NCLAT Upholds Liquidation of Vrundavan Ceramic Pvt. Ltd., Cautions Against Delays In IBC Resolution

The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 20 May dismissed two connected appeals filed by Lorenzo Vitrified Tiles Pvt. Ltd. (Successful Resolution Applicant) and Arvind Gaudana (Resolution Professional of Vrundavan Ceramic Pvt. Ltd.) and upheld an Order of the Ahmedabad National Company Law Tribunal (NCLT) directing liquidation of the corporate debtor.Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Ajai Das Mehrotra held that the Insolvency...

Mortgage Created 7 Years After Debenture Deal Is Preferential Transaction In Radius Estate CIRP: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a mortgage created nearly seven years after a financing agreement, and just weeks before the start of insolvency proceedings, amounted to a preferential transaction under the Insolvency and Bankruptcy Code. The tribunal dismissed Suraksha Realty Limited's appeal against the avoidance of its security interest in the corporate insolvency resolution process of Radius Estate Projects Pvt. Ltd The bench of Chairperson...

NCLT Delhi Discharges Mukund Choudhary As CLC Industries Guarantor After ₹7.3 Crore Plan Implementation

The New Delhi Bench of the National Company Law Tribunal (NCLT) on 19 May held that a personal guarantor stands discharged upon full implementation of a repayment plan under the Insolvency and Bankruptcy Code, 2016, and that the Personal Insolvency Resolution Process must close once statutory compliances under the Code are fulfilled. Judicial Member Mahendra Khandelwal and Technical Member Ms. Anu Jagmohan Singh, allowed an application filed by Resolution Professional Hemant Sharma under...

Only Central Government Can Order SFIO Probes, Not Company Tribunals: NCLAT

The National Company Law Appellate Tribunal (NCLAT) in Delhi has recently reiterated that company tribunals cannot directly order a Serious Fraud Investigation Office probe, ruling that the power to direct such an investigation rests with the Central Government. A bench of Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Naresh Salecha relying on its own earlier decision observed, "The procedure for investigation in the affairs of the company has been provided under Section...

Interim Resolution Professional Not Automatically Entitled To Full Fees Where Court Orders Restrict CIRP: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has upheld an equitable remedy granted by the National Company Law Tribunal (NCLT), ruling that an Interim Resolution Professional was not automatically entitled to full statutory fees where the insolvency process functioned under significant judicial restrictions. A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey dismissed the appeal filed by CMA Harshad Deshpande, former Interim Resolution Professional...

Venugopal Dhoot Moves Supreme Court Against NCLAT Order Excluding Videocon Foreign Oil Assets From VIL CIRP

Videocon founder Venugopal Dhoot has moved the Supreme Court against an NCLAT ruling refusing to bring the group's foreign oil and gas assets into the insolvency resolution process of Videocon Industries Ltd.The matter is yet to be listed by the Supreme Court. The NCLAT on May 14, 2026 noted that Dhoot himself had earlier requested lenders in 2016 and 2017 to separate Videocon Industries from the foreign oil and gas business. It said this was done to “protect the oil and gas assets of the group...

IBBI Notifies New Valuation Norms For MSME Liquidation Under IBC, Allows Appointment Of Two Valuers

The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Liquidation Process) (Third Amendment) Regulations, 2026, amending the valuation framework applicable to the liquidation of MSME corporate debtors. The amendment provides that where a corporate debtor is classified as a micro, small or medium enterprise under Section 7(1) of the Micro, Small and Medium Enterprises Development Act, 2006, the liquidator shall appoint one registered valuer...

Resolution Professionals Must Appoint Valuers Within 3 Days Under Amended IBBI Pre-Packaged Insolvency Norms

The Insolvency and Bankruptcy Board of India (IBBI) has amended its pre-packaged insolvency rules to require resolution professionals to appoint registered valuers within three days of taking charge, while allowing the consultation committee to require two sets of valuers if reasons are recorded in writing. The changes have been introduced through the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) (Second Amendment) Regulations, 2026, notified on May 19. ...

NCLAT Finds No Fault In Jet Airways Aircraft Auction, Rejects Losing Bidder's Challenge

The National Company Law Appellate Tribunal (NCLAT) has recently dismissed a challenge by a losing bidder to the auction of two Jet Airways aircraft during the airline's liquidation, holding that the process was transparent and that adequate opportunity had been given to inspect the assets before bidding.“The appellant's bid was lower to successful auction purchaser, the appellant was also given opportunity to inspect the Aircraft. No error can be found in the process adopted by liquidation...

NCLAT New Delhi Dismisses Shreenathji Infra Appeal, Finds Pre-Existing Dispute Bars IBC Action

On 19 May, the New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) dismissed an appeal filed by Shreenathji Infrastructure against Namasthetu Infratech Pvt. Ltd., holding that incomplete performance of work and termination of contracts by the Corporate Debtor reflected a pre-existing dispute and rendered insolvency petition non-maintainable. The Bench of Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka observed: “We observe that there were many issues...

“Not Filed To Harass Or Embarrass”: NCLAT Sets Aside Rejection Of Lyka Labs' CIRP Plea Against Modi Lifecare

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that Lyka Labs' insolvency plea against Modi Lifecare Industries was not an attempt to “harass and/or embarrass and/or humiliate” the company. The tribunal found that the petition was based on material facts and that Modi Lifecare had not disputed an operational debt exceeding ₹1 lakh. A bench of Chairperson Justice Ashok Bhushan and Technical Members Barun Mitra and Arun Baroka set aside an Ahmedabad NCLT order rejecting...

To Cut Delays In Insolvency Professional Appointments, IBBI Seeks Applications For Empanelment

To cut delays in the appointment of insolvency professionals, the Insolvency and Bankruptcy Board of India (IBBI) has laid down a framework for preparing a panel of insolvency professionals for appointments by the National Company Law Tribunal (NCLT) and Debt Recovery Tribunal (DRT), with unjustified refusal by empanelled professionals to take up assignments attracting a six-month exclusion. The IBBI on May 18 issued the Insolvency Professionals to act as Interim Resolution Professionals,...