Non‑Issuance Of NOCs By Financial Creditor Not Fraud In Insolvency Proceedings: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), New Delhi, on 27 March, held that the non-issuance of No Objection Certificates (NOCs) by a financial creditor cannot be treated as fraudulent or malicious in the initiation of insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). A Section 7 petition remains valid where a corporate debtor defaults on its debt obligations, irrespective of later contractual disputes with homebuyers. The Bench, comprising Chairperson Justice...

DMRC Cannot Be Forced To Revive Concession Agreement Granted To Prime Infrapark, Terminated Before CIRP: NCLAT

The National Company Law Appellate Tribunal (NCLAT) on Friday held that the Delhi Metro Rail Corporation (DMRC) cannot be directed to revive a concession agreement for the development of a multi-level parking and commercial project at the New Delhi Railway Station under the Airport Express Line. The tribunal noted that the agreement had been terminated in 2017, well before the initiation of the Corporate Insolvency Resolution Process (CIRP) of Prime Infrapark Pvt Ltd, the special purpose...

Insolvency Plea Against Personal Guarantor Filed During Interim Moratorium Is Void Even if Earlier Case Is Withdrawn: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Friday held that a fresh insolvency application against a personal guarantor filed during the subsistence of an interim moratorium triggered by an earlier application under the Insolvency and Bankruptcy Code is void from the outset and cannot be validated even if the earlier proceedings are later withdrawn. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra said, “The interim moratorium in Section 96 has...

CIRP Cannot Be Revived After Resolution Plan Approval And Liquidation: NCLAT Chennai

On 18 March 2026, the Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) held that a Corporate Insolvency Resolution Process (CIRP) cannot be revived after approval of the resolution plan and initiation of liquidation. A Bench comprising Judicial Member Sharad Kumar Sharma and Technical Member Indevar Pandey, dismissed the appeal filed by Mr. G. Madhusudhan Rao, Ex-Resolution Professional and Chairman of the Monitoring Committee of Bheema Cements Limited. The Bench observed:...

Acknowledgment Of Debt By Corporate Debtor Is Acknowledgment By Guarantor, Extends Limitation: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has recently held that acknowledgment of debt in a corporate debtor's financial statements extends the limitation period against personal guarantors, setting aside an order of the National Company Law Tribunal (NCLT) which had dismissed insolvency proceedings as time-barred. “We note that an acknowledgement made by a company in its balance sheet has the effect of extending the period of limitation for the purpose of Section 18 of the...

NCLAT Flags Petty Litigation By Income Tax Dept, Calls For CBDT Policy Action In IBC Case

Calling the appeal a “perfect example for wastage of valuable public resources," the National Company Law Appellate Tribunal (NCLAT) dismissed an appeal filed by the Income Tax Department in an insolvency matter and directed that the issue be brought to the notice of the Chairperson of the Central Board of Direct Taxes (CBDT) for appropriate policy action against such litigation. The appellate tribunal made the observation while upholding the approval of the resolution plan of Solar Voltaic...

Limitation For Continuing Guarantee Runs From Enforceable-Demand Notice, Not Execution: NCLAT New Delhi

The National Company Law Appellate Tribunal at New Delhi on 25 March, held that in the case of a continuing guarantee enforceable on demand, the limitation under Section 95 of the Insolvency and Bankruptcy Code, 2016, runs from the date of the enforceable-demand notice and not from the date of execution of the guarantee document. A Bench comprising Justice N. Seshasayee and Technical Members Arun Baroka and Indevar Pandey observed:“It is far too fundamental a point that where a deed...

NCLAT New Delhi Upholds NCLT Order Cancelling Anil Syal Property Auction Over Procedural Lapses

The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 25 March, held that the auction of Anil Syal's 50% undivided share in a Uday Park residential flat was procedurally flawed due to inadequate notice, undervaluation, and lack of stakeholder consultation, justifying fresh valuation and re‑auction. A Bench of Judicial Member Justice N Seshasayee and Technical Members Arun Baroka and Indevar Pandey dismissed an appeal filed by successful bidder Akshat Gupta. It held: ...

Limitation To File Appeal Under IBC Begins From Date Of Pronouncement In Open Court: NCLAT New Delhi

The Principle Bench of the National Company Law Appellate Tribunal (NCLAT), at New Delhi on 25 March, held that the limitation period to file an appeal under Section 61(2) of the Insolvency and Bankruptcy Code, 2016, begins from the date of the pronouncement of the order in open court, not from the date of its uploading on the NCLT portal.A Bench comprising Justice N. Seshasayee and Technical Member Arun Baroka clarified that uploading constitutes only an administrative act. They held:“Uploading...

Extinguishment Of Receivables Through Accounting Entries Can Amount To Preferential Transaction Under IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Wednesday held that extinguishment of receivables through accounting entries can amount to a transfer of property under the Insolvency and Bankruptcy Code (IBC), and where such adjustments benefit related parties and reduce the corporate debtor's asset pool, the transaction may be treated as preferential under Section 43 of the Code. The bench of Judicial Member Justice N. Seshasayee and Technical Members Arun Baroka and Indevar...

Tribunal Need Not Examine Bank's Reasons For Rejecting OTS Once Debt And Default Are Established: NCLAT

The National Company Law Appellate Tribunal at Chennai has recently held it is not required to examine the reasons behind a bank's decision to reject a one-time settlement proposal while deciding whether insolvency proceedings should continue, so long as debt and default are established. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain made the observation while dismissing an appeal filed by the suspended directors of Anand Bharathi Fertilisers...

Recovery Falls Under IBC Once Dues Are Crystallised Even If Action Originates Under Securities Law: NCLAT

The National Company Law Appellate Tribunal (NCLAT) on Tuesday held that once dues against a corporate debtor stand crystallised and the dispute relates to recovery affecting the insolvency or liquidation process, the matter falls within the ambit of the Insolvency and Bankruptcy Code. In such cases, the National Company Law Tribunal has jurisdiction to pass directions concerning the assets of the corporate debtor, even if the action originates under the securities law. The appellate...