NCLT Has Jurisdiction U/S 60(5)(C) IBC To Adjudicate Lease Disputes In Liquidation Proceedings: Gujarat High Court

The Gujarat High Court bench led by Justice Niral R. Mehta held that the NCLT has jurisdiction under section 60(5)(c) of the IBC to adjudicate the lease and license dispute during the liquidation proceedings. The petitioners, Fivebro Water Services Pvt. Ltd. and another, had the lease and license agreements with the corporate debtor for its premises in Ahmedabad and Mumbai. Thereafter, the liquidation of the corporate debtor was ordered. The liquidator filed an application...

NCLT Admits Byju's K3 Education To Insolvency Over Rs 1.76 Crore Unpaid Debt

The National Company Law Tribunal (NCLT) at Bengaluru recently admitted Byju's K3 Education Pvt Ltd, another Byju's group company, to insolvency over an unpaid operational debt of Rs. 1.76 crore. The order was passed on October 15, 2025, following a petition by an Operational creditor-Kritikal Solutions Pvt Ltd. A coram comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada while admitting the company to insolvency appointed Pankaj Kumar as the Interim...

Execution Of Sale Deed Is Permitted During CIRP If Possession Was Handed Over Before Its Commencement: NCLT Indore

The NCLT, Indore Bench, comprising Mohan P. Tiwari (Member-Judicial) and Sanjeev Sharma (Member-Technical), has held that the moratorium doesn't prohibit the execution of sale deeds during CIRP if the possession was handed over to allottees prior to commencement of CIRP. The JSM Devcons Pvt. Ltd. (Corporate Debtor) is engaged in developing the housing project, Pinnacle D Dreams. In furtherance to a section 7 petition filed by the Motel Rahans Pvt. Ltd., the CIRP of the corporate debtor...

IBC Quarterly Digest: July-September 2025

Supreme Court IBC Moratorium Doesn't Bar Voluntary Surrender Of Corporate Debtor's Leased Property To Lessor: Supreme Court Cause Title: Sincere Securities Private Limited & Ors. Versus Chandrakant Khemka & Ors. Citation : 2025 LiveLaw (SC) 774 The Supreme Court on Tuesday (August 5) held that the moratorium under the Insolvency and Bankruptcy Code, 2016 (IBC), does not bar the voluntary handover of property leased by the corporate debtor to the lessors if retaining the...

IBBI Notifies Liquidation Process (Second Amendment) Regulations 2025

On October 14th 2025, the Insolvency and Bankruptcy Board of India (IBBI) has issued “Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025”. By exercising its power conferred by virtue of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016, the IBBI has released the said amendment. The amendment came into effect with the prospective application and it modifies the Insolvency and Bankruptcy Board of India...

Cheque Dishonour Proceedings Can Be Sustained Against Directors & Signatories Of Company Even If It Is Declared Insolvent: Orissa High Court

The Orissa High Court, Bench comprising Justice Chittaranjan Dash, has ruled that the proceedings under section 138 of the NI Act will sustain against the directors or signatories of the company even if the entity has been declared insolvent under the IBC, 2016. The complainant extended a loan of Rs. 1 Cr. to Zenith Mining Pvt. Ltd., which remains unpaid. The check issued by the respondent was dishonored twice with the remark 'refer to drawer.' These events led the complainant to...

NCLT Kochi Admits Kotak Mahindra Bank's Insolvency Petition Against Inditrade Business Consultants

The NCLT, Kochi Bench, comprising Vinay Goel (Member-Judicial) and Madhu Sinha (Member-Technical), has admitted the Kotak Mahindra Bank's insolvency petition against Inditrade Business Consultants. Kotak Mahindra Bank advanced working capital and overdraft facilities of Rs. 20 Cr. to Inditrade Business Consultants Limited. The amount was later enhanced to Rs. 25 Cr. Subsequently, the corporate debtor defaulted on the repayment, leading to the classification of its account as NPA. ...

Interest Liability Shall Not Cease Merely Because Default Of Principal Amount Fell During S.10A Period: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench admitted a petition under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Unity Small Finance Bank Limited against Bafna Motors Private Limited holding that defaults committed after section 10A period are sufficient to trigger Corporate Insolvency Resolution Process (CIRP). It further held that interest liability shall not come to an end merely on the ground that default of principal amount fell during 10A period. ...

IBBI Notifies Insolvency Resolution Process For Corporate Persons (Sixth Amendment) Regulations 2025

On October 14th 2025, the Insolvency and Bankruptcy Board of India (IBBI) has issued Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Sixth Amendment) Regulations, 2025. By exercising its power conferred by virtue of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016, the IBBI has released the said amendment. The amendment came into effect with the prospective application and it modifies the Insolvency and...

COVID-Induced Financial Distress Or Inability To Pay Is Not Valid Defence U/S 7 IBC: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench admitted a petition under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Prudent ARC Limited (assignee of Central Bank of India) against RBEP Entertainment Pvt. Ltd. (formerly Reliance Big Entertainment Pvt. Ltd.). The Tribunal held that debt and default were duly established in the present case and the plea of the corporate debtor that the COVID induced distress justified non-payment was rejected holding that ...

NCLT Lacks Jurisdiction To Recover Disputed Contractual Dues During Liquidation U/S 60(5) IBC: NCLAT New Delhi

The NCLAT, New Delhi, Principal Bench, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has held that the NCLT doesn't have jurisdiction under section 60(5) of the IBC to recover disputed contractual dues during liquidation. Uttar Pradesh Rajkiya Nirman Nigam Ltd. (URNL) was working under the Uttar Pradesh Power Transport Corporation Ltd. (UPPTCL). URNL subcontracted the construction work of three power substations to Dev Denso Power Ltd. (Corporate...

NCLAT New Delhi Dismisses Korea Trade Insurance Corp's Insolvency Plea Against Amrit Polychmen

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has dismissed the Korea Trade Insurance Corporation (Ksure) plea for insolvency of Amrit Polychmen, saying that the Ksure was well aware of the pre-existing dispute before stepping into the shoes of JTC. Amrit Polychem Pvt. Ltd. (APL) placed three purchase orders with JT Corporation (JTC), Korea, for purchasing some...