IBC
NCLAT Sets Aside NCLT Order, Holds Insolvency Plea By Sole Proprietorship Maintainable Against Birla Jewels
The National Company Law Appellate Tribunal (NCLAT) Principal Bench at New Delhi has recently allowed an appeal filed by a sole proprietorship against rejection of its insolvency plea, holding that a Section 9 application under the Insolvency and Bankruptcy Code, 2016, is maintainable at the instance of a proprietorship concern. The tribunal relied on earlier precedent to hold that proprietorship firms are competent to initiate corporate insolvency resolution process. Setting aside an order...
NCLT Indore Rejects Suspended Management Plea To Join GEI Power Resolution Plan Approval Proceedings
The Indore Bench of the National Company Law Tribunal (NCLT) has rejected a plea by the suspended management of GEI Power Ltd. seeking to take part in the proceedings where the Tribunal is considering approval of the company's resolution plan, holding that former management cannot intervene at this stage after the lenders have already approved the plan. Refusing the request, the tribunal said that allowing such participation would go against the limited role of the court at the plan approval...
Liquidation Can Be Recalled Using Inherent Powers Where Debt Is Settled: NCLT Hyderabad
The Hyderabad Bench of the National Company Law Tribunal (NCLT) on 6 March, held that even though the Insolvency and Bankruptcy Code (IBC), 2016, does not expressly provide for withdrawal of liquidation proceedings, the Tribunal can exercise its inherent powers in appropriate cases to secure the ends of justice. The Bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri recalled the liquidation process against Ravi Cranes & Movers Ltd., preventing the liquidation...
Moratorium Doesn't Extinguish The Criminal Liability In Terms Of 32A When The Plan Is Not Approved.
The Delhi High Court on 17 March 2026 held that Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC) only creates a temporary moratorium and does not extinguish criminal liability. Protection under Section 32A is available only after the approval of a resolution plan that brings about a qualifying change in management. The Bench of Justice Chandrasekharan Sudha dismissed the plea of JAS Infrastructure and Power Ltd. seeking suspension of sentence in a coal block allocation case. The...
Mere Pendency Of Arbitration Does Not Constitute Realizable Asset Or Extinguish Liability: NCLT Chandigarh
The National Company Law Tribunal (NCLT) at Chandigarh recently held that mere pendency of arbitration cannot be a ground to defer insolvency proceedings once debt and default are established. A bench of Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh while admitting a Tollways company to CIRP observed, “Mere pendency of arbitration does not constitute a realizable asset or extinguish an admitted financial liability. In contrast, the Financial Creditor has...
NCLAT Upholds Rejection Of Belated Higher Bid In Hema Automotive Liquidation, Says Fairness Not One-Way Street
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently observed that fairness in insolvency asset sales cannot be viewed from the perspective of a single bidder alone, while dismissing Sunrise Industries' appeal seeking consideration of its higher bid submitted after the deadline in the liquidation process of Hema Automotive Pvt. Ltd.The bench of Judicial Member Justice N Seshasayee and Technical Member Indevar Pandey observed that,“Fairness is a constant that works...
LiveLawBiz IBC Weekly Digest: March 15 To March 21
SUPREME COURT Supreme Court Allows Set-Off Defence Against Ujaas Energy Though Counterclaim Extinguished Under IBCCase Title : UJAAS ENERGY LTD vs WEST BENGAL POWER DEVELOPMENT CORPORATION LTD. Case Number : SLP (C) 29651 OF 2024 CITATION : 2026 LLBiz SC 122The Supreme Court on Friday allowed West Bengal Power Development Corporation Ltd. to raise a plea of set-off as a defence in arbitration proceedings against Ujaas Energy Ltd., even though its counterclaim...
SRA Need Not List All Assets In Resolution Plan; Undisclosed FDRs Belong To Corporate Debtor SPS Steels: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi recently held, in the insolvency of SPS Steels Rolling Mills Ltd, that the successful resolution applicant is not required to specify every asset of the corporate debtor in the resolution plan, and assets not mentioned in the information memorandum do not cease to belong to the corporate debtor after approval of the plan. A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha, after examining...
Mere Non-Reflection Of Funds In Books Not Proof Of Fraud Under IBC: NCLT Kochi
The National Company Law Tribunal (NCLT) at Kochi has dismissed an application filed by the liquidator of Vysali Pharmaceuticals Ltd against its suspended Managing Director, holding that mere non-reflection of amounts in the books of accounts cannot by itself establish fraudulent diversion of funds under Section 66 of the Insolvency and Bankruptcy Code.A coram of Judicial Member Vinay Goel observed that allegations of fraud must be supported by cogent and credible evidence and cannot be...
NCLT Jaipur Says Only CoC Can Approve CIRP Costs, Dismisses Plea By RP Of Aesthetic Stone Arts As Not Maintainable
The National Company Law Tribunal (NCLT) at Jaipur has dismissed an application filed by the erstwhile Resolution Professional of Aesthetic Stone Arts India Pvt. Ltd. seeking ratification of Corporate Insolvency Resolution Process (CIRP) costs, holding that determination of such costs lies exclusively within the domain of the Committee of Creditors (CoC).A coram of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar also held that no interlocutory application is maintainable...
NCLT Mumbai Admits Personal Insolvency Plea Against Frost International's Guarantor Over Rs 285 Crore Default
The National Company Law Tribunal's Mumbai bench has admitted an insolvency application filed by Indian Bank (erstwhile Allahabad Bank) against Anoop Kumar Wadhera, personal guarantor to Frost International Ltd, in a case involving a default of approximately Rs 285.77 crore. A coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar, while admitting the petition and initiating an insolvency resolution process against Wadhera, observed: “Considering the above facts...
Supreme Court Allows Set-Off Defence Against Ujaas Energy Though Counterclaim Extinguished Under IBC
The Supreme Court on Friday allowed West Bengal Power Development Corporation Ltd. to raise a plea of set-off as a defence in arbitration proceedings against Ujaas Energy Ltd., even though its counterclaim stood extinguished after approval of the resolution plan under the Insolvency and Bankruptcy Code. A bench of Justices Dipankar Datta and Augustine George Masih while granting the relief observed: “Upon a cumulative consideration of all relevant factors, we hold that the...