IBC
Claims Of EPFO Based On Inspection Conducted During CIRP Are Unenforceable: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that the claims of the EPFO based on inspection conducted subsequent to initiation of the Corporate Insolvency Resolution Process (CIRP) are unenforceable and cannot be admitted. The present three appeals have been filed against orders passed by National Company Law Tribunal (NCLT) by which it dismissed applications filed by both the Resolution...
Shareholders & Guarantors Have No Locus To Intervene In CIRP Based On Private Unregistered MoU: NCLT Kochi
The National Company Law Tribunal (NCLT), Kochi Bench, comprising Justice Vinay Goel (Member-Judicial) and Madhu Sinha (Member-Technical), has held that any private agreement between the corporate debtors, borrowers, and guarantors is not binding on the financial institutions unless the institutions are parties to the agreement and have explicitly consented to it. The Corporate Insolvency Process (CIRP) of the corporate debtor was going on, and during the resolution plan certain...
Unconditional Consent By Sole Financial Creditor Satisfies Requirements Of S.12A IBC & Regulation 30A Of CIRP Regulations: NCLT New Delhi
The National Company Law Tribunal, New Delhi, Court-IV, comprising Justice Jyotsna Sharma (Member-Judicial) and Anu Jagmohan Singh (Member-Technical), has held that if there is a stay on the meetings of CoC, then the unconditional consent of the sole financial creditor is sufficient for the withdrawal of the CIRP. The resolution professional filed an application u/s 12A of the IBC read with regulation 30A of the CIRP Regulation, seeking withdrawal of the CIRP of the corporate debtor....
Lease Dues Incurred During CIRP Prior To Vesting Date Are Payable To Financial Creditor, Do Not Belong To Successful Resolution Applicant: NCLT Hyderabad
The National Company Law Tribunal (NCLT), Hyderabad Bench, comprising Justice Rajeev Bhardwaj (Member-Judicial) and Sanjay Puri (Member-Technical), has held that the lease dues incurred during the corporate insolvency resolution period prior to the vesting date are payable to the financial creditor and don't belong to the Successful Resolution Applicant (SRA). Background of the Case The State Bank of India advanced a loan of Rs. 33.5 Cr. to the corporate debtor. As security for the...
Personal Guarantors Cannot Seek Disclosure Of Resolution Plan Details U/S 60(5) IBC Or Rule 11 Of NCLT Rules: NCLT Mumbai
The National Company Law Tribunal, Mumbai Bench, comprising Justice Sushil Mahadeorao Kochkey (Member-Judicial) and Prabhat Kumar (Member-Technical), has held that personal guarantors cannot seek disclosure of resolution plan details u/s 60(5) or Rule 11 of the NCLT Rules. The CIRP of the corporate debtor, Prabhat Technologies (India) Ltd., was initiated in furtherance of the section 7 IBC application. After the approval of the resolution plan by the CoC, it was pending before the...
Settlement Agreement Between Parties Merely Acknowledging & Structuring Repayment Doesn't Change Nature Of Debt: NCLT Mumbai
The National Company Law Tribunal, Mumbai Bench, Court-III, comprising Justice Lakshmi Gurung (Member-Judicial) and Hariharan Neelakanta Iyer (Member-Technical), has held that a settlement agreement entered between the parties merely for the purpose of acknowledging the debt and structuring the repayment schedule doesn't necessarily change the nature of the debt when it is concreted with sufficient evidence. The petition under section 9 of the IBC was filed by M.K. Metals (operational ...
Specific Pleadings U/S 9 Of IBC Regarding Part Payments, Supported By Written Acknowledgment Resets Limitation Period: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that when there are specific pleadings under Section 9 of the IBC regarding part payments made by the Corporate Debtor, further supported by a written acknowledgment in the reply to the demand notice, the limitation period for filing the application is reset in terms of Section 19 of the Limitation Act. The present appeal has been filed under...
Unconditional Consent By Sole Financial Creditor Satisfies Requirements U/S 12A Of IBC: NCLT New Delhi
The National Company Law Tribunal, New Delhi, Court-IV, comprising Justice Jyotsna Sharma (Member-Judicial) and Anu Jagmohan Singh (Member-Technical), has held that if there is a stay on the meetings of CoC, then the unconditional consent of the sole financial creditor is sufficient for the withdrawal of the CIRP. The resolution professional filed an application u/s 12A of the IBC read with regulation 30A of the CIRP Regulation, seeking withdrawal of the CIRP of the corporate debtor....
EPFO Dues Arising From Post-Liquidation Assessments U/S 7A Of EPF Act Are Not Admissible: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has held that the EPFO dues arising from the post-liquidation assessment under section 7A of the EPF Act are not admissible. The CIRP of the corporate debtor was ordered on 30.11.2017, and its liquidation was ordered on 16.09.2019. The appellant conducted the inquiry u/s 7A of the EPF Act, 1952, on 11.10.2021 and determined...
NCLT Bar Association Writes To Ministry Of Corporate Affairs Over Infrastructure Crisis Causing Standstill At NCLT Delhi
On 04.09.2025, the National Company Law Tribunal Bar association has made an urgent representation to the Secretary, Ministry of Corporate Affairs, expressing concern regarding the persistent infrastructure challenges faced by the National Company Law Tribunal, New Delhi Bench. On 03.09.2025, a public notice was issued by the NCLT informing all stakeholders that the 8th floor of the Block which has the Court Nos. IV, V and VI has become non-operational due to severe roof seepage. The...
CIRP Order Based On GST Dept Letter Neither Addressed To, Nor Received By Corporate Debtor Is Invalid: 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 Mr. Naresh Salecha (Member-Technical), has invalidated a CIRP Order Passed by the Adjudicating Authority Based on a Letter Neither Addressed to Nor Received by the Corporate Debtor. The corporate debtor was engaged in the business of manufacturing the non-ferrous metals used in the batteries, and...
NCLT Hyderabad Grants Interim Protection To Petitioner After EGM Allotted 2.49 Crore Shares To Respondent, Making Them Majority Shareholder
The NCLT Hyderabad bench of Mr Rajeev Bhardwaj, Member Judicial, and Mr Sanjay Puri, Member Technical, while hearing a petition filed under Section 241 and 242 of the Companies Act, read with Sections 59 and 213 of the Companies Act, granted interim relief to the Petitioner. The Bench, after perusing the record, observed that a prima facie case exists in favour of the Petitioner. The balance of convenience falls on the Petitioner's side. Furthermore, the Petitioner will suffer an ...