NCLT Ahmedabad Admits Spright Agro Into CIRP On Agrirevolve's ₹8.66 Crore Claim

The National Company Law Tribunal (NCLT), Ahmedabad, on 24 September admitted Spright Agro Limited into the Corporate Insolvency Resolution Process (CIRP) on a petition filed by Agrirevolve Trading Private Limited, an operational creditor, over a default of more than Rs. 8.66 crore. A Bench of Judicial Member Chitra Hankare and Technical Member Dr VG Venkata Chalapathy found that Agrirevolve had established the debt and default through authenticated records maintained by the National...

Litigant Cannot Suffer For Counsel's Deliberate Non-Appearance: NCLAT Restores Electricity Dues Claim

The National Company Law Appellate Tribunal (NCLAT) has observed that litigants should not be made to suffer when lawyers, because of professional misunderstandings, grudges or monetary disputes, stop effectively pursuing their cases.The tribunal noted that such conduct can ultimately defeat a litigant's cause. It held that a litigant cannot be blamed for the “deliberate act of Counsel” when the Vakalatnama continues to remain in force.“...in this professional era of cut throat competition, such...

NCLAT Refuses To Set Aside CIRP Admission On Post-Admission Settlement, Directs IRP To Approach NCLT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has refused to set aside an insolvency admission order solely on the basis of a settlement reached after the Corporate Insolvency Resolution Process (CIRP) had begun.A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha held that a settlement reached after admission of a Section 9 application cannot by itself efface the admission order or bring the CIRP to an end."The fact that...

RP Can Re-Verify Earlier Claims Admitted By Erstwhile RP Where Records Reveal Deficiencies: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai on 11 September held that a Resolution Professional (RP) can re-verify claims admitted by an erstwhile RP when the available records disclose deficiencies, discrepancies or concerns regarding their authenticity. Such verification is part of the RP's statutory duty to maintain and update the list of creditors and does not amount to adjudication of disputed rights. A Bench comprising Judicial Member Vinay Goel and Technical Member Charanjeet...

Bank Guarantee Can Be Invoked During CIRP Moratorium; Section 14 IBC Does Not Bar Encashment: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai, has ruled that a bank guarantee can be invoked and encashed during the moratorium imposed on a company undergoing insolvency proceedings.The bench of Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati held that the bank guarantee in the case fell within the exception under Section 14(3)(b) of the Insolvency and Bankruptcy Code (IBC). The provision excludes a surety in a contract of guarantee to a corporate debtor from the...

NCLAT Issues Notice On Subhash Chandra's Appeal Against NCLT Restraint On Asset Alienation In Insolvency Matter

The National Company Law Appellate Tribunal (NCLAT) on Tuesday issued notice in an appeal filed by Essel Group Chairman Subhash Chandra. The appeal challenges a September 1 order of the Delhi Bench of the National Company Law Tribunal (NCLT), which restrained him from alienating his assets during insolvency proceedings initiated against him as a personal guarantor.The appeal was heard by a bench comprising Officiating Chairperson Justice Yogesh Khanna and Technical Members Barun Mitra and Ajai...

Failure To Opt For Non-Relinquishment Within 30 Days Of Liquidation Makes Bank Guarantees Part Of Estate: NCLAT

The National Company Law Appellate Tribunal (NCLAT), New Delhi, has held that a secured creditor's failure to communicate its decision regarding its security within 30 days of commencement of liquidation results in the assets covered by the security being presumed to form part of the liquidation estate.“As the creditor did not give its choice of non-relinquishment of security within 30 days, it is presumed that the creditor relinquished its security against the Corporate Debtor,” a bench...

Corporate Debtor's Sub-Threshold Default Does Not Bar Personal Guarantor Insolvency: NCLT Chennai

The National Company Law Tribunal (NCLT) at Chennai on 15 September held that insolvency resolution proceedings can be initiated against a personal guarantor even when the corporate debtor's default is below the statutory threshold for initiating the Corporate Insolvency Resolution Process (CIRP). A Bench comprising Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy observed: “The default of the Corporate debtor is below the threshold prescribed for initiation of...

Appellate Challenge Affecting Resolution Plan Can Extend Timeline Under Plan Terms: NCLT Kolkata

The National Company Law Tribunal (NCLT), Kolkata Bench, has held that where an approved Resolution Plan provides for exclusion of the period affected by appellate proceedings, the implementation timeline stands extended in accordance with the Plan without requiring a formal stay order or fresh approval by the Committee of Creditors (CoC). A Bench comprising Technical Member Rekha Kantilal Shah and Judicial Member Labh Singh on 25 August, directed the Monitoring Committee to recompute the...

IBC Amendment On Personal Guarantors Applies Retroactively To Pending Proceedings: NCLT New Delhi

The National Company Law Tribunal (NCLT), New Delhi held on 31 August that the 2026 amendment to Section 96 of the Insolvency and Bankruptcy Code, 2016 (IBC) applies retroactively to pending insolvency proceedings against personal guarantors to corporate debtors.A Bench comprising Judicial Member Ashok Kumar Bhardwaj and Technical Member Atul Chaturvedi held that the amended Section 96 does not bar insolvency proceedings against personal guarantors merely because proceedings initiated by Canara...

NCLT Seeks Power Of Attorney, RP Consent Before Orders On Byju's-Aakash Settlement In Rights Issue Dispute

The National Company Law Tribunal at Bengaluru on Thursday deferred orders on the settlement between Byju's parent Think & Learn Private Limited and Aakash Educational Services Limited over Aakash's rights issue, directing the parties to first comply with several requirements.The order was passed by Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada.The parties had filed joint applications seeking to place on record the Compromise Memorandum and dispose of the...

CoC's Commercial Wisdom Must Be Respected In Replacing Resolution Professional: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Chennai has recently held that while a Resolution Professional (RP) must function independently and not at the whims of a dominant creditor, the Committee of Creditors' (CoC) majority view on replacing an RP must be respected. This is subject to compliance with the Insolvency and Bankruptcy Code, 2016.The bench of Judicial Member Justice N. Seshasayee and Technical Member Jatindranath Swain observed:“While it has to be accepted that RP must...