Welfare-Oriented Rehabilitation Policy Cannot Preserve Claims Extinguished Under IBC: Madhya Pradesh High Court

The Madhya Pradesh High Court has held that a rehabilitation policy or agreement with a project-affected person cannot preserve a claim merely because it is welfare-oriented, as the Insolvency and Bankruptcy Code overrides inconsistent laws and policies.Justice Sanjeev S. Kalgaonkar observed, “Thus, Rehabilitation policy or any agreement with project affected (displaced) person cannot facilitate claim as an exception for the reason that it is welfare oriented. Section 238 of IBC gives Insolvency...

Delhi High Court Restores Super Bazar Writ Petition Withdrawn On Former Liquidator's Instructions

On 15 September, the Delhi High Court recalled the 18 May 2018 order dismissing The Cooperative Store Limited (Super Bazar)'s writ petition as withdrawn, after finding that its former Official Liquidator, Dr. A.K. Mishra, lacked authority to instruct the withdrawal after his tenure ended. Justice Amit Mahajan held that an Official Liquidator cannot instruct withdrawal of a writ petition after his tenure has expired, particularly where the proceedings concern substantial public money. The Bench...

Calcutta High Court Quashes Income-Tax Reassessment Against McNally Bharat After IBC Resolution Plan

The Calcutta High Court has quashed income-tax reassessment proceedings against McNally Bharat Engineering Company Limited, holding that the authorities failed to satisfy the statutory conditions for reopening the assessment and acted contrary to the company's NCLT-approved resolution plan. Justice Smita Das De allowed the company's writ petition and set aside the notice and order issued by the tax authorities along with all consequential proceedings. The authorities were also...

Bombay High Court Rejects Patanjali Foods' Reliance On NCLT Plan To Oppose Impleadment In Labour Case

On 7 September, the Nagpur Bench of the Bombay High Court rejected Patanjali Foods Ltd.'s challenge to its impleadment in a pending labour dispute concerning an employee of Ruchi Soya Industries Ltd. Justice Nandesh S. Deshpande dismissed Patanjali Foods's writ petition and upheld the orders of the Labour Court and Industrial Court, while leaving it free to raise its defences based on the resolution plan before the Labour Court. The Bench held:“Two factors are against the petitioner; firstly,...

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...