Supreme Court Allows Set-Off Defence Against Ujaas Energy Though Counterclaim Extinguished Under IBC

The Supreme Court on Friday allowed West Bengal Power Development Corporation Ltd. to raise a plea of set-off as a defence in arbitration proceedings against Ujaas Energy Ltd., even though its counterclaim stood extinguished after approval of the resolution plan under the Insolvency and Bankruptcy Code. A bench of Justices Dipankar Datta and Augustine George Masih while granting the relief observed: “Upon a cumulative consideration of all relevant factors, we hold that the...

Breach Of Settlement Gives Fresh Cause Of Action; NCLAT Allows Subham Capital To File Fresh CIRP Plea Against Vedic Realty

The National Company Law Appellate Tribunal (NCLAT) has recently held that Subham Capital Pvt. Ltd. was entitled to file a fresh Section 7 petition against Vedic Realty Pvt. Ltd. after breach of a settlement agreement, ruling that the subsequent default gave rise to a new cause of action and was not barred by res judicata. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed: “The breach of settlement clearly gave rise to a new cause of action in favour of the...

NCLT Mumbai Partly Allows Anil Ambani Access To Pre-CIRP Records Of Reliance Communications To Defend ED-CBI Proceedings

The National Company Law Tribunal (NCLT) at Mumbai has partly allowed an application by former Reliance Communications Ltd director Anil Dhirajlal Ambani seeking access to insolvency records of the company, including documents furnished to the Enforcement Directorate and the Central Bureau of Investigation, holding that a suspended director cannot be denied pre-CIRP records required to defend himself in proceedings based on those materials.Ambani told the tribunal that proceedings have been...

S.7 IBC | Only Financial Creditor And Corporate Debtor Have Vested Right To Be Heard At Pre-Admission Stage: NCLT Bengaluru

The National Company Law Tribunal (NCLT) at Bengaluru has held that no third party has a right to intervene at the pre-admission stage of a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, reiterating that the Tribunal's scope at that stage is limited to examining the existence of financial debt and default. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada was dealing with an interlocutory application seeking permission to intervene...

RBI Circular Cannot Override IBC; Written Agreement Not Mandatory To Prove Financial Debt: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that RBI circulars requiring written loan agreements cannot override the Insolvency and Bankruptcy Code. The tribunal observed that it is “a clear derivative” of its earlier judgments that the RBI circular does not prevail over IBC proceedings and that a written agreement is not mandatory to establish financial debt under the Code. The bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra, while...

In Appeal Against NCLT Order On Adani Plan For JAL, NCLAT Bars Invocation Of Subcontractor's Bank Guarantee For Six Months

The National Company Law Appellate Tribunal (NCLAT) in Delhi on Friday directed that the bank guarantee furnished by Velocity Enterprises, a subcontractor engaged by Jaiprakash Associates Limited (JAL) for erection and maintenance of substations, shall not be invoked for six months beyond its expiry on March 31, 2026. The order came in the first appeal filed after the National Company Law Tribunal approved Adani Group's Rs 15,000-crore resolution plan for the company. The matter was heard by a...

NCLT Bengaluru Admits Insolvency Against BNH Infra Projects On ₹11.3 Crore Loan Default In Canara Bank's Plea

The Bengaluru Bench of the National Company Law Tribunal (NCLT) on March 16 admitted insolvency proceedings against BNH Infra Projects India Pvt. Ltd. over a loan default of about Rs 11.3 crore, after Canara Bank claimed total outstanding dues of over Rs 64 crore. A coram comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada noted that the respondent was proceeded ex parte due to failure to appear and comply with the tribunal's directions, observing that...

Fraud Must Be Clearly 'Found,' Not Presumed To Invoke Fraudulent Trading Under IBC: NCLT Hyderabad

The Hyderabad Bench of the National Company Law Tribunal (NCLT) has held that proceedings under Section 66 of the Insolvency and Bankruptcy Code, which deals with fraudulent and wrongful trading by directors, cannot be sustained on mere suspicion and require a clear finding of intent to defraud supported by cogent evidence. A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri passed the ruling while dismissing an application filed by the Resolution Professional of Kobo...

Third-Party Impleadment Not Ordinarily Contemplated In Section 7 CIRP At Pre-Admission Stage: NCLT Hyderabad

The National Company Law Tribunal (NCLT) at Hyderabad has held that third parties cannot ordinarily be impleaded in proceedings under Section 7 of the Insolvency and Bankruptcy Code at the pre-admission stage unless their presence is indispensable for determining the existence of financial debt and default. The observations came in an order dated March 9, 2026, passed by a bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri while dismissing an intervention petition...

Interest In Invoices Without Acceptance By Corporate Debtor Cannot Count Toward Threshold Under IBC: NCLT Ahmedabad

The National Company Law Tribunal (NCLT) at Ahmedabad has reiterated that interest mentioned only in invoices without any contractual stipulation cannot be counted as operational debt for determining the statutory threshold under Section 4 of the Insolvency and Bankruptcy Code, 2016, while dismissing a plea filed by an operational creditor seeking initiation of insolvency proceedings. The bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed that, “Where interest is...

S.94 IBC | Parallel SARFAESI, DRT Proceedings No Bar To Personal Guarantor Insolvency: NCLT Indore

The National Company Law Tribunal (NCLT) at Indore has held that insolvency proceedings against a personal guarantor under the Insolvency and Bankruptcy Code cannot be rejected merely because recovery proceedings are pending before the Debts Recovery Tribunal or under the SARFAESI Act. The tribunal also observed that the exact quantum of debt can be verified during the process and does not affect admission at this stage. A coram of Brajendra Mani Tripathi and Man Mohan Gupta was hearing a...

Lender's Relinquishment Of Security In Borrower Liquidation Does Not Extinguish Third-Party Mortgage: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai on Tuesday held that relinquishment of security in the liquidation of a principal borrower does not affect a mortgage created in favour of the lender by a third-party corporate debtor, and the lender can still claim secured creditor status in the debtor's separate insolvency proceedings.A bench of Judicial Member K.R. Saji Kumar and Technical Member Anil Raj Chellan, while deciding an application filed by IFCI Ltd seeking recognition of its...