Settlement Between Debtor and Creditor Doesn't Release Personal Guarantor From Liability: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently held that a personal guarantor remains liable under a continuing guarantee even if the principal debtor enters into a mediated settlement with the financial creditor, unless the creditor expressly releases the guarantor. It also held that part-payments made by the principal debtor extend the limitation period for proceedings against the guarantor. A bench of Judicial Member Justice N Seshasayee and Technical Members...

IBC Not A Tool To Erase Third-Party Liabilities, NCLT Jaipur Rejects Resolution Plan for Goenka Diamonds

The National Company Law Tribunal (NCLT) at Jaipur recently observed that the resolution process cannot be used to extinguish liabilities or securities of third parties who have no connection with the corporate debtor. The tribunal rejected the resolution plan submitted for Goenka Diamond and Jewels Limited and ordered liquidation of the company. A bench of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar said the plan attempted to discharge independent guarantees and security...

NCLT Mumbai Orders Insolvency Proceedings Against Carnival Films After ₹71-Crore Default

The National Company Law Tribunal (NCLT) at Mumbai has recently admitted an insolvency plea by JC Flowers Asset Reconstruction Pvt Ltd against film production company Carnival Films Entertainment Pvt Ltd, after finding that it had defaulted on dues of Rs. 71 crore. A subsidiary of the company had owned Carnival Cinemas, the popular multiplex chain that shut its operations after the onset of the Covid-19 pandemic. The bench of Judicial Member KR Saji Kumar and Technical Member Anil Raj Chellan...

Supreme Court Restores Property Of Corporate Debtor Attached Under PMLA To Successful Resolution Applicant

The Supreme Court recently reiterated that the objective of Section 8(8) of the Prevention of Money Laundering Act(PMLA) is to ultimately restore any attached properties to the bonafide successful resolution application(SRA) who have a legitimate interest in it.Section 8(8) allows the Special Court to direct the Central Government to restore property that has been confiscated under the Act to a person or claimant who has a legitimate interest in it, upon conclusion of the trial. However, second...

NCLT Chennai Clears Scheme For Merger Of TVS Investments With TVS Electronics

The National Company Law Tribunal at Chennai has recently approved a scheme filed by TVS group companies, sanctioning their amalgamation and permitting the merger of TVS Investments into TVS Electronics. The tribunal noted that the scheme was beneficial to the company and its shareholders and found no ground to withhold approval. A bench of Judicial Member Sanjiv Jain and Technical Member Venkatraman Subramaniam noted that the companies had submitted all mandatory documents and statutory...

NCLT Ahmedabad Orders Liquidation of Eskay K'N'IT After CIRP Yields No Resolution Plan

The National Company Law Tribunal (NCLT) at Ahmedabad has recently ordered the liquidation of Eskay K'N'IT (India) Limited and appointed insolvency professional Sunit Jagdishchandra Shah as liquidator, rejecting the Committee of Creditors' recommendation to retain the existing Resolution Professional, Ajit Kumar, as the liquidator. A bench of Judicial Member Chitra Hankare and Technical Member Dr Velamur G Venkata Chalapathy passed the order on November 28 after reviewing the prolonged...

LiveLawBiz: Business Law Daily Round-Up: December 02, 2025

TAX AssessmentOrder Passed Without Awaiting DVD Report Violates S. 50C(2) IncomeTax Act: ITAT Ahmedabad 'WritNot Maintainable In Face Of Disputed Ownership': Delhi High Court InCustoms Gold Confiscation Case S.153C Income Tax Act | Public Info, Unrelated Data Seized FromSearched Person Not Enough To Issue Show Cause Notice: Gujarat HighCourt IncomeTax Act | S. 153C Proceedings Unsustainable Without IncriminatingMaterial Found In Search: Calcutta High Court AdmissionSolutions By TC Global...

IBC Auctions Not Ordinary Commercial Contracts, Market Volatility No Defence For Evading Bid Obligations: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently held that a successful bidder in a liquidation e-auction who voluntarily accepts statutory terms cannot avoid payment obligations by citing market fluctuations or delays not attributable to the liquidator, and set aside an NCLT Kolkata order directing refund of the Rs 2 crore earnest money deposit. A Bench of Judicial Member Justice Yogesh Khanna and Technical Member Indevar Pandey observed that liquidation...

Correctness Of NPA Classification Irrelevant To Initiating CIRP Once Default Is Proven: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has recently held that insolvency proceedings under the Insolvency and Bankruptcy Code depend only on the factual occurrence of default and are not affected by alleged irregularities in declaring an account as a Non Performing Asset or by non compliance with the MSME rehabilitation framework. It ruled that objections to the bank's NPA classification cannot defeat a creditor's right to initiate insolvency once a default is shown. A coram of...

NCLT Mumbai Reaffirms Insolvency Process Can Proceed Against Guarantors Without CIRP Of Corporate Debtor

The National Company Law Tribunal (NCLT) at Mumbai recently reaffirmed that insolvency proceedings against personal guarantors under the Insolvency and Bankruptcy Code can be initiated even if no CIRP is pending against the corporate debtor, relying on the Supreme Court's ruling in State Bank of India v. Mahendra Kumar Jajodia(2022). A coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar reiterated that the tribunal's jurisdiction is independent of any insolvency...

NCLT Mumbai Upholds IL&FS' Power To Raise Price of Its BKC Headquartes, Rejects Chronos' Plea To Enforce ₹1,080-Crore LoI

The National Company Law Tribunal (NCLT) at Mumbai has recently held that IL&FS was contractually empowered to unilaterally amend the Letter of Intent and increase the bid consideration for the sale of its iconic IL&FS Financial Centre in Bandra Kurla Complex, Mumbai refusing to compel execution of the definitive agreement at the originally approved value of Rs 1,080 crore. The ruling effectively permits IL&FS to revise the sale price to Rs 1,481 crore after approvals were granted,...

LiveLawBiz: Business Law Round-Up: November 29 - December 1, 2025

IBCIBC | Terminated Contract Not Corporate Debtor's Asset; Moratorium Won't Revive Extinguished Contractual Rights : Supreme CourtNCLT Mumbai Rejects Indo Global Employees' Claims Filed 18 Months Late, Says Stakeholders Must Be VigilantLiquidator Must Recover Assets Even If Attached By Third Parties, Attachment Cannot Override IBC: NCLT BengaluruBuyers Of Commercial Units Are Not Homebuyers; Cannot Be Recognised As Financial Creditors: NCLT MumbaiNCLT Ahmedabad Orders Liquidation of Girdhari...