Shareholder Is Not An “Aggrieved Person” To Challenge Resolution Plan Approval Under IBC: NCLAT Cites Park Energy

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a shareholder, merely in that capacity, cannot maintain an appeal against an order approving a resolution plan under Section 61 of the Insolvency and Bankruptcy Code (IBC).The court relied on its earlier larger Bench ruling in Park Energy Pvt. Ltd. v. State Bank of India and another. It held that the ruling continues to bind the tribunal because it was delivered by a specially constituted Bench and was later affirmed by...

Removal Of Promoter-Director In Quasi-Partnership Company Can Amount To Oppression: NCLT Mumbai

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 11 September held that removal of a promoter-director from a company having the character of a quasi-partnership can amount to oppression where it defeats the promoter's legitimate expectation of continued representation on the Board. A Bench comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar allowed a petition originally filed by late Ronny George against Professional Couriers Private Limited...

Orissa High Court Quashes Air Pollution Case Against Tata Steel Over Bhushan Steel's Pre-CIRP Offences

The Orissa High Court has quashed criminal proceedings against Tata Steel Limited (TSL) arising from alleged violations of the Air (Prevention and Control of Pollution) Act, 1981 by erstwhile Bhushan Steel Limited (BSL).A coram of Justice Sibo Sankar Mishra was dealing with a petition filed by TSL under Section 482 of the Criminal Procedure Code seeking quashing of proceedings pending before the SDJM, Dhenkanal, as well as the order taking cognizance against the company. The State Pollution...

Resignation As Director Does Not Extinguish Personal Guarantee Liability: NCLT Indore

The Indore Bench of the National Company Law Tribunal (NCLT) on 11 September held that a personal guarantee does not cease merely because the guarantor resigns as a director of the corporate debtor, observing that a personal guarantee is an independent contractual undertaking that continues unless validly revoked in accordance with law. A Bench comprising Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta observed: “A personal guarantee is an independent contractual...

Related Party Status Depends On Shareholding Threshold, Not Actual Control: NCLT Kolkata

The National Company Law Tribunal (NCLT) Kolkata has held that a creditor can be treated as a related party based on the shareholding of a common director and his relatives, even without proof that the director actually exercised control over the corporate debtor.The tribunal held that the prescribed shareholding threshold is sufficient for determining related-party status. It observed, “although the findings under Sections 5(24)(h) and 5(24)(m)(i) cannot be sustained merely on the basis of the...

NCLT Ahmedabad Bars Revival Of Going-Concern Sale After 2025 IBBI Regulation Changes

The National Company Law Tribunal (NCLT), Ahmedabad, has ruled that a proposed sale of a Corporate Debtor as a going concern cannot be continued after the October 2025 changes to the liquidation regulations merely because an auction notice had been issued before the amendment.A division bench comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma passed the ruling. The court observed that “no auction was concluded, no successful bidder emerged, and no sale consideration was...

Pre-CIRP Electricity Dues Cannot Be Recovered By Discontinuing Supply During Moratorium: NCLT Ahmedabad

The National Company Law Tribunal (NCLT), Ahmedabad, has held that pre-CIRP electricity dues cannot be recovered from a corporate debtor by interrupting essential or critical electricity supply during the moratorium under the Insolvency and Bankruptcy Code (IBC).“The Respondent cannot recover or appropriate any pre-CIRP electricity dues from the Corporate Debtor otherwise than in accordance with the insolvency process,” a bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma...

NCLT Chennai Cancels Sale Deed Of Homebuyer Who Failed To Submit Claim During CIRP

The National Company Law Tribunal (NCLT), Chennai, has recently cancelled a homebuyer's registered Sale Deed and Construction Agreement after he failed to file a claim during the corporate insolvency resolution process (CIRP) of P Dot G Constructions Private Limited. He also failed to submit a claim during a 60-day window provided after approval of the resolution plan.Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam observed that the homebuyer could not stand outside the...

Blu-Smart Charge Insolvency: NCLT Refuses Lessor's Plea To Recover Premises, Remove Assets During Moratorium

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has refused to direct the Resolution Professional (RP) of Blu-Smart Charge Pvt. Ltd. to remove the company's assets from the licensed premises or hand over possession to Eldeco Infrastructure and Properties Limited.The order was passed by Judicial Member Shammi Khan and Technical Member Sanjeev Sharma.Eldeco had entered into a Leave and Licence Agreement with Blu-Smart Charge on July 11, 2023. The agreement was terminated on April...

Expiry Of Commercial Premises Licence Before CIRP Does Not Permit Recovery During Moratorium: NCLT Ahmedabad

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has held that expiry of a licence to use a commercial premises before commencement of the Corporate Insolvency Resolution Process (CIRP) does not, by itself, allow recovery of the premises during the moratorium.Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed, “although the contractual term had expired on 18.12.2025, such expiry by itself does not permit recovery of possession during the subsistence of...

NCLT Delhi Rejects Impresario's Insolvency Plea Against Colorbar Over Pre-Existing Dispute

The Delhi bench of the National Company Law Tribunal (NCLT) has dismissed an insolvency application filed by Impresario against Colorbar Cosmetics Pvt. Ltd., holding that a substantial pre-existing dispute between the parties barred initiation of the Corporate Insolvency Resolution Process (CIRP).The bench of Judicial Member Mahendra Khandelwal and Technical Member Atul Chaturvedi observed, “The Corporate Debtor has questioned the supply of goods, investigated and time and again clarified the...

NCLT Allahabad Holds Simultaneous CIRP And MSEFC Proceedings Amount To Forum Shopping

The Allahabad bench of the National Company Law Tribunal (NCLT) has held that pursuing insolvency proceedings while simultaneously seeking recovery of the same claim before the Micro and Small Enterprises Facilitation Council (MSEFC) amounted to “forum shopping”. The tribunal made the observation while dismissing R N Buildcon's insolvency plea against Ocean Infraheight Pvt. Ltd.Judicial Member Praveen Gupta and Technical Member Ashish Verma noted that R N Buildcon had initiated MSEFC proceedings...