NCLAT
Foreign Companies Need RBI Approval To Acquire Security Interest In Indian Immovable Property: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a foreign company cannot acquire or be assigned a security interest over immovable property in India without the Reserve Bank of India's permission. Holding that no such approval had been obtained in the present case, the tribunal ruled that Mauritius-based Tropical Ventures Company Ltd. could not claim security rights over the assets of Incab Industries Ltd. A bench of Chairperson Justice Ashok Bhushan and Technical...
NCLAT Quashes Insolvency Admission Against Vikram Solar As Debt Falls Below ₹1 Crore
On Monday, the National Company Law Appellate Tribunal (NCLAT) set aside the admission of a Section 9 insolvency petition against Vikram Solar after both sides admitted that the debt was below the ₹1 crore threshold prescribed under the Insolvency and Bankruptcy Code (IBC). The appellate tribunal quashed the June 12, 2026 order of the Kolkata bench of the National Company Law Tribunal (NCLT), which had admitted the petition filed by Isitva Steel Pvt. Ltd. The order was passed by the bench of...
NCLAT Upholds Insolvency Against Butter, Ghee Maker Jhandewalas Foods
The National Company Law Appellate Tribunal (NCLAT) has recently upheld the initiation of corporate insolvency proceedings against butter and ghee manufacturer and trader Jhandewalas Foods Limited. It held that the company's defence of a pre-existing dispute over unpaid dues was not supported by credible evidence and could not prevent the insolvency process. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “In our considered view, we have no good grounds...
No Artificial Procedural Obstacle Can Prevent Filing Of Additional Affidavit In CIRP Proceedings: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that a party cannot be prevented from filing an additional affidavit in proceedings that are yet to be decided on merits. It observed that such a restriction would create an "artificial procedural obstacle" and handicap a litigant in presenting its case. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Indevar Pandey observed,“We are of the view that no artificial procedural obstacle could...
Secured Creditor Can Claim Priority Only To Extent Of Available Security, Even If Debt Is Higher: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a secured creditor can claim priority in the payment of dues only to the extent of the security available in its favour. It ruled that a creditor is not automatically entitled to the entire liquidation value merely because its admitted debt exceeds that amount. The tribunal dismissed the appeals filed by Assets Care & Reconstruction Enterprise Ltd. (ACRE) and Dhankalash Distributors Pvt. Ltd. It, however, directed...
Jet Airways Workmen's PF, Gratuity Dues Must Be Paid, Fall Outside Liquidation Estate: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that provident fund, gratuity and pension dues owed to Jet Airways workmen must be paid as they fall outside the liquidation estate, even if no segregated funds existed on the liquidation commencement date. It also directed the liquidator to exclude the 1,656 days beyond the statutory 330-day Corporate Insolvency Resolution Process (CIRP) period while computing the 24-month look-back period under the Insolvency and...
Anil Ambani Appeals NCLT Order Admitting SBI's Personal Guarantor Insolvency Plea
On Wednesday, Industrialist Anil Ambani approached the Delhi bench of the National Company Law Appellate Tribunal (NCLAT) against the personal insolvency proceedings initiated by the the State Bank of India (SBI).The matter was taken up in the bench of Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Barun Mitra. However, the bench adjourned the matter after a request came from his Counsel. “Having regard to the request made by Ld. Counsel for the appellant, list this matter...
NCLAT Stays Insolvency Proceedings Against Vikram Solar
The National Company Law Appellate Tribunal (NCLAT) on Wednesday stayed the National Company Law Tribunal's (NCLT) order admitting insolvency proceedings against Vikram Solar Ltd. It also directed the company to deposit ₹91.98 lakh pending further hearing. A bench of Judicial Member Mohd Faiz Alam Khan and Technical Member Barun Mitra noted an earlier NCLAT order in Nishant Avinash Fadia v. Raspalfa Services Private Limited, which the Supreme Court did not interfere with. Keeping in view the...
NCLAT Chennai Sets Aside NCLT Kochi Order Archiving Section 9 Plea, Grants One-Time Rectification Window
On 10 June, the Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) allowed an appeal filed by Raychem RPG Pvt Ltd, set aside the order of the National Company Law Tribunal (NCLT), Kochi Bench, and directed grant of a final opportunity to rectify defects, subject to payment of costs of Rs. 50,000. Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain emphasised that procedural defects in filing a Section 9 insolvency petition cannot, by themselves,...
NCLAT Upholds NCLT Order Allowing Liquidator To Challenge JDA, GPA Termination Before Civil Court.
The National Company Law Appellate Tribunal (NCLAT) at Chennai has upheld an order allowing the liquidator of a company under liquidation to approach a civil court to challenge the unilateral termination of a Joint Development Agreement (JDA) and cancellation of a General Power of Attorney (GPA) relating to the Manapakkam project. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain found no error in the National Company Law Tribunal's decision granting...
Non-Production Of Guarantee Deed Not Fatal Where Loan Agreement Establishes Personal Guarantor's Liability: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Chennai has recently held that insolvency proceedings against a personal guarantor cannot be invalidated solely because a separate deed of guarantee has not been placed on record. The tribunal ruled that where the guarantor's status and liability are evident from the loan agreement and other documents, the proceedings can indeed continue. A bench of Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain delivered the ruling...