NCLAT Reaffirms CST Dues Not Secured Debt, Sets Aside Order Rejecting Amul Industries Resolution Plan

The National Company Law Appellate Tribunal (NCLAT) at New Delhi, has recently reiterated that dues under the Central Sales Tax Act are not secured debt in insolvency proceedings. A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey set aside the orders passed by the NCLT Ahmedabad on 6 November 2025. The NCLT had rejected the resolution plan of Amul Industries Ltd. on the ground that it did not treat Central Sales Tax dues as secured debt and therefore did not...

Criminal Complaint Filed After Adverse Insolvency Order Cannot Undermine Liquidation: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently observed that criminal complaints filed after adverse insolvency orders cannot be used to undermine liquidation proceedings or defeat creditor protections under the Insolvency and Bankruptcy Code, 2016. A bench comprising Judicial Member Justice N. Seshasayee and Technical Members Arun Baroka and Indevar Pandey dismissed an appeal filed by SSMP Agro Export Private Limited and its directors against the National Company Law...

NCLAT Dismisses Mercator Guarantor's Appeal Against Insolvency Order, Calls Natural Justice Plea 'Dilatory Tactic'

The National Company Law Appellate Tribunal (NCLAT) at Delhi has upheld the admission of a personal insolvency petition filed by State Bank of India (SBI) against former Mercator Limited director Harish Kumar Mittal over dues of Rs. 236.19 crore, holding that his objection that his reply affidavit was not taken on record did not establish a violation of natural justice. A three-member bench of Judicial Member Justice N. Seshasayee and Technical Members Arun Baroka and Indevar Pandey dismissed...

Subsequent Ratification Of Power of Attorney By IMC And Fresh Board Validates SEFL's CIRP Plea Against Roadwings: NCLAT

The National Company Law Appellate Tribunal has recently held that the power of attorney issued to an officer of Srei Equipment Finance Limited to initiate and defend legal proceedings, including proceedings under the Insolvency and Bankruptcy Code, remained valid despite the discharge of its administrator. The tribunal said the authorisation survived the discharge of the administrator because it was ratified by the Implementation and Monitoring Committee and later by the newly...

NCLAT Condones 3-Day Delay In Filing Appeal As NCLT Order Uploaded Eight Months After Pronouncement

The National Company Law Appellate Tribunal (NCLAT) has condoned a delay in filing an appeal against an order passed in an interlocutory application after noting that the National Company Law Tribunal's order was uploaded nearly eight months after it was pronounced, and that the delay attributable to the appellant was only three days. The order in an application filed in the insolvency proceedings of Unibera Developers Private Limited was pronounced by the National Company Law Tribunal, New...

NCLAT Dismisses CIRP Plea Against Strategic Credit Capital, Says Section 7 IBC Barred For Financial Service Provider

The National Company Law Appellate Tribunal (NCLAT) at Delhi recently dismissed an appeal filed by Religare Finvest Limited against the National Company Law Tribunal's order rejecting its Section 7 insolvency plea against Strategic Credit Capital Pvt. Ltd. A bench of Judicial Member Justice N. Seshasayee and Technical Members Arun Baroka and Indevar Pandey held that insolvency proceedings cannot be initiated against a Financial Service Provider. The tribunal observed, “We do not find the...

'Not an Ordinary Business Transaction': NCLAT Upholds Order Treating ₹19.66 Lakh Paid To Director As Preferential

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently upheld an order holding that payments of Rs.19.66 lakh made to a suspended director of a company were preferential transactions under Section 43 of the Insolvency and Bankruptcy Code. Dismissing two appeals filed by Jasvinder Singh Makan, the tribunal said repayment of unsecured loans to a director during financial distress cannot be treated as a routine business transaction. "Repayment of unsecured loans to a director...

NCLAT Says COVID Limitation Ruling Not Properly Considered In Encore ARC's CIRP Against Pandhe Constructions

The National Company Law Appellate Tribunal (NCLAT) has set aside an order of the NCLT Mumbai bench that had dismissed a CIRP plea filed by Encore Asset Reconstruction Company Pvt Ltd against Pandhe Constructions Pvt Ltd as time-barred. The appellate tribunal held that the NCLT misapplied the Supreme Court's COVID-19 limitation directions and failed to properly consider acknowledgment of debt under Section 18 of the Limitation Act. A bench of Judicial Member Justice Mohd. Faiz Alam Khan and...

Authorisation, Stamping, and IU Defects Cannot Block Insolvency Petition: NCLAT Delhi

On 6 February, the National Company Law Appellate Tribunal (NCLAT) at Delhi held that defects in authorisation, stamping, and Information Utility records cannot invalidate a Section 7 insolvency petition when the debt and default are acknowledged by the corporate debtor. A Bench of Judicial Member Justice N. Seshasayee and Technical Members Arun Baroka and Indevar Pandey dismissed the appeal of Vinodkumar Nihalchand Parmar, which challenged an NCLT Mumbai Bench order admitting the...

Limitation For IBC Appeal Runs From Pronouncement Date, Not Knowledge: NCLAT Dismisses CIRP Appeal

The National Company Law Appellate Tribunal (NCLAT) at Delhi has dismissed an appeal challenging the admission of Corporate Insolvency Resolution Process (CIRP) against a private company as time-barred. It held that the limitation under Section 61(2) of the Insolvency and Bankruptcy Code runs from the date of pronouncement of the order, not from the date of knowledge. A bench of Judicial Member Justice Ashok Bhushan and Technical Member Barun Mitra observed: “For counting the statutory period...

NCLAT Sets Aside Insolvency Process Against HNGIL Guarantor, Says Compromise Didn't Waive Guarantee Invocation

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently set aside the NCLT Kolkata's order admitting DBS Bank's Section 95 application against Mukul Somany, a personal guarantor of Hindustan National Glass & Industries Ltd, holding that the bank had not invoked the guarantee before initiating insolvency proceedings. The appellate tribunal reiterated that where a guarantee deed requires a demand by the lender, invocation of the guarantee is a mandatory pre-condition before...

CoC Members Entitled Only To Fair And Liquidation Value, Not Full Valuation Reports: NCLAT Chennai

The National Company Law Appellate Tribunal at Chennai has recently observed that a resolution professional is not required to share full valuation reports with lenders (CoC) during insolvency proceedings. The tribunal referred to Regulation 35(2) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, which provides that after receipt of resolution plans, the resolution professional shall provide the fair value and the liquidation value to members of the Committee...