NCLT Kochi Directs Deposit Of Due Security And Revenue Shares In Jatayupara Tourism Project Escrow Account

The National Company Law Tribunal, Kochi Bench, has directed the Guruchandrika Builders & Property Private Limited, Mr. Rajeev Vidyadharan, and Mrs. Padmam Rajeev, proprietor of Nanma Eatery (formerly Jatayu Merchandise), to deposit the sum of Rs. 38,32,744, into the project's common pool account. An agreement dated January 1, 2024, under which Respondents Rajeev Vidyadharan and Mrs. Padmam Rajeev agreed to deposit security and pay 20% of gross revenue as dues to Guruchandrika ...

Acknowledgment Of Debt By Principal Borrower Binds Corporate Guarantor: NCLT Delhi Admits NARCL's Insolvency Application Against Era Infra

The National Company Law Tribunal (NCLT), New Delhi Bench on 4th November 2025, admitted an insolvency application filed by the National Asset Reconstruction Company Limited (NARCL) against Era Infrastructure (India) Limited (EIL), the corporate debtor and corporate guarantor, observing that the corporate guarantee executed by EIL in favour of Bank of India was enforceable and the insolvency application was filed within the prescribed limitation period as per law. A bench of Judicial...

NCLT Kochi Denies Restoration Of Company Name Due To Prolonged Dormancy And Non-Compliance With Statutory Filing

The National Company Law Tribunal (NCLT), Kochi Bench, has denied the restoration of the company name due to prolonged dormancy and non-compliance with statutory filings. The bench of Judicial Member Vinay Goel and Technical Member Madhu Sinha observed, “The mere intention expressed by the Appellant in its appeal to regularize filings or revive the business at this stage cannot be a ground to restore the name of a company that has remained completely dormant since incorporation.” ...

Disbursal Of Funds Under Funding Agreement With Guaranteed Return Amounts To Financial Debt U/S 5(8) IBC: NCLT

The NCLT, Mumbai Bench, has held that a disbursal of funds under a funding agreement with guaranteed return amounts to financial debt under section 5(8) of the IBC, 2016. The bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakkar observed, “It can be said that the Applicants have invested funds under the Funding Agreement, and as per the terms of the agreement, the Applicants were promised to get the principal amount along with profit at 45% p.a., which the CD failed...

Paytm Moves NCLT Delhi Against WinZO Games Over ₹3.6 Crore Unpaid Advertising Dues

The National Company Law Tribunal (NCLT) at Delhi on Tuesday issued notice to WinZO Games after Paytm (One97 Communications Ltd) filed an insolvency plea claiming that the gaming company failed to pay around Rs 3.6 crore for advertising services. Judicial Member Justice Jyotsna Sharma and Technical Member Anu Jagmohan Singh heard the matter briefly and gave WinZO two weeks to file its reply. The matter is listed again on December 15.According to Paytm, the unpaid amount relates to four invoices...

One-Time Settlement Proposal Made After Expiry Of Limitation Does Not Extend Period U/S 18 Of Limitation Act: NCLT Indore

The National Company Law Tribunal (NCLT), Indore Bench, has held that the one-time settlement (OTS) proposal submitted after the expiry of the limitation period doesn't extend the limitation period under section 18 of the Limitation Act, 1963. The bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta observed that if a party makes an acknowledgment in terms of Section 18 beyond the period of limitation, then such a case would not be covered by Section...

NCLT Mumbai Clears Reliance Retail's Consumer Brands Restructuring Plan

The National Company Law Tribunal (NCLT) at Mumbai has approved Reliance Retail's plan to reorganize its consumer products business. The move will shift the group's fast-moving consumer goods and brands division into a new arm called Reliance Consumer Products Limited, giving the business its own management and focus. In an order passed on November 6, a coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar observed that there was no impediment in sanctioning the...

Personal Guarantors Cannot Misuse Insolvency Process To Defeat Creditor Recovery: NCLT Chennai

The National Company Law Tribunal (NCLT), Chennai, has recently ruled that personal guarantors cannot misuse the insolvency process to delay or obstruct legitimate recovery actions by creditors. In an order passed on October 10 by a coram of Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy, the tribunal noted that the Interim Resolution Professional (IRP) had “mechanically recommended” acceptance of the personal guarantor's application without considering his...

Liability Of Personal Guarantor Arises Only Upon Demand Made In Accordance With Guarantee Deed: NCLT Hyderabad

The National Company Law Tribunal (NCLT), Hyderabad Bench-II, has recently ruled that the liability of the personal guarantor to the corporate debtor arises only upon a valid demand being made in strict accordance with the terms of the guarantee deed. The bench of Rajeev Bhardwaj (Member-Judicial) and Yogendra Kumar Singh (Member-Technical) observed that, “Rule 3(1)(e) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal...

NCLT Delhi Sanctions Maruti Suzuki's Merger With Suzuki Motor Gujarat

The Principal Bench of the National Company Law Tribunal on Thursday approved the merger of Maruti Suzuki India Limited with its wholly owned subsidiary, Suzuki Motor Gujarat Private Limited. The coram, comprising President Justice Ramalingam Sudhakar and Technical Member Ravindra Chaturvedi, noted that there was no impediment to approving the scheme, given the positions taken by the relevant statutory authorities.“In light of the foregoing facts and discussion, particularly the positions...

Advances Made By Shareholder After Lapse Of Shareholders Agreement Amount To 'Financial Debt': NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench, has admitted a Section 7 application filed by Euro Corporate Services Pvt. Ltd. against Royal Fantasy Constructions Pvt. Ltd. The bench comprising Judicial Member Sushil Mahadeorao Kochey and Member Technical Prabhat Singh has ruled that the advances made by the shareholder after the expiration of the shareholder agreement amount to a financial debt under Section 5(8) of the IBC, 2016. The section 7 application was filed by...

Timeline For Filing Bankruptcy Application Under IBC Is Directory, Not Mandatory: NCLT Kochi

The NCLT, Kochi Bench, comprising Vinay Goel (Member-Judicial) and Madhu Sinha (Member-Technical), has held that the three-month period for filing bankruptcy applications against personal guarantors under Section 121(2) IBC, 2016, is directory and not mandatory. Kerala Financial Corporation filed the application under section 123 of the IBC, 2016, seeking bankruptcy proceedings against personal guarantors. The application was filed with a delay of over 266 days past the statutory window...