NCLT
Counterclaims, Set-Off Claims No Bar to Insolvency Admission Without Proof of Full Discharge: NCLT Allahabad
The National Company Law Tribunal (NCLT) at Allahabad has held that set-off claims, counterclaims or assertions of business losses cannot defeat the admission of an insolvency application unless they are supported by undisputed material showing that the debtor has completely discharged its liability.The tribunal delivered this finding while admitting Punjab National Bank's (PNB) insolvency plea against Bhagwati Rice Mills Pvt Ltd. A coram of Judicial Member Praveen Gupta and Technical Member...
Bank Cannot Hold OTS Earnest Money Once It Accepts Resolution Plan: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has held that once a bank accepts full consideration under an approved resolution plan and issues a No-Dues Certificate, it cannot later claim any right over additional funds or assets belonging to the Corporate Debtor. A coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar, in an order dated 5 December 2025, held that Bank of India's claim of having a right to appropriate the Rs 1.51 crore deposited as earnest...
NCLT Ahmedabad Admits Another Blu-Smart Subsidiary Into Insolvency Over ₹16.25 Crore Default
The National Company Law Tribunal (NCLT) at Ahmedabad has admitted another subsidiary of the Blu-Smart electric mobility group into insolvency, holding that Blu-Smart Fleet Pvt Ltd had defaulted on an operational debt of Rs 16.25 crore owed to Reliance BP Mobility Limited. Blu-Smart Fleet provides fleet-management services exclusively to its parent company, Blu-Smart Mobility Ltd, a company that was providing all-electric ride-hailing services which is already undergoing insolvency...
Damages Arising Out of Contractual Disputes Cannot Trigger Insolvency Proceedings: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has held that claims arising from liquidated or unliquidated damages, which it said are contractual in nature, cannot be used to trigger insolvency proceedings as it dismissed Goodrich Logistics Private Limited's CIRP plea against Transrail Lighting Limited.A coram of Judicial Member Ashish Kalia and Technical Member Sanjiv Dutt said the tribunal is not empowered to adjudicate such contractual disputes. “Claim for liquidated damages for breach...
NCLT Mumbai Sanctions ITM Edutech's Restructuring Plan to Demerge Its Online Education Business
The National Company Law Tribunal (NCLT) at Mumbai has approved the second-motion petition filed by ITM Edutech Training Pvt Ltd and ITM Edutech (India) Ltd, allowing the group to restructure its online education and training courses through a demerger into the resulting company, ITM Edutech (India) Ltd. The tribunal held that the scheme “appears to be fair and reasonable and is not in violation of any provisions of law and is not contrary to public policy.” ITM Edutech is part of the ITM Group...
Uncrystallised Contractual Rights Not Part Of Corporate Debtor's Assets Protected By Moratorium: NCLT Mumbai
The National Company Law Tribunal (NCLT) at Mumbai has recently held that uncrystallised contractual rights do not form part of a corporate debtor's “assets” protected during moratorium. The tribunal made the ruling as it dismissed Fabtech Sugar Limited's plea seeking restoration of its cancelled grid connectivity, that that had never been operationalised. The tribunal found that Maharashtra State Electricity Transmission Company Limited's (MSETCL) termination of grid connectivity under the...
NCLT Ahmedabad Permits Guarantor's US Travel Despite Creditor Protests, Notes Minor Children's Immigration Needs
The National Company Law Tribunal (NCLT) at Ahmedabad has allowed a bankruptcy bound personal guarantor to travel to the United States despite acknowledging serious concerns about his conduct, taking what it described as a lenient view only because his two minor children's immigration status depends on his US Green Card. A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma permitted Zankarsinh Kishorsinh Solanki, personal guarantor of Torque Automotive Private Limited, to...
NCLT New Delhi Restores Struck-Off Company Only To Recover ₹7.62 Crore In Tax Dues
The National Company Law Tribunal at New Delhi has recently restored the name of SL Contractors Private Limited in the Register of Companies only to allow the Income Tax Department to recover Rs 7.26 crores in outstanding dues, while rejecting the company's claim that it had been operational when it was struck off. A coram of Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri said “the Appellant has failed to establish that the Company was carrying on business or was in...
NCLT Kolkata Approves Vedanta's Rs 545 Crore Plan to Revive Incab Industries
The National Company Law Tribunal (NCLT) at Kolkata has recently approved Vedanta Limited's Rs 545 crore resolution plan for the revival of cable manufacturing company Incab Industries Limited. The tribunal held that once a plan complies with the requirements of the Insolvency and Bankruptcy Code, the commercial wisdom of the Committee of Creditors must prevail. “Therefore, subject to the compliance of our observations as above, we hereby approve the Resolution Plan Amount to the tune of Rs...
Balance Sheet Entry Can't Revive Time-Barred Debt; NCLT Delhi Dismisses Bank's CIRP Plea Against Guarantor
The National Company Law Tribunal(NCLT) at Delhi has recently held that an acknowledgement of debt in a balance sheet executed after the expiry of the original limitation period “cannot revive a time-barred debt,” and that the pendency of proceedings before the Debt Recovery Tribunal does not save limitation under the Insolvency and Bankruptcy Code, 2016. Holding so, the tribunal dismissed Central Bank of India's Section 7 (CIRP) application against PLB Infrastructure Pvt Ltd as “hopelessly...
NCLT Chandigarh Approves Haldiram's Plan to Consolidate Its Manufacturing and Retail Units
The National Company Law Tribunal (NCLT) at Chandigarh has recently approved a second-motion petition filed by seven entities of Haldiram's, the popular snack food and confectionery chain, clearing their scheme of arrangement to consolidate multiple demerged units into Haldiram Marketing Private Limited. A Bench of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal noted that the group had placed on record its Memorandum and Articles of Association, audited financial...
No Proof Of Technical Glitch: NCLT Delhi Declines To Interfere With Concluded E-Auction
The National Company Law Tribunal at New Delhi has recently refused to set aside a recently concluded e-auction in a bankruptcy matter, finding that the bidder challenging the sale failed to prove any technical glitch and that auction records showed continuous participation even after the time it claimed its system froze. The application had been filed by Marinaindia Traexim Private Limited, which sought to annul the auction of assets belonging to bankrupt debtor Waseem Ahmad Khan. A coram of...