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...

Successive Fraud Plea Not Maintainable Under IBC After Finality Of CIRP Admission: NCLAT Chennai

The National Company Law Appellate Tribunal (NCLAT) at Chennai on Tuesday held that a party cannot file successive applications under Section 65 of the Insolvency and Bankruptcy Code, 2016 to indirectly reopen insolvency proceedings that have already attained finality. A Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain dismissed the appeal filed by N.K. Kurian, the suspended Managing Director of Mango Meadows Agricultural Pleasure Land...

After Submitting EoI Under RFRP, Resolution Applicant Cannot Question Its Clauses: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has recently held that a resolution applicant cannot question clauses of the Request for Resolution Plan after submitting its Expression of Interest under the same RFRP, while challenging rejection of its resolution plan by the Committee of Creditors. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “When the Appellant had submitted their EoI basis the RFRP, they cannot now turn around to question any of...

Limitation Act Cannot Extend Time To Appeal Against Liquidator's Rejection Of Claim Under IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT), Chennai, has recently held that the 14-day limitation period for filing an appeal against a liquidator's decision under Section 42 of the Insolvency and Bankruptcy Code, 2016, is a self-contained time limit and cannot be extended by invoking Section 5 of the Limitation Act through Section 238A of the Code. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Indevar Pandey held that Section 238A applies only where the...

After NCLAT Member Recuses Over 'Higher Judiciary' Influence, Tribunal Sets Aside CIRP Order, Imposes ₹10 Lakh Cost

In a case that was transferred to the Principal Bench after a controversy over alleged attempts to influence a judicial member, the National Company Law Appellate Tribunal (NCLAT) has set aside the admission of insolvency proceedings against KLSR Infratech Ltd and dismissed a Rs 3.79-crore claim filed by A.S. Met Corp Pvt Ltd, holding that a genuine dispute existed between the parties and imposing costs of Rs 10 lakh on the operational creditor. The order was passed by the NCLAT Principal Bench...

CIRP Must Remain Confined To Single Project, Cannot Affect Other Projects: NCLAT New Delhi

The Principal Bench of the National Company Law Appellate Tribunal (NCLAT) at New Delhi, on 20 March 2026 held that a Corporate Insolvency Resolution Process (CIRP) initiated by the allottees of a single real estate project must stay confined to that project and cannot extend to other projects of the developer.A Bench comprising Judicial Member Justice Ashok Bhushan and Technical Member Barun Mitra disposed of an appeal filed by the suspended director of Raheja Developers Ltd., Navin M. Raheja,...