Additional Documents Need Not Be Filed With Reply To Demand Notice U/S 8(2) Of IBC: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has held that section 8 of the IBC doesn't allow placing on record any documents while responding to a demand notice, except the ones mentioned in sub-section 2. The appeal was filed challenging the impugned order passed by the NCLT, Mumbai. By the impugned order, the tribunal rejected the IA No. 3245 of 2025 filed by the ...

Unexplained Delay In Filing Second Petition U/S 94 Of IBC After Dismissal Of First Reflects Malafide Conduct Of Litigant: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan, Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that filing a second petition under Section 94 of the IBC, without disclosing that the earlier petition based on the same facts and cause of action had been dismissed, reflects mala fide conduct on the part of the litigant. Therefore, the second petition cannot be entertained unless sufficient explanation is ...

NCLT Can Grant Ex-Post Facto Approval To Criminal Complaints Filed Against Former Management With Adequate Reasons: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that the Adjudicating Authority is empowered to grant ex-post facto approval of criminal complaints filed against the Ex-management by providing adequate reasons. The present appeal has been filed against an order passed by National Company Law Tribunal (NCLT) by which it allowed an application filed by the Liquidator and gave ex-post facto...

Money Deposited By Borrower As Precondition For Sanction Of Guarantee Ceases To Be Corporate Debtor's Asset Upon Invocation Of Guarantees: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that Margin Money deposited by the borrower as a precondition for sanction of Bank Guarantees, being payable towards the Bank Guarantees invoked by the beneficiary, ceases to be the Corporate Debtor's asset once such guarantees are invoked. Therefore, such appropriation of margin money is not hit by section 14 of the IBC. The present appeal has...

Claims Based On Guarantee Can Be Considered By RP Even If Guarantee Was Not Invoked Before Insolvency Commencement Date: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan, Justice N. Seshasayee (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that the claims of the creditor can be considered by the Resolution Professional even if guarantee based on which the claims were filed was not invoked. The present appeal has been filed under section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC) against an order passed by National Company Law...

Successful Bidder Can't Claim Exemptions From Statutory Compliance Merely On Grounds Of Being Successful Bidder Of Corporate Debtor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Arun Baroka (Technical Member) has held that a successful bidder is not entitled to claim exemptions from statutory compliances merely on the ground that the Appellant was a successful bidder of the corporate debtor. The present appeal has been filed under section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC) against an order passed by National Company Law Tribunal (NCLT) seeking...

Findings Of NCLAT While Remanding Case Can't Operate As Res Judicata When No Conclusive Opinion Is Expressed: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that the findings of the Appellate Tribunal in earlier proceedings cannot operate as res judicata when no conclusive opinion was expressed, and the NCLT's order was set aside only for non-consideration of relevant materials and submissions. The present appeals have been filed against an order passed by National Company Law Tribunal (NCLT) by which...

Revival Of Company Petition Permissible On Default Of Settlement Terms Despite Absence Of Liberty In NCLT's Withdrawal Order: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Mohd Faiz Alam Khan and Mr. Indevar Pandey (Technical Member) has held that a petition withdrawn pursuant to a settlement agreement between the parties can be revived if the corporate debtor fails to make payment as per the settlement terms, where the agreement clearly provides for such revival in case of default. The absence of express liberty granted by the NCLT in the withdrawal order is immaterial. The...

Refund Of Security Amount Can't Be Considered As Acknowledgment Of Debt U/S 19 Of Limitation Act: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that refund of security amount which was given by Operational Creditor for carrying out the work contract cannot be considered as an acknowledgement of debt under section 19 of the Limitation Act. The present appeal has been filed under section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC) against an order passed by National Company Law...

Borrower Can't Plead Non-Service At Previous Address When Change Of New Address Is Not Communicated To Creditor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice N. Seshasayee (Judicial Member) and Arun Baroka (Technical Member) has held that it is the bounden duty of the borrower to inform the creditor of any change in address. If demand notices and other important communications are sent to the previous address, the borrower cannot plead non-service when delivery of essential documents is established from the record.” The present appeal has been filed under section...

Adjudicating Authority Must Consider Application U/S 65 Of IBC On Merits When Allegations Of Malicious Initiation Of CIRP Are Raised: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that once an application under Section 65 of the IBC is filed and allegations of malicious or fraudulent initiation of the CIRP are raised, the Adjudicating Authority is bound to consider it on merits and cannot reject it solely on the ground of lack of locus. The present appeal has been filed against an order passed by the National Company Law ...

Liquidation Is Only Recourse When Sole Financial Creditor Is A Related Party: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Mr. N. Seshasayee (Member-Judicial), Mr. Arun Baroka (Member-Technical), and Mr. Indevar Pandey (Member-Technical), has held that the liquidation is the only recourse when the sole financial creditor is a related party. Background of the Case The corporate debtor, M/s/ STROS Esquire Elevators & Hoists Pvt. Ltd., was incorporated as a joint venture vehicle by virtue of an...