NCLT Ahmedabad Relies On DRT Judgment To Prove Execution Of Personal Guarantees Despite No Originals

The National Company Law Tribunal (NCLT) at Ahmedabad recently relied on a Debt Recovery Tribunal (DRT) judgment, along with prior admissions and affidavits, to hold that the execution of personal guarantees stood proved even in the absence of original documents, observing: “It is further observed that even though the original documents are not produced, the existence and execution of the guarantee stand established from (i) the judgment of the Debts Recovery Tribunal, (ii) the admission of the...

Non‑Compliance Of Form FA Cannot Defeat Insolvency Settlement Backed By CoC Approval: NCLT Chennai

On 23 March, the Chennai National Company Law Tribunal (NCLT) held that non-filing of Form FA during insolvency proceedings would not defeat a settlement where all dues were satisfied and Committee of Creditors (CoC) approval was already in place. Form FA is the prescribed application to formally request withdrawal of insolvency proceedings once the parties have reached a settlement. A Bench of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam closed the...

Penal Provisions Under IBC Require Proof Of Wilful Conduct: NCLT Indore

The Indore Bench of the National Company Law Tribunal (NCLT) on 20 March, held that Sections 70, 72, and 74 of the Insolvency and Bankruptcy Code, 2016, cannot be invoked without clear and cogent evidence of wilful intent or fraudulent conduct. A Bench comprising Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta rejected an application seeking penal action against the erstwhile management of K.S. Oils Ltd. The Bench observed: “It is observed that the imposition of...

Parties Cannot Reopen Claims Invoking Tribunal's Review Powers After Plan Is Approved: NCLT Indore

The Indore Bench of the National Company Law Tribunal (NCLT) on 19 March 2026 held that once a resolution plan is approved, parties cannot reopen claim classification by invoking the Tribunal's inherent powers under Rule 11 of the NCLT Rules, 2016. A Bench comprising Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta dismissed a review application filed by the Employees' Provident Fund Organisation (EPFO), which sought to modify the order approving the resolution plan...

NCLT Chandigarh Orders Promoters Responsible For Insolvency To Vacate Majestic Hotels' Property

On 17 March, the Chandigarh Bench of the National Company Law Tribunal (NCLT), in the insolvency proceedings of Majestic Hotels Ltd. (corporate debtor), directed the promoters and related parties to vacate portions of the company's flagship property, Hotel Majestic Park Plaza in Ludhiana. A Bench comprising Judicial Member K. Biswal and Technical Member K.K. Singh observed: “The intent as per the provisions of the IBC is that if the Corporate Debtor has failed to meet its obligations in...

IBC Cannot Be Misused To Impede Recovery Process Under SARFAESI: NCLT Delhi

The National Company Law Tribunal, Delhi, has recently dismissed an application filed under Section 94 of the Insolvency and Bankruptcy Code, which allows a personal guarantor to initiate insolvency proceedings against himself, holding that the provision cannot be used to stall recovery proceedings already underway under the SARFAESI Act, 2002, and before the Debt Recovery Tribunal. The Tribunal said the plea was a tactical attempt to take advantage of the interim moratorium under the IBC. The...

NCLT Hyderabad Admits Insolvency Plea Against Personal Guarantor, Says Stamp Duty Defect On Guarantee No Bar

The National Company Law Tribunal (NCLT) at Hyderabad has recently reiterated that an objection based on insufficient stamp duty on a guarantee deed cannot defeat proceedings under Section 95 of the Insolvency and Bankruptcy Code, admitting a personal insolvency petition filed by Bank of Maharashtra against Nukala Savithri, personal guarantor to SVSVS Projects Private Limited. A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri heard the petition filed for initiation of...

NCLT Indore Rejects Suspended Management Plea To Join GEI Power Resolution Plan Approval Proceedings

The Indore Bench of the National Company Law Tribunal (NCLT) has rejected a plea by the suspended management of GEI Power Ltd. seeking to take part in the proceedings where the Tribunal is considering approval of the company's resolution plan, holding that former management cannot intervene at this stage after the lenders have already approved the plan. Refusing the request, the tribunal said that allowing such participation would go against the limited role of the court at the plan approval...

Liquidation Can Be Recalled Using Inherent Powers Where Debt Is Settled: NCLT Hyderabad

The Hyderabad Bench of the National Company Law Tribunal (NCLT) on 6 March, held that even though the Insolvency and Bankruptcy Code (IBC), 2016, does not expressly provide for withdrawal of liquidation proceedings, the Tribunal can exercise its inherent powers in appropriate cases to secure the ends of justice. The Bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri recalled the liquidation process against Ravi Cranes & Movers Ltd., preventing the liquidation...

Mere Pendency Of Arbitration Does Not Constitute Realizable Asset Or Extinguish Liability: NCLT Chandigarh

The National Company Law Tribunal (NCLT) at Chandigarh recently held that mere pendency of arbitration cannot be a ground to defer insolvency proceedings once debt and default are established. A bench of Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh while admitting a Tollways company to CIRP observed, “Mere pendency of arbitration does not constitute a realizable asset or extinguish an admitted financial liability. In contrast, the Financial Creditor has...

Mere Non-Reflection Of Funds In Books Not Proof Of Fraud Under IBC: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi has dismissed an application filed by the liquidator of Vysali Pharmaceuticals Ltd against its suspended Managing Director, holding that mere non-reflection of amounts in the books of accounts cannot by itself establish fraudulent diversion of funds under Section 66 of the Insolvency and Bankruptcy Code.A coram of Judicial Member Vinay Goel observed that allegations of fraud must be supported by cogent and credible evidence and cannot be...

NCLT Jaipur Says Only CoC Can Approve CIRP Costs, Dismisses Plea By RP Of Aesthetic Stone Arts As Not Maintainable

The National Company Law Tribunal (NCLT) at Jaipur has dismissed an application filed by the erstwhile Resolution Professional of Aesthetic Stone Arts India Pvt. Ltd. seeking ratification of Corporate Insolvency Resolution Process (CIRP) costs, holding that determination of such costs lies exclusively within the domain of the Committee of Creditors (CoC).A coram of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar also held that no interlocutory application is maintainable...