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...

Plea To Shift Hindustan National Gas's Registered Office Can Proceed Despite Pending Appeal: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi recently clarified that an application filed by insolvent Hindustan National Gas & Industries Limited for changing its registered office from Kolkata to Mumbai can be considered by the Regional Director in accordance with law, despite an appeal challenging approval of the resolution plan being pending before it.A coram comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “We only observe and...

Oppression And Mismanagement Plea Not Maintainable Without Company Membership On Filing Date: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Chennai recently reaffirmed that a petition alleging oppression and mismanagement under Sections 241 and 244 of the Companies Act, 2013, cannot be entertained unless the person filing it establishes that he was a “member” of the company on the date the petition was filed. While setting aside an order of the National Company Law Tribunal (NCLT) at Bengaluru, the Appellate Tribunal said that the tribunal failed to examine this basic...

Borrower's Debt Acknowledgment Extends Limitation Against Guarantors Too: NCLAT Reaffirms

The National Company Law Appellate Tribunal at Delhi has reiterated that acknowledgment of debt by a principal borrower extends the limitation period for initiating insolvency proceedings against its corporate guarantors.Quoting apex court's ruling in Laxmi Pat Surana vs. Union Bank of India, (2021), the tribunal observed,"There is no quarrel with the proposition that the acknowledgement made by the principal borrower will tantamount to be an acknowledgment made by the guarantor and any...

CoC Cannot Modify Distribution Mechanism After Approving Resolution Plan: NCLAT Dismisses Bank of Baroda's Appeal In RCIL CIRP

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has held that once a resolution plan is approved by Committee of Creditors under section 30(4) of the Insolvency and Bankruptcy Code, 2016 (IBC) and the CoC is itself bound by the plan, it cannot subsequently alter or modify the distribution mechanism provided therein. A Bench comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Member–Technical) dismissed an appeal filed by Bank of Baroda, an assenting...

IBC Cannot Be Used As Recovery Mechanism To Resolve Contractual Disputes: NCLAT Reaffirms

The National Company Law Appellate Tribunal (NCLAT) at Delhi has reiterated that insolvency proceedings under the Insolvency and Bankruptcy Code cannot be used as a recovery mechanism to settle disputed contractual claims. A coram comprising of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra dismissed an appeal filed by FTI Consulting India Pvt. Ltd. against the rejection of its CIRP plea against MGF Developments Ltd. The appellate tribunal held that insolvency proceedings...