Insolvency Plea Must Be Based On Fresh Default After Loan Account Regularisation: NCLT Mumbai

The Mumbai bench of the National Company Law Tribunal (NCLT) has held that a financial creditor cannot base an insolvency petition on a historical default that ceased to exist after the loan account was regularised, and must instead rely on a fresh default specifically pleaded in the application. Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar observed: “If the Corporate Debtor commits another default after the account has been regularised, a fresh Default occurs,...

NCLT Hyderabad Flags Nearly Ten-Fold Increase In Admitted Claim In CIRP, Orders Fresh Verification

The National Company Law Tribunal (NCLT) at Hyderabad has directed a fresh verification of a financial creditor's claim in the corporate insolvency resolution process of Sri Nagakrishna Chemicals Ltd. after noting a nearly ten-fold increase in the admitted claim amount. The tribunal noted that the amount reflected in the creditor's application was about ₹7.95 crore, while the amount admitted during the CIRP stood at ₹73.98 crore. A Bench of Judicial Member Rajeev Bhardwaj and Technical Member...

Redirecting RP To MCA Website Does Not Constitute Cooperation Under IBC: NCLT Indore

Merely directing a Resolution Professional (RP) to obtain information from public portals such as the MCA website and responding with "refer MCA website" or "not applicable" does not amount to cooperation during the insolvency resolution process, the National Company Law Tribunal (NCLT) at Indore has reiterated while directing the suspended management of Xyron Technologies Limited to furnish records sought by the RP. A bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man...

Demand Notice Is Not Guarantee Invocation: NCLT Guwahati Rejects UCO Bank's CIRP Plea Against Personal Guarantor

The National Company Law Tribunal (NCLT) at Guwahati has rejected UCO Bank's insolvency application seeking initiation of proceedings against Mallika Barooah in relation to dues claimed from Berial Engineers Private Limited. The tribunal held that the bank failed to establish invocation of the guarantee and that the application was barred by limitation. A bench of Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh passed the order while dealing with the bank's...

NCLT New Delhi Terminates CIRP Against Presidium & Mothers Pride Over 330-Day Delay, No Resolution Plan

On 1 June, the New Delhi Bench of the National Company Law Tribunal (NCLT) ended the insolvency proceedings against Presidium Educational Institution Pvt. Ltd. and Mothers Pride Education Personna Pvt. Ltd., after finding that the process had gone beyond the 330-day legal limit, suffered from irregularities, and did not result in any resolution plan. Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Atul Chaturvedi disposed of the CIRPs and recalled the admission orders and...

NCLT Delhi Rejects Jiostar's Insolvency Plea Against Legends League Cricket Promoter

The Delhi bench of the National Company Law Tribunal (NCLT) has recently dismissed an insolvency plea filed by Jiostar India Pvt. Ltd. against Absolute Legends Sports Pvt. Ltd., the company behind the Legends League Cricket Masters T20 tournament. The tribunal held that Jiostar failed to establish that its claim for unpaid commentary-production charges and reimbursement of Ministry of Information and Broadcasting (MIB) fees under agreements relating to the broadcast rights of the Legends League...

Financial Creditor Cannot Allege Fraud In One Forum And Enforce Same Transactions As Debt In Another: NCLT Guwahati

The National Company Law Tribunal (NCLT) at Guwahati has held that insolvency proceedings cannot be admitted mechanically where serious disputes concerning the genuineness and enforceability of the underlying debt are already pending consideration before another forum. A bench of Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh observed, “Where the creditor itself alleges in separate proceedings that the transaction is fraudulent and constitutes wrongful trading,...

Commercial Court Decree Does Not Give Creditor 'Superior Status' In Liquidation Waterfall: NCLT Bengaluru

The National Company Law Tribunal (NCLT), Bengaluru Bench, has held that a decree obtained from a Commercial Court does not confer any superior status on a creditor under the Insolvency and Bankruptcy Code, 2016 (IBC). Such a creditor continues to be governed by its classification under the insolvency framework for the purposes of distribution under Section 53 of the Code. The tribunal observed,“A decree obtained during or after the commencement of insolvency proceedings does not confer any...

Asset Joins Liquidation Estate If Creditor Fails To Act Within 30 Days Of Liquidation Commencement: NCLT Mumbai

The Mumbai Bench of the National Company Law Tribunal (NCLT) has held that Union Bank of India could not claim exclusive entitlement to Rs 1.83 crore refunded after the wrongful invocation of bank guarantees during the corporate insolvency resolution process of EMI Transmission Ltd, finding that the amount was not covered by the bank's disclosed security and formed part of the liquidation estate. A coram of Judicial Member Lakshmi Gurung and Technical Member Hariharan Neelakanta Iyer found that...

NCLT Chandigarh Allows RP Access To Sealed SRS Entertainment Premises Despite Municipal Recovery Proceedings

The Chandigarh bench of the National Company Law Tribunal (NCLT) has held that recovery proceedings initiated by the Municipal Corporation of Faridabad could not impede the corporate insolvency resolution process of SRS Entertainment India Ltd. The tribunal directed the civic body to provide the company's resolution professional access to its sealed registered office and records. The bench of Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh allowed an application...

NCLT Chandigarh Admits Himalaya Food's Insolvency Plea Against A.P.J. Laboratories Over ₹14.41 Cr Default

The Chandigarh Bench of the National Company Law Tribunal National Company Law Tribunal on 25 May admitted a Section 7 petition filed by Himalaya Food International Limited and initiated Corporate Insolvency Resolution Process (CIRP) against A.P.J. Laboratories Limited for default of Rs 14.41 crore, holding that the debt and default stood admitted and undisputed. Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh admitted the petition, appointed an Interim...

NCLT New Delhi Holds Cancellation Agreement Claim Outside Operational Debt, Rejects Section 9 Plea

The New Delhi Bench of the National Company Law Tribunal (NCLT) on 20 May 2026 held that a claim arising from a cancellation agreement executed for relinquishment of rights under an earlier development arrangement does not constitute “operational debt” under Section 5(21) of the Insolvency and Bankruptcy Code, 2016 (IBC). Judicial Member Ashok Kumar Bhardwaj and Technical Member Atul Chaturvedi dismissed a Section 9 application filed by Parsvnath Developers Ltd. seeking initiation of the...