Recovery Falls Under IBC Once Dues Are Crystallised Even If Action Originates Under Securities Law: NCLAT

The National Company Law Appellate Tribunal (NCLAT) on Tuesday held that once dues against a corporate debtor stand crystallised and the dispute relates to recovery affecting the insolvency or liquidation process, the matter falls within the ambit of the Insolvency and Bankruptcy Code. In such cases, the National Company Law Tribunal has jurisdiction to pass directions concerning the assets of the corporate debtor, even if the action originates under the securities law. The appellate...

Successive Fraud Plea Not Maintainable Under IBC After Finality Of CIRP Admission: NCLAT Chennai

The National Company Law Appellate Tribunal (NCLAT) at Chennai on Tuesday held that a party cannot file successive applications under Section 65 of the Insolvency and Bankruptcy Code, 2016 to indirectly reopen insolvency proceedings that have already attained finality. A Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain dismissed the appeal filed by N.K. Kurian, the suspended Managing Director of Mango Meadows Agricultural Pleasure Land...

NCLT Chandigarh Orders Promoters Responsible For Insolvency To Vacate Majestic Hotels' Property

On 17 March, the Chandigarh Bench of the National Company Law Tribunal (NCLT), in the insolvency proceedings of Majestic Hotels Ltd. (corporate debtor), directed the promoters and related parties to vacate portions of the company's flagship property, Hotel Majestic Park Plaza in Ludhiana. A Bench comprising Judicial Member K. Biswal and Technical Member K.K. Singh observed: “The intent as per the provisions of the IBC is that if the Corporate Debtor has failed to meet its obligations in...

After Submitting EoI Under RFRP, Resolution Applicant Cannot Question Its Clauses: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has recently held that a resolution applicant cannot question clauses of the Request for Resolution Plan after submitting its Expression of Interest under the same RFRP, while challenging rejection of its resolution plan by the Committee of Creditors. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “When the Appellant had submitted their EoI basis the RFRP, they cannot now turn around to question any of...

Limitation Act Cannot Extend Time To Appeal Against Liquidator's Rejection Of Claim Under IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT), Chennai, has recently held that the 14-day limitation period for filing an appeal against a liquidator's decision under Section 42 of the Insolvency and Bankruptcy Code, 2016, is a self-contained time limit and cannot be extended by invoking Section 5 of the Limitation Act through Section 238A of the Code. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Indevar Pandey held that Section 238A applies only where the...

IBC Cannot Be Misused To Impede Recovery Process Under SARFAESI: NCLT Delhi

The National Company Law Tribunal, Delhi, has recently dismissed an application filed under Section 94 of the Insolvency and Bankruptcy Code, which allows a personal guarantor to initiate insolvency proceedings against himself, holding that the provision cannot be used to stall recovery proceedings already underway under the SARFAESI Act, 2002, and before the Debt Recovery Tribunal. The Tribunal said the plea was a tactical attempt to take advantage of the interim moratorium under the IBC. The...

After NCLAT Member Recuses Over 'Higher Judiciary' Influence, Tribunal Sets Aside CIRP Order, Imposes ₹10 Lakh Cost

In a case that was transferred to the Principal Bench after a controversy over alleged attempts to influence a judicial member, the National Company Law Appellate Tribunal (NCLAT) has set aside the admission of insolvency proceedings against KLSR Infratech Ltd and dismissed a Rs 3.79-crore claim filed by A.S. Met Corp Pvt Ltd, holding that a genuine dispute existed between the parties and imposing costs of Rs 10 lakh on the operational creditor. The order was passed by the NCLAT Principal Bench...

NCLT Hyderabad Admits Insolvency Plea Against Personal Guarantor, Says Stamp Duty Defect On Guarantee No Bar

The National Company Law Tribunal (NCLT) at Hyderabad has recently reiterated that an objection based on insufficient stamp duty on a guarantee deed cannot defeat proceedings under Section 95 of the Insolvency and Bankruptcy Code, admitting a personal insolvency petition filed by Bank of Maharashtra against Nukala Savithri, personal guarantor to SVSVS Projects Private Limited. A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri heard the petition filed for initiation of...

CIRP Must Remain Confined To Single Project, Cannot Affect Other Projects: NCLAT New Delhi

The Principal Bench of the National Company Law Appellate Tribunal (NCLAT) at New Delhi, on 20 March 2026 held that a Corporate Insolvency Resolution Process (CIRP) initiated by the allottees of a single real estate project must stay confined to that project and cannot extend to other projects of the developer.A Bench comprising Judicial Member Justice Ashok Bhushan and Technical Member Barun Mitra disposed of an appeal filed by the suspended director of Raheja Developers Ltd., Navin M. Raheja,...

NCLAT Refuses To Stay Adani's Rs 15,000 Cr Resolution Plan For JAL on Vedanta's Challenge

The National Company Law Appellate Tribunal (NCLAT), Delhi, on Tuesday refused to stay the implementation of Adani's ₹15,000-crore resolution plan for Jaiprakash Associates Limited (JAL) while hearing a plea by the Vedanta Group challenging the approval of the plan by the Allahabad Bench of the National Company Law Tribunal (NCLT). The bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra said that “the implementation of the resolution plan shall go on, however, the action...

Supreme Court Rejects Recall Plea In Disposed SLP, Says Court Cannot Compare Rival Offers Before CoC Under IBC

The Supreme Court on Monday dismissed a miscellaneous application seeking recall of its February 25, 2025 order dismissing an SLP in a dispute over an agreement to sell a property of a corporate debtor, holding that a disposed Special Leave Petition cannot be reopened on the basis of subsequent developments in insolvency proceedings or rival financial offers before the Committee of Creditors.A bench of Justices Vikram Nath and Sandeep Mehta emphasized that the court cannot sit in appeal over the...

NCLAT Sets Aside NCLT Order, Holds Insolvency Plea By Sole Proprietorship Maintainable Against Birla Jewels

The National Company Law Appellate Tribunal (NCLAT) Principal Bench at New Delhi has recently allowed an appeal filed by a sole proprietorship against rejection of its insolvency plea, holding that a Section 9 application under the Insolvency and Bankruptcy Code, 2016, is maintainable at the instance of a proprietorship concern. The tribunal relied on earlier precedent to hold that proprietorship firms are competent to initiate corporate insolvency resolution process. Setting aside an order...