IBC
NCLAT Upholds Order Directing Satra Properties' Suspended Directors To Refund ₹91 Lakh For Clearing Cheques During Moratorium
The National Company Law Appellate Tribunal at Delhi on Thursday held that the suspended directors of Satra Properties (India) Ltd violated the Insolvency and Bankruptcy Code by allowing two cheques worth Rs 91 lakh to be cleared after the commencement of moratorium, and upheld the National Company Law Tribunal's order directing them to jointly and severally refund the amount with interest under Section 66(2). A Bench of Judicial Member Justice N Seshasayee and Technical Member Arun Baroka...
IBC Does Not Override Statutory First Charge Under Gujarat VAT Act, Both Laws Operate In Harmony: NCLAT
The National Company Law Appellate Tribunal at Delhi recently held that the Insolvency and Bankruptcy Code (IBC) does not override a statutory first charge created under the Gujarat VAT Act, and that both laws operate in harmony when such a charge qualifies as a security interest under the Code. A Bench of Judicial Member Justice Yogesh Khanna and Technical Member Indevar Pandey observed this by noting that the Code only prevails when there is an inconsistency, and that no such inconsistency...
LiveLawBiz: Business Law Daily Round-Up: November 27, 2025
IPR Delhi High Court Grants Relief To Tesla Inc, Extends Bar on Indian Company's Use of 'Tesla' Marks In EV MarketDelhi High Court Rejects Philips' Plea For Perjury Action Against Ex-Employee In Software Piracy CaseMadras High Court Quashes Order Allowing Pfizer To Seek Documents From Indian Drug Manufacturer For US SuitDelhi High Court Declines To Return Plaint In Sun Pharma's Trademark Suit Against Artura, Says Cause Of Action Partly Arose In DelhiDelhi High Court Cancels 'BLUE SPOT' Mark Of...
Supreme Court Dismisses Byju Raveendran's Appeal Against NCLAT Order Mandating CoC Nod For BCCI's Plea To Withdraw CIRP
The Supreme Court on Friday dismissed an appeal filed by Byju Raveendran, suspended director and promoter of Think and Learn Private Ltd (which ran the Ed-Tech firm Byju's), challenging an order of the National Company Law Appellate Tribunal which held that the approval of the Committee of Creditors is necessary for the application filed by the BCCI to withdraw the insolvency proceedings against Byju's.A bench of Justice JB Pardiwala and Justice KV Vishwanathan dismissed the appeal....
Investment On Profit-Sharing Basis Does Not Qualify As Financial Debt : NCLT Delhi Reaffirms
The National Company Law Tribunal at New Delhi has recently reaffirmed that an investment made on a profit-sharing basis does not constitute a financial debt under Section 5(8) of the Insolvency and Bankruptcy Code and therefore cannot be used to initiate insolvency proceedings under Section 7. The ruling came in a case where Modern Solar Private Limited sought to treat Rs 20 lakh advanced to Claro Energy Private Limited in 2013 as a loan carrying interest.A coram of Judicial Member Mahendra...
Department of Financial Services Urges PSB Chiefs to Personally Monitor Top Insolvency Cases Amid Delays
Public sector bank chiefs were on Tuesday advised by Department of Financial Services (DFS) Secretary M Nagaraju to personally monitor the top twenty cases pending for admission and the top ten accounts awaiting resolution before the National Company Law Tribunal (NCLT), as part of a wider review of delays in insolvency matters. In a press release, DFS said Nagaraju chaired a meeting with senior officials of the department, the Insolvency and Bankruptcy Board of India and top management of...
No Wilful Disobedience: NCLT Kochi Dismisses Bhagyodayam Company's Contempt Plea Against Ex-MD
The National Company Law Tribunal at Kochi has recently reiterated that simply failing to hand over company records to the tribunal appointed administrator, even after a specific direction from the tribunal, is not enough to initiate contempt unless there is clear proof that the person intended to defy the order. A coram of Judicial Member Vinay Goel and Technical Member Madhu Sinha dismissed a contempt plea filed by Kerala based-Bhagyodayam Company against its former Managing Director Paul...
SARFAESI Notice Counts As Valid Invocation Of Personal Guarantee: NCLT Mumbai
The National Company Law Tribunal at Mumbai has recently held that a notice issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI), 2002, which empowers a secured creditor to demand repayment of dues within sixty days prior to enforcing its security, can operate as a valid invocation of a personal guarantee when it contains a direct repayment demand addressed to the guarantor.A coram of Judicial Member K R Saji...
Securities Premium Account Cannot Offset Accumulated Losses: NCLT Bengaluru
The National Company Law Tribunal at Bengaluru has recently clarified that while a company may reduce its paid-up share capital to write off accumulated losses under Section 66 of the Companies Act, the securities premium account cannot be used for such write-off, as this is expressly prohibited under Section 52 of the Act. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada partly allowed the petition filed by Firepro Systems Pvt Ltd, approving the...
Delhi High Court Slaps ₹1 Lakh Cost On Litigant For Misusing Writ Jurisdiction To Stall DRT, NCLT Proceedings
The Delhi High Court recently imposed costs of Rs 1 lakh on a litigant while dismissing his writ petition that sought to halt proceedings pending before two Debts Recovery Tribunals and the National Company Law Tribunal. The Court held that the petitioner, Sanjeev Krishan Sharma, had failed to show any violation of fundamental rights, statutory mandate or natural justice that could justify invoking the High Court's extraordinary writ jurisdiction. The Division Bench of Justices Anil...
Loss of ITC Due To Corporate Debtor's Default In GST Filing Is Not Operational Debt: NCLT Mumbai
The National Company Law Tribunal at Mumbai has recently held that operational creditors cannot claim GST-related dues arising from a corporate debtor's failure to file returns once the GST department has already lodged its own claim in liquidation. A coram of Judicial Member Mohan Prasad Tiwari and Technical Member Charanjeet Singh Gulati rejected the appeal filed by Instakart Services Pvt. Ltd in the liquidation of TopsGroup services and Solutions concluding that the claim “cannot be...
Tribunal's Power To Probe Company's Fraud Cannot Be Misused For Debt Recovery: NCLT Ahmedabad
The National Company Law Tribunal at Ahmedabad has recently held that Section 213 of the Companies Act, which empowers the tribunal to order an investigation into a company's affairs, cannot be invoked for recovery of unpaid dues. A Bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma, while dismissing a creditor's plea seeking an investigation into United Petrofer Ltd, observed, “The adjudication of dishonoured cheques and monetary recovery necessarily lie within the...