NCLAT Upholds Rejection Of Homebuyer's Claim Filed 4 Days Before CoC Vote On Resolution Plan For Developer

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Tuesday upheld the rejection of a homebuyer's claim filed four days before a Committee of Creditors (CoC) meeting to vote on resolution plan, noting that under the CIRP Regulations, belated claims can be admitted only if they are submitted up to seven days before such meetings. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, "When we look at the above CIRP Regulations, it is amply clear that...

Suspended Management Cannot Order Independent Forensic Audits To Challenge CIRP Claims: NCLAT New Delhi

On Tuesday 10 March, the Principle Bench of the National Company Law Appellate Tribunal (NCLAT) at New Delhi held that a forensic audit report commissioned by suspended management is inadmissible due to bias, conflict of interest, and a breach of the Committee of Creditors (CoC) confidentiality.A Bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra, was hearing an appeal by the suspended management of Chandigarh Overseas Pvt. Ltd. challenging the inadmissibility of...

IBBI Action Against RP In Other CIRPs Cannot Invalidate Claim Verification In Chandigarh Overseas CIRP: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Tuesday observed that disciplinary proceedings initiated by the Insolvency and Bankruptcy Board of India (IBBI) against the Resolution Professional (RP) in other Corporate Insolvency Resolution Processes (CIRPs) cannot be relied upon to invalidate the claim verification exercise undertaken in the CIRP of Chandigarh Overseas Pvt. Ltd. The bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed,...

NCLAT Upholds Rejection Of Reliance Realty's Insolvency Plea Against Altruist Over Pre-Existing Dispute

The National Company Law Appellate Tribunal (NCLAT) at Delhi recently upheld the dismissal of an insolvency plea filed by Reliance Realty Limited against Altruist Customer Management India Pvt. Ltd., holding that the dispute between the parties over rental liability was genuine and could not be resolved through proceedings under the Insolvency and Bankruptcy Code. A bench of Judicial Member Justice N. Seshasayee and Technical Member Arun Baroka observed that the disagreement raised by the...

NCLAT Reaffirms IBC Proceedings Against Personal Guarantor Not Barred By SARFAESI Action

The National Company Law Appellate Tribunal (NCLAT) has reiterated that the pendency of proceedings under the SARFAESI Act does not bar the initiation of personal insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), noting that the Code overrides other laws. A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Ajai Das Mehrotra observed, “As per provisions of Section 238 of IBC, 2016, the Code overrides other laws and there is no bar of filing...

NCLAT Dismisses Rolta Employees' Appeal Challenging Resolution Plan Payout

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently dismissed an appeal filed by former employees of Rolta India Ltd challenging the approval of the company's resolution plan, holding that the payout made to them complied with the terms recorded by the National Company Law Tribunal (NCLT) regarding payment of their dues. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra noted that the NCLT had recorded that the resolution plan would provide...

Remuneration Paid To Directors For Managerial Services Not Fraudulent Without Proof Of Intent To Defraud: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that remuneration paid to directors for their managerial services cannot be treated as fraudulent trading under Section 66 of the Insolvency and Bankruptcy Code (which deals with fraudulent or wrongful trading carried on with intent to defraud creditors) in the absence of proof of such intent. Setting aside an order of the Ahmedabad bench of the National Company Law Tribunal in the CIRP of Doshion Water Umbrella...

Fixed Deposit Of Corporate Debtor Cannot Be Withheld After Resolution Plan Approval If No Claim Filed: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has recently held that a fixed deposit forming part of the corporate debtor's assets in the Information Memorandum cannot be withheld after approval of a resolution plan when no claim asserting lien or security was filed during the corporate insolvency resolution process.A coram of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held that claims not asserted during CIRP stand extinguished once the resolution plan is approved...

NCLAT Dismisses Sri Bajrang Wind Park Insolvency Plea Against Inox Wind Over Pre-Existing Dispute

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has dismissed an appeal filed by Sri Bajrang Wind Park Developers challenging the rejection of its Section 9 insolvency petition against Inox Wind Infrastructure Services Limited. The tribunal held that email correspondence and reconciliation discussions between the parties showed the existence of a pre-existing dispute. A coram of Judicial Member Justice N Seshasayee and Technical Member Arun Baroka held, “From the pleadings...

Balance Sheet Acknowledgment Of Debt Extends Limitation; NCLAT Upholds IDBI's Insolvency Plea Against HIL

Reiterating that acknowledgment of liability in balance sheets extends limitation under Section 18 of the Limitation Act, the National Company Law Appellate Tribunal has upheld the admission of IDBI Bank's Section 7 insolvency application against Hindustan Insecticides Limited. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held that the insolvency application was not barred by limitation, as the corporate debtor had acknowledged the subsisting liability in its...

Judicial Custody Of MD No Ground To Claim Natural Justice Violation If Counsel Appeared: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently observed that the principle of natural justice is not violated merely because the Managing Director of a corporate debtor was in judicial custody during insolvency proceedings, where the company was duly represented by counsel. A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey observed: “The Appellant being in custody from 25.10.2025 till 26.11.2025 cannot be any ground for alleging...

Winding Up Petitions Transferred From High Court To NCLT Cannot Be Admitted Mechanically: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that a winding up petition transferred from a High Court to the National Company Law Tribunal under the Insolvency and Bankruptcy Code cannot be admitted mechanically. Even if the High Court had already admitted the winding up petition, the NCLT must independently examine whether the requirements for admission under Section 9 of the Code are satisfied. A bench of Chairperson Justice Ashok Bhushan and Technical...