Adjustment Of Security Deposit By Electricity Company During Moratorium Violates S.14 Of IBC: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench, comprising Mohan Prasad Tiwari (Member-Judicial) and Charanjeet Singh Gulati (Member-Technical), has held that the adjustment of the security deposit by the electricity company against outstanding energy bills during the moratorium period violates the mandate of section 14 of the IBC, 2016. The CIRP of the corporate debtor was admitted, and subsequently the liquidation order was passed. The application was filed by the...

Time Spent In Voluntary Pre-Institution Mediation Cannot Be Excluded For Computing Limitation U/S 14 Of Limitation Act: NCLT New Delhi

The National Company Law Tribunal (NCLT), New Delhi Bench, Court-IV, comprising Manni Sankariah Shanmuga Sundaram (Member-Judicial) and Atul Chaturvedi (Member-Technical), has held that the time spent in voluntary pre-institution mediation proceedings cannot be excluded for computation of limitation under Section 14 of the Limitation Act. The operational creditor, Shiva Asphaltic Products Private Limited, supplied bitumen emulsion to the corporate debtor, Atlas Constructions Private ...

Default In Any Credit Account Leads To NPA Classification; Sufficient To Trigger CIRP U/S 7 IBC: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of Sushil Mahadeorao Kochey (Judicial Member) and Prabhat Kumar (Technical Member) held that default in one of several facilities was sufficient to trigger Corporate Insolvency Resolution Process (CIRP) under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Tribunal further observed that where the debtor maintains multiple loan accounts, each account carries a separate debt obligation capable of attracting default...

Amendment Of Default Date In IBC Pleadings Is Permissible Before Final Adjudication: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of Sushil Mahadeorao Kochey (Judicial Member) and Prabhat Kumar (Technical Member) admitted an insolvency petition against Vibrant Content Pvt. Ltd.(Corporate Debtor) filed by Central Bank of India holding that acknowledgment of debt in the balance sheet constitutes a valid acknowledgement under section 18 of the Limitation Act thereby extending the limitation. The Tribunal further held that “Since, a decision rendered by larger ...

Penalty Imposed By SEBI After Commencement Of Insolvency Cannot Be Admitted As Claim During CIRP: NCLT Mumbai

The NCLT, Mumbai Bench, comprising Anil Raj Chellan (Member-Technical) and K.R. Saji Kumar (Member-Judicial), has held that the penalty imposed by the SEBI post insolvency commencement cannot be admitted as a claim during CIRP. The CIRP of the corporate debtor (Medybiz Private Limited) was going on, and a moratorium was in effect. The last date of filing the claim was 22.08.2024; however, on 22.08.2024, SEBI imposed a penalty of Rs. 25 Cr. on the corporate debtor. The resolution...

Use Of Documents Scanned Through Banned 'CamScanner' App Not Grounds To Reject Section 7 IBC Petition: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench, comprising K.R. Saji Kumar (Member-Judicial) and Anil Raj Chellan (Member-Technical), has dismissed an application challenging the maintainability of the section 7 IBC petition based on the alleged inadmissibility of the photocopies/documents scanned via the banned “CamScanner” app. The present application was filed by the corporate debtor challenging the maintainability of the Section 7 application on the grounds of the...

Unpaid Salary of Whole-Time Director Constitutes Operational Debt, Can trigger CIRP: NCLT, Chennai

The National Company Law Tribunal (NCLT) at Chennai recently held that the unpaid salary dues of a whole-time director qualify as an operational debt, allowing a plea by a director seeking recovery of his unpaid salary of Rs 10.50 lakh. In an order passed on October 10, 2025, a bench comprising Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy held that being a director does not automatically bar him from filing an insolvency application as long as debt and...

NCLT Orders Dissolution of Groww Promoter Company Following Voluntary Liquidation

The National Company Law Tribunal (NCLT) at Bengaluru has ordered the dissolution of Groww AA Private Limited, a company promoted by the founders of the online investment platform Groww. This comes after the company filed a plea for voluntary liquidation, completed all required legal and financial formalities, and distributed its assets to shareholders.The fintech platform Groww (Billionbrains Garage Ventures Ltd), founded in 2016, has opened its Initial Public Offering today.In an order passed...

NCLT Mumbai Initiates Insolvency Proceedings Against Pune-Based EV Startup Tork Motors

The NCLT Mumbai has admitted an insolvency plea against Pune-based EV start-up Tork Motors, once backed by the late industrialist Ratan Tata, Bharat Forge, and Ola's Bhavish Aggarwal over a debt of Rs. 1.29 crore. It appointed Anagha Anasingaraju as the Interim Resolution Professional (IRP) until a Resolution Professional is appointed.The move follows a petition by Unaprime Investment Advisors, which claims that the company owes over Rs 1 crore in fees for professional advisory services The...

NCLT Allows Former Promoters To Pursue Oppression & Mismanagement Case Against Indian Commodity Exchange

The National Company Law Tribunal (NCLT) at Ahmedabad has allowed a plea filed by a former promoters and shareholders of Indian Commodity Exchange Limited (ICEX) to pursue a case alleging oppression and mismanagement against the commodity derivatives exchange.They had sought a waiver of the requirement that shareholders must hold at least 10 percent of a company's issued share capital to file such a petition under the Companies Act, 2013. The plea was moved by Kailash Ramkishan Gupta, a former...

Independent Directors Cannot Automatically Escape Liability For Fraud Under IBC: NCLT Mumbai

Independent directors cannot automatically escape liability for a company's alleged fraudulent transactions under Insolvency and Bankruptcy Code, the National Company Law Tribunal (NCLT), Mumbai has ruled.The tribunal said that simply holding the title of an independent or non-executive director does not protect a person from scrutiny under insolvency law without examining their culpability in the alleged fraudulent affairs of the company. In an order passed on October 31 by a coram of...

NCLT Kochi Approves Capital Reduction Of Cochin Aircraft Maintenance Company Ltd

The National Company Law Tribunal (NCLT) Kochi bench of Smt. Madhu Sinha (Member Technical) and Shri Vinay Goel (Member Judicial) allowed a petition filed by M/s. Cochin Aircraft Maintenance Company Limited under section 66 of the Companies Act seeking reduction of paid up share capital holding that no creditors or employees were affected by such reduction and the proposal was a commercial sound decision. It held that “the proposed reduction of paid-up capital is justified on commercial...