Coparcener Claiming Guarantor's Property Cannot Intervene In Guarantor's Insolvency Case: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that a person claiming coparcenary rights over a guarantor's property cannot be impleaded in personal guarantor insolvency proceedings (Section 95), as such proceedings are confined to personal guarantors. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain emphasised that the Insolvency and Bankruptcy Code limits such proceedings to specific individuals acting as...

NCLAT Rejects EPFO Claim In Dhruv Wellness CIRP, Finds Internal Communication Without PF Assessment Insufficient

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently dismissed an appeal filed by the Employees' Provident Fund Organisation (EPFO) seeking admission of a Rs. 61.36 lakh claim in the CIRP of Dhruv Wellness Ltd., holding that a claim based only on an internal communication and without any assessment under Section 7A of the EPF & MP Act could not be sustained. The tribunal further observed that the appellant must bear the consequence of not crystallising the claim at the...

NCLT Cannot Entertain Challenge To Statutory Development Authority Orders Under IBC: NCLAT New Delhi

The New Delhi National Company Law Appellate Tribunal (NCLAT), on 6 April, held that orders passed by statutory authorities in exercise of statutory powers cannot be challenged before the NCLT under the Insolvency and Bankruptcy Code, 2016. A Bench comprising Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey observed: “The Tribunal held that sanction of Plan, which is in exercise of Statutory jurisdiction of Lucknow Development Authority under Uttar Pradesh Urban Planning...

NCLT Asking Parties To Explore Settlement Not A Reference To Mediation: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has observed that asking parties in a long-pending oppression and mismanagement dispute to explore settlement is not the same as referring the matter to mediation. The ruling came in an appeal filed by Vijay Data against Data Ingenious Global Ltd and others, challenging an order of the National Company Law Tribunal (NCLT), Jaipur Bench, which had dismissed his application seeking recall of an earlier order dated February 19, 2026. ...

Emails Admitting Defects, Compensation Offers Prove Dispute: NCLAT Dismisses CIRP Plea Against Amod Stampings

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has upheld the rejection of plea seeking initiation of the corporate insolvency resolution process (CIRP) against Amod Stampings Private Limited, holding that emails admitting defective supply and offering compensation demonstrate a pre-existing dispute. A Bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “The Appellant having agreed to compensate the Corporate Debtor is also a clear...

NCLAT Upholds CIRP Against Prayag Polytech, Says NOCs For Specific Charges Don't Wipe Out Entire Debt

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently upheld the admission of insolvency proceedings against Prayag Polytech Pvt. Ltd., rejecting the company's reliance on multiple No Dues Certificates and holding that these were issued only for satisfaction of specific charges and did not extinguish its overall liability to Canara Bank. A bench of Judicial Member Justice Ashok Bhushan and technical member Barun Mitra held that the certificates relied upon by the suspended...

NCLAT Dismisses CIRP Plea By Durgapur Corporation Against Aryan Ispat, Cites Pre-Existing Dispute

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has dismissed an appeal filed by Durgapur Corporation Private Limited against Aryan Ispat & Power Private Limited, reiterating that a Section 9 application must be rejected where there exists a pre-existing dispute between the parties. “The only thing that is to be looked into is that whether there is plausible contention. In the facts of the present case, we find that plausible contention was raised by the Corporate Debtor in...

NCLAT Upholds Secured Creditor Status Of Second Charge Holder Despite Non-Registration In Mirage Ceramics CIRP

The National Company Law Appellate Tribunal (NCALT) at New Delhi has upheld the classification of Kamlesh Mehta, a second charge holder, as a secured financial creditor of the corporate debtor, Mirage Ceramics Pvt. Ltd. It held that the absence of consent from the first charge holder and non-registration of charge under Section 77 of the Companies Act, 2013 did not vitiate the second charge in the facts of the case. A bench of Judicial Member Justice Ashok Bhushan and Technical Member Barun...

Loan Restructuring Need Not Be Treated As Modification Of Charge; Original Security Remains Valid: NCLAT

The National Company Law Appellate Tribunal (NCLAT) in Delhi has held that restructuring of loan facilities does not necessarily amount to modification of charge requiring fresh registration where the underlying security remains unchanged. “We are in agreement with the approach adopted by the Ld. Adjudicating Authority in construing the term modification liberally as the same will not prejudice the security interest of existing lenders and the restructuring of the facilities done by the lender...

NCLAT Sets Aside Insolvency Against Palavi Synthetics Guarantors After NCLT Miscalculated Limitation

The National Company Law Appellate Tribunal (NCLAT) at Delhi has set aside the admission of insolvency proceedings against personal guarantors of Palavi Synthetics Pvt. Ltd., holding that while a recovery decree gives rise to a fresh cause of action and a fresh limitation period, the NCLT had wrongly computed that limitation. A bench of Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Naresh Salecha observed, “since the decree was passed by the JR on 15.09.2017 the limitation...

NCLAT Orders IBBI Probe Into Ritzy Chemicals RP As He Allowed CoC Vote On Plan Without Full Disclosure

The National Company Law Appellate Tribunal (NCLAT) has directed an investigation by the Insolvency and Bankruptcy Board of India into the conduct of the resolution professional in the insolvency of Ritzy Chemicals Pvt. Ltd. after allowing the committee of creditors to vote on the resolution plan without being apprised of the pendency and details of avoidance transactions. The tribunal also dismissed appeals against rejection of the resolution plan. A bench of Judicial Member Justice Mohd....

NCLAT Dismisses Appeal In Green Soul CIRP, Says SRA Consortium Cannot Be Reconstituted After Plan Approval

The National Company Law Appellate Tribunal (NCLAT) at Delhi has dismissed an appeal by the successful resolution applicant consortium in the Corporate Insolvency Resolution Process of Green Soul Ergonomics Pvt. Ltd. The tribunal held that a consortium cannot change its composition after its resolution plan has already been approved by the Committee of Creditors. “When composition of consortium is changed subsequent to approval of resolution plan, it cannot be said that evaluation...