NCLAT
NCLAT Fines Prospective Resolution Applicant Rs 15 Lakh For Obstructing Insolvency Process, Turning It Into A “Tom & Jerry Show"
The National Company Law Appellate Tribunal (NCLAT) at New Delhi on Tuesday imposed a cost of Rs. 15 lakh on Astral Agro Ventures, a Prospective Resolution Applicant (PRA), for obstructing the Corporate Insolvency Resolution Process (CIRP) of Megi Agro Chem Ltd. The tribunal observed that the insolvency resolution process “cannot be reduced to a Tom & Jerry show” where a PRA, who doesn't have any right to challenge continuously seeks extensions only to derail the resolution. The tribunal...
NCLT Must Verify ED Attachment Before Refusing Property Release To Successful Resolution Applicant : NCLAT
The National Company Law Appellate Tribunal (NCLAT) on Tuesday held that the National Company Law Tribunal (NCLT), Mumbai, should have verified whether a Bangalore-based flat was provisionally attached by the Enforcement Directorate (ED) before refusing its release to the successful resolution applicant (SRA) of insolvent DSK Southern Projects Pvt. Ltd.A coram comprising of Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Indevar Pandey observed,"...the adjudicating authority has...
Auction Purchaser Cannot Seek Reclassification of NPA In A Manner That Affects Creditor's Rights: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at New Delhi, has recently ruled that a successful auction purchaser cannot demand the reclassification of a corporate debtor's loan from Non-Performing Asset (NPA) to “standard” if it impacts a financial creditor's rights against the debtor's personal guarantors. The bench of Justice N Seshasayee and Technical Member Indevar Pandey observed, “.. the Successful Auction Purchaser of the assets of the CD can only concern itself...
NCLAT Stays Insolvency Proceedings Against Aviation Company After It Offers To Deposit Double The Debt
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently stayed the corporate insolvency proceedings against an aviation services company after it's suspended director offered to deposit Rs 1.09 crore, double the claimed dues of Rs. 54.03 lakh (with 15% interest), which had been pending since 2019, to demonstrate its bona fide intentions.The bench, comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra, observed, “The Appellant having offered to deposit...
NCLAT Restores Promoters' Right To Bid In JC World Hospitality Resolution Process
The National Company Law Appellate Tribunal has recently overturned a July 2025 order of the National Company Law Tribunal, New Delhi, that had declared the promoters of JC World Hospitality Pvt Ltd ineligible to submit resolution plan under the Insolvency and Bankruptcy Code. The Bench of Chairperson Justice Ashok Bhushan and Member Barun Mitra restored the promoters' resolution plan for consideration and directed the NCLT to decide the pending plan approval application within three months. ...
NCLAT Upholds Gujarat VAT Dept As Secured Creditor In Sterling Lam Insolvency; Says Statutory Charge Under GVAT Act Creates Security Interest
The National Company Law Appellate Tribunal (NCLAT), Principal Bench at New Delhi, has upheld the National Company Law Tribunal (NCLT) Ahmedabad's order directing that the Gujarat State Tax Department (Department) be treated as a secured creditor in the insolvency proceedings of Sterling Lam Limited (Sterling Lam), the corporate debtor. The NCLAT affirmed that the statutory charge created by “operation of law” under Section 48 of the Gujarat Value Added Tax Act, 2023 (GVAT Act),...
Debt Arising Out of Optionally Fully Convertible Debentures Needs Case-by-Case Evaluation: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Chennai recently (November 10) held that since Optionally Fully Convertible Debentures (OFCDs) are part debt and part equity instruments, the exact liability arising from them should be determined after evaluating each situation separately.The bench, comprising Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain, was hearing an insolvency appeal filed by four personal guarantors of liquidated realty company JBM Homes...
Cab-EEZ Reaches Settlement With Tata Power EV On Rs 1.9 Crore Debt Over Unmanned EV Charging Services, NCLAT Told
The National Company Law Appellate Tribunal (NCLAT) on Friday was informed that Cab-EEZ Infra Tech Ltd. and Tata Power EV Charging Solutions Ltd. have reached a settlement in the insolvency proceedings pending before the National Company Law Tribunal (NCLT) Mumbai against the electric ride hailing company. Recording the development, a bench of Chairperson Ashok Bhushan and Technical Member Barun Mitra disposed of Cab-EEZ's appeal against the insolvency appeal. Counsel for Cab-EEZ submitted...
Advance Given For Profit-Sharing In Real Estate Project Cannot Be Treated As 'Financial Debt': NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT) New Delhi upheld the decision passed by the National Company Law Tribunal (NCLT) by which it had rejected an application under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by M/s Meck Pharmaceuticals and Chemicals Pvt. Ltd. against M/s Accurate Infrabuild Pvt. Ltd. A Bench comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) observed that the advance payment made for the...
NCLT Erred In Deciding On Merits After Reserving Matter On Maintainability: NCLAT Orders Reconsideration Of Pleas
The National Company Law Appellate Tribunal (NCLAT) New Delhi set aside an order passed by the National Company Law Tribunal (NCLT) New Delhi which had dismissed applications filed by Rishi Gupta and Ashok Kumar Gupta seeking exclusion of certain financial creditors from the Committee of Creditors (CoC) on the ground that they were related parties to the corporate debtor. A Bench comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) observed that the NCLT had...
Public Auction Not Compulsory For Sale Of Encumbered Assets If Charge Holders Consent: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench set aside an order passed by the National Company Law Tribunal (NCLT) New Delhi by which it had directed independent bidding for the sale of non-core assets of Arshiya Limited during its Corporate Insolvency Resolution Process (CIRP). The Tribunal held that public auction is not compulsory for the sale of encumbered assets of the corporate debtor if the secured creditors consent to such a transaction under Regulation 29...