NCLAT
Dissenting Banks Cannot Continue Recovery Against Guarantors Once Resolution Plan Attains Finality: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that once an approved resolution plan expressly extinguished securities and attachments of personal guarantors and attained finality, dissenting financial creditors could not continue recovery proceedings against such assets. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra allowed an appeal filed by Puro Natural Sugars JV and deleted portions of a National Company Law Tribunal (NCLT)...
NCLAT Closes Suo Motu Contempt Proceedings Against IRP After Accepting His Unconditional Apology
The National Company Law Appellate Tribunal (NCLAT) at Chennai, has closed contempt proceedings against an Interim Resolution Professional who “sat over” the tribunal's interim stay order and proceeded despite it, after accepting his unconditional apology. The proceedings were initiated against Anil Kumar Khicha, Interim Resolution Professional of ISPT India Pvt. Ltd., after the appellate tribunal found that despite its October 27, 2025 interim order keeping in abeyance the CIRP order dated...
NABARD Refinance Receivables Are Third-Party Assets, Not Part Of Corporate Debtor's Insolvency Estate: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently held that receivables from refinance transactions extended by National Bank for Agriculture and Rural Development (NABARD) are third-party assets held in trust and cannot form part of the borrower's insolvency estate.A coram of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held that NABARD's statutory rights under Section 29 of the NABARD Act are not waived merely because it filed its claim in...
Guarantor Liability Co-Extensive With Borrower, Can't Be Made Contingent By Balance Sheet Entries: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently observed that a corporate guarantor cannot avoid insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code by describing its guarantee obligation as a “contingent liability” in its balance sheets. The tribunal observed that in law, a guarantor's liability is co-extensive with that of the principal borrower, and that what matters for limitation is acknowledgement of liability, not the accounting...
BREAKING | NCLAT Upholds NCLT Order, Rejects Actor Akshay Kumar's Insolvency Plea Against Cue Learn
The National Company Law Appellate Tribunal at New Delhi on Friday upheld an NCLT order refusing to start insolvency proceedings against Cue Learn Private Limited over a payment dispute arising from an endorsement deal with actor Akshay Kumar Bhatia. A coram of Judicial Member Justice N. Seshasayee and Technical Member Indevar Pandey agreed that the disagreement between the parties could not be resolved under the Insolvency and Bankruptcy Code. The tribunal said insolvency proceedings...
495-Day Delay Is 'Gross Negligence': NCLAT Rejects Cethar Liquidator's Plea To Amend Avoidance Application
The National Company Law Appellate Tribunal at Chennai has dismissed an appeal filed by the liquidator of Cethar Limited, refusing to excuse a 495-day delay in amending an avoidance application filed during a company's insolvency proceedings. The tribunal held that the delay amounted to “gross negligence” and could not be condoned by relying on Section 148 of the Code of Civil Procedure, a provision that allows courts to extend procedural timelines but limits such extension to 30 days. A...
NCLAT Upholds Insolvency Admission Against Karanja Terminal Over ₹330 Crore Default
The National Company Law Appellate Tribunal has upheld the initiation of insolvency proceedings against Karanja Terminal & Logistics Private Limited, a port operator, after rejecting its claim that a proposed settlement with lenders had stalled insolvency action. A bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra agreed with the National Company Law Tribunal that the corporate insolvency resolution process was rightly admitted. The tribunal said the...
Related Party Supplies Not CIRP Costs Without CoC Approval: NCLAT In Amtek Auto Insolvency
The National Company Law Appellate Tribunal (NCLAT) at Delhi has dismissed a Rs 18.98 crore claim by Lotus Auto Engineering Limited, a group company of Amtek Auto Limited, holding that supplies made by a related party during the corporate insolvency resolution process cannot be treated as insolvency resolution process costs unless expressly approved by the Committee of Creditors. A Principal Bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held that...
NCLAT Dismisses Insolvency Appeal Against Larsen & Toubro Over Dues Claimed By Former Employee
The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently dismissed an insolvency appeal filed against Larsen & Toubro Ltd by a former senior employee over alleged unpaid salary and service benefits.A Bench of Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Naresh Salecha upheld an order of the National Company Law Tribunal, Mumbai, which had rejected the employee's CIRP plea. The Appellate Tribunal held that disputes arising from employment...
Intent Irrelevant Once Conditions Of Preferential Transaction Are Met: NCLAT Reiterates
The National Company Law Appellate Tribunal (NCLAT) at New Delhi has reiterated that a preferential transaction (Section 43 of the Insolvency and Bankruptcy Code) works on a statutory deeming fiction. Once the necessary ingredients are met, intent or motive does not matter. The burden shifts to the directors and beneficiaries to show that the transactions were in the ordinary course of business. A bench of Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Naresh Salecha...
NCLAT Upholds ₹6.56 Crore Liability on Paranjape Agro Promoter For Fraudulent Stock Write-Off
The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently held that the promoter-director of Paranjape Agro Products India Private Limited must personally repay Rs 6.56 crore to the company after finding that inventory shown in the books never existed and was written off to defraud creditors at a time when there was no reasonable prospect of avoiding insolvency. A bench of Justice Mohd. Faiz Alam Khan and Technical Member Indevar Pandey upheld an order passed by the National...
NCLAT Remands Case After NCLT Failed To Record Finding On Homebuyers' Threshold in Insolvency Plea
The National Company Law Appellate Tribunal (NCLAT) at New Delhi has set aside an order of the NCLT Mumbai Bench admitting insolvency proceedings against a real estate developer, holding that the NCLT failed to record a clear finding on the statutory threshold required for homebuyers under the Insolvency and Bankruptcy Code. The matter has been remanded for a fresh determination limited to this issue. A bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held...