 2025
TAXCustoms | Goods Cannot Be Confiscated Solely On Local Market Survey/Opinion Without Proof Of Smuggling: CESTAT AllahabadCENVAT Credit Rules | Storage Of Finished Goods Outside Factory Due To Space Constraints Covered Under Rule 2(l); Credit Cannot Be Denied: CESTATIncome Tax Disputes Before HCs Doubled In Value Over Past Four Financial Years: Govt Tells Rajya SabhaCustoms Act | Mens Rea Mandatory For Penalty U/S 114AA; Assessee Cannot Be Punished On Assumptions: CESTAT ChennaiIncome Tax |...
IBC Doesn't Allow Extension of Personal Insolvency Process For Revisions Of Repayment Plan: NCLT Delhi
The National Company Law Tribunal (NCLT) at New Delhi has recently held that a personal guarantor cannot be granted repeated opportunities to revise a repayment plan once the statutory process under the Insolvency and Bankruptcy Code has run its course, and refused to allow any further extension of the personal insolvency resolution process. A coram comprising President Ramalingam Sudhakar and Technical Member Ravindra Chaturvedi approved the rejection of the repayment plan submitted by the...