NCLT
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...
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 ...