NCLT Mumbai Orders Restoration of Pledged Shares, Holds Their Invocation During CIRP Moratorium Illegal

The National Company Law Tribunal (NCLT) at Mumbai has recently held that a financial creditor's invocation of pledged shares after the commencement of the Corporate Insolvency Resolution Process (CIRP) violated the moratorium under the Insolvency and Bankruptcy Code (IBC). It ruled that the creditor's contractual right to invoke the pledge could not override the statutory moratorium. A bench of Judicial Member Lakshmi Gurung and Technical Member Charanjeet Singh Gulati made the observations...

Interest-Bearing Inter-Corporate Loan Can Qualify As Financial Debt Under IBC: NCLT Kolkata

The National Company Law Tribunal (NCLT), Kolkata Bench, has held that an inter-corporate loan carrying interest qualifies as a "financial debt" under Section 5(8) of the Insolvency and Bankruptcy Code, 2016, provided it satisfies the twin requirements of time value of money and commercial effect of borrowing. The bench of Judicial Member Bidisha Banerjee and Technical Member Cmde Siddharth Mishra observed that Section 5(8) of the IBC neither expressly nor impliedly excludes inter-corporate...

NCLT Mumbai Holds Dev Land Transaction Fraudulent In Satra Properties Insolvency, Orders ₹24.45 Crore Repayment

The Mumbai Bench of the National Company Law Tribunal (NCLT), hearing proceedings arising from the corporate insolvency resolution process (CIRP) of Satra Properties (India) Ltd., has held that the forfeiture of ₹29.35 crore advanced by the company to Dev Land & Housing Pvt. Ltd. was a fraudulent transaction. It directed Dev Land & Housing and former director Praful Satra to jointly or severally contribute ₹24.45 crore to the assets of Satra Properties (India) Ltd. The tribunal...

NCLT Mumbai Admits IIFL Home Finance Insolvency Plea Against J-Seventy One Properties Over ₹2.42 Crore Default

The Mumbai Bench of the National Company Law Tribunal (NCLT) has admitted an insolvency plea filed by IIFL Home Finance Ltd. against J-Seventy One Properties and Pictures Pvt. Ltd. after finding that the company owed a financial debt of about ₹2.42 crore and had remained in default. Judicial Member Nilesh Sharma and Technical Member Sameer Kakar held that the financial debt and the continuing default were established through documentary evidence. "In view of the above, the Applicant has...

Settlement Breach Before CIRP Admission Cannot Sustain Section 9 Insolvency Proceedings: NCLT New Delhi

The New Delhi National Company Law Tribunal (NCLT) has held that once parties enter into a settlement agreement before admission of a Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016, any subsequent default arising from such settlement does not give rise to an “operational debt” and cannot sustain insolvency proceedings.A Bench comprising Judicial Member Mahendra Khandelwal and Technical Member Anu Jagmohan Singh noted that such disputed...

Patient Privacy Can't Bar RP's Access To Hospital Management System: NCLT Indore

The National Company Law Tribunal (NCLT) in Indore has ruled that suspended directors of a hospital undergoing insolvency proceedings cannot deny a resolution professional access to its Hospital Management System by citing patient-data privacy. It held that such access is necessary for the resolution professional to discharge statutory duties during the corporate insolvency resolution process. A bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta passed the...

Monitoring Committee Cannot Override Fee Caps In Approved Resolution Plan: NCLT Bengaluru

The Bengaluru Bench of the National Company Law Tribunal (NCLT) on 22 June held that a Monitoring Committee cannot override or modify fee caps prescribed under an approved resolution plan through internal arrangements or mutual consent. Judicial Member Radhakrishna Sreepada and Technical Member Sunil Kumar Aggarwal partly allowed an application filed by Padmanabhan Nair against Successful Resolution Applicant (SRA) Pulkit Agarwal arising out of the implementation of the resolution plan of Trell...

Settlement Restructuring Payment Timelines Does Not Change Nature Of Operational Debt: NCLT Chennai

The National Company Law Tribunal (NCLT) at Chennai has held that a settlement agreement that merely restructures repayment or acknowledges an existing liability does not extinguish or alter the original character of the debt. A tribunal comprising Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam observed that simply renegotiating a payment timeline does not create a completely new and independent debt. “Under Indian law, a settlement agreement that merely restructures...

Perjury Cannot Be Invoked For Every Pleading Omission If Correct Financial Position Was Considered: NCLT Delhi

The National Company Law Tribunal (NCLT) in New Delhi has held that perjury jurisdiction cannot be invoked to penalise every pleading defect or omission. The tribunal observed that this principle applies where it has already examined the correct financial position while deciding the substantive proceedings. The bench of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Atul Chaturvedi observed, "Perjury jurisdiction cannot be invoked to penalize every pleading defect or...

NCLT Chandigarh Rejects Recasting Of Claims Based On Pre-CIRP Refunds, Upholds RP Methodology

The Chandigarh Bench of the National Company Law Tribunal (NCLT) on 5 June 2026 held that homebuyers cannot reappropriate amounts refunded before commencement of the Corporate Insolvency Resolution Process (CIRP) towards interest to enhance their admitted claims. Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal dismissed applications filed by homebuyers challenging the Resolution Professional's adjustment of a pre-CIRP refund of Rs. 40,00,000 against principal instead of...

'Floodgates' Would Open: NCLT Bengaluru Rejects Third-Party Homebuyers' Bid To Intervene Before CIRP Admission

The National Company Law Tribunal (NCLT) at Bengaluru has recently held that allowing a group of homebuyers to intervene in a developer's insolvency petition at the pre-admission stage would "amount to opening the floodgates" for objections on extraneous considerations. It reiterated that its inquiry at that stage is confined to examining the existence of a financial debt and default. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada dismissed an...

Mere Allegations Of Fraud Cannot Become A Vehicle To Reopen Every Concluded CIRP: NCLT Bengaluru

The National Company Law Tribunal at Bengaluru has reiterated that mere allegations of fraud cannot be permitted to become a vehicle for reopening every concluded Corporate Insolvency Resolution Process, especially when such allegations are founded on materials that were already available during the insolvency proceedings.A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada dismissed an application seeking to reopen CIRP and recall an already approved...