Company Cannot Deny Deposit Repayment Claim Merely Because Depositor Was Non-Member: NCLT Allahabad

The National Company Law Tribunal (NCLT) at Allahabad has held that a company cannot defeat a non-member's claim for repayment merely by contending that the money was received from someone who was not its member, where the amount falls within the statutory definition of a "deposit."A bench comprising Judicial Member Praveen Gupta and Technical Member Ashish Verma held that a company's alleged non-compliance with the rules governing acceptance of deposits does not give it a right to retain money...

Matured Deposits Cannot Be Treated As Automatically Renewed Without Proof Of Actual Renewal: NCLT Allahabad

The National Company Law Tribunal (NCLT) at Allahabad has ruled that a corporate debtor cannot rely solely on an automatic-renewal clause in deposit certificates to claim that matured deposits were not payable. It must produce material showing that the deposits were actually renewed in accordance with the terms of the certificates.“Therefore, the mere existence of a clause providing for automatic renewal does not, in itself, establish that the deposits in question were actually renewed. The...

CIRP Expiry Without Resolution Plan Mandates Liquidation, Failed CoC Liquidation Vote Irrelevant: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that once the insolvency resolution period expires without receipt of a resolution plan or a valid extension, liquidation becomes mandatory under the Insolvency and Bankruptcy Code (IBC).It also held that a failed vote on a separate liquidation proposal or expressions of interest received after the deadline cannot revive an expired insolvency process.“We therefore hold that once the CIRP period expired without receipt...

Familial Disputes Alone Can't Establish Fraudulent Insolvency Proceedings Under IBC: NCLT Chandigarh

The National Company Law Tribunal (NCLT), at Chandigarh on 10 September held that a family relationship or strained relations between parties, by themselves, cannot establish that insolvency proceedings were initiated fraudulently or maliciously under Section 65(1) of the Insolvency and Bankruptcy Code, 2016 (IBC). A Bench of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal dismissed an application filed by Monica Agarwal, a director and shareholder of Narayanam Organics...

Personal Guarantors Cannot Revive Appeals After OTS Fails Due to Their Own Default: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently refused to restore appeals filed by three personal guarantors after a ₹4.60 crore One-Time Settlement (OTS) with Indian Bank failed. The tribunal held that the guarantors could not rely on the liberty granted in an earlier order to take advantage of their own default.“Certainly the appellants or principal borrower who appears to be at fault by not honoring the OTS may not take the advantage of their own wrong,” the bench...

NCLT Delhi Allows Insolvency Withdrawal Against HIL India After Creditor Settlements

The Delhi Bench of the National Company Law Tribunal (NCLT) on 30 September allowed withdrawal of the corporate insolvency resolution process (CIRP) against HIL (India) Limited under Section 12A of the Insolvency and Bankruptcy Code, 2016 (IBC), following settlements with its creditors. A Bench comprising President Anupinder Singh Grewal and Technical Member Ravindra Chaturvedi allowed the application filed by Interim Resolution Professional (IRP) Rohit Sehgal for withdrawal of the CIRP. It...

Financial Creditor's RP Recommendation Does Not Invalidate Appointment Under IBC: NCLT Hyderabad

The Hyderabad Bench of the National Company Law Tribunal (NCLT) held on 7 September that a Financial Creditor's recommendation of an Insolvency Professional in a Section 95 application does not, by itself, invalidate the subsequent appointment of that person as Resolution Professional under Section 97 of the Insolvency and Bankruptcy Code, 2016 (IBC). A Bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri held that the recommendation does not amount to an...

LiveLawBiz IBC Monthly Digest: September 2026

SUPREME COURTSupreme Court Issues Notice In Canara Bank's Plea Against NCLAT Order Setting Aside Insolvency Admission Of Equinox India DevelopmentsCase Title : CANARA BANK (E-SYNDICATE BANK) VS. EQUINOX INDIA DEVELOPMENTS LIMITED Case Number : DIARY NO. - 36294/2026The Supreme Court on Monday issued notice on Canara Bank's challenge to the NCLAT order setting aside the admission of its Section 7 insolvency petition against Equinox India Developments Ltd., formerly Indiabulls Real Estate Ltd. A...

Post-Liquidation CoC Resolution Cannot Cure Missing Recommendation For Compromise With Creditors: NCLT Amravati

The National Company Law Tribunal (NCLT), Amravati Bench, has recently held that a CoC resolution passed after commencement of liquidation cannot retrospectively satisfy the requirement of a prior recommendation under Regulation 39BA for pursuing a compromise or arrangement under Section 230 of the Companies Act.The bench comprising Judicial Member Kishore Vemulapalli and Technical Member Umesh Kumar Shukla held that a later resolution authorising the liquidator to explore such a compromise...

Reliance Brand Dispute: NCLAT Dismisses ADAVL Appeal After Reliance Capital Becomes IndusInd

The National Company Law Appellate Tribunal (NCLAT) has recently dismissed as infructuous an appeal concerning the use of the “Reliance” brand name by IndusInd International Holdings Ltd (IIHL) following its takeover of Reliance Capital.The appeal was filed by Anil Dhirubhai Ambani Ventures Pvt. Ltd. (ADAVL), which had challenged the Mumbai bench of the National Company Law Tribunal's (NCLT) decision allowing IIHL to use the “Reliance” name as part of its takeover of Reliance Capital. The appeal...

Supreme Court Orders Status Quo Over ₹54 Crore Deposit In Moser Baer Solar Asset Auction

The Supreme Court on Thursday directed parties to maintain status quo in a dispute concerning the ₹54 crore deposit made by JFC Finance (India) Ltd. in the fresh auction of assets of corporate debtor Moser Baer Solar Ltd.The dispute concerns whether the Liquidator can retain JFC's deposit until the successful bidder pays the entire sale consideration of ₹168 crore.The NCLAT rejected the Liquidator's plea, holding that the condition in paragraph 56(iv) had been triggered once another bidder...

Settlement In Principal Borrower's CIRP Does Not Extinguish Corporate Guarantor's Liability: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi has ruled that a settlement reached during the insolvency proceedings of a principal borrower does not, by itself, prevent insolvency proceedings against its corporate guarantor. The settlement must specifically release the guarantor from its obligations for it to have that effect.The tribunal observed, “any arrangement or settlement among the members of the Committee of Creditors concerning their inter se rights and obligations cannot, by...