NCLT
Discretion Vested Upon NCLT U/S 7(5)(A) IBC Cannot Be Used To Impel Financial Creditor To Consider Settlement: NCLT Chennai
The NCLT, Chennai Bench, comprising Sanjiv Jain (Member-Judicial) and Venkataraman Subramaniam (Member-Technical), has held that the discretion vested upon the adjudicating authority under section 7(5)(a) IBC cannot be used to impel the financial creditor to consider the settlement proposed by the corporate debtor. The financial creditor, Punjab National Bank, filed a petition under section 7 of the IBC, seeking initiation of CIRP against the corporate debtor. However, the adjudicating...
Inadequate Stamping Of Loan Documents Is Curable Defect, Does Not Bar Admission Of Plea U/S 7 Of IBC: NCLT Mumbai
The National Company Law Tribunal (NCLT) Mumbai bench of Shri Ashish Kalia (Judicial Member) and Shri Sanjiv Dutt (Technical Member) has held that inadequate stamping of loan documents does not bar the admission of a petition under section 7 of the IBC. Background Dombivli Nagari Sahakari Bank Ltd. (“DNS Bank”) advanced financial facilities, including cash credit and term loans, between 2014-17. The accounts of the corporate debtor were classified as Non-Performing Assets (NPA)....
Institution Of Criminal Proceedings Against Officials Of Financial Creditor Does Not Bar Petition U/S 7 Of IBC: NCLT Cuttack
The National Company Law Tribunal (NCLT) Cuttack bench of Deep Chourasia (Judicial Member) and Babulal Meena (Technical Member) has held that institution of criminal proceedings or allegations of fraud against officials of the financial creditor do not bar an application under section 7 of the IBC. It was held that, unlike an application under section 9 of the IBC, the petition under section 7 cannot be rejected over a pre-existing dispute. Background In this case, Canara Bank...
NCLT Not Empowered To Interfere With Attachment Of Properties Under PMLA Proceedings: NCLT New Delhi
The NCLT, New Delhi Bench, comprising Shri Manni Sankariah Shanmuga Sundaram (Member-Judicial) and Shri Atul Chaturvedi (Member-Technical), has held that the NCLT lacks the authority to adjudicate upon an order issued by the adjudicating authority under PMLA or to direct the Enforcement Directorate to release the attachment. The present application was filed by the resolution professional under section 114(1) read with section 60(5) to stay the proceedings initiated by the Directorate...
NCLT Bengaluru Admits Insolvency Petition Against Dunzo Digital Private Limited For Debt Of ₹1.91 Crore
The National Company Law Tribunal, Bengaluru Bench, comprising Shri Sunil Kumar Aggarwal (Member-Judicial) and Shri Radhakrishna Sreepada (Member-Technical), has admitted the CIRP petition against Dunzo Digital Private Limited for Debt of Rs. 1.91 Crore. The section 9 IBC petition was filed by the Velvin Packaging Solutions, seeking initiation of the CIRP against the Dunzo Digital Private Limited for default in payment of debt of Rs. 2.29 Cr. inclusive of interest. The operational...
Detailed Inquiry Into Legality Of Transfer Of Property Cannot Be Adjudicated In Summary Proceeding U/S 7 IBC: NCLT New Delhi
The NCLT, New Delhi Bench, comprising Shri Manni Sankariah Shanmuga Sundaram (Member-Judicial) and Shri Atul Chaturvedi (Member-Technical), has held that a deeper inquiry into the legality of the transfer of property or allegations of fraud cannot be adjudicated in a summary proceeding under Section 7 of the IBC. The Section 7 application was filed by the financial creditor seeking initiation of the CIRP against the corporate debtor for default of Rs. 9.44 Cr. A loan against...
NCLT Kolkata Admits Application U/S 7 Of IBC Against Jain Infraprojects, Gives Two-Month Settlement Window
The National Company Law Tribunal, bench of Siddharth Mishra (Technical Member) and Bidisha Banerjee (Judicial Member), Kolkata admitted a section 7 petition filed by IDBI Bank against Jain Infraprojects Limited, while granting the Corporate Debtor a two-month window for settlement.The tribunal observed that IDBI Bank had misrepresented the status of the One-Time Settlement before the Tribunal during earlier hearings, which led to matter being prematurely reserved for orders on 3rd April,2025,...
Liquidator Cannot Be Penalized For Event Outside His Control: NCLT Kolkata Permits Exclusion Of Time Spent In Procedural Compliance
The National Company Law Tribunal, Kolkata Bench, comprising Justice Bidisha Banerjee (Member-Judicial) and Siddharth Mishra (Member-Technical), has permitted exclusion of time spent in complying with judicial orders and directions of the stakeholder body, saying that the liquidator cannot be penalized for an event outside his control. The liquidation order of the corporate debtor was passed, and a liquidator was appointed under section 34(1) of the IBC. In the 2 SCC meeting, it was...
Equity Investment Made Through Commercial MoU Doesn't Qualify As Operational Debt: NCLT Hyderabad
The National Company Law Tribunal, Hyderabad Bench, comprising Mr. Rajee Bhardwaj (Member-Judicial) and Mr. Sanjay Puri (Member-Technical), has held that an equity investment with conditional repayment made through a commercial memorandum of understanding (MoU) doesn't qualify as operational debt. The present application was filed by the operational creditor u/s 9 read with rule 6 of the IBC, seeking initiation of CIRP of the corporate debtor, alleging default of Rs. 2.75 Cr. An ...
RTI Response Reveals Judicial & Technical Member Vacancies In NCLT Amid Concerns Over Case Backlog
In an RTI filed by an advocate, it has been revealed that multiple vacancies are unfilled within the National Company Law Tribunals (NCLT), despite the pendency of a high number of cases. The application (Reg. No. MOCAF/R/E/25/01140, dated 12.09.2025) was filed with the Ministry of Corporate Affairs asking for details of pending cases, vacancies of judicial & technical members, and recruitment procedures in NCLT and NCLAT. Subsequently, the application was transferred under section...
IBC Proceedings Not Barred By Pending Writ Petition Or Administrative Classification Of Account As NPA Or Fraudulent: NCLT Kochi
The National Company Law Tribunal, Kochi Bench, comprising Mr. Vinay Goel (Member-Judicial) and Madhu Sinha (Member-Technical), has held that the IBC proceedings are not barred by the pending writ petition or administrative classification of accounts as NPA or fraudulent. The financial creditor, Axis Bank, filed an application u/s 7 of the IBC read with rule 4 of the NCLT Rules, 2016, seeking initiation of CIRP against the corporate debtor, Euro Tech Maritime Academy Pvt. Ltd., for an...
Adjudicating Authority Is Not Appropriate Forum To Determine Liability Of Corporate Debtor To Pay Interest Under MSME Act: NCLT Amrawati
The National Company Law Tribunal (NCLT) Amrawati bench of Shri Kishore Vemulapalli, Member (Judicial) and Shri Umesh Kumar Shukla and Member (Technical) has held that the Adjudicating Authority is not the appropriate forum for determination on the liability of the Corporate Debtor to pay interest under the MSME Act or Interest Act. The present application has been filed under section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking initiation of Corporate Insolvency...