Complaints Against Auditors Or Company Secretaries No Ground To Seek Probe Into Company: NCLT Ahmedabad

The National Company Law Tribunal (NCLT) at Ahmedabad recently held that complaints of professional misconduct against auditors or company secretaries cannot form the basis for seeking an SFIO investigation into a company under Sections 212 or 213 of the Companies Act. It said such disciplinary action concerns only the individual professional and does not give the complainant any right to demand a probe into the company's affairs. A bench of Judicial Member Shammi Khan and Technical Member...

Costs Incurred For Scheme Of Compromise Or Arrangement Not Included In Liquidation Cost: NCLT Kolkata

The National Company Law Tribunal at Kolkata has clarified that expenses incurred by a Liquidator in exploring a compromise or arrangement for the corporate debtor cannot be treated as liquidation cost, and the same cannot be reimbursed to the liquidator. It reiterated the framework under the Liquidation Regulations makes a mandatory distinction between “liquidation cost” and the liquidator's “fee”. A coram of Judicial Member Bidisha Banerjee and Technical Member Siddharth Mishra, in...

NCLT Refuses To Condone 384 Day Delay In Filing Reply In CIRP Citing Voluminous Records

The National Company Law Tribunal (NCLT) at Ahmedabad has refused to condone a 384 day delay in filing a reply to an interlocutory application, holding that reasons such as the volume of documents, a change of advocates and internal communication issues do not amount to “sufficient cause” under Section 5 of the Limitation Act. Invoking the principle of dura lex sed lex (The law is harsh, but it is the law), the tribunal said that permitting such a prolonged delay would defeat the purpose of...

Insolvency Plea Cannot Be Dismissed For Alleged Malice Without Cogent Proof: NCLT Ahmedabad

The National Company Law Tribunal at Ahmedabad has clarified that an insolvency application cannot be dismissed on allegations of fraudulent or malicious filing unless clear and cogent evidence of mala fides is shown. While admitting insolvency proceedings against Turnrest Resources Pvt Ltd, a coram of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma said, “Section 65 of the IBC empowers the AA to dismiss an application if it is found to be filed with malicious intent or...

Company Cannot Seek Rectification Of Fraudulent Share Transfers Without Ownership Proof: NCLT Ahmedabad

The National Company Law Tribunal (NCLT) at Ahmedabad has held that a company cannot seek rectification of its register to undo fraudulent share transfers when it cannot produce the original shareholders' titles or any evidence of ownership. A coram of Judicial Member Chitra Hankare and Technical Member V G Venkata Chalapathy in an order dated December 3, 2025 said Symphony Limited had not proved its claim over 50,500 shares belonging to 14 shareholders that were allegedly transferred...

Family Ties Between Debtor Promoters And SRA Shareholders No Disqualification Under IBC: NCLT Kolkata

The National Company Law Tribunal (NCLT) at Kolkata has ruled that family or marital ties with a corporate debtor's promoters cannot, by themselves, render a resolution applicant ineligible under Section 29A of the Insolvency and Bankruptcy Code. The tribunal held that the disqualification arises only when the relative in question is independently barred under the Code, emphasising that Section 29A is not triggered solely on account of "blood relationship" or "marital alliance." A coram of...

NCLT Delhi Clears DCM Shriram's Scheme to Reorganise Its Businesses

The National Company Law Tribunal (NCLT) at New Delhi has approved a composite amalgamation and demerger scheme for DCM Shriram Industries and three group entities The bench of Judicial Member Ashok Kumar Bhardwaj and Technical Member Ravindra Chaturvedi cleared the plan on November 21, 2025 while making it clear that the tax department's recovery rights remain untouched and that any default in paying outstanding dues would render its sanction non-existent. The scheme provides for the merger...

NCLT Mumbai Approves Ashdan Properties' ₹145.26 Crore Plan To Revive Indo Global Soft Solutions

The National Company Law Tribunal (NCLT) at Mumbai has approved the Rs 145.26 crore resolution plan submitted by Ashdan Properties Private Limited for the revival of Indo Global Soft Solutions and Technologies Pvt Ltd, a company engaged in IT services and software development.The tribunal said that once a resolution plan satisfies the requirements of the Insolvency and Bankruptcy Code, the commercial wisdom of the Committee of Creditors cannot be examined by it. “In view of the discussions...

Counterclaims, Set-Off Claims No Bar to Insolvency Admission Without Proof of Full Discharge: NCLT Allahabad

The National Company Law Tribunal (NCLT) at Allahabad has held that set-off claims, counterclaims or assertions of business losses cannot defeat the admission of an insolvency application unless they are supported by undisputed material showing that the debtor has completely discharged its liability.The tribunal delivered this finding while admitting Punjab National Bank's (PNB) insolvency plea against Bhagwati Rice Mills Pvt Ltd. A coram of Judicial Member Praveen Gupta and Technical Member...

Bank Cannot Hold OTS Earnest Money Once It Accepts Resolution Plan: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has held that once a bank accepts full consideration under an approved resolution plan and issues a No-Dues Certificate, it cannot later claim any right over additional funds or assets belonging to the Corporate Debtor. A coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar, in an order dated 5 December 2025, held that Bank of India's claim of having a right to appropriate the Rs 1.51 crore deposited as earnest...

NCLT Ahmedabad Admits Another Blu-Smart Subsidiary Into Insolvency Over ₹16.25 Crore Default

The National Company Law Tribunal (NCLT) at Ahmedabad has admitted another subsidiary of the Blu-Smart electric mobility group into insolvency, holding that Blu-Smart Fleet Pvt Ltd had defaulted on an operational debt of Rs 16.25 crore owed to Reliance BP Mobility Limited. Blu-Smart Fleet provides fleet-management services exclusively to its parent company, Blu-Smart Mobility Ltd, a company that was providing all-electric ride-hailing services which is already undergoing insolvency...

Damages Arising Out of Contractual Disputes Cannot Trigger Insolvency Proceedings: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has held that claims arising from liquidated or unliquidated damages, which it said are contractual in nature, cannot be used to trigger insolvency proceedings as it dismissed Goodrich Logistics Private Limited's CIRP plea against Transrail Lighting Limited.A coram of Judicial Member Ashish Kalia and Technical Member Sanjiv Dutt said the tribunal is not empowered to adjudicate such contractual disputes. “Claim for liquidated damages for breach...