Bombay High Court Quashes Insolvency Professional's Suspension Over SCN Based On Extraneous Material

The Bombay High Court has quashed an Insolvency and Bankruptcy Board of India (IBBI) Disciplinary Committee order suspending insolvency professional Jitender Kumar Jain's authorisation for assignment for three months. The court found that the show-cause notice issued to Jain was based on material outside the investigation conducted against him.A Bench of Justice Manish Pitale and Justice Shreeram V. Shirsat delivered the judgment on August 25, 2026.The case concerned Jain's role as liquidator of...

Delhi High Court Quashes Customs Demand Against JAL After Unfiled Insolvency Claim Stood Extinguished

The Delhi High Court has held that a pre-insolvency customs claim against Jaiprakash Associates Limited stood extinguished after the Customs Department failed to submit it during the company's insolvency process and the resolution plan was approved.The Division Bench of Justices Anil Kshetarpal and Shail Jain observed, “The failure of the Respondents (Customs) to submit their claim cannot…operate to the prejudice of the Corporate Debtor or the Successful Resolution Applicant. The IBC does not...

Bombay High Court Upholds IBBI's Power To Levy 0.25% Fee On Successful Resolution Plans

The Bombay High Court on 19 August upheld the validity of Regulation 31A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, holding that the provision enabling the IBBI to levy a regulatory fee on successful resolution plans is neither ultra vires the Insolvency and Bankruptcy Code, 2016 nor violative of Article 14 of the Constitution. A Bench of Justices Manish Pitale and Shreeram V Shirsat dismissed four petitions...

IBC Amendment Excluding Personal Guarantors From Interim Moratorium Is Retroactive: Delhi High Court

The Delhi High Court on 19 August held that the amendment inserting Section 96(4) into the Insolvency and Bankruptcy Code, 2016 (IBC) is retroactive and applies to pending insolvency applications, even though the Amending Act does not expressly say so. Justice Tushar Rao Gedela held that the amendment applied to the pending Section 95 IBC application filed by IDBI Trusteeship Services Ltd. against Manish Jain, a personal guarantor to the corporate debtor, and consequently vacated the interim...

RERA Recovery Proceedings Not Automatically Illegal During CIRP: Karnataka High Court

The Karnataka High Court on 11 August held that the mere pendency of the Corporate Insolvency Resolution Process (CIRP) against a developer does not automatically render recovery proceedings initiated under another statute illegal. Justice Suraj Govindaraj dismissed the writ petition filed by M Govind Reddy and M Yashodamma challenging a public auction notice issued to enforce a Recovery Certificate under the Real Estate (Regulation and Development) Act, 2016 (RERA Act). Further, questions...

Insolvency Does Not Bar Liquidator From Recovering Chit Company Dues: Madras High Court

The Madras High Court on 10 August held that the pendency of insolvency proceedings against a chit company does not prevent its Liquidator from taking steps under the Chit Funds Act, 1982 to recover amounts due to the company. Justice D. Bharatha Chakravarthy directed the Economic Offences Wing (EOW) to furnish the Liquidator of Thiripura Chits Private Limited with a complete set of investigation materials so that he could initiate recovery proceedings under the Chit Funds Act. The Bench...

Personal Insolvency Moratorium Does Not Stay Cheque-Bounce Proceedings Against Directors: Bombay High Court

The Bombay High Court has held that personal insolvency proceedings initiated by a company director do not require cheque-bounce proceedings against the director to be stayed where the dishonoured cheque was issued towards the company's debt. Justice N. J. Jamadar observed, “To put it in other words, the debt referred to in Section 96 must be a debt of the person by or against whom the insolvency resolution process is initiated under Sections 94 or 95, as the case may be.”The ruling concerned...

Kerala High Court Expunges NCLT's Adverse Remarks Against Union Bank, Sets Aside ₹1 Lakh Cost

The Kerala High Court has expunged adverse observations made by the National Company Law Tribunal, Kochi Bench, against Union Bank of India over errors in an application seeking withdrawal of insolvency proceedings. The court also held that the bank would not be required to deposit the ₹1 lakh cost imposed by the tribunal.Justice Harisankar V. Menon observed that the bank had made mistakes in the application. These included invoking the wrong provision and not placing the settlement proposal...

Advocates Acting As Insolvency Professionals Must Register Under GST, Pay Under Forward Charge: Delhi High Court

The Delhi High Court on Thursday held that advocates rendering services as insolvency professionals must obtain GST registration, ruling that such services are subject to the forward charge mechanism and not the reverse charge mechanism applicable to legal services provided by advocates. A bench of Justices Pratibha M. Singh and Shail Jain passed the judgment on a petition filed by advocate Kanwal Chaudhary challenging an Insolvency and Bankruptcy Board of India (IBBI) order dated March 9,...

Bombay High Court Sentences Insolvent To Jail For Concealing Bank Accounts, Rejects Limitation Defence

The Bombay High Court on 7 August held insolvent Pallav Sheth guilty of contempt under Section 33(4) of the Insolvency Act, 1909 for wilfully failing to disclose his assets and bank accounts to the Official Assignee, and sentenced him to one month's simple imprisonment with a fine of Rs. 2,000, with one week's further imprisonment in default. Justice N.J. Jamadar observed that an insolvent who makes positive statements on oath concealing assets and bank accounts cannot later invoke limitation...

IBC Amendment Removing Interim Moratorium For Personal Guarantors Applies To Pending Cases: Bombay High Court

The Bombay High Court has ruled that a recent amendment removing the automatic interim moratorium available to personal guarantors to corporate debtors under the Insolvency and Bankruptcy Code applies even to pending insolvency proceedings.Justice Somasekhar Sundaresan observed that the amendment, which took effect on May 26, 2026, applies to pending proceedings and operates retroactively, not retrospectively. Rejecting the guarantors' argument that the change applies only to fresh filings, the...

KSEB Cannot Demand Previous Owner's Power Dues From Auction Purchaser: Kerala High Court

The Kerala High Court on Tuesday held that the Kerala State Electricity Board (KSEB) cannot insist that an auction purchaser of the assets of a company in liquidation clear the previous consumer's electricity arrears as a condition for obtaining a fresh electricity connection.A Division Bench of Justice A.K. Jayasankaran Nambiar and Justice Preeta A.K. ruled that the Electricity Act, 2003, the Kerala Electricity Supply Code, 2005; and the KSEB Terms and Conditions of Supply, 2005 do not...