Removal Of Promoter-Director In Quasi-Partnership Company Can Amount To Oppression: NCLT Mumbai

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 11 September held that removal of a promoter-director from a company having the character of a quasi-partnership can amount to oppression where it defeats the promoter's legitimate expectation of continued representation on the Board. A Bench comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar allowed a petition originally filed by late Ronny George against Professional Couriers Private Limited...

Resignation As Director Does Not Extinguish Personal Guarantee Liability: NCLT Indore

The Indore Bench of the National Company Law Tribunal (NCLT) on 11 September held that a personal guarantee does not cease merely because the guarantor resigns as a director of the corporate debtor, observing that a personal guarantee is an independent contractual undertaking that continues unless validly revoked in accordance with law. A Bench comprising Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta observed: “A personal guarantee is an independent contractual...

Related Party Status Depends On Shareholding Threshold, Not Actual Control: NCLT Kolkata

The National Company Law Tribunal (NCLT) Kolkata has held that a creditor can be treated as a related party based on the shareholding of a common director and his relatives, even without proof that the director actually exercised control over the corporate debtor.The tribunal held that the prescribed shareholding threshold is sufficient for determining related-party status. It observed, “although the findings under Sections 5(24)(h) and 5(24)(m)(i) cannot be sustained merely on the basis of the...

NCLT Ahmedabad Bars Revival Of Going-Concern Sale After 2025 IBBI Regulation Changes

The National Company Law Tribunal (NCLT), Ahmedabad, has ruled that a proposed sale of a Corporate Debtor as a going concern cannot be continued after the October 2025 changes to the liquidation regulations merely because an auction notice had been issued before the amendment.A division bench comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma passed the ruling. The court observed that “no auction was concluded, no successful bidder emerged, and no sale consideration was...

Pre-CIRP Electricity Dues Cannot Be Recovered By Discontinuing Supply During Moratorium: NCLT Ahmedabad

The National Company Law Tribunal (NCLT), Ahmedabad, has held that pre-CIRP electricity dues cannot be recovered from a corporate debtor by interrupting essential or critical electricity supply during the moratorium under the Insolvency and Bankruptcy Code (IBC).“The Respondent cannot recover or appropriate any pre-CIRP electricity dues from the Corporate Debtor otherwise than in accordance with the insolvency process,” a bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma...

NCLT Chennai Cancels Sale Deed Of Homebuyer Who Failed To Submit Claim During CIRP

The National Company Law Tribunal (NCLT), Chennai, has recently cancelled a homebuyer's registered Sale Deed and Construction Agreement after he failed to file a claim during the corporate insolvency resolution process (CIRP) of P Dot G Constructions Private Limited. He also failed to submit a claim during a 60-day window provided after approval of the resolution plan.Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam observed that the homebuyer could not stand outside the...

Blu-Smart Charge Insolvency: NCLT Refuses Lessor's Plea To Recover Premises, Remove Assets During Moratorium

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has refused to direct the Resolution Professional (RP) of Blu-Smart Charge Pvt. Ltd. to remove the company's assets from the licensed premises or hand over possession to Eldeco Infrastructure and Properties Limited.The order was passed by Judicial Member Shammi Khan and Technical Member Sanjeev Sharma.Eldeco had entered into a Leave and Licence Agreement with Blu-Smart Charge on July 11, 2023. The agreement was terminated on April...

Expiry Of Commercial Premises Licence Before CIRP Does Not Permit Recovery During Moratorium: NCLT Ahmedabad

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has held that expiry of a licence to use a commercial premises before commencement of the Corporate Insolvency Resolution Process (CIRP) does not, by itself, allow recovery of the premises during the moratorium.Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed, “although the contractual term had expired on 18.12.2025, such expiry by itself does not permit recovery of possession during the subsistence of...

NCLT Delhi Rejects Impresario's Insolvency Plea Against Colorbar Over Pre-Existing Dispute

The Delhi bench of the National Company Law Tribunal (NCLT) has dismissed an insolvency application filed by Impresario against Colorbar Cosmetics Pvt. Ltd., holding that a substantial pre-existing dispute between the parties barred initiation of the Corporate Insolvency Resolution Process (CIRP).The bench of Judicial Member Mahendra Khandelwal and Technical Member Atul Chaturvedi observed, “The Corporate Debtor has questioned the supply of goods, investigated and time and again clarified the...

NCLT Allahabad Holds Simultaneous CIRP And MSEFC Proceedings Amount To Forum Shopping

The Allahabad bench of the National Company Law Tribunal (NCLT) has held that pursuing insolvency proceedings while simultaneously seeking recovery of the same claim before the Micro and Small Enterprises Facilitation Council (MSEFC) amounted to “forum shopping”. The tribunal made the observation while dismissing R N Buildcon's insolvency plea against Ocean Infraheight Pvt. Ltd.Judicial Member Praveen Gupta and Technical Member Ashish Verma noted that R N Buildcon had initiated MSEFC proceedings...

Matured Deposits Cannot Be Treated As Automatically Renewed Without Proof Of Actual Renewal: NCLT Allahabad

The National Company Law Tribunal (NCLT) at Allahabad has ruled that a corporate debtor cannot rely solely on an automatic-renewal clause in deposit certificates to claim that matured deposits were not payable. It must produce material showing that the deposits were actually renewed in accordance with the terms of the certificates.“Therefore, the mere existence of a clause providing for automatic renewal does not, in itself, establish that the deposits in question were actually renewed. The...

Familial Disputes Alone Can't Establish Fraudulent Insolvency Proceedings Under IBC: NCLT Chandigarh

The National Company Law Tribunal (NCLT), at Chandigarh on 10 September held that a family relationship or strained relations between parties, by themselves, cannot establish that insolvency proceedings were initiated fraudulently or maliciously under Section 65(1) of the Insolvency and Bankruptcy Code, 2016 (IBC). A Bench of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal dismissed an application filed by Monica Agarwal, a director and shareholder of Narayanam Organics...