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...

IBC Cannot Replace Statutory Process For Determination And Recovery Of GST Liability: NCLT Hyderabad

The National Company Law Tribunal (NCLT) at Hyderabad on Wednesday observed that liquidation proceedings under the Insolvency and Bankruptcy Code cannot be employed as a substitute for the statutory process governing determination and recovery of GST liability.The bench of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri delivered the ruling in an application filed by the Central Goods and Services Tax (CGST) Department seeking directions against the liquidator of Lanco...

NCLT Bengaluru Dismisses Insolvency Plea By Operational Creditor Against Wipro Over Pre-Existing Dispute

The National Company Law Tribunal (NCLT) at Bengaluru on Wednesday dismissed an insolvency petition filed against Wipro Ltd, holding that a pre-existing dispute regarding the supply and quality of biometric devices barred initiation of the Corporate Insolvency Resolution Process. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada held that insolvency proceedings cannot be invoked as a substitute for recovery of disputed contractual claims. “The...

NCLT Ahmedabad Dismisses Arrhum Tradelink Plea After Vimal Oil Sale, Says 'As-Is Where-Is' Terms Bind Buyer

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) has dismissed an application filed by Arrhum Tradelink Pvt. Ltd., the successful bidder for Vimal Oil & Foods Ltd. in liquidation, seeking reliefs including extinguishment of past liabilities, restoration of listing status, and exemptions from securities law compliance under Section 60(5) of the Insolvency and Bankruptcy Code.A coram comprising Judicial Member Chitra Hankare and Technical Member Velamur G Venkata Chalapathy held...

Ojas Tradelease CIRP: NCLT Mumbai Sets Aside 21-Year Acropolis Mall Lease As Fraudulent Under IBC

The National Company Law Tribunal (NCLT) at Mumbai has held that leasing a commercial asset like Acropolis Mall on long-term unfavourable terms without periodic escalation cannot be treated as a bona fide business decision and is detrimental to the interests of the corporate debtor and its creditors. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar allowed an application filed by the Resolution Professional of Ojas Tradelease and Mall Management Pvt. Ltd....

IBC Does Not Require Same Due Date On All Invoices For Insolvency Plea: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has recently observed that there is no requirement under the Insolvency and Bankruptcy Code that the due dates of all invoices must be identical to trigger insolvency proceedings. The ruling came in a petition filed in June 2024 by ABV Electronic, an operational creditor, seeking initiation of corporate insolvency resolution process (CIRP) against Anmol Innovative Electrical Private Limited for default in payment of dues arising from supply of...

Bombay High Court Flags Misuse Of IBC By Borrowers To Stall SARFAESI Recovery After Auction Sale

The Bombay High Court on Wednesday flagged a disturbing trend of defaulting borrowers invoking provisions of the Insolvency and Bankruptcy Code to frustrate proceedings under the SARFAESI Act, even after auction rights had crystallised in favour of auction purchasers. A Division Bench of Justices Manish Pitale and Shreeram V. Shirsat was hearing a writ petition filed by auction purchasers challenging a November 26, 2025 order of the Debts Recovery Tribunal-I, Mumbai, which had halted further...

Personal Guarantor's Non-Compliance With Repayment Plan Allows Bankruptcy Proceedings: NCLT Kochi

The Kochi Bench of the National Company Law Tribunal (NCLT) on 26 February, held that a personal guarantor's failure to submit a repayment plan despite sufficient opportunities has the same effect as rejection of a repayment plan, allowing creditors to initiate bankruptcy proceedings. Judicial Member Vinay Goel allowed the application filed by the Resolution Professional of a personal guarantor to Tata Capital Limited. The Tribunal stated:“Where no Repayment Plan is submitted, the Resolution...

Filing CIRP To Evade Tax Liabilities Amounts To Fraud: NCLAT New Delhi

The New Delhi Bench of the National Company Law Appellate Tribunal on 17 March, held that initiating the Corporate Insolvency Resolution Process of a corporate debtor to evade tax liabilities amounts to fraud under Section 65 of the Insolvency and Bankruptcy Code, 2016. A Bench comprising Judicial Member Justice Ashok Bhushan and Technical Member Barun Mitra observed: “Thus, what seems to underpin the reason for triggering CIRP proceedings was clearly to circumvent the tax liability. It is...

NCLT Indore Admits ₹95.31 Crore Insolvency Plea By Central Bank Of India Against Narmada Extrusions

The Indore Bench of the National Company Law Tribunal on 13 March admitted an insolvency petition filed by Central Bank of India against Narmada Extrusions Limited under Section 7 of the Insolvency and Bankruptcy Code 2016 over default in repayment of financial debt of more than Rs. 95.31 crore. A Bench comprising Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta held that the Financial Creditor had established the existence of financial debt and the occurrence of...

Warranty Dispute Over Defective Batteries Held Pre-Existing Dispute; NCLAT Upholds Rejection Of CIRP Plea Against Eastman Auto

The National Company Law Appellate Tribunal (NCLAT) at Delhi recently refused to allow insolvency proceedings to be initiated in a dispute between Vave India Energy Solutions Private Limited and Eastman Auto & Power Limited. The tribunal found that the case arose from complaints about defective batteries supplied under warranty and that the liability had been disputed before the statutory demand notice was issued. A bench of Judicial Member Justice Yogesh Khanna and Technical Member Ajai...

Homebuyers' Advances Used For Project Development Are Financial Debt Under IBC: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has recently reiterated that amounts paid by homebuyers in a real estate project will qualify as financial debt if the money is used for financing and development of the project. Relying on the Supreme Court's ruling in Pioneer Urban Land and Infrastructure Ltd. v. Union of India, a bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar observed, “Applying the aforesaid legal position to the facts of the present case, it is...