Loss-Making Companies Can Pay Shareholders During Capital Reduction: NCLT Chennai

The Chennai Bench of the National Company Law Tribunal (NCLT) has reiterated that even loss-making companies are legally permitted to pay shareholders during a capital reduction exercise under Section 66 of the Companies Act, 2013, observing that such decisions fall within the commercial wisdom of shareholders. The coram of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam said there is no bar in law on a company with accumulated losses returning capital to its...

CoC-Approved Resolution Plan Can Be Rejected If It Violates IBC: NCLT Kochi

The National Company Law Tribunal (NCLT) Kochi Bench has held that even an approved resolution plan cannot be approved if it fails to meet the mandatory requirements under Section 30(2) of the Insolvency and Bankruptcy Code, 2016, sending back plans for two real estate projects of Samson and Sons Builders and Developers Pvt Ltd to the Committee of Creditors for reconsideration. A coram of Judicial Member Vinay Goel said, “Even where a Resolution Plan has been approved by the Committee of...

Part Payment Of Debt After Filing CIRP Plea Won't Affect IBC Threshold: NCLT Mumbai

The Mumbai bench of the National Company Law Tribunal (NCLT) has held that part-payments made by a corporate debtor after the filing of a Section 9 application under the Insolvency and Bankruptcy Code will not defeat the CIRP threshold. A bench of judicial member Nilesh Sharma and technical member Sameer Kakar reiterated, “…we hold that the threshold under Section 4 of Code is required to be made at the time of filing of application under Section 9 and even if some payment is made by...

Dispatch Of Statutory Demand Notice to Last Known Address Constitutes Valid Service: NCLT Hyderabad

The Hyderabad National Company Law Tribunal (NCLT) held that sending a statutory demand notice to the last known address of a personal guarantor constitutes valid service under the Insolvency and Bankruptcy Code, 2016, even if the notice is returned unserved. A Bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri admitted a petition filed by Punjab National Bank under Section 95 of the Code to initiate the Personal Insolvency Resolution Process (PIRP) against Smt....

NCLT Bengaluru Appoints RP From IBBI Panel In FineFacilis Personal Guarantor Insolvency

The National Company Law Tribunal (NCLT), Bengaluru, on 30 March 2026, appointed Kondisetty Kumar Dushyantha as the Resolution Professional (RP) in insolvency proceedings initiated by Asset Reconstruction Company (India) Ltd (ARCIL) against the personal guarantor of FineFacilis Management Pvt Ltd. A Bench comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada rejected the guarantor, Vasudevan Sathyamoorthy's challenge alleging non-compliance with Section 97...

NCLT Mumbai Dismisses Insolvency Plea Against Eros Over 'English Vinglish,' 'Ki And Ka' Profit-Sharing Dispute

The National Company Law Tribunal (NCLT) at Mumbai on Tuesday dismissed an insolvency application filed by Gutz Feel Film Production LLP against Eros International Media Ltd over an alleged default of Rs. 3.33 crore arising from profit-sharing agreements for the films “English Vinglish” and “Ki and Ka”. Holding that the claim arose from a profit-sharing arrangement, which does not qualify as an operational debt under the Insolvency and Bankruptcy Code, a bench of Judicial Member Ashish Kalia...

NCLT Ahmedabad Rejects Company's Own Insolvency Plea As Tactic To Stall Recovery By Lenders

The National Company Law Tribunal (NCLT) at Ahmedabad has refused to admit a company's own insolvency plea, holding that the move showed a “lack of bona fide intent” and was a “tactical measure to frustrate recovery proceedings” initiated by lenders. A coram of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma said that even where debt and default are established, admission is “not so mechanical as to permit admission of every application,” and the tribunal must examine whether...

Chit Fund Firms Are Financial Service Providers; Insolvency Plea Not Maintainable: NCLT Hyderabad

The National Company Law Tribunal (NCLT) at Hyderabad has held that chit fund companies are financial service providers under the Insolvency and Bankruptcy Code and cannot be treated as corporate debtors for insolvency proceedings. It dismissed a plea filed by Siply Services Private Limited against IBG Echits India Private Limited. A bench of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri said, “ it is evident that a company carrying on the business of chit funds is engaged...

Limiting CIRP Negotiations To Higher-Ranked Bidders Not Arbitrary If As Per RFRP: NCLT Indore

The National Company Law Tribunal (NCLT) Indore Bench has held that restricting negotiations in a corporate insolvency resolution process to higher-ranked bidders is valid where it flows from the bidding framework and serves the objective of value maximisation. A coram of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta in the CIRP of Soya Industries observed that “the Corporate Insolvency Resolution Process (CIRP) was conducted strictly in accordance with the...

NCLT Bengaluru Refuses To Examine FEMA Issues In Aakash–Byju's Rights Issue Dispute, Says Outside IBC Jurisdiction

The Bengaluru bench of the National Company Law Tribunal (NCLT) has refused to examine questions relating to foreign exchange law compliance in a dispute arising from the Aakash Educational Services–Byju's rights issue. It held that such issues fall outside its jurisdiction under the Insolvency and Bankruptcy Code.The order was passed on Tuesday by a bench of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada. It came on an application filed by Aakash Educational...

NCLT Amaravati Bench Admits Insolvency Plea Against Kallam Textiles Over ₹210 Crore Default

The National Company Law Tribunal's Amravati Bench has admitted Union Bank of India's insolvency plea against Kallam Textiles Ltd. over a default exceeding Rs 210 crore. The Bench of Judicial Member Kishore Vemulapalli and Technical Member Umesh Kumar Shukla said there was no reason to refuse admission once debt and default were clearly established. It rejected the company's claim that the proceedings were being used merely for recovery. Kallam Textiles, incorporated in 1992, had been availing...

Moratorium Under Section 14 IBC Does Not Protect Personal Guarantors: NCLT Chandigarh

The Chandigarh Bench of the National Company Law Tribunal (NCLT) on 18 March held that the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 does not extend to personal guarantors of a corporate debtor and therefore allows creditors to continue proceedings against them even during the pendency of the corporate insolvency resolution process (CIRP). A Bench comprising Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal admitted insolvency petitions filed...