Payment Made During Pendency Of CIRP Application Cannot Be Considered For Calculating Threshold U/S 4 Of IBC: NCLAT New Delhi

The National Company Law Appellate Tribunal, Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial) and Naresh Salecha (Member-Technical), has allowed an appeal filed by the operational creditor. The issue before the tribunal was whether the threshold has to be seen at the time of filing of the application or at the time of admission of the application. Background of the Case The appellant used to sell iron ore to the respondent, but the respondent failed...

If Rights Under Debenture Deed Are Transferred Without Prior Approval From Holders, Liabilities Of Corporate Debtor Remain Undischarged: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that when a debenture deed mandates prior approval of the Debenture Trustee for any transfer of rights or liabilities, any such transfer made through an Acquisition Agreement without obtaining the required approval is in contravention of the principal deed and, therefore, unenforceable....

NCLAT Chennai Dismisses Appeal By Bjyu's Challenging NCLT Interim Order In Aakash Shareholding Dispute

The National Company Law Appellate Tribunal (NCLAT) Chennai bench comprising Justice Sharad Kumar Sharma (Judicial Member) and Jatindranath Swain (Technical Member) has dismissed the appeal filed by Think & Learn Private Limited (Byju's) against Aakash Educational Services Limited and others. The Tribunal held that the impugned order under challenge was interlocutory in nature and passed with the consent of the parties, and therefore no interference was warranted at the appellate...

Subsequent Application U/S 95 IBC Is Barred Where Proceedings Against Same Personal Guarantor Are Already Pending: NCLAT, Chennai

The National Company Law Appellate Tribunal (NCLAT), Chennai bench comprising Justice Sharad Kumar Sharma (Judicial Member) and Jatindranath Swain (Technical Member) have held that where proceedings under Section 95 of the Insolvency and Bankruptcy Code (IBC) have already been initiated by one Financial Creditor, a subsequent application under the same provision by another creditor against the same Personal Guarantor is barred by Section 96 of the Code.Brief Facts The Appellant, Indian...

When Entire Debt Amount Has Been Re-Paid, CIRP Process Can't Be Continued: NCLAT Delhi

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) held that when the admitted dues have been repaid by the debtor there is no point in continuing the Corporate Insolvency Resolution Process. Background Facts: M/s Rajasthan Land Holdings Ltd. (RLHL), the Corporate Debtor, was originally a wholly owned subsidiary of M/s Road Infrastructure...

Suspended Management Cannot Disburse Funds Of Corporate Debtor Post-CIRP Commencement Without Authorisation Of IRP: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), New Delhi bench comprising Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) have held that after commencement of Corporate Insolvency Resolution Process (CIRP) once moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC) kicks in, no person can unilaterally recover any amount from the account of the Corporate Debtor. The Tribunal held that the suspended...

Corporate Insolvency And Bankruptcy Laws Bar Association Requests Operationalisation Of Second Bench At NCLAT Chennai

The Corporate Insolvency and Bankruptcy Laws Bar Association, established to promote the study and advancement of corporate, insolvency, bankruptcy, economic, and allied laws, has submitted a representation to the Hon'ble Chairperson of the NCLAT on May 28, 2025, seeking the early constitution of a second bench at NCLAT, Chennai. They stated that On 25.01.2019, in Swiss Ribbons v. Union of India, 2018 the Supreme Court recorded the undertaking given by the Union of India for “setting up...

NCLAT Upholds Admission Of CIRP Against Pushp Ratna Realty

The National Company Law Appellate Tribunal (NCLAT), New Dehi bench of Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) have upheld the admission of the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Pushp Ratna Realty Pvt. Ltd. The Tribunal also upheld the rejection of a settlement proposal made by the Appellant-Jayshree Agnihotri, noting that the Committee of Creditors (CoC), composed of homebuyers,...

S. 13(2) SARFAESI Act Notice Demanding Payment From Guarantor Constitutes Invocation Of Personal Guarantee: NCLAT Delhi

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) held that where a Section 13(2) notice explicitly demands payment from the guarantor in terms of the guarantee agreement, it amounts to an invocation of the personal guarantee. Background Facts: M/s Surana Metacast (India) Private Limited (Principal Borrower) had taken loan from state bank of India for...

CoC Not Barred From Holding Second Challenge Process Despite Declaration Of Highest Bidder: NCLAT Delhi

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) held that the Committee of Creditors is not barred from holding a Second challenge process for auction of Corporate Debtor's asset, even if a highest bidder has already been declared in the first process.Background Facts: In the corporate insolvency resolution process of Frost International Ltd., the appellant,...

Liberty Granted By NCLAT To File Fresh Application Does Not Permit Appellant To Alter Date Of Default In Application U/S 7 Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member) and Mr. Indevar Pandey (Technical Member) has held that the mere fact that the NCLAT granted the Appellant liberty, and the Appellant subsequently failed to pursue the first appeal against the order dated 10.04.2023 by which the first application under section 7 of the Code was dismissed, does not entitle the Appellant to change the...

Only Resolution Professional Is Empowered To File Application For Avoidance Of Preferential Transactions U/S 43 Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that an application for avoidance of preferential transactions under Section 43 of the Insolvency and Bankruptcy Code, 2016 (Code) can be filed only by the Resolution Professional. Hence, the application filed by a single homebuyer was rightly rejected by the Adjudicating Authority. Brief...