NCLAT
Debenture Trustee Can Initiate Insolvency Against Personal Guarantor Under IBC Section 95: NCLAT Delhi
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 30 June held that a debenture trustee, acting under a debenture trust deed and personal guarantee, can initiate insolvency proceedings against a personal guarantor under Section 95 of the Insolvency and Bankruptcy Code, 2016, and that clerical defects in guarantee documents do not defeat such proceedings where liability is otherwise established. Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra...
Property Over Which Corporate Debtor Has No Subsisting Right Cannot Form Part Of Its CIRP: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that a corporate debtor cannot include in its Corporate Insolvency Resolution Process (CIRP) an immovable property over which it has no subsisting legal right. Setting aside an order of the National Company Law Tribunal (NCLT), Kolkata, the appellate tribunal allowed Calcutta Pinjrapole Society's plea to exclude its property from the CIRP of R.S. Iron Industries Pvt. Ltd. A bench of Chairperson Justice Ashok...
Interim Stay Of CIRP Admission Does Not Extinguish Moratorium Unless Specifically Vacated: NCLAT
The tribunal further held that a second CIRP cannot be initiated against the same corporate debtor during the subsistence of an earlier CIRP and moratorium
NCLAT Delhi Holds Fraudulent Account Transfer Not Financial Debt Under IBC, Dismisses Progfin's Appeal
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 30 June held that the mere disbursal of loan funds into a fraudulent bank account does not, by itself, create a binding financial debt under the Insolvency and Bankruptcy Code, 2016. Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra dismissed Progfin Pvt. Ltd.'s appeal and upheld the National Company Law Tribunal's rejection of its Section 7 application against Ganesh Benzoplast Ltd. (GBL). The Bench...
Resolution Professional's Report Is Recommendatory In Personal Guarantor Insolvency Cases: NCLAT
The National Company Law Appellate Tribunal (NCLAT) in Chennai has held that a Resolution Professional's report in personal insolvency cases is only recommendatory and does not bind the adjudicating authority.It ruled that where debt, default, and the status of the personal guarantor are already established, the absence of such a report does not invalidate the proceedings. A coram of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain observed, “Upto the stage...
NCLT Cannot Sit In Appeal Over Civil Court Consent Decree In Insolvency Proceedings: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that the National Company Law Tribunal (NCLT) cannot disregard or invalidate a consent decree passed by a competent civil court during insolvency proceedings. It ruled that if a resolution professional or financial creditors seek to challenge such a decree, they must approach the civil court. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed,“The Adjudicating Authority does not have any...
Foreign Companies Need RBI Approval To Acquire Security Interest In Indian Immovable Property: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a foreign company cannot acquire or be assigned a security interest over immovable property in India without the Reserve Bank of India's permission. Holding that no such approval had been obtained in the present case, the tribunal ruled that Mauritius-based Tropical Ventures Company Ltd. could not claim security rights over the assets of Incab Industries Ltd. A bench of Chairperson Justice Ashok Bhushan and Technical...
NCLAT Quashes Insolvency Admission Against Vikram Solar As Debt Falls Below ₹1 Crore
On Monday, the National Company Law Appellate Tribunal (NCLAT) set aside the admission of a Section 9 insolvency petition against Vikram Solar after both sides admitted that the debt was below the ₹1 crore threshold prescribed under the Insolvency and Bankruptcy Code (IBC). The appellate tribunal quashed the June 12, 2026 order of the Kolkata bench of the National Company Law Tribunal (NCLT), which had admitted the petition filed by Isitva Steel Pvt. Ltd. The order was passed by the bench of...
NCLAT Upholds Insolvency Against Butter, Ghee Maker Jhandewalas Foods
The National Company Law Appellate Tribunal (NCLAT) has recently upheld the initiation of corporate insolvency proceedings against butter and ghee manufacturer and trader Jhandewalas Foods Limited. It held that the company's defence of a pre-existing dispute over unpaid dues was not supported by credible evidence and could not prevent the insolvency process. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “In our considered view, we have no good grounds...
No Artificial Procedural Obstacle Can Prevent Filing Of Additional Affidavit In CIRP Proceedings: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that a party cannot be prevented from filing an additional affidavit in proceedings that are yet to be decided on merits. It observed that such a restriction would create an "artificial procedural obstacle" and handicap a litigant in presenting its case. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Indevar Pandey observed,“We are of the view that no artificial procedural obstacle could...
Secured Creditor Can Claim Priority Only To Extent Of Available Security, Even If Debt Is Higher: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a secured creditor can claim priority in the payment of dues only to the extent of the security available in its favour. It ruled that a creditor is not automatically entitled to the entire liquidation value merely because its admitted debt exceeds that amount. The tribunal dismissed the appeals filed by Assets Care & Reconstruction Enterprise Ltd. (ACRE) and Dhankalash Distributors Pvt. Ltd. It, however, directed...
