Voluntary Liquidation: A Strategically Sound Exit For Dormant Companies

In the Indian corporate environment, dormancy is often misunderstood as harmless inactivity. In law, however, a dormant company remains very much alive subject to statutory filings, regulatory oversight, penalties for non-compliance, and exposure to historical liabilities. For promoters, what appears to be a sleeping entity frequently becomes a source of recurring compliance cost and long-term uncertainty. The Insolvency and Bankruptcy Code, 2016 (IBC) addresses this reality through a carefully...

CIRP Claims Cannot Rely On 12-Year Limitation Period For Enforcing Mortgage Rights: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has recently ruled that secured creditors cannot rely on the 12-year limitation period for enforcing mortgage rights when filing claims in a corporate insolvency resolution process. For insolvency claims, the Tribunal said, the applicable limitation period is three years. The decision was delivered by a coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar. The tribunal drew a clear distinction between enforcing...

NCLT Mumbai Approves Demerger Of Poonawalla Finance And Group Entities

The National Company Law Tribunal at Mumbai has approved a scheme of amalgamation involving Poonawalla Finance Pvt Ltd, Rising Sun Holdings Pvt Ltd and Synergist Realtors Pvt Ltd, paving the way for the reorganisation of businesses within the Poonawalla group. The approval came on January 6, 2026, following resolutions passed by the boards of the companies on February 4 and February 12, 2025. Under the scheme, the appointed date for the first leg of the demerger has been fixed as...

Corporate Debtor Cannot Reclaim Property Sold Under Unregistered Slump Sale Agreement: NCLT Hyderabad

The National Company Law Tribunal (NCLT) at Hyderabad has held that when a corporate debtor has received full consideration and acted upon a slump sale transaction, he cannot later reclaim the property on the ground that the agreement was unregistered, as such conduct is barred by the doctrine of estoppel. A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri dismissed a set of applications filed by the liquidator of Handum Industries Ltd, which has been under...

NCLAT Sets Aside NCLT Delhi Order For Failing To Examine Post-Covid Invoice Defaults In Insolvency Plea

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Wednesday set aside an order of the National Company Law Tribunal, Delhi, which had dismissed an insolvency application by invoking the Covid-19 bar under the Insolvency and Bankruptcy Code. The appellate tribunal held that the NCLT Delhi failed to consider invoices whose dates of default fell outside the Covid-19 excluded period. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra said the approach...

LiveLawBiz: Business Law Daily Round-Up: January 07, 2026

IBC HMT Takes Final Step To Close HMT Watches, Files Application With Ministy Of Corporate AffairsNCLT Mumbai Approves Sagacious Capital's Rs 110 Crore Plan To Revive Reliance InnoventuresAvoidance Provisions Under Insolvency Code Are Restorative, Not Punitive: NCLT KochiDelhi High Court Dismisses 'Luxury Litigation' Over Debt Assignment, Reaffirms NCLT Power To Probe FraudHigh Courts Cannot Exercise Parallel Contempt Jurisdiction Over NCLT In IBC Cases: Bombay High CourtNCLT Kochi Orders...

HMT Takes Final Step To Close HMT Watches, Files Application With Ministy Of Corporate Affairs

HMT, one of the nation's oldest public sector manufacturing brands, has taken the final step to shut down its watchmaking arm, HMT Watches Limited, by filing an application to strike off the company with the Ministry of Corporate Affairs on January 6, 2026. The filing was disclosed by HMT Limited in a regulatory filling with the stock exchanges. HMT Watches, once known as the 'Timekeeper of the Nation' has not carried out any business for several years and has been running losses for much...

NCLT Mumbai Approves Sagacious Capital's Rs 110 Crore Plan To Revive Reliance Innoventures

The National Company Law Tribunal (NCLT) at Mumbai has approved a Rs. 110.10 crore resolution plan submitted by Sagacious Capital Pvt Ltd for the revival of debt-ridden Reliance Innoventures Pvt Ltd. The tribunal held that once a plan satisfies the requirements of the Insolvency and Bankruptcy Code, the tribunal cannot interfere with the commercial decisions of lenders. A bench comprising Judicial Member Mohan Prasad Tiwari and Technical Member Charanjeet Singh Gulati observed that...

Avoidance Provisions Under Insolvency Code Are Restorative, Not Punitive: NCLT Kochi

The National Company Law Tribunal at Kochi has clarified that the avoidance provisions under the Insolvency and Bankruptcy Code are meant to undo the preferential effect of certain transactions and restore the corporate debtor's estate, not to impose punitive liability on the beneficiary. Judicial Member Vinay Goel made the observation while partly allowing an avoidance application filed by the Resolution Professional of Astern Properties and Developers Pvt Ltd under Sections 43 and 44 of the...

Delhi High Court Dismisses 'Luxury Litigation' Over Debt Assignment, Reaffirms NCLT Power To Probe Fraud

The Delhi High Court has dismissed what it described as “luxury litigation” challenging a debt assignment, saying issues of fraud or the existence of debt must be decided by the insolvency tribunal, not a civil court. A single-judge bench of Justice Purushaindra Kumar Kaurav rejected the suit at the threshold, holding that it was a “mala fide attempt” built on “clever drafting” to derail proceedings under the Insolvency and Bankruptcy Code. The court imposed costs of Rs 2 lakh, saying the case...

High Courts Cannot Exercise Parallel Contempt Jurisdiction Over NCLT In IBC Cases: Bombay High Court

The Bombay High Court on Monday held that contempt petitions alleging breach of orders passed by the National Company Law Tribunal in insolvency cases cannot be filed directly before the High Court. A single-judge bench of Justice Milind N Jadhav said that once contempt powers are conferred on the NCLT by law, the High Court should not exercise parallel jurisdiction. “Hence, once such contempt jurisdiction is vested in the tribunal, this court ought not to exercise parallel contempt...

NCLT Kochi Orders Original Concessionaire To Transfer ₹35.83 Lakh Jatayu Project Revenue To Common Pool

The National Company Law Tribunal (NCLT) at Kochi has directed that Rs 35.83 lakh lying in the current account of Guruchandrika Builders and Property Private Limited, the original concessionaire of the Jatayupara Tourism Project, be transferred to the project's common pool account, saying the move was necessary to maintain continuity of financial supervision. The direction was issued in an order delivered on Monday (January 5, 2026) by Judicial Member Vinay Goel. The dispute centers on the...