SRA Cannot Seek Interest On Performance Bank Guarantee If Letter Of Intent Does Not Provide For It: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Chennai has ruled that a successful resolution applicant (SRA) whose resolution plan was scrapped after the Committee of Creditors opted for liquidation, cannot claim interest on his performance bank guarantee if the Letter of Intent and the Request for Resolution Plan issued by the Resolution Professional does not provide for it. A coram of Judicial Member Justice Sharad Kumar Sharma and Technical Member Indevar Pandey held that the...

Reliance Capital Insolvency: NCLAT Issues Notice On SEBI's Challenge To Plan Clause Allegedly Shielding Subsidiary From Penalties

The National Company Law Appellate Tribunal on Friday issued notice on SEBI's appeal challenging an NCLT Mumbai order that refused to recall or clarify a paragraph in the Reliance Capital resolution plan which, according to SEBI, is being misused to claim that all liabilities of the company's subsidiaries also stand extinguished. SEBI says this interpretation is being deployed by a subsidiary Reliance Exchangenext Limited to avoid a Rs 25 lakh penalty imposed on it for allegedly taking part in...

Amounts Shown As 'Other Advances' In Company's Balance Sheet Not Financial Debt Under IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that amounts shown in a company's balance sheet as “other advances”, including sums advanced years earlier without any repayment demand, do not qualify as borrowings and cannot therefore give rise to a financial debt under the Insolvency and Bankruptcy Code A coram of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra delivered the ruling on December 10, 2025, while dismissing appeals filed by...

Acknowledgment Of Creditor's Email Ledger Sufficient To Prove Debt Even Without Invoices: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a corporate debtor's email acknowledgment of a creditor's ledger is sufficient acknowledgment of operational debt and is enough to justify admission of a Section 9-CIRP application.The tribunal ruled that once such acknowledgment is on record, the absence of invoices cannot defeat a claim or prevent crystallization of debt. A coram of Judicial Member Justice Ashok Bhushan and Technical Member Barun Mitra set aside the...

NCLAT Orders Adani Infrastructure To Pay 12% Interest For Delayed Payment In Ahmedabad Land Auction

The National Company Law Appellate Tribunal (NCLAT) has directed Adani Infrastructure & Developers to pay 12% interest on the delayed Rs 305-crore payment for Ahmedabad land bought in a liquidation auction. It held that a successful bidder cannot escape mandatory payment timelines by citing a tax attachment when the auction terms made clear that the buyer would have to take the property in its existing condition, with all encumbrances, defects and limitations.Delivering its judgment on...

Inactivity Of Company For Two Years No Bar To Insolvency Proceedings: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently ruled that a company cannot avoid insolvency proceedings simply because it has not been operating for two years. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra while upholding insolvency proceedings against Sant Kripa Appliances said, “the mere fact that CD was not functioning for last two years cannot be a ground to not take a proceeding for resolution of the CD which has defaulted...

Resolution Professional Has No Vested Right To Be Liquidator, Mid-Process Replacement Unwarranted: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has held that a resolution professional has no "vested right to be appointed as liquidator" and that replacing the liquidator midway through the process is inappropriate when it risks additional costs and the majority creditor supports the incumbent. A bench of Judicial Member Justice N Seshasayee and Technical Members Arun Baroka and Indevar Pandey said that while the adjudicating authority cannot overrule the Committee of...

Byju's RP Moves NCLAT After Aakash Withholds Rights-Issue Shares Over FEMA Concerns

The resolution professional of debt-laden ed-tech Think and Learn Pvt Ltd (Byju's) has moved an application before the National Company Law Appellate Tribunal (NCLAT), Chennai after Aakash Educational Services refused to allot shares to the company in its recently concluded rights issue, even though forums from NCLT to Supreme Court had earlier declined to halt the process. Aakash has withheld allotment to Think and Learn' against its Rs 25 crore subscription amount, citing possible FEMA and...

Registered Homebuyer Society Can Initiate Insolvency Against Builders Only With Consent From All Buyers: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has ruled that a registered society of homebuyers can file an insolvency application, but only if each homebuyer individually authorises it to act on their behalf. A resolution passed only by the society's core committee does not meet this requirement, a bench of Chaiperson Justice Ashok Bhushan and Technical Member Barun Mitra held. The tribunal therefore granted the society seven days to submit individual authorisations from all 98...

NCLAT Orders Former Directors Of Gold Bullion Trader To Pay ₹16.78 Crore For Fraudulent Sales During Insolvency

The National Company Law Appellate Tribunal at New Delhi recently held that three suspended directors of Varsha Corporation Ltd, a gold bullion trading company, must personally contribute more than Rs 16.78 crore to the company's estate after finding that they carried out fraudulent gold sales while an insolvency petition against the firm was pending. A bench of Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha dismissed the suspended directors' appeal against the...

Only CoC Can Appoint Liquidator, NCLT's Power Limited To Replacing RP: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently ruled that only the Committee of Creditors (CoC) has the authority to select a liquidator when the Resolution Professional (RP) does not consent to continue, holding that the Adjudicating Authority cannot appoint a liquidator of its own choice. The tribunal was deciding appeals filed by Omkara Asset Reconstruction Company, which held nearly the entire voting share in the CoCs of two stressed companies. A coram of...

Settlement Between Debtor and Creditor Doesn't Release Personal Guarantor From Liability: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently held that a personal guarantor remains liable under a continuing guarantee even if the principal debtor enters into a mediated settlement with the financial creditor, unless the creditor expressly releases the guarantor. It also held that part-payments made by the principal debtor extend the limitation period for proceedings against the guarantor. A bench of Judicial Member Justice N Seshasayee and Technical Members...