IBC
IBBI Issues Fresh Guidelines For Appointment of Insolvency Professionals
In order to reduce administrative delays in appointing of Resolution Professionals, the Insolvency and Bankruptcy Board of India (IBBI) on Friday issued fresh guidelines to streamline how insolvency professionals (IPs) are shortlisted and appointed across tribunals from January 1, 2026. Under the new framework, only IPs with a clean record and a valid Authorisation for Assignment through the entire panel period will be considered. This means, An IP can be included in the panel only if no...
Personal Criminal Liability Of Directors U/S 138 NI Act Survives Corporate Liquidation Under IBC: Himachal Pradesh High Court
The Himachal Pradesh High Court has reiterated that liquidation of a company under the IBC does not shield its directors from personal criminal liability in cheque bounce cases under Section 138 of the Negotiable Instruments Act, 1881(“N.I Act”) “15. ….Therefore, the orders passed by the learned Trial Court ordering the continuation of the proceedings against accused nos. 2 and 3 cannot be faulted.” Justice Rakesh Kainthla dismissed two petitions filed under Section 482 CrPC by...
NCLT Approves Piramal Fund's Move to Set Off Losses With Rs 200-Crore Securities Premium
The National Company Law Tribunal at Mumbai on Monday approved Piramal Fund Management Pvt. Ltd.'s plan to utilise Rs 200 crore (Rupees Two Hundred Crore Only) from its Securities Premium Account to wipe out accumulated losses, clearing the company's capital-reduction proposal under the Companies Act. A coram of Judicial Member KR Saji Kumar and Technical Member Anil Raj Chellan recorded that “neither any objector has come before this Tribunal to oppose the Scheme nor has any party controverted...
Security Deposit Is Not Operational Debt; Non-Refund Cannot Trigger CIRP: NCLT Delhi
The National Company Law Tribunal (NCLT) at Delhi has recently ruled that the non-refund of a contractual security deposit meant only as collateral cannot be treated as operational debt and cannot be used to initiate corporate insolvency proceedings. A coram of Judicial Member Mahendra Khandelwal and Technical Member Anu Jagmohan Singh said the security deposit paid in this case “as collateral security, held exclusively to ensure performance and execution of delivery obligations in the...
Date Of Default For Guarantors Is When Guarantee Is Invoked, Not When Loan Turns NPA: NCLT Mumbai
The National Company Law Tribunal at Mumbai has recently held that the date of default for a personal guarantor starts from the date on which the guarantee is invoked, and not from the date on which the borrower's loan account is declared a non performing asset, adding that a notice issued under the SARFAESI Act may be considered for determining this date. A coram of Judicial Member K R Saji Kumar and Technical Member Anil Raj Chellan made the finding while hearing a personal insolvency...
NCLT Mumbai Approves Times Group's Plan To Demerge Non-Publishing Businesses Into New Company
The National Company Law Tribunal (NCLT) at Mumbai on Wednesday approved Bennett, Coleman & Company Ltd's (BCCL) also knows as Times Group's proposal to demerge its non-publishing businesses into its wholly owned subsidiary, Times Horizon Pvt. Ltd. (THPL).The order was passed by coram comprising of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar which sanctioned the composite scheme of arrangement under Sections 230–232 of the Companies Act. The tribunal noted...
Pendency Of Proceedings Elsewhere No Ground For Delay; NCLT Kochi Rejects Customs' Claim Filed 787 Days Late
The National Company Law Tribunal (NCLT) at Kochi has recently held that the pendency of an appeal or any other proceeding before a different forum cannot be a valid ground for missing the strict deadlines for filing claims under the Insolvency and Bankruptcy Code (IBC), while refusing to condone a delay of 787 days by the Customs Department A coram of Judicial Member Vinay Goel and Technical Member Madhu Sinha observed, "The pendency of an appeal or other proceeding before a different forum...
Breach of Settlement Instalments Cannot Trigger Insolvency Proceedings: NCLT Kolkata
The National Company Law Tribunal (NCLT) at Kolkata has recently held that it is not a forum to recover money arising from a default in instalments under a settlement agreement, and that such a breach cannot be treated as an operational debt to trigger CIRP under the Insolvency and Bankruptcy Code. A coram of Judicial Member Bidisha Banerjee and Technical Member Siddharth Mishra dismissed the petition filed by a contractor who had sought to initiate insolvency proceedings against...
NCLT Bengaluru Reserves Order On Riju Ravindran's Plea Against Glas Trust's Aakash Right Issue Funding Plan
The National Company Law Tribunal (NCLT), Bengaluru, on Wednesday reserved its order on an interim plea sought by Riju Ravindran, former promoter of Think and Learn Pvt Ltd (Byju's), challenging the Committee of Creditors' (CoC) approval of a Compulsorily Convertible Debenture (CCD) structure proposed by Glas Trust to fund TLPL's participation in Aakash Educational Services Ltd's (AESL) ongoing rights issue.The matter was heard by a coram comprising Judicial Member Sunil Kumar Aggarwal, and...
Mere Obligation To Pay Under Compromise Deed Does Not Amount To Financial Debt: NCLT New Delhi
The National Company Law Tribunal (NCLT) at New Delhi has recently held that a mere breach of an agreement, resulting in an obligation to pay under a compromise deed, does not by itself qualify as a financial debt under the Insolvency and Bankruptcy Code (IBC), 2016. The order was passed by a bench comprising Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Atul Chaturvedi while dismissing the Section 7 application filed by Samridhi Realty Homes Private Ltd., seeking...
Applications Under Section 60(5) IBC Cannot Be Used To Modify Approved Resolution Plans: NCLT Delhi
The National Company Law Tribunal (NCLT) at Delhi has recently clarified that an application under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), which empowers the NCLT to determine disputes affecting the resolution process, cannot be used to revisit or modify a resolution plan once it has been approved by the tribunal. The ruling came in a petition filed by the Successful Resolution Applicants (SRAs) for the Shubhkamna City project in Greater Noida. The SRAs sought directions to...
NCLAT Fines Prospective Resolution Applicant Rs 15 Lakh For Obstructing Insolvency Process, Turning It Into A “Tom & Jerry Show"
The National Company Law Appellate Tribunal (NCLAT) at New Delhi on Tuesday imposed a cost of Rs. 15 lakh on Astral Agro Ventures, a Prospective Resolution Applicant (PRA), for obstructing the Corporate Insolvency Resolution Process (CIRP) of Megi Agro Chem Ltd. The tribunal observed that the insolvency resolution process “cannot be reduced to a Tom & Jerry show” where a PRA, who doesn't have any right to challenge continuously seeks extensions only to derail the resolution. The tribunal...