IBC
IBC Does Not Impose Time Limit For Rectification Of NCLT Orders: NCLAT New Delhi Upholds Two-Year Limit Under Rule 154 Of NCLT Rules
The present appeal was filed by the erstwhile Resolution Professional of the corporate debtor against the order passed by the adjudicating authority, which approved the resolution plan submitted by the Successful Resolution Applicant. After approval of the resolution plan, the appellant moved an application before the adjudicating authority, seeking rectification of certain figures in the resolution plan. The counsel for the appellant submitted that all the figures have been rectified...
Restriction On CIRP Assignments Taken By IRP Is A Matter Of Code Of Conduct Between IBBI & Resolution Professional: NCLT Mumbai
The National Company Law Tribunal (NCLT) Mumbai bench of Shri Prabhat Kumar (Technical Member) and Justice Shri V.G. Bisht (Judicial Member) has held that restrictions on the number of Corporate Insolvency Resolution Professional (CIRP) assignments an Insolvency Professional (IP) can take is a conduct of code between the Insolvency and Bankruptcy Board of India (IBBI) and the IP. It cannot be decided by the Tribunal under section 60 (5) of the IBC. The present application has been filed...
Fresh Application Correcting Typographical Error Is Barred By Res Judicata If Earlier Application Was Dismissed On Merits: NCLAT New Delhi
The present appeal has been filed against the adjudicating authority's order rejecting the section 94 application filed by the appellant. The adjudicating authority dismissed the application, noticing that a similar application (CP No. (IB)- 7) of 2025 filed by the applicant seeking the same relief had earlier been dismissed by it. The appellant contended that there was certain typographical error in its earlier application hence the fresh application, CP (IB)-75(AHM)/2025, after...
Individual Homebuyer Can't Maintain Application U/S 60(5) Of IBC For Rejection Of Other Creditors' Claims: NCLT Chandigarh
The National Company Law Tribunal (NCLT) Chandigarh bench of Sh. Harnam Singh Thakur, (Judicial Member) and Sh. Shishir Agarwal (Technical Member) has held that an individual homebuyer is not permitted to approach the Adjudicating Authority seeking rejection of other creditors' claims especially when no enforcement of his rights or personal grievances is involved. The present application has been filed under section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking ...
DRT Recovery Certificate Confers Financial Creditor Status And Gives Rise To Fresh Cause Of Action: NCLAT Chennai
The company appeals were filed by the personal guarantors of the corporate debtor, challenging the order admitting the Insolvency Resolution Process (IRP) against them u/s 95 of the IBC, 2016. The issues before the Ld. NCLAT were whether the demand notice was properly served and whether the initiation of the proceedings was barred by the limitation. Background of the Case The corporate debtor availed the loan facility from the financial creditor and the appellants were the...
Liabilities Incurred Before Execution Of Guarantee Agreement Can't Be Included In It Unless Explicitly Stated: NCLT Kochi
The National Company Law Tribunal (NCLT) Kochi bench of Madhu Sinha (Member Technical) and Vinay Goel (Member Judicial) has held that past liabilities incurred before the execution of the Agreement of Guarantee cannot be included in it unless an explicit clause covering such liabilities are explicitly incorporated in the Agreement. The present petitions have been filed under section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Personal Insolvency Resolution Process...
Claim Filed During Liquidation Must Be Dealt With U/S 53 Of IBC, NCLT Can't Direct RP To Make Payment Directly: NCLAT Delhi
The National Company Law Appellate Tribunal held that a claim filed during liquidation must be dealt with as per the waterfall mechanism under Section 53 of the Insolvency and Bankruptcy Code, 2016, and the NCLT cannot direct a Liquidator to make payment to any claimant directly. Justice Ashok Bhushan and Arun Baroka said: “We are of the view that when stakeholder filed a claim in the CIRP and in the liquidation, the claim is entitled to be dealt with as per Section 53 of the IBC. The...
NCLT Not Empowered To Adjudicate Disputes Concerning Auction Sale Of Property Not Forming Part Of Corporate Debtor's Assets: NCLT Indore
The National Company Law Tribunal (NCLT) Indore bench of Shammi Khan (Judicial Member) and Sanjeev Kumar Sharma (Technical Member)has held that the Adjudicating Authority is not empowered to adjudicate disputes relating to auction sale of the property which does not form part of the Corporate Debtor's assets. The present application has been filed under section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking declaration that sale certificate, auction sale, registered...
Mere Possession Of Assets Of Corporate Debtor U/S 13(8) Of SARFAESI Act Does Not Confer Title On Creditor: NCLT Kochi
The National Company Law Tribunal (NCLT) Kochi bench of Smt. Madhu Sinha (Technical Member) and Shri. Vinay Goel (Judicial Member) has held that mere possession over assets of the Corporate Debtor under section 13(8) the SARFAESI Act does not confer any title on the Creditor. A title over the property passes to the purchaser only after a valid sale. The present application has been filed under section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking to recall an order...
Mere Allegation Of Coercion, Threat, Or Fraud Without Prima Facie Proof Cannot Invalidate Withdrawal Of CIRP U/S 12A Of IBC: NCLAT Chennai
The National Company Law Appellate Tribunal, Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), has held that the withdrawal of the Corporate Insolvency Resolution Process (CIRP) u/s 12A of the IBC cannot be set aside on the mere allegation of coercion or threat unless that has been proved by sufficient evidence. Background of the Case The operational creditor filed an application before the adjudicating authority u/s 9...
Adjudicating Authority Cannot Direct Realisation Of Security Interest U/S 52(5) Of IBC In Absence Of Resistance From Corporate Debtor: NCLT Mumbai
The National Company Law Tribunal (NCLT) Mumbai bench of Shri Anil Raj Chellan (Technical Member) and Shri K. R. Saji Kumar (Judicial Member)has held that the Adjudicating Authority cannot direct realisation of security interest under section 52(5) of the IBC when the Secured Creditor has failed to establish any resistance from the Corporate Debtor or any connected persons in realising the security interest. In this case, the assets sought to be charged in favor of the Creditor could not...
IBC Weekly Round-Up: 14th July To 20th July 2025
High Court Writ Jurisdiction Cannot Be Invoked When Party Has Already Approached DRT Under SARFAESI Act: Delhi High Court Case Title: Bhadra International India Pvt. Ltd. & Ors. v. Punjab national Bank & Ors. Citation: 2025 LiveLaw (Del) 823 The Delhi High Court has dismissed a petition while upholding that if a borrower has already approached the Debt Recovery Tribunal (DRT) under the SARFAESI Act, for a one-time settlement, a writ seeking the same relief under...