NCLAT Quashes NCLT Condition Restricting Use of Rs 20 Crore In Carnival Films Resolution Plan

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has set aside an NCLT Indore order that approved Carnival Films Private Limited's resolution plan but barred the use of nearly Rs. 20 crore lying in the company's bank account to pay creditors. A bench of Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Arun Baroka said the NCLT had overstepped its jurisdiction. It noted that the NCLT had first recorded that the plan complied with Section 30(2) of the...

EPFO Cannot Raise Fresh Provident Fund Dues Based on Assessments Conducted During Moratorium: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT) New Delhi has held that no assessment proceedings can be initiated or continued during the moratorium period under Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC) and no claim based on such assessment can be enforced against the Successful Resolution Applicant (SRA) after approval of the Resolution Plan.Section 14 of the IBC introduces a moratorium that halts legal actions against a corporate debtor once insolvency proceedings...

Civil Courts Have No Jurisdiction Over Share Register Rectification Despite Pending Civil Suits: NCLAT Reiterates

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently reiterated that civil courts have no jurisdiction over disputes relating to rectification of a company's register of members, holding that such powers vest exclusively with the National Company Law Tribunal under the Companies Act, 2013. A bench of Judicial Member Justice Yogesh Khanna and Technical Member Indevar Pandey held that the NCLT had taken an incorrect view by refusing to decide a rectification petition...

NCLAT Upholds ₹5,000 EPFO Allocation In CIRP of Metistech Fabrication Against ₹18.33 Lakh Claim

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has upheld a resolution plan that allocated only Rs 5,000 towards provident fund dues claimed by the Employees' Provident Fund Organisation. The tribunal held that the bulk of the EPFO's demand was unenforceable, as it was assessed after insolvency proceedings had already begun. A bench of Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka dismissed the EPFO's appeal against the resolution plan approved for...

NCLAT Limits Ansal Properties' Insolvency To Sushant Golf City and Rajasthan Projects

The National Company Law Appellate Tribunal (NCLAT) at New Delhi refused to overturn the insolvency proceedings against Ansal Properties and Infrastructure Limited.However, it restricted the process to Sushant Golf City in Lucknow and three Rajasthan projects: Ansal Royal Plaza, Orchid Plaza, and Tulip Plaza. The tribunal said extending the insolvency process to projects not linked to the loan securities was “uncalled for” and would disrupt unrelated real estate projects. A coram of Judicial...

Funding Rival Bids, Using Same IP Proves Bid Rigging, NCLAT Upholds CCI Penalty Against Klassy Enterprises

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently upheld a Rs 10 lakh penalty imposed by the Competition Commission of India on Klassy Enterprises, holding that paying the tender costs of rival bidders and submitting bids from the same IP address was enough to show bid rigging, even without a written cartel agreement. A bench of Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Naresh Salecha dismissed Klassy Enterprises' appeal against the CCI's...

Calling Guarantor 'Director' In SARFAESI Notice Doesn't Invalidate Invocation Of Guarantee: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently ruled that merely describing a personal guarantor as a “Director” in a SARFAESI demand notice does not invalidate the invocation of the personal guarantee, as long as the notice clearly demands payment of the outstanding dues under the guarantee deed. The tribunal said the real test is not how the person is described, but what the notice actually asks for. The bench of Justice Mohd. Faiz Alam Khan and Naresh Salecha...

NCLAT Sets Aside NCLT Delhi Order For Failing To Examine Post-Covid Invoice Defaults In Insolvency Plea

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Wednesday set aside an order of the National Company Law Tribunal, Delhi, which had dismissed an insolvency application by invoking the Covid-19 bar under the Insolvency and Bankruptcy Code. The appellate tribunal held that the NCLT Delhi failed to consider invoices whose dates of default fell outside the Covid-19 excluded period. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra said the approach...

NCLAT Sets Aside NCLT Modification Reserving 5% Equity For Public Shareholders In MSME Resolution Plan

The National Company Law Appellate Tribunal (NCLAT) at Delhi has reiterated an insolvency court cannot add new conditions to a resolution plan approved by lenders, and set aside a direction that required 5 percent equity of the corporate debtor to be reserved for public shareholders. A bench of Judicial Member Justice N Seshasayee and Technical Member Arun Baroka said the clause had found its way into the order without any basis in the approved resolution plan. The tribunal held that such an...

NCLAT Holds Appeal Delay Deemed Condoned Due To Registry Error, Refuses To Recall Insolvency Admission

The National Company Law Appellate Tribunal (NCLAT) at Delhi held that a three-day delay in filing an insolvency appeal stood deemed to have been condoned due to a registry error, and on that basis refused to recall its earlier order admitting insolvency proceedings. A coram comprising Judicial Member Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra, passed the order on December 19, 2025. It dismissed a recall application filed by Akshay Techforge Private Limited and upheld its May...

NCLAT Revives Culver Max's Insolvency Plea Against Fintech Firm Over Sony LIV Marketing Dues

The National Company Law Appellate Tribunal (NCLAT) at Delhi recently revived an insolvency case filed by Culver Max Entertainment Private Limited, the company formerly known as Sony Pictures Network India, against the firm Odishsa based Rechargekit fintech over unpaid dues arising from the marketing of Sony LIV premium subscription plans. The Appellate Tribunal ruled that the insolvency court could not have rejected the plea without first providing Culver Max a mandatory opportunity to fix...

CIRP Plea Of Operational Creditor Fails If Debt Is Recorded As Disputed With Information Utility: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently reiterated that once a debt is recorded as “disputed” with an Information Utility, insolvency courts have no discretion to examine the merits of the dispute and must reject a Section 9-CIRP plea under the Insolvency and Bankruptcy Code . A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra of the dismissed an appeal filed by Accurate Transheat Pvt. Ltd., upholding the order of the...