NCLT
Disputed Property Cannot Be Excluded From Information Memorandum After CoC Approval: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has held that once a resolution plan is approved by the Committee of Creditors (CoC) and awaits confirmation, permitting amendments to the Information Memorandum would unsettle the resolution process.“Once the Resolution Plan has been approved by the Committee of Creditors and is pending approval before this Tribunal, permitting exclusion of the subject property from the Information Memorandum would unsettle the resolution process,” the tribunal...
Delay In Seeking Revised Valuation Of Asset Not Enough To Term It Sham: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has held that a revised valuation obtained after discovery of additional restrictions on a property cannot be dismissed as a sham merely because there was a delay in seeking such revision.It said valuation is a technical exercise and must be assessed in light of the facts available to the valuer at the relevant time.“Though, there is considerable delay in seeking revised valuation report consequent upon purported discovery of “red-zone”...
NCLT Mumbai Approves Supreme Capinfra's Rs. 96 Crore Plan To Revive C & M Farming
The National Company Law Tribunal (NCLT) at Mumbai has approved a Rs 96.81 crore resolution plan for the revival of C and M Farming Ltd, a poultry business. The tribunal held that once a resolution plan meets the requirements of the Insolvency and Bankruptcy Code, it cannot interfere with the commercial decisions of the Committee of Creditors. A coram comprising Judicial Member Mohan Prasad Tiwari and Technical Member Charanjeet Singh Gulati passed the order on January 9. The bench found the...
MoU Between Debtor And Creditor Is Only Acknowledgment, Not Proof Of Debt: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has said that a Memorandum of Understanding (MoU) can, at best, show an acknowledgment of debt, but it cannot, by itself, prove that a financial debt exists or that there has been a default. The tribunal said documents showing the original loan and actual disbursal of money are necessary to trigger insolvency proceedings. A coram of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar dismissed a petition filed by Mulraj Mody...
Sale Agreements Do Not Mean Flats Are Held In Trust For Homebuyers During Builder Insolvency: NCLT Kochi
The National Company Law Tribunal (NCLT) at Kochi has ruled that apartments and project land covered only by sale or construction agreements cannot be treated as “assets held in trust” for homebuyers when a builder enters insolvency. The tribunal said such properties continue to belong to the builder during the Corporate Insolvency Resolution Process until sale deeds are executed and registered. A coram of Judicial Member Vinay Goel said the Insolvency and Bankruptcy Code does not permit...
NCLT Ahmedabad Orders Liquidation of Euphoria Technologies as SRA Defaults On Rs. 7.20 Crore Plan
The National Company Law Tribunal (NCLT) Ahmedabad has ordered the liquidation of Euphoria Technologies Private Limited, a Gujarat-based technology services company, after its successful resolution applicant, Roopyaa Tradebizz Limited, failed to follow the payment schedule under its approved Rs 7.20 crore resolution plan. A coram of Judicial Member Chitra Hankare and Technical Member Velamur G. Venkata Chalapathy held that Roopyaa Tradebizz had clearly breached the terms of the plan and could...
Fraud Claims On Insolvency Admission Must Be Raised In Appeal, Not In Later NCLT Pleas: NCLT Kolkata
The National Company Law Tribunal (NCLT) at Kolkata has recently held that allegations of fraud or collusion in the admission of insolvency proceedings cannot be raised months later through a fresh application and must be pursued through the appellate route provided under the law. A bench of Judicial Member Bidisha Banerjee and Technical Member Siddharth Mishra said former promoters cannot use Section 65 of the Insolvency Code to challenge an admission order they never appealed. “Disputes...
CIRP Claims Cannot Rely On 12-Year Limitation Period For Enforcing Mortgage Rights: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has recently ruled that secured creditors cannot rely on the 12-year limitation period for enforcing mortgage rights when filing claims in a corporate insolvency resolution process. For insolvency claims, the Tribunal said, the applicable limitation period is three years. The decision was delivered by a coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar. The tribunal drew a clear distinction between enforcing...
NCLT Mumbai Approves Demerger Of Poonawalla Finance And Group Entities
The National Company Law Tribunal at Mumbai has approved a scheme of amalgamation involving Poonawalla Finance Pvt Ltd, Rising Sun Holdings Pvt Ltd and Synergist Realtors Pvt Ltd, paving the way for the reorganisation of businesses within the Poonawalla group. The approval came on January 6, 2026, following resolutions passed by the boards of the companies on February 4 and February 12, 2025. Under the scheme, the appointed date for the first leg of the demerger has been fixed as...
Corporate Debtor Cannot Reclaim Property Sold Under Unregistered Slump Sale Agreement: NCLT Hyderabad
The National Company Law Tribunal (NCLT) at Hyderabad has held that when a corporate debtor has received full consideration and acted upon a slump sale transaction, he cannot later reclaim the property on the ground that the agreement was unregistered, as such conduct is barred by the doctrine of estoppel. A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri dismissed a set of applications filed by the liquidator of Handum Industries Ltd, which has been under...
NCLT Mumbai Approves Sagacious Capital's Rs 110 Crore Plan To Revive Reliance Innoventures
The National Company Law Tribunal (NCLT) at Mumbai has approved a Rs. 110.10 crore resolution plan submitted by Sagacious Capital Pvt Ltd for the revival of debt-ridden Reliance Innoventures Pvt Ltd. The tribunal held that once a plan satisfies the requirements of the Insolvency and Bankruptcy Code, the tribunal cannot interfere with the commercial decisions of lenders. A bench comprising Judicial Member Mohan Prasad Tiwari and Technical Member Charanjeet Singh Gulati observed that...
Avoidance Provisions Under Insolvency Code Are Restorative, Not Punitive: NCLT Kochi
The National Company Law Tribunal at Kochi has clarified that the avoidance provisions under the Insolvency and Bankruptcy Code are meant to undo the preferential effect of certain transactions and restore the corporate debtor's estate, not to impose punitive liability on the beneficiary. Judicial Member Vinay Goel made the observation while partly allowing an avoidance application filed by the Resolution Professional of Astern Properties and Developers Pvt Ltd under Sections 43 and 44 of the...