IBC
Gensol Insolvency: NCLAT Refuses To Expunge NCLT's Remarks Against IRP, Says Observations Not Adverse To His Conduct
The National Company Law Appellate Tribunal (NCLAT) recently refused to expunge certain adverse observations made against insolvency professional Pulkit Gupta in an order passed by the National Company Law Tribunal (NCLT), Ahmedabad, while admitting insolvency proceedings against Gensol Engineering Limited and its group entity Gensol EV Lease Limited. The appellate tribunal, in an order passed on November 3, clarified that the remarks of the tribunal concerning Gupta's prior association with...
Shareholder Advances Recorded As 'Repayable On Demand' Qualify As Financial Debt: NCLT Mumbai
The National Company Law Tribunal (NCLT) Mumbai bench of Sushil Mahadeorao Kochey (Judicial Member) and Prabhat Kumar (Technical Member) admitted a petition under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Euro Corporate Services Pvt. Ltd. (formerly Distent Barter Pvt. Ltd.) against Royal Fantasy Constructions Pvt. Ltd (Corporate Debtor) holding that the loan advanced to the corporate debtor constituted a financial debt under section 5(8) of the IBC. It held...
NCLAT Rejects Jaypee Infratech's ₹15 Crore Interest Claim On Funds Deposited By JAL For Homebuyers
The National Company Law Appellate Tribunal (NCLAT) at Delhi on Tuesday dismissed a plea by real estate company Jaypee Infratech Ltd. (JIL) seeking interest of Rs 15 crore on nearly Rs 546 crore deposited by its parent company, Jaiprakash Associates Ltd. (JAL), for the benefit of homebuyers during JIL's insolvency proceedings A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra noted that in its earlier judgment on August 28, 2023, it had already ruled that the Rs 750...
Adjustment Of Security Deposit By Electricity Company During Moratorium Violates S.14 Of IBC: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai Bench, comprising Mohan Prasad Tiwari (Member-Judicial) and Charanjeet Singh Gulati (Member-Technical), has held that the adjustment of the security deposit by the electricity company against outstanding energy bills during the moratorium period violates the mandate of section 14 of the IBC, 2016. The CIRP of the corporate debtor was admitted, and subsequently the liquidation order was passed. The application was filed by the...
Time Spent In Voluntary Pre-Institution Mediation Cannot Be Excluded For Computing Limitation U/S 14 Of Limitation Act: NCLT New Delhi
The National Company Law Tribunal (NCLT), New Delhi Bench, Court-IV, comprising Manni Sankariah Shanmuga Sundaram (Member-Judicial) and Atul Chaturvedi (Member-Technical), has held that the time spent in voluntary pre-institution mediation proceedings cannot be excluded for computation of limitation under Section 14 of the Limitation Act. The operational creditor, Shiva Asphaltic Products Private Limited, supplied bitumen emulsion to the corporate debtor, Atlas Constructions Private ...
Default In Any Credit Account Leads To NPA Classification; Sufficient To Trigger CIRP U/S 7 IBC: NCLT Mumbai
The National Company Law Tribunal (NCLT) Mumbai bench of Sushil Mahadeorao Kochey (Judicial Member) and Prabhat Kumar (Technical Member) held that default in one of several facilities was sufficient to trigger Corporate Insolvency Resolution Process (CIRP) under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Tribunal further observed that where the debtor maintains multiple loan accounts, each account carries a separate debt obligation capable of attracting default...
Amendment Of Default Date In IBC Pleadings Is Permissible Before Final Adjudication: NCLT Mumbai
The National Company Law Tribunal (NCLT) Mumbai bench of Sushil Mahadeorao Kochey (Judicial Member) and Prabhat Kumar (Technical Member) admitted an insolvency petition against Vibrant Content Pvt. Ltd.(Corporate Debtor) filed by Central Bank of India holding that acknowledgment of debt in the balance sheet constitutes a valid acknowledgement under section 18 of the Limitation Act thereby extending the limitation. The Tribunal further held that “Since, a decision rendered by larger ...
IBBI Advises Insolvency Professionals To Seek ED-Attached Assets To Boost Recoveries
The Insolvency and Bankruptcy Board of India (IBBI), noting that assets of entities in insolvency are often under attachment by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), has issued a circular guiding insolvency professionals on seeking restitution of such assets. In a circular issued on November 4, addressed to all registered insolvency professionals, the board observed that restitution of attached assets can significantly enhance the value of...
Penalty Imposed By SEBI After Commencement Of Insolvency Cannot Be Admitted As Claim During CIRP: NCLT Mumbai
The NCLT, Mumbai Bench, comprising Anil Raj Chellan (Member-Technical) and K.R. Saji Kumar (Member-Judicial), has held that the penalty imposed by the SEBI post insolvency commencement cannot be admitted as a claim during CIRP. The CIRP of the corporate debtor (Medybiz Private Limited) was going on, and a moratorium was in effect. The last date of filing the claim was 22.08.2024; however, on 22.08.2024, SEBI imposed a penalty of Rs. 25 Cr. on the corporate debtor. The resolution...
Use Of Documents Scanned Through Banned 'CamScanner' App Not Grounds To Reject Section 7 IBC Petition: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai Bench, comprising K.R. Saji Kumar (Member-Judicial) and Anil Raj Chellan (Member-Technical), has dismissed an application challenging the maintainability of the section 7 IBC petition based on the alleged inadmissibility of the photocopies/documents scanned via the banned “CamScanner” app. The present application was filed by the corporate debtor challenging the maintainability of the Section 7 application on the grounds of the...
Unpaid Salary of Whole-Time Director Constitutes Operational Debt, Can trigger CIRP: NCLT, Chennai
The National Company Law Tribunal (NCLT) at Chennai recently held that the unpaid salary dues of a whole-time director qualify as an operational debt, allowing a plea by a director seeking recovery of his unpaid salary of Rs 10.50 lakh. In an order passed on October 10, 2025, a bench comprising Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy held that being a director does not automatically bar him from filing an insolvency application as long as debt and...
NCLT Orders Dissolution of Groww Promoter Company Following Voluntary Liquidation
The National Company Law Tribunal (NCLT) at Bengaluru has ordered the dissolution of Groww AA Private Limited, a company promoted by the founders of the online investment platform Groww. This comes after the company filed a plea for voluntary liquidation, completed all required legal and financial formalities, and distributed its assets to shareholders.The fintech platform Groww (Billionbrains Garage Ventures Ltd), founded in 2016, has opened its Initial Public Offering today.In an order passed...