IBC S.121(2) Timeline For Personal Guarantor Bankruptcy Applications Directory, Not Mandatory: NCLAT

The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 30 June held that the three month period prescribed under Section 121(2) of the Insolvency and Bankruptcy Code, 2016 (IBC) for filing a bankruptcy application against a personal guarantor is directory and not mandatory. Judicial Member Justice N Seshasayee and Technical Member Arun Baroka set aside the order of the Cuttack Bench of the National Company Law Tribunal (NCLT), which had dismissed Cosmos Co Operative Bank...

IBC Threshold Must Be Tested Against MahaRERA Records At Time Of Filing Petition: NCLT Mumbai

On 6 July, the Mumbai Bench of the National Company Law Tribunal (NCLT) held that the number of allottees reflected on the MahaRERA website on the date of filing an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) is the relevant benchmark for determining whether the statutory threshold for initiating insolvency proceedings is satisfied. Technical Member Anil Raj Chellan and Judicial Member K.R. Saji Kumar partly allowed an application filed by K.D. Lite Developers Pvt....

Continuation Of CIRP By Sole Creditor Despite Full Repayment Is Malicious Use Of IBC: NCLAT Delhi

The New Delhi National Company Law Appellate Tribunal (NCLAT) on 30 June held that continuation of insolvency proceedings by a sole creditor despite full repayment of the debt amounted to malicious use of the Insolvency and Bankruptcy Code (IBC), which is intended for revival of corporate debtors and not for pursuing coercive or vindictive action. Judicial Member Justice N Seshsayee and Technical Members Arun Baroka and Indevar Pandey terminated the Corporate Insolvency Resolution Process...

LiveLawBiz IBC Weekly Digest: June 29 - July 5, 2026

SUPREME COURT Supreme Court Likens AI Hallucinations To Gas Behind Bhopal Gas Tragedy, Sets Aside CIRP Orders Over Fake Case Law Case Title : POOJA RAMESH SINGH Versus JAMMU AND KASHMIR BANK LTD AND ANR. Case Number : C.A. No. 11950/2025Comparing fake AI-generated legal material to the release of methyl isocyanate (the gas behind the Bhopal gas tragedy), the Supreme Court on Thursday warned that artificial intelligence could become "invisible, insidious, catastrophic" if...

Creditors Cannot Question RP's Information Requests During Claim Verification: NCLAT New Delhi

The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 30 June held that a creditor cannot question the information or clarifications sought by a Resolution Professional (RP) during verification of claims in the Corporate Insolvency Resolution Process (CIRP), as the RP is statutorily empowered to seek evidence necessary for substantiation of claims. Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka dismissed the appeal filed by the New Okhla...

OTS Breach Revives Original Loan Liability; Creditor Can Recover Full Dues: NCLAT New Delhi

The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 30 June held that breach of a One-Time Settlement (OTS) revives the corporate debtor's original liability under the loan agreement, entitling the financial creditor to proceed on the basis of the original debt. Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka dismissed the appeal filed by Gaurav Jaiswal, suspended director of JHV Sugar Ltd., challenging a National Company Law Tribunal (NCLT),...

NCLT Mumbai Admits Bank Of Maharashtra's CIRP Plea Against DNR India Autotech Over ₹17.98 Crore Default

The Mumbai Bench of the National Company Law Tribunal (NCLT) has recently admitted Bank of Maharashtra's insolvency plea against DNR India Autotech Pvt Ltd. The Corporate Insolvency Resolution Process has been initiated over an alleged default of ₹17.98 crore arising from a corporate guarantee executed by the company for credit facilities extended to Tirumalla Agro Industries Pvt Ltd.A bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar admitted the petition after holding...

NCLT Mumbai Orders Restoration of Pledged Shares, Holds Their Invocation During CIRP Moratorium Illegal

The National Company Law Tribunal (NCLT) at Mumbai has recently held that a financial creditor's invocation of pledged shares after the commencement of the Corporate Insolvency Resolution Process (CIRP) violated the moratorium under the Insolvency and Bankruptcy Code (IBC). It ruled that the creditor's contractual right to invoke the pledge could not override the statutory moratorium. A bench of Judicial Member Lakshmi Gurung and Technical Member Charanjeet Singh Gulati made the observations...

Interest-Bearing Inter-Corporate Loan Can Qualify As Financial Debt Under IBC: NCLT Kolkata

The National Company Law Tribunal (NCLT), Kolkata Bench, has held that an inter-corporate loan carrying interest qualifies as a "financial debt" under Section 5(8) of the Insolvency and Bankruptcy Code, 2016, provided it satisfies the twin requirements of time value of money and commercial effect of borrowing. The bench of Judicial Member Bidisha Banerjee and Technical Member Cmde Siddharth Mishra observed that Section 5(8) of the IBC neither expressly nor impliedly excludes inter-corporate...

NCLAT Revives Insolvency Plea Against Satnam Global Over ₹8 Crore Advance Paid Under Consortium Agreement

The National Company Law Appellate Tribunal (NCLAT), New Delhi, has held that Tech Lads India Pvt. Ltd.'s claim arising from an advance payment of ₹8 crore made to its consortium partner, Satnam Global Infraprojects Ltd., towards the supply of goods constituted an operational debt under the Insolvency and Bankruptcy Code, 2016. It found that the National Company Law Tribunal (NCLT) had erred in holding that the consortium agreement did not create any inter se commercial transaction between the...

Set-Off Under IBBI Liquidation Rules Applies Only Between Same Parties, Not Group Companies: NCLAT

The National Company Law Appellate Tribunal (NCLAT), New Delhi, has held that the benefit of set-off under the IBBI (Liquidation Process) Regulations, 2016 is available only where the mutual dealings are between the same parties and cannot be invoked to adjust dues owed by other group companies. The bench of Judicial Member Justice R.N. Seshasayee, Technical Member Arun Baroka, and Technical Member Indevar Pandey observed: “We observe that per Regulation 29 of the IBBI (Liquidation Process)...

NCLT Mumbai Holds Dev Land Transaction Fraudulent In Satra Properties Insolvency, Orders ₹24.45 Crore Repayment

The Mumbai Bench of the National Company Law Tribunal (NCLT), hearing proceedings arising from the corporate insolvency resolution process (CIRP) of Satra Properties (India) Ltd., has held that the forfeiture of ₹29.35 crore advanced by the company to Dev Land & Housing Pvt. Ltd. was a fraudulent transaction. It directed Dev Land & Housing and former director Praful Satra to jointly or severally contribute ₹24.45 crore to the assets of Satra Properties (India) Ltd. The tribunal...