NCLT
Any Defect In Title Of Security Does Not Vitiate Duly Executed Personal Guarantee: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai Bench, Court VI, comprising Justice Nimesh Sharma (Member-Judicial) and Sameer Kakar (Member-Technical), has held that any defect in the title of the security does not vitiate the personal guarantee, duly executed, specifically when the person admits the execution. The application under rule 11 of the NCLT Rules, 2016, was filed by the personal guarantor, Rinki Prakash Kumar, praying for dismissal of the section 95 petition filed by the...
Interest Accrued During & After S.10A Period Can Be Combined With Principal Amount To Meet ₹1 Crore Threshold U/S 4 IBC: NCLT Kolkata
The National Company Law Tribunal (NCLT), Kolkata Bench, comprising Justice Bidisha Banerjee (Member-Judicial) and Siddharth Mishra (Member-Technical), has held that if the default is committed prior to or during the section 10A period and liability to pay interest is accrued during the section 10A period and continued thereafter, such interest could be counted to meet the threshold of Rs. 1 Cr. The operational creditor supplied kraft paper to the corporate debtor on the basis of...
Shareholders & Guarantors Have No Locus To Intervene In CIRP Based On Private Unregistered MoU: NCLT Kochi
The National Company Law Tribunal (NCLT), Kochi Bench, comprising Justice Vinay Goel (Member-Judicial) and Madhu Sinha (Member-Technical), has held that any private agreement between the corporate debtors, borrowers, and guarantors is not binding on the financial institutions unless the institutions are parties to the agreement and have explicitly consented to it. The Corporate Insolvency Process (CIRP) of the corporate debtor was going on, and during the resolution plan certain...
Unconditional Consent By Sole Financial Creditor Satisfies Requirements Of S.12A IBC & Regulation 30A Of CIRP Regulations: NCLT New Delhi
The National Company Law Tribunal, New Delhi, Court-IV, comprising Justice Jyotsna Sharma (Member-Judicial) and Anu Jagmohan Singh (Member-Technical), has held that if there is a stay on the meetings of CoC, then the unconditional consent of the sole financial creditor is sufficient for the withdrawal of the CIRP. The resolution professional filed an application u/s 12A of the IBC read with regulation 30A of the CIRP Regulation, seeking withdrawal of the CIRP of the corporate debtor....
Lease Dues Incurred During CIRP Prior To Vesting Date Are Payable To Financial Creditor, Do Not Belong To Successful Resolution Applicant: NCLT Hyderabad
The National Company Law Tribunal (NCLT), Hyderabad Bench, comprising Justice Rajeev Bhardwaj (Member-Judicial) and Sanjay Puri (Member-Technical), has held that the lease dues incurred during the corporate insolvency resolution period prior to the vesting date are payable to the financial creditor and don't belong to the Successful Resolution Applicant (SRA). Background of the Case The State Bank of India advanced a loan of Rs. 33.5 Cr. to the corporate debtor. As security for the...
Personal Guarantors Cannot Seek Disclosure Of Resolution Plan Details U/S 60(5) IBC Or Rule 11 Of NCLT Rules: NCLT Mumbai
The National Company Law Tribunal, Mumbai Bench, comprising Justice Sushil Mahadeorao Kochkey (Member-Judicial) and Prabhat Kumar (Member-Technical), has held that personal guarantors cannot seek disclosure of resolution plan details u/s 60(5) or Rule 11 of the NCLT Rules. The CIRP of the corporate debtor, Prabhat Technologies (India) Ltd., was initiated in furtherance of the section 7 IBC application. After the approval of the resolution plan by the CoC, it was pending before the...
Settlement Agreement Between Parties Merely Acknowledging & Structuring Repayment Doesn't Change Nature Of Debt: NCLT Mumbai
The National Company Law Tribunal, Mumbai Bench, Court-III, comprising Justice Lakshmi Gurung (Member-Judicial) and Hariharan Neelakanta Iyer (Member-Technical), has held that a settlement agreement entered between the parties merely for the purpose of acknowledging the debt and structuring the repayment schedule doesn't necessarily change the nature of the debt when it is concreted with sufficient evidence. The petition under section 9 of the IBC was filed by M.K. Metals (operational ...
Unconditional Consent By Sole Financial Creditor Satisfies Requirements U/S 12A Of IBC: NCLT New Delhi
The National Company Law Tribunal, New Delhi, Court-IV, comprising Justice Jyotsna Sharma (Member-Judicial) and Anu Jagmohan Singh (Member-Technical), has held that if there is a stay on the meetings of CoC, then the unconditional consent of the sole financial creditor is sufficient for the withdrawal of the CIRP. The resolution professional filed an application u/s 12A of the IBC read with regulation 30A of the CIRP Regulation, seeking withdrawal of the CIRP of the corporate debtor....
NCLT Bar Association Writes To Ministry Of Corporate Affairs Over Infrastructure Crisis Causing Standstill At NCLT Delhi
On 04.09.2025, the National Company Law Tribunal Bar association has made an urgent representation to the Secretary, Ministry of Corporate Affairs, expressing concern regarding the persistent infrastructure challenges faced by the National Company Law Tribunal, New Delhi Bench. On 03.09.2025, a public notice was issued by the NCLT informing all stakeholders that the 8th floor of the Block which has the Court Nos. IV, V and VI has become non-operational due to severe roof seepage. The...
NCLT Hyderabad Grants Interim Protection To Petitioner After EGM Allotted 2.49 Crore Shares To Respondent, Making Them Majority Shareholder
The NCLT Hyderabad bench of Mr Rajeev Bhardwaj, Member Judicial, and Mr Sanjay Puri, Member Technical, while hearing a petition filed under Section 241 and 242 of the Companies Act, read with Sections 59 and 213 of the Companies Act, granted interim relief to the Petitioner. The Bench, after perusing the record, observed that a prima facie case exists in favour of the Petitioner. The balance of convenience falls on the Petitioner's side. Furthermore, the Petitioner will suffer an ...
NCLT Declares Former DHFL Chairman Kapil Wadhwa Bankrupt Over ₹4546 Crore Debt
The petition was filed by the Union Bank of India before the NCLT, Mumbai Bench-Court III, seeking initiation of bankruptcy proceedings under section 123 of the IBC, 2016. The respondent, Mr. Kapil Wadhawan, acted as the personal guarantor of the DHFL, a corporate debtor that had undergone the corporate insolvency. The petitioner extended various credit facilities to the corporate debtor. The respondent and the other guarantor executed a Joint Deed of Guarantee in favor of the...
Information Utility Record Is Not Mandatory To Prove Debt And Default Under IBC: NCLT Hyderabad
The National Company Law Tribunal (NCLT), Hyderabad Bench of Justice Shri. Rajeev Bhardwaj (Hon'ble Member) and Shri. Sanjay Puri - Hon'ble Member Technical has held that proving debt and default through records of default with the information utility is not mandatory. If debt and default are established through other evidence, a petition under Section 7 of the IBC can still be admitted. The present application has been filed under section 7 of the Insolvency and Bankruptcy Code, 2016...