Interim Resolution Professional Not Automatically Entitled To Full Fees Where Court Orders Restrict CIRP: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has upheld an equitable remedy granted by the National Company Law Tribunal (NCLT), ruling that an Interim Resolution Professional was not automatically entitled to full statutory fees where the insolvency process functioned under significant judicial restrictions. A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey dismissed the appeal filed by CMA Harshad Deshpande, former Interim Resolution Professional...

NCLAT Finds No Fault In Jet Airways Aircraft Auction, Rejects Losing Bidder's Challenge

The National Company Law Appellate Tribunal (NCLAT) has recently dismissed a challenge by a losing bidder to the auction of two Jet Airways aircraft during the airline's liquidation, holding that the process was transparent and that adequate opportunity had been given to inspect the assets before bidding.“The appellant's bid was lower to successful auction purchaser, the appellant was also given opportunity to inspect the Aircraft. No error can be found in the process adopted by liquidation...

NCLAT New Delhi Dismisses Shreenathji Infra Appeal, Finds Pre-Existing Dispute Bars IBC Action

On 19 May, the New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) dismissed an appeal filed by Shreenathji Infrastructure against Namasthetu Infratech Pvt. Ltd., holding that incomplete performance of work and termination of contracts by the Corporate Debtor reflected a pre-existing dispute and rendered insolvency petition non-maintainable. The Bench of Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka observed: “We observe that there were many issues...

“Not Filed To Harass Or Embarrass”: NCLAT Sets Aside Rejection Of Lyka Labs' CIRP Plea Against Modi Lifecare

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that Lyka Labs' insolvency plea against Modi Lifecare Industries was not an attempt to “harass and/or embarrass and/or humiliate” the company. The tribunal found that the petition was based on material facts and that Modi Lifecare had not disputed an operational debt exceeding ₹1 lakh. A bench of Chairperson Justice Ashok Bhushan and Technical Members Barun Mitra and Arun Baroka set aside an Ahmedabad NCLT order rejecting...

Loan Or Promoter Funding? NCLAT Remands Insolvency Plea Against Jaikrishan Estates

The National Company Law Appellate Tribunal (NCLAT) at Delhi has remanded an insolvency plea filed by a former director of Jaikrishan Estates for fresh consideration, holding that the true nature of the alleged debt required fuller examination rather than summary rejection.“...we find the real nature of the debt to be questionable due to the existence of share purchase agreement, which is not on record and also the so called assignment by unrecoverable and unconditional gift deed dated...

NCLAT New Delhi Rejects PPL's Entry Tax Exemption Claim, Finds No "Deemed Consent" Under SICA

On 18 May, the New Delhi National Company Law Appellate Tribunal (NCLAT) held that the State of Orissa was not bound to grant Entry Tax exemptions to Paradeep Phosphates Ltd. (PPL) under a BIFR-sanctioned rehabilitation scheme, since the State had expressly refused consent during the proceedings. Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra dismissed PPL's appeal against the National Company Law Tribunal (NCLT), Cuttack Bench, noting that its express refusal excluded the...

NCLAT Rejects Venugopal Dhoot's Bid To Include Videocon Foreign Oil Assets In VIL CIRP

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Friday held that the foreign oil and gas assets of Videocon Oil Ventures Ltd (VOVL) and its subsidiaries in Brazil and Indonesia cannot be included in the Corporate Insolvency Resolution Process (CIRP) of Videocon Industries Ltd (VIL). The bench of Judicial Member Yogesh Khanna and Technical Member Ajai Das Mehrotra set aside the Mumbai NCLT's February 12, 2020 order directing inclusion of these assets in VIL's information...

Company That Mortgaged Its Property For SBI Loan Of Corporate Debtor Cannot Be Treated As Financial Creditor: NCLAT

The National Company Law Appellate Tribunal at Delhi has held that in the facts of a case, a company that mortgaged its property to help a borrower secure a bank loan could not claim to be a financial creditor in the borrower's insolvency proceedings merely because it was promised interest in return. The ruling came in a case where a Raipur-based company had mortgaged its land to help Setubandhan Infrastructure Ltd. secure loan facilities from State Bank of India and later sought recognition as...

Creditors Can Recover Unpaid Dues From Personal Guarantor Despite Partial Recovery Under Resolution Plan: NCLAT

The National Company Law Appellate Tribunal (NCLAT) in New Delhi on Tuesday has reiterated that approval of a resolution plan and acceptance of a haircut by financial creditors does not extinguish their right to proceed against personal guarantors for unpaid dues. The tribunal observed, “The filing and admission of claims in the CIRP of the corporate guarantor does not amount to full satisfaction of the debt and does not bar the recovery of the remaining dues from other obligants, including the...

Statutory Charge Cannot Be Waived By Marking 'N.A.' Against Security Interest In CIRP Claim Form: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that where a statute creates a charge, it cannot be treated as waived merely because a statutory authority marked “N.A.” against security interest in the prescribed insolvency claim form, unless the statute itself permits such waiver. Partly allowing an appeal by the Assistant Commissioner of State Tax, Vapi, in the CIRP of Vinergy International Pvt Ltd, the tribunal held that Gujarat VAT dues must be treated as the claim of...

NCLAT Upholds Chamber Constructions' Liquidation, Says Parallel CIRP Against Borrower And Guarantor Maintainable

The National Company Law Appellate Tribunal (NCLAT) at Delhi has upheld the liquidation of Chamber Constructions Pvt Ltd. It held that simultaneous insolvency proceedings can continue against principal borrower RNA Corp and Chamber Constructions, which had furnished a corporate guarantee for the same debt. “Hon'ble Supreme Court has delivered its judgement in ICICI Bank Ltd. v. Era Infrastructure (India) Ltd.; 2026 SCC Online SC 314 on 26.02.2026, and has not barred holding simultaneous CIRP...

Statutory Auditor Not Part Of Company Management, Cannot Be Compelled To Assist RP Under IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a statutory auditor, as an independent professional and not part of a company's management, cannot be compelled under Section 19 of the Insolvency and Bankruptcy Code to assist a resolution professional in the same manner as company personnel. “A statutory auditor is a professional who by the very nature of the audit to be undertaken cannot be associated with the company whose affairs he is to audit. On the contrary, a...