IBC
NCLAT New Delhi Affirms CIRP Of M/S Revital Reality Private Limited (Group Company Of Supertech Limited)
The National Company Law Appellate Tribunal (NCLAT), New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member - Technical), has affirmed the initiation of the Corporate Insolvency Resolution Process (CIRP) against M/s Revital Reality Private Limited, under section 7 of the IBC, 2016. The bench ruled that the non-obtaining of an Occupation Certificate (OC) cannot be used as a defense when default arises from incomplete construction and failure to deliver possession...
Mere Allegations Of Fraud Can't Invalidate Auction When Unsuccessful Bidder Failed To Put In Bid Despite Opportunity: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Yogesh Khanna and Mr. Indevar Pandey (Technical Member) has held that mere bald assertions or allegations of fraud cannot invalidate an otherwise valid auction, especially when the unsuccessful bidder was given ample opportunity to log in to the system but failed to place a valid bid. The present appeal has been filed under section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC) against an order passed...
Additional Documents Need Not Be Filed With Reply To Demand Notice U/S 8(2) Of IBC: 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 section 8 of the IBC doesn't allow placing on record any documents while responding to a demand notice, except the ones mentioned in sub-section 2. The appeal was filed challenging the impugned order passed by the NCLT, Mumbai. By the impugned order, the tribunal rejected the IA No. 3245 of 2025 filed by the ...
Unexplained Delay In Filing Second Petition U/S 94 Of IBC After Dismissal Of First Reflects Malafide Conduct Of Litigant: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan, Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that filing a second petition under Section 94 of the IBC, without disclosing that the earlier petition based on the same facts and cause of action had been dismissed, reflects mala fide conduct on the part of the litigant. Therefore, the second petition cannot be entertained unless sufficient explanation is ...
NCLT Can Grant Ex-Post Facto Approval To Criminal Complaints Filed Against Former Management With Adequate Reasons: 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 Adjudicating Authority is empowered to grant ex-post facto approval of criminal complaints filed against the Ex-management by providing adequate reasons. The present appeal has been filed against an order passed by National Company Law Tribunal (NCLT) by which it allowed an application filed by the Liquidator and gave ex-post facto...
Money Deposited By Borrower As Precondition For Sanction Of Guarantee Ceases To Be Corporate Debtor's Asset Upon Invocation Of Guarantees: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that Margin Money deposited by the borrower as a precondition for sanction of Bank Guarantees, being payable towards the Bank Guarantees invoked by the beneficiary, ceases to be the Corporate Debtor's asset once such guarantees are invoked. Therefore, such appropriation of margin money is not hit by section 14 of the IBC. The present appeal has...
Claims Based On Guarantee Can Be Considered By RP Even If Guarantee Was Not Invoked Before Insolvency Commencement Date: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan, Justice N. Seshasayee (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that the claims of the creditor can be considered by the Resolution Professional even if guarantee based on which the claims were filed was not invoked. The present appeal has been filed under section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC) against an order passed by National Company Law...
Successful Bidder Can't Claim Exemptions From Statutory Compliance Merely On Grounds Of Being Successful Bidder Of Corporate Debtor: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Arun Baroka (Technical Member) has held that a successful bidder is not entitled to claim exemptions from statutory compliances merely on the ground that the Appellant was a successful bidder of the corporate debtor. The present appeal has been filed under section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC) against an order passed by National Company Law Tribunal (NCLT) seeking...
Findings Of NCLAT While Remanding Case Can't Operate As Res Judicata When No Conclusive Opinion Is Expressed: 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 findings of the Appellate Tribunal in earlier proceedings cannot operate as res judicata when no conclusive opinion was expressed, and the NCLT's order was set aside only for non-consideration of relevant materials and submissions. The present appeals have been filed against an order passed by National Company Law Tribunal (NCLT) by which...
Revival Of Company Petition Permissible On Default Of Settlement Terms Despite Absence Of Liberty In NCLT's Withdrawal Order: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Mohd Faiz Alam Khan and Mr. Indevar Pandey (Technical Member) has held that a petition withdrawn pursuant to a settlement agreement between the parties can be revived if the corporate debtor fails to make payment as per the settlement terms, where the agreement clearly provides for such revival in case of default. The absence of express liberty granted by the NCLT in the withdrawal order is immaterial. The...
Refund Of Security Amount Can't Be Considered As Acknowledgment Of Debt U/S 19 Of Limitation Act: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that refund of security amount which was given by Operational Creditor for carrying out the work contract cannot be considered as an acknowledgement of debt under section 19 of the Limitation Act. The present appeal has been filed under section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC) against an order passed by National Company Law...
Borrower Can't Plead Non-Service At Previous Address When Change Of New Address Is Not Communicated To Creditor: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice N. Seshasayee (Judicial Member) and Arun Baroka (Technical Member) has held that it is the bounden duty of the borrower to inform the creditor of any change in address. If demand notices and other important communications are sent to the previous address, the borrower cannot plead non-service when delivery of essential documents is established from the record.” The present appeal has been filed under section...