IBC
Unconditional Consent By Sole Financial Creditor Satisfies Requirements U/S 12A Of IBC: NCLT New Delhi
The National Company Law Tribunal, New Delhi, Court-IV, comprising Justice Jyotsna Sharma (Member-Judicial) and Anu Jagmohan Singh (Member-Technical), has held that if there is a stay on the meetings of CoC, then the unconditional consent of the sole financial creditor is sufficient for the withdrawal of the CIRP. The resolution professional filed an application u/s 12A of the IBC read with regulation 30A of the CIRP Regulation, seeking withdrawal of the CIRP of the corporate debtor....
EPFO Dues Arising From Post-Liquidation Assessments U/S 7A Of EPF Act Are Not Admissible: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has held that the EPFO dues arising from the post-liquidation assessment under section 7A of the EPF Act are not admissible. The CIRP of the corporate debtor was ordered on 30.11.2017, and its liquidation was ordered on 16.09.2019. The appellant conducted the inquiry u/s 7A of the EPF Act, 1952, on 11.10.2021 and determined...
NCLT Bar Association Writes To Ministry Of Corporate Affairs Over Infrastructure Crisis Causing Standstill At NCLT Delhi
On 04.09.2025, the National Company Law Tribunal Bar association has made an urgent representation to the Secretary, Ministry of Corporate Affairs, expressing concern regarding the persistent infrastructure challenges faced by the National Company Law Tribunal, New Delhi Bench. On 03.09.2025, a public notice was issued by the NCLT informing all stakeholders that the 8th floor of the Block which has the Court Nos. IV, V and VI has become non-operational due to severe roof seepage. The...
CIRP Order Based On GST Dept Letter Neither Addressed To, Nor Received By Corporate Debtor Is Invalid: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial), Justice Mohammad Faiz Alam Khan (Member-Judicial), and Mr. Naresh Salecha (Member-Technical), has invalidated a CIRP Order Passed by the Adjudicating Authority Based on a Letter Neither Addressed to Nor Received by the Corporate Debtor. The corporate debtor was engaged in the business of manufacturing the non-ferrous metals used in the batteries, and...
NCLT Hyderabad Grants Interim Protection To Petitioner After EGM Allotted 2.49 Crore Shares To Respondent, Making Them Majority Shareholder
The NCLT Hyderabad bench of Mr Rajeev Bhardwaj, Member Judicial, and Mr Sanjay Puri, Member Technical, while hearing a petition filed under Section 241 and 242 of the Companies Act, read with Sections 59 and 213 of the Companies Act, granted interim relief to the Petitioner. The Bench, after perusing the record, observed that a prima facie case exists in favour of the Petitioner. The balance of convenience falls on the Petitioner's side. Furthermore, the Petitioner will suffer an ...
Guarantor's Liability Can't Be Restricted To Cap Prescribed Under Deed Of Guarantee On Principal Borrower's Liability: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that the liability of the guarantor cannot be restricted to only the capped amount prescribed in respect of the principal borrower's liability, since the guarantor's liability to discharge repayment obligations upon invocation of the guarantee and the principal borrower's liability operate in separate spheres. The present appeal has been filed...
Issue Of Share Application Money As Financial Debt Once Decided In Earlier Proceedings Can't Be Reagitated In Subsequent Plea U/S 7 Of IBC: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that Once the issue of whether share application money amounts to a financial debt has been decided by the Adjudicating Authority in earlier proceedings, the same question cannot be agitated in a subsequent application filed under Section 7 of the IBC as such a plea is barred by Res-Judicata. The present appeal has been filed under section 61 of...
Adjudicating Authority Can Enforce Arbitral Award Upon Application By Resolution Professional U/S 60(5) Of IBC: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Technical), Justice Mohammad Faiz Alam Khan (Member-Technical), and Mr. Naresh Salecha (Member-Technical), has held that the adjudicating authority has jurisdiction under Section 60(5) of the IBC to entertain an IA filed by the Resolution Professional seeking enforcement of an arbitral award. Contention of the Appellant The appellant submitted that the...
When There Is More Than One Guarantor, Creditor Has Discretion To Proceed Against All Or Any One Of Them: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra has held that it is for the creditors to decide whether to proceed against all or any one of the personal guarantors when there are multiple guarantors. Therefore, an application under Section 95 of the IBC cannot be rejected merely on the ground that the creditor chose to proceed against only one of the personal guarantors. The present appeal has been filed against an order...
Corporate Debtor Cannot File Appeal U/S 61 Of IBC In It's Own Name After Appointment Of Resolution Professional: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial), Mr. Naresh Salecha (Member-Technical), and Mr. Indevar Pandey (Member-Technical), has held that a corporate debtor in its own name cannot file an appeal under section 61 of the IBC after initiation of CIRP and appointment of IRP. Background of the Case The present appeal was preferred by the corporate debtor, Dhara Cements (India) Pvt. Ltd., u/s...
State Gains Revenue Only If Businesses Operate; Cancelling GST Registration On Procedural Grounds Serve No Purpose: Calcutta High Court
The Calcutta High Court stated that the state gains revenue only if business operates; GST registration cancellation on procedural grounds serves no purpose. Justice Aniruddha Roy stated that the cancellation of GST registration of the assessee on the procedural ground would not enure any benefit either to the revenue authority or to the assessee. On the contrary, if the GST certificate stands restored and the assessee is allowed to carry on its business, the State can earn revenue to...
Absence Of Disciplinary Proceedings Bars NCLT From Rejecting Proposed IRP Under IBC: Madras High Court
The Division Bench of Madras High Court, comprising Justice Dr. Anita Sumanth and Mr. Justice N. Senthilkumar, has held that in the absence of disciplinary proceedings pending against the professional, NCLT is bound to appoint the IRP proposed by the applicant under sections 7 and 10 of the IBC, 2016. Background of the Case The petition under Article 226 was filed to quash the appointment of Mr. Thangamuthu as the IRP of the corporate debtor. The petitioner is an insolvency ...