IBC
NCLAT Directs NCLT To Hear Collusion Plea Before Deciding Insolvency Case
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently directed the NCLT, Mumbai Bench, to first decide an application filed by a sugar cooperative alleging that a Section 7 insolvency case against a company was collusive and could prejudice its rights.The tribunal said this was warranted by the peculiar facts of the case. The cooperative was not a party to the insolvency proceedings but claimed that its sugar factory and property could be affected.“In all judicial fairness,...
NCLT Can Recall Fraudulently Initiated CIRP At Any Time; Applicants Have Public Duty Not To Mislead: Supreme Court
The Supreme Court has held that the National Company Law Tribunal (NCLT) can recall an order admitting insolvency proceedings if the jurisdictional facts on which the proceedings were based are later found to have been affected by fraud or collusion. The court, however, clarified that such a finding does not automatically mean that the entire Corporate Insolvency Resolution Process (CIRP) must end. Once insolvency proceedings are admitted, they become a collective process involving all...
ESI Contributions Cannot Be Treated As Ordinary Operational Debt Under IBC: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Chennai has held that ESI contributions covered by the statutory trust mechanism cannot be treated as ordinary operational debt merely because the Employees State Insurance Corporation filed its claim as an operational creditor. “Once the ESI contributions are held to be amounts entrusted for the statutory purpose contemplated under the ESI Act and consequently excluded under Section 36(4)(a)(i), they cannot be treated as an ordinary...
Personal Guarantor Who Settled Company Debt Cannot Claim Financial Creditor Status: NCLAT
The National Company Law Appellate Tribunal (NCLAT), Chennai, has held that a personal guarantor who settled a corporate debtor's dues with its financial creditor, did not become a financial creditor in the liquidation proceedings.A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain found that there was no assignment of the debt in S.V. Ramasamy's favour. He had also not sought substitution of Tamil Nadu Mercantile Bank (TMB) in the liquidation...
OTS Failure Cannot Create Fresh Default For CIRP, Original Debt Position Revives: NCLAT Chennai
On 28 September, the National Company Law Appellate Tribunal (NCLAT) at Chennai held that failure to comply with the terms of a One-Time Settlement (OTS) does not constitute a fresh default for initiating the Corporate Insolvency Resolution Process (CIRP). A Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain held: “Under an OTS, the principal loan does not remain alive. Therefore, missing the timeline for paying OTS amount which is a...
Can NCLT Grant Blanket Immunity From Statutory Liabilities During CIRP? NCLT Jaipur Delivers Split Verdicts
The National Company Law Tribunal (NCLT), Jaipur Bench, on Monday delivered a split verdict on whether it can grant blanket protection from statutory, civil, and penal consequences arising from alleged defaults during a company's Corporate Insolvency Resolution Process (CIRP).Technical Member Kavita Bhatnagar held that such consequences must be examined by the authorities empowered under the respective statutes, while Judicial Member Reeta Kohli took a contrary view and allowed the application...
Subsequent CIRP Makes Earlier Appeal Against Insolvency Rejection Infructuous: NCLAT New Delhi
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 18 September held that an appeal against rejection of a creditor's application to initiate Corporate Insolvency Resolution Process (CIRP) becomes infructuous once CIRP has already commenced against the same Corporate Debtor in a subsequent proceeding. A Bench comprising Judicial Member Justice Sharad Kumar Sharma with Technical Members Arun Baroka and Indevar Pandey held that a second, parallel CIRP cannot be...
Restoration Plea Filed Beyond 30 Days Can't Be Entertained Without Condonation Of Delay: NCLAT Delhi
The Principal Bench of the National Company Law Appellate Tribunal (NCLAT) at New Delhi, on 18 September held that an application seeking restoration of a company petition dismissed for non-appearance under Rule 48(2) of the NCLT Rules, 2016 must be filed within 30 days of the dismissal. If filed beyond this period, the applicant must first seek condonation of delay. A Bench comprising Judicial Member Justice Sharad Kumar Sharma with Technical Members Arun Baroka and Indevar Pandey upheld the...
NCLAT Issues Notice To Eros On Phantom Studios' Insolvency Appeal
The National Company Law Appellate Tribunal (NCLAT), New Delhi, has issued notice to Eros International Media Ltd. in an appeal filed by Phantom Studios India Pvt Ltd against dismissal of its insolvency plea.The matter was heard by Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha. Although no one appeared for Phantom, the bench issued notice after noting that the Mumbai Bench of the National Company Law Tribunal (NCLT) had dismissed the insolvency petition.Earlier,...
LiveLawBiz IBC Weekly Digest: September 21 - September 27, 2026
SUPREME COURTByju's Insolvency: Supreme Court Reserves Verdict On CoC's Impleadment In Plea To Remove GLAS Trust From ItCase Title : The Committee of Creditors of Think & Learn Pvt Ltd vs Riju Raveendran & Ors Case Number : C.A. 2594/2026The Supreme Court on Monday reserved its verdict on a challenge by the Committee of Creditors (CoC) against its exclusion from proceedings concerning a plea to remove GLAS Trust Company LLC from the CoC of Think & Learn Pvt. Ltd. The challenge...
Can NCLT Allow Withdrawal Of CoC-Approved Resolution Plan? Supreme Court Reserves Verdict
The Supreme Court on Wednesday reserved its judgment on whether the National Company Law Tribunal can permit withdrawal of an application seeking approval of a resolution plan after the Committee of Creditors has approved the plan and submitted it to the Adjudicating AuthorityA Bench of Justices J.B. Pardiwala and K. Vinod Chandran was hearing Indian Bank's challenge against the National Company Law Appellate Tribunal's April 20, 2026, order concerning TD Toll Road Pvt Ltd, which had set aside...
NCLT Ahmedabad Rejects Button Industries' Insolvency Plea Against Viaz Tyres Over ₹1.16 Crore Dues
The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 24 September rejected an insolvency petition filed by Button Industries Private Limited against Viaz Tyres Limited over alleged dues of Rs. 1.16 crore. Judicial Member Chitra Hanakre and Technical Member Dr VG Venakata Chalapathy held that the transaction did not qualify as a financial debt under the Insolvency and Bankruptcy Code, 2016 (IBC), as it did not involve disbursal of funds with consideration for the time value of...