Supreme Court
Supreme Court Asks NCLT To Re-Examine RP Appointment In Finefacilis Personal Guarantor Insolvency
The Supreme Court recently sent the issue of appointing a resolution professional in insolvency proceedings against a personal guarantor of Finefacilis Management Private Limited on a plea by Samman Capital back to the National Company Law Tribunal. It directed the tribunal to hear objections on whether the appointment followed the procedure under the Insolvency and Bankruptcy Code. The NCLT has been asked to pass a fresh order on the Section 95 application (Personal Guarantor Insolvency) ...
Supreme Court Refuses To Interfere With NCLAT Order Upholding CIRP Against Air Travel Enterprises
The Supreme Court on Tuesday dismissed an appeal filed by E.M. Najeeb Ellias Mohammed, promoter of Kerala-based travel agency Air Travel Enterprises India Ltd., declining to interfere with an NCLT order admitting insolvency proceedings against the company as a corporate guarantor A bench of Justices Pamidighantam Sri Narasimha and Vijay Bishnoi held that no error of law or fact was committed by the National Company Law Tribunal. “Having heard learned senior counsel appearing for the appellant...
Supreme Court Says NCLT Could Not Have Decided Title Of Gloster Trademark In Fort Gloster Insolvency
The Supreme Court on Thursday held that the National Company Law Tribunal could not have decided the ownership of the trademark “Gloster” while exercising powers under Section 60(5) of the Insolvency and Bankruptcy Code, as the dispute did not arise in relation to the insolvency resolution process. A bench of Justices J.B. Pardiwala and K.V. Viswanathan upheld the National Company Law Appellate Tribunal,decision setting aside the NCLT Kolkata's finding that the trademark belonged to the...
Supreme Court Denies Housing Societies Locus To Intervene In Insolvency Admission; Issues Directions For CoC
The Supreme Court has held that housing societies lack the locus standi to intervene in the admission stage of insolvency proceedings, ruling that “right to initiate or participate in CIRP flows from the debt transaction and the statute, not from associative or representational interest.” While limiting third-party intervention, the court simultaneously directed that the Committee of Creditors (CoC) “shall mandatorily record cogent and specific reasons in writing” whenever it...
Promise To Arrange Funds In Case of Default Does Not Make Promoter A Guarantor: Supreme Court
The 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 liability on the promoter. A bench of Justice Sanjay Kumar and Justice Alok Aradhe said that for an obligation to qualify as a guarantee under Section 126 of the Act, there must be a clear and unambiguous promise by the surety to repay the borrower's debt if the...
NCLT Can Order Forfeiture Of Entire Deposit If Purchaser Of Liquidation Assets Defaults In Payments : Supreme Court
The Supreme Court held that if a purchaser defaults on payment for assets acquired in liquidation under a judicially supervised sale, the entire amount already deposited may be forfeited. It further clarified that Section 74 of the Indian Contract Act, 1872 cannot be invoked to seek a refund, as no contract exists between the purchaser and the liquidator, the sale being conducted under the authority and supervision of the Adjudicating Authority. “the appellant had no justifiable claim to seek...
Supreme Court Stays Kerala HC Order Summoning Byju's Resolution Professional In Contempt Case Over Sale Of Subsidiaries
The Supreme Court on Friday stayed the Kerala High Court's orders which had directed issuance of show-cause notices and directed Byju's Resolution Professional Shailendra Ajmera, GLAS Trust representative Sunil Thomas, and Ernst and Young Chairman Rajiv Memani to personally appear before the High Court in contempt proceedings over the sale of Byju's foreign subsidiaries Epic! Creations Inc. and Tangible Play Inc. “In the meantime, operation of the impugned order dated 21.11.2025 passed in IA No....
Supreme Court Restores Property Of Corporate Debtor Attached Under PMLA To Successful Resolution Applicant
The Supreme Court recently reiterated that the objective of Section 8(8) of the Prevention of Money Laundering Act(PMLA) is to ultimately restore any attached properties to the bonafide successful resolution application(SRA) who have a legitimate interest in it.Section 8(8) allows the Special Court to direct the Central Government to restore property that has been confiscated under the Act to a person or claimant who has a legitimate interest in it, upon conclusion of the trial. However, second...
