Bank's No Dues Certificate Not Determinative At CIRP Admission: NCLT Jaipur

The National Company Law Tribunal (NCLT) at Jaipur, has admitted Prayag Polytech Private Limited into insolvency over a Rs.34.14 crore default to Canara Bank. The bench of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar held that disputes over “No Dues Certificates” cannot defeat a Section 7 petition at the threshold. The Tribunal observed that reliance on NOCs was “a serious defence, but it is not determinative at admission stage because the Bank's case is that the...

CoC Members Entitled Only To Fair And Liquidation Value, Not Full Valuation Reports: NCLAT Chennai

The National Company Law Appellate Tribunal at Chennai has recently observed that a resolution professional is not required to share full valuation reports with lenders (CoC) during insolvency proceedings. The tribunal referred to Regulation 35(2) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, which provides that after receipt of resolution plans, the resolution professional shall provide the fair value and the liquidation value to members of the Committee...

Operational Creditor Cannot Vote on Its Own Resolution Plan; Such Approval A “Material Irregularity” Under IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a resolution applicant who is not a financial creditor cannot vote on and approve its own resolution plan, declaring such approval void ab initio as it violates Section 30(5) of the Insolvency and Bankruptcy Code, 2016. The ruling was delivered by a bench comprising Judicial Member Justice N. Seshasayee and Technical Members Arun Baroka and Indevar Pandey. The tribunal observed, “In the present case the Resolution...

NCLAT Affirms NCLT New Delhi Order Rejecting Insolvency Plea Against Bajaj Appliances

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently dismissed an insolvency plea against Bajaj Appliances Ltd., holding that a pre-existing dispute barred initiation of proceedings under the Insolvency and Bankruptcy Code. A coram of Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka upheld the National Company Law Tribunal, Delhi's October 18, 2023, order rejecting the application filed by T.J. Communication Pvt. Ltd. T.J. Communication claimed it...

Once Arbitral Award Holder Files CIRP Claim, Execution Under Arbitration Law Not Maintainable: Delhi High Court

The Delhi High Court has recently observed that once a decree holder lodges its claim arising out of an arbitral award before the resolution professional during the corporate insolvency resolution process (CIRP), it cannot pursue parallel execution proceedings under the Arbitration and Conciliation Act.A single bench of Justice Harish Vaidyanathan Shankar delivered the ruling in a petition filed by Paharpur Cooling Towers Ltd, seeking enforcement of an arbitral award dated November 12, 2021...

NCLT Delhi Appoints Two-Member Committee To Monitor Jaypee Infratech Project Progress

The National Company Law Tribunal (NCLT), New Delhi, recently appointed a two-member expert committee to assess the progress of construction of Jaypee Infratech Limited (JIL) projects under the approved resolution plan. A Bench comprising President Ramalingam Sudhakar and Technical Member Ravindra Charurvedi passed the direction while hearing multiple applications raising concerns regarding delays and grievances of homebuyers. The Bench held: “Without prejudice to the contentions raised in...

Failure To Issue Notice Is “Larger Than An Ordinary Procedural Breach”: NCLAT Sets Aside Ex Parte NCLT Order

An ex parte order passed without issuing notice cannot be sustained, the National Company Law Appellate Tribunal (NCLAT) has held, setting aside a Mumbai NCLT order that had allowed a preferential transaction application in the liquidation of Euro Ceramics Ltd. A bench of Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka said that omission to direct notice is larger than some procedural breach.“It is only when notice is directed on any application or petition, the tribunal...

Former District Judge Deep Chandra Joshi To Serve As Acting President Of NCLT

The Ministry of Corporate Affairs on Friday has notified that Shri Deep Chandra Joshi, Former District Judge, has been appointed as the Acting President of the National Company Law Tribunal with effect from 14 February 2026. He is currently the senior-most member of the NCLT.As per the notification, this follows after the tenure of Justice (Retired) Ramalingam Sudhakar as President of NCLT on 13 February 2026. Invoking Section 415 (1) of the Companies Act, 2013, the Ministry clarified that Deep...

'Not Unknown to Law': Telangana High Court Upholds Reserve Price Reduction After Repeated Failed SARFAESI Auctions

The Telangana High Court has recently upheld the phased reduction of the reserve price fixed for the auction sale of a mortgaged immovable property under the SARFAESI Act and dismissed writ petitions filed by the borrower. A Division Bench of Justice Moushumi Bhattacharya and Justice Gadi Praveen Kumar affirmed the order of the Debts Recovery Appellate Tribunal and observed that “the process of marking down of the Reserve Price is not unknown to law.” The Bench examined Rule 8(5) of the...

NCLT Guwahati Quashes Income Tax Reassessment Against Maxim Infrastructure For Pre-CIRP Dues

The National Company Law Tribunal (NCLT), Guwahati Bench, has ruled that the Income Tax Department cannot reopen tax assessments for dues it failed to claim during a company's insolvency process.A coram comprising Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh on January 15, allowed an application filed by Maxim Infrastructure & Real Estate Pvt. Ltd. It quashed reassessment proceedings for Assessment Year 2018–19.“Since the Respondent failed to lodge its claim...

Mere Accounting Treatment Of Spectrum As 'Asset' Does Not Bring It Within IBC Framework: Supreme Court

The Supreme Court on Friday held that mere treatment of telecom spectrum as an “intangible asset” in the financial statements of telecom service providers (TSPs) does not bring it within the sweep of the Insolvency and Bankruptcy Code (IBC), observing that spectrum remains a natural resource held by the Union of India in public trust. “Merely because spectrum can be treated as an 'asset' on the basis of certain attributes, such as possession and usage, lease and assignment, claim and liability...

NCLT Need Not Separately Examine RP's Opinion On PUFE Transactions While Avoidance Pleas Are Pending: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has held that the issue of formation and determination of opinion by a resolution professional in respect of preferential, undervalued, extortionate, and fraudulent (PUFE) transactions cannot be examined at the threshold level on a stand-alone basis while the avoidance applications are pending consideration before the adjudicating authority. A bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra...