NCLAT
CoC Approval Cannot Cure Resolution Plan's Failure To Meet Mandatory IBC Requirements: NCLAT
The National Company Law Appellate Tribunal (NCLAT) has held that the Committee of Creditors' (CoC) approval cannot cure a resolution plan that fails to meet mandatory requirements under the Insolvency and Bankruptcy Code, 2016 (IBC). It ruled that the CoC's commercial wisdom on a plan's feasibility and viability applies only when the plan complies with the law.A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Arun Baroka made the observation while dismissing...
NCLAT Issues Notice On Appeal Against Stargaze Entertainment's Liquidation Order
The National Company Law Appellate Tribunal (NCLAT) at Delhi on Tuesday issued notice to Stargaze Entertainment Pvt. Ltd. a cinema exhibition company, and its Resolution Professional, Ashok Kumar Gulla on appeal filed by the Committee of Creditors (CoC) against the liquidation order.The matter was heard by the bench of Judicial Member Justice Sharad Kumar Sharma and Technical Members Arun Baroka and Indevar Pandey. The appeal was prefered against the order of the Delhi bench of the National...
NCLAT Refuses To Recall Order Excluding Property Eviction Delay From Resolution Plan Timeline
The National Company Law Appellate Tribunal (NCLAT) at Delhi has refused to recall its earlier order excluding delays in handing over a property from the implementation timeline of a resolution plan. It held that the successful resolution applicant should not be penalised for delays caused by the unauthorised occupation of the property by a company controlled by the suspended management's family.“The exclusion of time granted on 17.07.2026 was made precisely because the Subject Property (which...
NCLAT Seeks Project-Wise Completion Timelines For 16 Supertech Housing Projects
The National Company Law Appellate Tribunal (NCLAT) at Delhi has asked the Apex Court Committee to submit tentative completion dates for each of Supertech Limited's 16 housing projects and disclose the finances available for their completion.The bench of Officiating Chairperson Justice Yogesh Khanna and Technical Members Barun Mitra and Ajai Das Mehrotra sought the project-wise timelines after finding that the committee's affidavit did not specify concrete completion dates.“However, we find from...
Going-Concern Sale Commences With Liquidation Order, Not Auction Notice: NCLAT
The National Company Law Appellate Tribunal (NCLAT), Delhi, has held that liquidation by sale of a corporate debtor as a going concern commences from the date of the liquidation order when the order directs the liquidator to pursue that mode of sale. The process does not begin only when an auction notice is issued.“Liquidation itself commences on the liquidation commencement date under Section 5(17), that is, when proceedings for liquidation commence under Section 33. Once the liquidation order...
Bankrupt Personal Guarantor Cannot Withdraw Funds After Estate Vests In Trustee: NCLAT New Delhi
On 7 October, the National Company Law Appellate Tribunal (NCLAT) at New Delhi held that a bankrupt personal guarantor cannot withdraw or otherwise deal with funds in a bank account once the bankruptcy estate has vested in the Bankruptcy Trustee. A Bench comprising Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha dismissed appeals filed by Manju Sirohi, personal guarantor of Saha Infratech Pvt. Ltd., against orders directing her to return Rs. 19,17,500 withdrawn...
NCLAT Sets Aside Separate CIRP Against Earth Towne After Supreme Court Restored EIL's Resolution Plan
The National Company Law Appellate Tribunal (NCLAT), New Delhi, has set aside insolvency proceedings against Earth Towne Infrastructure Pvt. Ltd. (ETIPL), holding that a separate Corporate Insolvency Resolution Process (CIRP) could not continue after the Supreme Court restored the resolution plan for Earth Infrastructures Ltd. (EIL) and brought ETIPL's land within that plan.A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha held that, as on June 1,...
Secured Creditor Cannot Participate In Liquidation While Keeping Option To Withdraw Assets Later: NCLAT
The National Company Law Appellate Tribunal (NCLAT) has held that a secured creditor cannot participate in the liquidation process while keeping open an option to later withdraw its secured assets from the liquidation estate.“We further observe that per combined reading of Section 52(2) of the Insolvency and Bankruptcy Code and also Regulations 21A, 31A(2) and 39BA of Liquidation Process Regulations, the Appellant cannot be permitted to simultaneously participate in the liquidation process and...
Supertech North Eye Homebuyers Move NCLAT Against NBCC Over Delay In 16 Projects
Supertech North Eye homebuyers have moved the National Company Law Appellate Tribunal (NCLAT), alleging that NBCC has not complied with timelines fixed by the tribunal for awarding construction works and commencing work on 16 stalled Supertech projects.The application has been filed by North Eye homebuyer Priyanka Srivastava and the Supertech Group Buyers Association North Eye Association.Homebuyers allege that there has been no material progress in execution of the 16 projects and that there is...
Shareholder Is Not An “Aggrieved Person” To Challenge Resolution Plan Approval Under IBC: NCLAT Cites Park Energy
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a shareholder, merely in that capacity, cannot maintain an appeal against an order approving a resolution plan under Section 61 of the Insolvency and Bankruptcy Code (IBC).The court relied on its earlier larger Bench ruling in Park Energy Pvt. Ltd. v. State Bank of India and another. It held that the ruling continues to bind the tribunal because it was delivered by a specially constituted Bench and was later affirmed by...
CIRP Expiry Without Resolution Plan Mandates Liquidation, Failed CoC Liquidation Vote Irrelevant: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that once the insolvency resolution period expires without receipt of a resolution plan or a valid extension, liquidation becomes mandatory under the Insolvency and Bankruptcy Code (IBC).It also held that a failed vote on a separate liquidation proposal or expressions of interest received after the deadline cannot revive an expired insolvency process.“We therefore hold that once the CIRP period expired without receipt...
Personal Guarantors Cannot Revive Appeals After OTS Fails Due to Their Own Default: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently refused to restore appeals filed by three personal guarantors after a ₹4.60 crore One-Time Settlement (OTS) with Indian Bank failed. The tribunal held that the guarantors could not rely on the liberty granted in an earlier order to take advantage of their own default.“Certainly the appellants or principal borrower who appears to be at fault by not honoring the OTS may not take the advantage of their own wrong,” the bench...