Deposit Made 'Without Prejudice' Cannot By Itself Amount To Admission Of Debt In CIRP Proceedings: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi, has ruled that a deposit expressly made “without prejudice” to a debtor's rights and contentions cannot, by itself, be treated as an unconditional admission of liability.The bench of Judicial Member Justice N. Seshasayee and Technical Member Indevar Pandey observed, “A deposit expressly made without prejudice cannot, by itself, be treated as an unconditional admission of a liability, particularly when the appellant had already raised...

NCLAT Delhi Says Resolution Applicant's Death Is Not Liquidation Ground, Revives Genius Exports CIRP

On 9 September, the National Company Law Appellate Tribunal (NCLAT), New Delhi held that the death of a resolution applicant before approval of a resolution plan does not, by itself, justify liquidation of the corporate debtor, particularly when a withdrawal application under Section 12A of the Insolvency and Bankruptcy Code, 2016 (IBC) based on a settlement is pending.A Bench comprising Judicial Member Justice N Seshasayee and Technical Member Indevar Pandey set aside the liquidation order...

'Clean Slate' Protection U/S 32A IBC Extends To Going Concern Buyers During Liquidation: NCLAT Delhi

The Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 9 September held that the “clean slate” protection under Section 32A of the Insolvency and Bankruptcy Code, 2016 (IBC) extends to buyers who purchase a corporate debtor as a going concern during liquidation.A Bench comprising Judicial Member Justice N Seshasayee and Technical Member Arun Baroka allowed an appeal filed by Amitkumar Rishi Kumar Bhabhda, who had purchased Seam Industries Ltd. (corporate debtor) as a...

NCLAT Quashes Guarantor Insolvency Proceedings Filed Before Different NCLT Bench Than CIRP

The National Company Law Appellate Tribunal (NCLAT) at New Delhi, has quashed insolvency proceedings against a personal guarantor after finding that the corporate debtor's Corporate Insolvency Resolution Process (CIRP) was pending before another NCLT Bench.The bench of Judicial Member Justice Sharad Kumar Sharma and Technical Members Arun Baroka and Indevar Pandey held that where the CIRP of a corporate debtor is pending before one NCLT Bench, proceedings concerning its personal guarantor must...

NCLAT Closes Insolvency Process Despite Failure Of Statutory Withdrawal Mechanism

The National Company Law Appellate Tribunal at New Delhi, has closed the insolvency proceedings against Shalfeyo Industries Private Limited. It held that although the statutory mechanism for withdrawing the proceedings under Section 12A could not be completed, keeping the Corporate Insolvency Resolution Process alive would serve no meaningful purpose.A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Members Arun Baroka and Indevar Pandey observed:“We are of the view that,...

Practising CA Not Ineligible To Submit Resolution Plan Merely By Profession: NCLAT Delhi

The National Company Law Appellate Tribunal (NCLAT), Delhi has dismissed appeals filed by suspended directors of Satellite Cables Pvt. Ltd., holding that a practising Chartered Accountant cannot be treated as ineligible to submit a resolution plan merely by virtue of being a Chartered Accountant.A Bench of Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Arun Baroka also held that procedural irregularities in a Corporate Insolvency Resolution Process (CIRP) must be shown to have...

Company Cannot Claim Non-Service of Notices After Keeping Registered Office Non-Functional: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has ruled that a company cannot complain of inadequate service of notices when it has itself allowed its registered office to remain non-functional for several years.Dismissing an appeal by the suspended director of AS Infracon Pvt. Ltd., Judicial Member Mohd Faiz Alam Khan and Technical Member Naresh Salecha upheld the initiation of insolvency proceedings against the company.The bench observed that notices had been sent to AS...

Post-2026 IBC Amendment, CIRP Withdrawal Barred Before CoC Formation Or After Plan Invitation: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently clarified that the 2026 amendment to the Insolvency and Bankruptcy Code has made withdrawal of an admitted insolvency case more stringent. An admitted case cannot be withdrawn before the Committee of Creditors is constituted or after the Resolution Professional issues the first invitation for resolution plans.The bench of Officiating Chairperson Justice Yogesh Khanna, Technical Member Barun Mitra and Technical Member Ajai...

NCLAT Delhi Sets Aside Insolvency Admission Against Raja Udyog, Notes Debt Fell Below ₹1 Crore Threshold

The National Company Law Appellate Tribunal (NCLAT) at Delhi on 25 August set aside the Kolkata Bench of the National Company Law Tribunal (NCLT) order admitting an insolvency application against Raja Udyog Private Limited. A Bench of Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha held that a Section 7 application under the Insolvency and Bankruptcy Code, 2016 (IBC) cannot be admitted when the debt due on the date of admission falls below the statutory threshold...

NCLAT New Delhi Upholds Dismissal Of Panshul Agro Food Plea Over Removal Of Hypothecated Machinery

The National Company Law Appellate Tribunal (NCLAT), New Delhi, on 25 August upheld the dismissal of Panshul Agro Food LLP's insolvency application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC), while reducing the penalty imposed on it from Rs. 10 lakh to Rs. 5 lakh.A Bench of Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha held that the application had been filed with malicious intent to stall State Bank of India's (SBI) recovery proceedings...

NCLAT New Delhi Clears Hurdles For ₹15-Cr Talwalkars Sale, Orders ROC To Reset Status To 'Active'

The National Company Law Appellate Tribunal (NCLAT), New Delhi, on 3 September partly allowed an appeal by Ravikumar Gaurishankar Patel, the successful auction purchaser of Talwalkars Better Value Fitness Ltd., and granted several reliefs sought by him to give effect to the Rs. 15 crore going-concern sale of the company during liquidation. A Bench of Officiating Chairperson Justice Yogesh Khanna with Technical Members Barun Mitra and Ajai Das Mehrotra held that the National Company Law Tribunal...

RP Can Revisit Admitted Claim After Verification Fails To Establish Financial Debt: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, on 1 September held that a Resolution Professional (RP) can revisit an earlier admitted claim during subsequent verification if the material on record fails to establish the existence of an independent financial debt. A Bench comprising Judicial Member Justice N. Seshasayee with Technical Members Arun Baroka and Indevar Pandey dismissed Somani Worsted Limited's appeal against the National Company Law Tribunal's...