Supreme Court
Supreme Court Dismisses Appeal Against NCLAT Order Rejecting Insolvency Plea Against Voltas
The Supreme Court has recently refused to interfere with the National Company Law Appellate Tribunal's decision dismissing the insolvency plea filed by Air Wave Technocrafts Pvt. Ltd against Voltas Ltd, a Tata Group company engaged in air-conditioning and engineering services. A bench of Justices Sanjay Kumar and K. Vinod Chandran dismissed the civil appeal arising out of the NCLAT judgment of November 27, 2025, which had refused to admit insolvency against Voltas for for an operational...
S. 7 IBC | Corporate Debtor's Inability To Pay Not Relevant For CIRP Plea Admission: Supreme Court
The Supreme Court on Wednesday reaffirmed that the Adjudicating Authority cannot refuse to admit a financial creditor's plea under Section 7 of the Insolvency and Bankruptcy Code on the ground of the corporate debtor's inability to pay. The only question at the admission stage is whether a financial debt exists and whether there has been a default. The inability of the corporate debtor to pay is not required to be examined at this stage. Dismissing an appeal filed by Power Trust, promoter...
Mere Accounting Treatment Of Spectrum As 'Asset' Does Not Bring It Within IBC Framework: Supreme Court
The Supreme Court on Friday held that mere treatment of telecom spectrum as an “intangible asset” in the financial statements of telecom service providers (TSPs) does not bring it within the sweep of the Insolvency and Bankruptcy Code (IBC), observing that spectrum remains a natural resource held by the Union of India in public trust. “Merely because spectrum can be treated as an 'asset' on the basis of certain attributes, such as possession and usage, lease and assignment, claim and liability...
Bank's Classification Of Debt As NPA For Balance Sheet Purposes Not Decisive For Limitation Under IBC: Supreme Court
The Supreme Court on Thursday observed that the manner in which a bank classifies a loan as a non-performing asset for accounting or provisioning purposes does not determine the starting point of limitation under the Insolvency and Bankruptcy Code, particularly where the debt has been restructured and acknowledged in fresh agreements. “In our view, how a bank classifies its debt for managing its balance sheet is not a factor determining the starting point of limitation more so, when the debt...
Supreme Court Says IBC Cannot Determine Ownership Of Telecom Spectrum, Calls It Material Resource Of Community
The Supreme Court on Friday held that the ownership and control of telecom spectrum cannot be determined by the Insolvency and Bankruptcy Code since it is a common good.A bench of Justices PS Narasimha and Atul S. Chandurkar held that the spectrum is a material resource of the community in the constitutional sense. It said the spectrum must benefit the common good, so its control has to be secured for the citizens.“IBC cannot be the guiding principle for restructuring the ownership and control...
Supreme Court Upholds NCLAT Order Entrusting NBCC To Complete Stalled Supertech Housing Projects
The Supreme Court recently dismissed a batch of appeals challenging directions issued by the National Company Law Appellate Tribunal (NCLAT) to involve NBCC (India) Ltd for completion of stalled housing projects of Supertech Ltd, declining to interfere with the appellate tribunal's approach. A bench of Chief Justice Surya Kant and Justice Joymalya Bagchi held that the NCLAT's decision in evolving a mechanism to protect the interests of homebuyers and ensure completion of long-delayed projects...
Supreme Court Records Justice Abhay Oka–Mediated Settlement In Transcon–Anchor Point Insolvency Dispute
The Supreme Court of India has recently recorded a comprehensive settlement between Transcon Skycity Pvt. Ltd. and Anchor Point Developers Pvt. Ltd., bringing to an end a prolonged insolvency dispute arising out of a stalled real estate project. A bench of Justices J.B. Pardiwala and K.V. Viswanathan noted that the mediation conducted by former Supreme Court judge Justice Abhay S. Oka was successful and that a comprehensive mediation report had been submitted and taken on record. “We had...
IBC Is Now Being Misused Like Anything": CJI Surya Kant Flags Pre-Planned Auctions and Asset Undervaluation
The Supreme Court recently flagged the issue of IBC provisions being misused by Insolvent Companies to stage pre-planned auctions and sell assets at undervalued rates. The Chief Justice of India, Justice Surya Kant remarked on the gravity of instances where the IBC procedure is being misused, the CJI said :"Unfortunately, the IBC platform is now being misused like anything, you get the company's all assets undervalued, then you indulge in a kind of an auction, which is also a completely...
Supreme Court Dismisses Law Firm's ₹1.08-Crore Claim Against Insolvency-Bound Realty Company
The Supreme Court of India has recently dismissed an appeal by a law firm seeking to recover more than Rs 1 crore in unpaid legal fees from a realty company undergoing insolvency, declining to interfere with findings that the claim was not backed by the record. The appeal was filed by Juristica Legal Services LLP against Three C Universal Developers Private Limited, which is undergoing a Corporate Insolvency Resolution Process. A Bench of Justices Pamidighantam Sri Narasimha and Alok...
Supreme Court Refuses To Interfere With NCLAT Order Rejecting EPFO Claim Made After Liquidation Commencement
The Supreme Court has recently dismissed an appeal filed by the Employees' Provident Fund Organisation, declining to interfere with a ruling of the National Company Law Appellate Tribunal on the treatment of claims in liquidation. A Bench of Justices Sanjay Kumar and K. Vinod Chandran said it found “no good ground and reason” to interfere with the NCLAT judgment dated September 24, 2024. The dispute arose from the liquidation of Khushi Foods Limited, which began on October 9, 2019. During the...
Supreme Court Stays Insolvency Of Lotus 300 Developer, Seeks Response On Why CBI Probe Should Not Be Ordered
The Supreme Court on Tuesday stayed the ongoing corporate insolvency resolution process against Hacienda Projects Private Ltd, the developer of the Lotus 300 housing project at Sector 107, Noida. It issued notice in appeals filed by the Lotus 300 Apartment Owners' Association challenging orders of the National Company Law Appellate tribunal. “In the meantime, the CIRP process shall remain stayed.”, the court said.A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi, Vipul M....
Single Insolvency Petition Against Intrinsically Linked Real Estate Companies Maintainable: Supreme Court
The Supreme Court on Monday upheld insolvency proceedings against two closely linked real estate companies, holding that a single insolvency petition can be maintained against multiple corporate entities under the Insolvency and Bankruptcy Code, 2016, where the companies are intrinsically linked in the same project. A Division Bench of Justice Sanjay Kumar and Justice K. Vinod Chandran dismissed appeals filed by the erstwhile directors of Grand Venezia Commercial Towers Private Limited and...