Operational Creditor Cannot Vote on Its Own Resolution Plan; Such Approval A “Material Irregularity” Under IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a resolution applicant who is not a financial creditor cannot vote on and approve its own resolution plan, declaring such approval void ab initio as it violates Section 30(5) of the Insolvency and Bankruptcy Code, 2016. The ruling was delivered by a bench comprising Judicial Member Justice N. Seshasayee and Technical Members Arun Baroka and Indevar Pandey. The tribunal observed, “In the present case the Resolution...

NCLAT Affirms NCLT New Delhi Order Rejecting Insolvency Plea Against Bajaj Appliances

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently dismissed an insolvency plea against Bajaj Appliances Ltd., holding that a pre-existing dispute barred initiation of proceedings under the Insolvency and Bankruptcy Code. A coram of Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka upheld the National Company Law Tribunal, Delhi's October 18, 2023, order rejecting the application filed by T.J. Communication Pvt. Ltd. T.J. Communication claimed it...

Failure To Issue Notice Is “Larger Than An Ordinary Procedural Breach”: NCLAT Sets Aside Ex Parte NCLT Order

An ex parte order passed without issuing notice cannot be sustained, the National Company Law Appellate Tribunal (NCLAT) has held, setting aside a Mumbai NCLT order that had allowed a preferential transaction application in the liquidation of Euro Ceramics Ltd. A bench of Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka said that omission to direct notice is larger than some procedural breach.“It is only when notice is directed on any application or petition, the tribunal...

NCLT Need Not Separately Examine RP's Opinion On PUFE Transactions While Avoidance Pleas Are Pending: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has held that the issue of formation and determination of opinion by a resolution professional in respect of preferential, undervalued, extortionate, and fraudulent (PUFE) transactions cannot be examined at the threshold level on a stand-alone basis while the avoidance applications are pending consideration before the adjudicating authority. A bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra...

NCLAT Says Timing Of Stamp Paper Purchase And Loan Agreement Execution Not Ground To Reject Insolvency Plea

Holding that the purchase of stamp paper and subsequent execution of a loan agreement cannot be any relevant consideration for rejecting a CIRP plea, the National Company Law Appellate Tribunal at Delhi has set aside the dismissal of an insolvency plea. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “The observation of the Adjudicating Authority that the stamp paper was purchased on 12.02.2025 and agreement was executed on 01.03.2025 can not be any...

NCLAT Holds Debt Not Time Barred In Rajeshwari Cotspin CIRP, Says Threshold Cannot Be Confined to Last Invoice

Holding that the claim was not time barred and that all the invoices had to be considered for determining the statutory threshold, the National Company Law Appellate Tribunal dismissed an appeal against the admission of insolvency proceedings against Rajeshwari Cotspin Ltd. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “Thus, threshold has to be determined on basis of the invoices taking all the invoices and cannot confine to only last invoice of Rs. 19...

NCLAT Finds IndusInd Bank, RTA Negligent In Issuing Duplicate Share Certificates, Upholds Restoration Of 5,000 Shares

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently upheld the restoration of 5,000 equity shares of IndusInd Bank to their original holder, holding that the bank and its Registrar and Transfer Agent acted negligently in issuing duplicate share certificates to a third party. A bench of Judicial Member Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra observed, “We note that the Appellant was negligent and had not followed the due procedure in issue of duplicate...

Dissenting Banks Cannot Continue Recovery Against Guarantors Once Resolution Plan Attains Finality: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that once an approved resolution plan expressly extinguished securities and attachments of personal guarantors and attained finality, dissenting financial creditors could not continue recovery proceedings against such assets. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra allowed an appeal filed by Puro Natural Sugars JV and deleted portions of a National Company Law Tribunal (NCLT)...

NCLAT Closes Suo Motu Contempt Proceedings Against IRP After Accepting His Unconditional Apology

The National Company Law Appellate Tribunal (NCLAT) at Chennai, has closed contempt proceedings against an Interim Resolution Professional who “sat over” the tribunal's interim stay order and proceeded despite it, after accepting his unconditional apology. The proceedings were initiated against Anil Kumar Khicha, Interim Resolution Professional of ISPT India Pvt. Ltd., after the appellate tribunal found that despite its October 27, 2025 interim order keeping in abeyance the CIRP order dated...

NABARD Refinance Receivables Are Third-Party Assets, Not Part Of Corporate Debtor's Insolvency Estate: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently held that receivables from refinance transactions extended by National Bank for Agriculture and Rural Development (NABARD) are third-party assets held in trust and cannot form part of the borrower's insolvency estate.A coram of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held that NABARD's statutory rights under Section 29 of the NABARD Act are not waived merely because it filed its claim in...

Guarantor Liability Co-Extensive With Borrower, Can't Be Made Contingent By Balance Sheet Entries: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently observed that a corporate guarantor cannot avoid insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code by describing its guarantee obligation as a “contingent liability” in its balance sheets. The tribunal observed that in law, a guarantor's liability is co-extensive with that of the principal borrower, and that what matters for limitation is acknowledgement of liability, not the accounting...

BREAKING | NCLAT Upholds NCLT Order, Rejects Actor Akshay Kumar's Insolvency Plea Against Cue Learn

The National Company Law Appellate Tribunal at New Delhi on Friday upheld an NCLT order refusing to start insolvency proceedings against Cue Learn Private Limited over a payment dispute arising from an endorsement deal with actor Akshay Kumar Bhatia. A coram of Judicial Member Justice N. Seshasayee and Technical Member Indevar Pandey agreed that the disagreement between the parties could not be resolved under the Insolvency and Bankruptcy Code. The tribunal said insolvency proceedings...