NCLT Bengaluru Admits Insolvency Against BNH Infra Projects On ₹11.3 Crore Loan Default In Canara Bank's Plea

The Bengaluru Bench of the National Company Law Tribunal (NCLT) on March 16 admitted insolvency proceedings against BNH Infra Projects India Pvt. Ltd. over a loan default of about Rs 11.3 crore, after Canara Bank claimed total outstanding dues of over Rs 64 crore. A coram comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada noted that the respondent was proceeded ex parte due to failure to appear and comply with the tribunal's directions, observing that...

Fraud Must Be Clearly 'Found,' Not Presumed To Invoke Fraudulent Trading Under IBC: NCLT Hyderabad

The Hyderabad Bench of the National Company Law Tribunal (NCLT) has held that proceedings under Section 66 of the Insolvency and Bankruptcy Code, which deals with fraudulent and wrongful trading by directors, cannot be sustained on mere suspicion and require a clear finding of intent to defraud supported by cogent evidence. A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri passed the ruling while dismissing an application filed by the Resolution Professional of Kobo...

Third-Party Impleadment Not Ordinarily Contemplated In Section 7 CIRP At Pre-Admission Stage: NCLT Hyderabad

The National Company Law Tribunal (NCLT) at Hyderabad has held that third parties cannot ordinarily be impleaded in proceedings under Section 7 of the Insolvency and Bankruptcy Code at the pre-admission stage unless their presence is indispensable for determining the existence of financial debt and default. The observations came in an order dated March 9, 2026, passed by a bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri while dismissing an intervention petition...

Interest In Invoices Without Acceptance By Corporate Debtor Cannot Count Toward Threshold Under IBC: NCLT Ahmedabad

The National Company Law Tribunal (NCLT) at Ahmedabad has reiterated that interest mentioned only in invoices without any contractual stipulation cannot be counted as operational debt for determining the statutory threshold under Section 4 of the Insolvency and Bankruptcy Code, 2016, while dismissing a plea filed by an operational creditor seeking initiation of insolvency proceedings. The bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed that, “Where interest is...

S.94 IBC | Parallel SARFAESI, DRT Proceedings No Bar To Personal Guarantor Insolvency: NCLT Indore

The National Company Law Tribunal (NCLT) at Indore has held that insolvency proceedings against a personal guarantor under the Insolvency and Bankruptcy Code cannot be rejected merely because recovery proceedings are pending before the Debts Recovery Tribunal or under the SARFAESI Act. The tribunal also observed that the exact quantum of debt can be verified during the process and does not affect admission at this stage. A coram of Brajendra Mani Tripathi and Man Mohan Gupta was hearing a...

Lender's Relinquishment Of Security In Borrower Liquidation Does Not Extinguish Third-Party Mortgage: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai on Tuesday held that relinquishment of security in the liquidation of a principal borrower does not affect a mortgage created in favour of the lender by a third-party corporate debtor, and the lender can still claim secured creditor status in the debtor's separate insolvency proceedings.A bench of Judicial Member K.R. Saji Kumar and Technical Member Anil Raj Chellan, while deciding an application filed by IFCI Ltd seeking recognition of its...

IBC Cannot Replace Statutory Process For Determination And Recovery Of GST Liability: NCLT Hyderabad

The National Company Law Tribunal (NCLT) at Hyderabad on Wednesday observed that liquidation proceedings under the Insolvency and Bankruptcy Code cannot be employed as a substitute for the statutory process governing determination and recovery of GST liability.The bench of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri delivered the ruling in an application filed by the Central Goods and Services Tax (CGST) Department seeking directions against the liquidator of Lanco...

NCLT Bengaluru Dismisses Insolvency Plea By Operational Creditor Against Wipro Over Pre-Existing Dispute

The National Company Law Tribunal (NCLT) at Bengaluru on Wednesday dismissed an insolvency petition filed against Wipro Ltd, holding that a pre-existing dispute regarding the supply and quality of biometric devices barred initiation of the Corporate Insolvency Resolution Process. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada held that insolvency proceedings cannot be invoked as a substitute for recovery of disputed contractual claims. “The...

NCLT Ahmedabad Dismisses Arrhum Tradelink Plea After Vimal Oil Sale, Says 'As-Is Where-Is' Terms Bind Buyer

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) has dismissed an application filed by Arrhum Tradelink Pvt. Ltd., the successful bidder for Vimal Oil & Foods Ltd. in liquidation, seeking reliefs including extinguishment of past liabilities, restoration of listing status, and exemptions from securities law compliance under Section 60(5) of the Insolvency and Bankruptcy Code.A coram comprising Judicial Member Chitra Hankare and Technical Member Velamur G Venkata Chalapathy held...

Ojas Tradelease CIRP: NCLT Mumbai Sets Aside 21-Year Acropolis Mall Lease As Fraudulent Under IBC

The National Company Law Tribunal (NCLT) at Mumbai has held that leasing a commercial asset like Acropolis Mall on long-term unfavourable terms without periodic escalation cannot be treated as a bona fide business decision and is detrimental to the interests of the corporate debtor and its creditors. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar allowed an application filed by the Resolution Professional of Ojas Tradelease and Mall Management Pvt. Ltd....

IBC Does Not Require Same Due Date On All Invoices For Insolvency Plea: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has recently observed that there is no requirement under the Insolvency and Bankruptcy Code that the due dates of all invoices must be identical to trigger insolvency proceedings. The ruling came in a petition filed in June 2024 by ABV Electronic, an operational creditor, seeking initiation of corporate insolvency resolution process (CIRP) against Anmol Innovative Electrical Private Limited for default in payment of dues arising from supply of...

Personal Guarantor's Non-Compliance With Repayment Plan Allows Bankruptcy Proceedings: NCLT Kochi

The Kochi Bench of the National Company Law Tribunal (NCLT) on 26 February, held that a personal guarantor's failure to submit a repayment plan despite sufficient opportunities has the same effect as rejection of a repayment plan, allowing creditors to initiate bankruptcy proceedings. Judicial Member Vinay Goel allowed the application filed by the Resolution Professional of a personal guarantor to Tata Capital Limited. The Tribunal stated:“Where no Repayment Plan is submitted, the Resolution...