Time Spent In DRT Recovery Proceedings Cannot Be Excluded U/S 14 Of Limitation Act: NCLAT

The National Company Law Appellate Tribunal (NCLAT) held that the benefit of section 14 of the Limitation Act cannot be extended to the creditor who had initiated recovery proceedings before the Debt Recovery Tribunal (DRT) under the Recovery of Debt and Bankruptcy Act, 1993. The Tribunal held that the benefit under section 14 of the Act can be given only when the forum before which the proceedings were initiated lacked jurisdiction or suffered from a defect of similar nature. A bench...

Unremitted TDS Deducted Before Liquidation Does Not Form Part Of Liquidation Estate: NCLT Bengaluru

The National Company Law Tribunal (NCLT) Bengaluru bench of Shri Sunil Kumar Aggarwal, Member (Judicial) and Shri Radhakrishna Sreepada, Member (Technical) held that an unremitted Tax Deducted at Source (TDS) amounts deducted by the corporate debtor before the liquidation are assets held in trust for the government and therefore stand excluded from the liquidation estate under section 36 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Tribunal allowed the delayed claim filed by the...

Prior IBC Proceedings Don't Bar Criminal Prosecution Of Directors Under S. 138 Negotiable Instruments Act: Bombay High Court

The High Court of Bombay, Nagpur Bench, comprising Justice M.M. Nerlikar, has held that the prior initiation of IBC proceedings does not bar criminal prosecution of directors under section 138 of the Negotiable Instruments Act. Background of the Case The petitioner extended a short-term loan of Rs. 15 lakhs to the respondent through its directors. A post-dated cheque was issued as a security by the director. The NCLT admitted the respondent company into the CIRP, and its failure ...

CCI Dismisses Abuse Of Dominance Complaint Against Google Over Play Store Ban

The Competition Commission of India (CCI) on Monday dismissed a complaint filed by Liberty Infospace Pvt. Ltd. against Google, ruling that the tech giant did not abuse its dominant position by terminating the company's developer account on the Google Play Store.The Commission found no prima facie violation under Section 4 of the Competition Act, 2002, and closed the case without directing an investigation.The form-member coram of the commission, comprising Chairperson Ravneet Kaur and Members...

IBC Monthly Digest: September 2025

Supreme Court Committee Of Creditors Continues To Exist Till Resolution Plan Is Implemented Or Liquidation Order Is Passed : Supreme Court Case No.: KALYANI TRANSCO Vs MS BHUSHAN POWER AND STEEL LTD. | C.A. No. 1808/2020 and connected matters Citation: 2025 LiveLaw (SC) 954 In the JSW Steel matter, the Supreme Court held that the Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code, 2016 (IBC) does not become functus officio merely upon the approval of a...

No Concept Of “Symbolic Possession” Under IBC, IRP Is Entitled To Take Actual Control Of Corporate Debtor's Assets: NCLAT

The National Company Law Appellate Tribunal (NCLAT) Chennai bench of Justice Sharad Kumar Sharma (Judicial Member) and Jatindranath Swain (Technical Member) has dismissed an appeal filed by two promoters of M/s Orion Water Treatment Private Limited holding that there is no concept of symbolic possession under the Insolvency and Bankruptcy Code, 2016 (IBC) once Corporate Insolvency Resolution Process (CIRP) is initiated under section 10 of the IBC. The Tribunal further held that the ...

Only Existing Members Of Company Can Seek Relief Against Oppression & Mismanagement: NCLAT Chennai

The National Company Law Appellate Tribunal (NCLAT) at Chennai has recently ruled that only existing members of a company are entitled to seek relief for oppression and mismanagement under Section 244 of the Companies Act, 2013, even in so-called "exceptional circumstances."The tribunal set aside an order of the National Company Law Tribunal (NCLT), Chennai which had allowed two former members of the Madras Race Club to pursue such a claim.A coram of Justice Sharad Kumar Sharma and Technical...

No Provision Under Liquidation Process Regulations Permitting Acceptance Of Belated Claims: NCLT Allahabad

The NCLT, Allahabad Bench, comprising Praveen Gupta (Member-Judicial) and Ashish Verma (Member-Technical), has observed that unlike CIRP proceedings, there is no enabling provision under the liquidation process regulations permitting acceptance of belated claims. The liquidator rejected the claim filed by the applicant. Therefore, the appellant filed the present appeal challenging the rejection, under section 5 of the Limitation Act, 1963, read with Rule 11 of the NCLT Rules, 2016,...

ESI Amounts Are 'Trust Property', Not Part Of Corporate Debtor's Liquidation Estate: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial), Justice Mohammad Faiz Alam Khan (Member-Judicial), and Naresh Salecha (Member-Technical), has held that the ESI amounts are the “trust property” and not part of the corporate debtor's liquidation estate. The appeal was filed by the Regional Director, ESI Corporation, against the decision of the adjudicating authority. The adjudicating authority by the...

Resolution Professional Not Entitled To Fees Or Expenses During Stay Of CIRP Proceedings: NCLT Bengaluru

The National Company Law Tribunal (NCLT), Bengaluru Bench, comprising Sunil Kumar Aggarwal (Member-Judicial) and Radhakrishna Sreepada (Member-Technical), has held that an IRP/RP is not entitled to fees or expenses incurred during the stay of CIRP proceedings granted by NCLAT or Judicial Forum. The CIRP of the corporate debtor was initiated in furtherance of a section 7 petition, and the applicant was appointed as the interim resolution professional. However, later on the CIRP was...

Assignment Of Tax Dues By GST Dept Doesn't Violate Article 265 Or GST Act If CIRP Has Been Initiated: NCLAT New Delhi

The NCLAT, Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial) and Mr. Naresh Salecha (Member-Technical), has held that the assignment of tax dues by the GST Department doesn't violate Article 265 or the GST Act if CIRP has been initiated. The corporate debtor was admitted into CIRP, and Ms. Dilip Mehta was appointed as the interim resolution professional, later confirmed as the resolution professional in furtherance to a section 10 application. The...

NCLAT Upholds Unilateral Set-Off In Commercial Transactions Based On Nominee Director's Signature On Financial Statements

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has upheld the unilateral set-off by the corporate debtor against a financial creditor, even when the term sheet excluded such set-off. The appellant filed a petition under section 7 of the IBC, seeking initiation of CIRP against the corporate debtor. It was the case of the appellant before the adjudicating authority that out of the...