Secured Creditors Cannot Keep Asset Realisation Deadline Open-Ended During Liquidation Citing Recovery Proceedings: NCLT Hyderabad

The National Company Law Tribunal (NCLT), Hyderabad, has held that the statutory 180-day deadline for a secured creditor to realise its security interest during liquidation cannot be kept open-ended merely because recovery proceedings have been initiated.“The IBC is a time-bound legislation and the statutory period prescribed under Regulation 21A of the IBBI (Liquidation Process) Regulations, 2016 cannot be kept open-ended merely on the basis of an assertion that recovery proceedings have been...

Bankrupt's Jewellery Handover To Son Not Preferential Merely Because It Occurred Within Look-Back Period: NCLT Jaipur

The Jaipur bench of the National Company Law Tribunal (NCLT) has recently held that a bankrupt handing over jewellery to her son within the two-year look-back period does not, by itself, make the transaction preferential under the Insolvency and Bankruptcy Code, 2016 (IBC).“The mere fact that the beneficiary is an associate and that the transaction occurred within two years preceding the bankruptcy application cannot cure this fundamental deficiency,” the bench of Judicial Member Reeta Kohli and...

NCLT Delhi Admits Yes Bank Plea Against Johnson Watch Guarantor, Says SARFAESI Notice Invokes Guarantee

On 12 October, the Principal Bench of the National Company Law Tribunal (NCLT), New Delhi, admitted an application filed by Yes Bank Limited under Section 95 of the Insolvency and Bankruptcy Code (IBC) against Anil Madan, personal guarantor of Johnson Watch Company Pvt. Ltd.A Bench comprising President Justice Anupinder Singh Grewal and Technical Member Ravindra Chaturvedi held that a notice under Section 13(2) of the SARFAESI Act can validly invoke a personal guarantee if it demands...

NCLT Dismisses APL Apollo Tubes' Insolvency Plea Against Tanisha Scaffolding For Lack Of Delivery Proof

The Bengaluru Bench of the National Company Law Tribunal (NCLT), on 9 October dismissed a Section 9 application filed by APL Apollo Tubes Ltd. seeking initiation of the corporate insolvency resolution process (CIRP) against Tanisha Scaffolding (India) Private Limited, holding that the operational creditor failed to establish the supply of goods underlying its claim. A Bench comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada dismissed the application after...

Disputed Interest Does Not Bar Section 9 IBC Plea If Principal Debt Exceeds ₹1 Crore: NCLT Allahabad

The Allahabad Bench of the National Company Law Tribunal (NCLT) on 8 October held that a dispute over interest on delayed payments does not defeat insolvency proceedings when the admitted principal debt exceeds the statutory threshold under the Insolvency and Bankruptcy Code, 2016 (IBC). A Bench comprising Judicial Member Praveen Gupta and Technical Member Ashish Verma admitted a Section 9 application filed by Boston Ivy Healthcare Solutions Private Limited against Zaneka Healthcare Limited,...

Homebuyer Insolvency Threshold Must Be Based on Actual Bookings, Not Proposed Units: NCLT Kolkata

The Kolkata Bench of the National Company Law Tribunal (NCLT) on 9 October held that the threshold for admitting a homebuyer's insolvency petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), must be determined on the basis of actual bookings as they stood on the date of filing, and not proposed units. Also, that post-filing changes could not affect the assessment of the statutory threshold. A Bench of Judicial Member Bidisha Banerjee and Technical Member Rekha Kantilal...

NCLT Admits Siemens Financial Services' Plea Against Personal Guarantor, Says Prior CIRP Not Required

The Allahabad Bench of the National Company Law Tribunal (NCLT), on 9 October admitted an application filed by Siemens Financial Services Pvt. Ltd. to initiate the personal insolvency resolution process against Rasik Khandelwal, holding that a financial creditor need not exhaust its remedies against the principal borrower before initiating insolvency proceedings against a personal guarantor. A Bench comprising Judicial Member Praveen Gupta and Technical Member Ashish Verma, also clarified that...

Dissenting Secured Creditors Entitled To Minimum Payment Based On Security Value: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai, on 7 October held that a dissenting financial creditor is entitled to a minimum payment equivalent to the liquidation value of its security interest, and the Committee of Creditors (CoC) cannot cap this entitlement at the total value of the resolution plan. A Bench of Technical Member Prabhat Kumar and Judicial Member Sushil Mahadeorao Kochey considered SBI's challenge to a CoC resolution that capped the bank's payment at the total resolution...

NCLT Ahmedabad Rejects Toyota Financial's ₹23.20 Crore Claim Against Blu-Smart Over 150 Undelivered Vehicles

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has recently dismissed Toyota Financial Services India Limited's challenge to the rejection of ₹23.20 crore of its claim against the resolution professional (RP) of Blu-Smart Fleet Private Limited over 150 undelivered vehicles.Judicial Member Shammi Khan and Technical Member Sanjeev Sharma upheld the RP's decision to admit ₹8.59 crore as unsecured financial debt while rejecting the disputed portion. The bench observed, “The...

NCLT Ahmedabad Admits Sharanam Infraproject To CIRP Over ₹10.35 Crore Debt, Rejects Restructuring Plea

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by Maruti Corporation against Sharanam Infraproject and Trading Limited over an operational debt of ₹10.35 crore.The order was passed by the bench of Judicial Member Chitra Hankare and Technical Member Dr V. G. Venkatachalapathy. The bench observed, “A restructuring proposal sought by respondent cannot be the reason for rejecting the application. Further, respondent's ledger and audited...

NCLT Ahmedabad Admits Insolvency Plea Against Gujarat Toolroom Over ₹26.20 Crore Dues

The National Company Law Tribunal (NCLT), Ahmedabad, has admitted an insolvency petition against Gujarat Toolroom Limited over unpaid operational dues of ₹26.20 crore to Naksh Steel Limited.A bench of Judicial Member Chitra Hankare and Technical Member Dr V G Venkata Chalapathy found that the debt had been acknowledged but remained unpaid due to liquidity constraints.“The date of default is reckoned as 20.01.2025. It is admitted to have not been paid due to liquidity constraints of the CD...

NCLT Ahmedabad Refuses Blanket Warranty Coverage For Gensol's Tata EV Fleet, Orders Vehicle-Wise Verification

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has refused to grant blanket warranty coverage for Gensol Engineering Limited's fleet of Tata electric vehicles (EVs), directing its Resolution Professional and Tata Motors Passenger Vehicles Limited (TMPVL) to coordinate vehicle-wise verification and process eligible warranty claims under the existing terms.A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed, “The Respondent's stated readiness to...