IBC
Creditors Need Not Obtain Decree To File Claims Under Presidency Towns Insolvency Act: Bombay High Court
The Bombay High Court on Thursday held that a creditor does not need to obtain a decree before lodging a claim with the Official Assignee after a debtor is declared insolvent under the Presidency Towns Insolvency Act, 1909. It ruled that the Official Assignee must independently examine every claim and decide whether to admit or reject it by recording reasons in writing. Justice Jitendra Jain delivered the ruling while answering a reference on whether a creditor's claim must be supported by a...
Resolution Professional's Report Is Recommendatory In Personal Guarantor Insolvency Cases: NCLAT
The National Company Law Appellate Tribunal (NCLAT) in Chennai has held that a Resolution Professional's report in personal insolvency cases is only recommendatory and does not bind the adjudicating authority.It ruled that where debt, default, and the status of the personal guarantor are already established, the absence of such a report does not invalidate the proceedings. A coram of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain observed, “Upto the stage...
Perjury Cannot Be Invoked For Every Pleading Omission If Correct Financial Position Was Considered: NCLT Delhi
The National Company Law Tribunal (NCLT) in New Delhi has held that perjury jurisdiction cannot be invoked to penalise every pleading defect or omission. The tribunal observed that this principle applies where it has already examined the correct financial position while deciding the substantive proceedings. The bench of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Atul Chaturvedi observed, "Perjury jurisdiction cannot be invoked to penalize every pleading defect or...
NCLT Cannot Sit In Appeal Over Civil Court Consent Decree In Insolvency Proceedings: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that the National Company Law Tribunal (NCLT) cannot disregard or invalidate a consent decree passed by a competent civil court during insolvency proceedings. It ruled that if a resolution professional or financial creditors seek to challenge such a decree, they must approach the civil court. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed,“The Adjudicating Authority does not have any...
Foreign Companies Need RBI Approval To Acquire Security Interest In Indian Immovable Property: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a foreign company cannot acquire or be assigned a security interest over immovable property in India without the Reserve Bank of India's permission. Holding that no such approval had been obtained in the present case, the tribunal ruled that Mauritius-based Tropical Ventures Company Ltd. could not claim security rights over the assets of Incab Industries Ltd. A bench of Chairperson Justice Ashok Bhushan and Technical...
NCLT Chandigarh Rejects Recasting Of Claims Based On Pre-CIRP Refunds, Upholds RP Methodology
The Chandigarh Bench of the National Company Law Tribunal (NCLT) on 5 June 2026 held that homebuyers cannot reappropriate amounts refunded before commencement of the Corporate Insolvency Resolution Process (CIRP) towards interest to enhance their admitted claims. Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal dismissed applications filed by homebuyers challenging the Resolution Professional's adjustment of a pre-CIRP refund of Rs. 40,00,000 against principal instead of...
NCLAT Quashes Insolvency Admission Against Vikram Solar As Debt Falls Below ₹1 Crore
On Monday, the National Company Law Appellate Tribunal (NCLAT) set aside the admission of a Section 9 insolvency petition against Vikram Solar after both sides admitted that the debt was below the ₹1 crore threshold prescribed under the Insolvency and Bankruptcy Code (IBC). The appellate tribunal quashed the June 12, 2026 order of the Kolkata bench of the National Company Law Tribunal (NCLT), which had admitted the petition filed by Isitva Steel Pvt. Ltd. The order was passed by the bench of...
LiveLawBiz IBC Half-Yearly Digest: January - June, 2026
SUPREME COURTPromise To Arrange Funds In Case of Default Does Not Make Promoter A Guarantor: Supreme CourtCase Title: UV Asset Reconstruction Company Limited v. Electrosteel Castings Limited Citation: 2026 LLBiz SC 3 Case Number: Civil Appeal No. 9701 of 2024The Supreme Court of India has held that a promoter's promise to arrange funds to help a borrower meet financial covenants does not amount to a contract of guarantee under the Indian Contract Act and cannot be used to fasten insolvency...
NCLAT Upholds Insolvency Against Butter, Ghee Maker Jhandewalas Foods
The National Company Law Appellate Tribunal (NCLAT) has recently upheld the initiation of corporate insolvency proceedings against butter and ghee manufacturer and trader Jhandewalas Foods Limited. It held that the company's defence of a pre-existing dispute over unpaid dues was not supported by credible evidence and could not prevent the insolvency process. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “In our considered view, we have no good grounds...
LiveLawBiz IBC Monthly Digest: June 2026
SUPREME COURT Supreme Court Refuses To Interfere With Interest On Adani Infra's Delayed ₹255 Crore Payment For Land Bought In Liquidation Case Title : CA RAMCHANDRA DALLARAM CHOUDHARY Versus ADANI INFRASTRUCTURE AND DEVELOPERS PRIVATE LIMITED Case Number : DIARY NO. 5988 OF 2026The Supreme Court on Monday declined to interfere with a National Company Law Appellate Tribunal (NCLAT) order directing Adani Infrastructure & Developers Pvt Ltd to pay 12% interest on...
No Artificial Procedural Obstacle Can Prevent Filing Of Additional Affidavit In CIRP Proceedings: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that a party cannot be prevented from filing an additional affidavit in proceedings that are yet to be decided on merits. It observed that such a restriction would create an "artificial procedural obstacle" and handicap a litigant in presenting its case. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Indevar Pandey observed,“We are of the view that no artificial procedural obstacle could...