MoU Between Debtor And Creditor Is Only Acknowledgment, Not Proof Of Debt: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has said that a Memorandum of Understanding (MoU) can, at best, show an acknowledgment of debt, but it cannot, by itself, prove that a financial debt exists or that there has been a default. The tribunal said documents showing the original loan and actual disbursal of money are necessary to trigger insolvency proceedings. A coram of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar dismissed a petition filed by Mulraj Mody...

Sale Agreements Do Not Mean Flats Are Held In Trust For Homebuyers During Builder Insolvency: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi has ruled that apartments and project land covered only by sale or construction agreements cannot be treated as “assets held in trust” for homebuyers when a builder enters insolvency. The tribunal said such properties continue to belong to the builder during the Corporate Insolvency Resolution Process until sale deeds are executed and registered. A coram of Judicial Member Vinay Goel said the Insolvency and Bankruptcy Code does not permit...

NCLT Ahmedabad Orders Liquidation of Euphoria Technologies as SRA Defaults On Rs. 7.20 Crore Plan

The National Company Law Tribunal (NCLT) Ahmedabad has ordered the liquidation of Euphoria Technologies Private Limited, a Gujarat-based technology services company, after its successful resolution applicant, Roopyaa Tradebizz Limited, failed to follow the payment schedule under its approved Rs 7.20 crore resolution plan. A coram of Judicial Member Chitra Hankare and Technical Member Velamur G. Venkata Chalapathy held that Roopyaa Tradebizz had clearly breached the terms of the plan and could...

Fraud Claims On Insolvency Admission Must Be Raised In Appeal, Not In Later NCLT Pleas: NCLT Kolkata

The National Company Law Tribunal (NCLT) at Kolkata has recently held that allegations of fraud or collusion in the admission of insolvency proceedings cannot be raised months later through a fresh application and must be pursued through the appellate route provided under the law. A bench of Judicial Member Bidisha Banerjee and Technical Member Siddharth Mishra said former promoters cannot use Section 65 of the Insolvency Code to challenge an admission order they never appealed. “Disputes...

CIRP Claims Cannot Rely On 12-Year Limitation Period For Enforcing Mortgage Rights: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has recently ruled that secured creditors cannot rely on the 12-year limitation period for enforcing mortgage rights when filing claims in a corporate insolvency resolution process. For insolvency claims, the Tribunal said, the applicable limitation period is three years. The decision was delivered by a coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar. The tribunal drew a clear distinction between enforcing...

NCLT Mumbai Approves Demerger Of Poonawalla Finance And Group Entities

The National Company Law Tribunal at Mumbai has approved a scheme of amalgamation involving Poonawalla Finance Pvt Ltd, Rising Sun Holdings Pvt Ltd and Synergist Realtors Pvt Ltd, paving the way for the reorganisation of businesses within the Poonawalla group. The approval came on January 6, 2026, following resolutions passed by the boards of the companies on February 4 and February 12, 2025. Under the scheme, the appointed date for the first leg of the demerger has been fixed as...

Corporate Debtor Cannot Reclaim Property Sold Under Unregistered Slump Sale Agreement: NCLT Hyderabad

The National Company Law Tribunal (NCLT) at Hyderabad has held that when a corporate debtor has received full consideration and acted upon a slump sale transaction, he cannot later reclaim the property on the ground that the agreement was unregistered, as such conduct is barred by the doctrine of estoppel. A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri dismissed a set of applications filed by the liquidator of Handum Industries Ltd, which has been under...

NCLT Mumbai Approves Sagacious Capital's Rs 110 Crore Plan To Revive Reliance Innoventures

The National Company Law Tribunal (NCLT) at Mumbai has approved a Rs. 110.10 crore resolution plan submitted by Sagacious Capital Pvt Ltd for the revival of debt-ridden Reliance Innoventures Pvt Ltd. The tribunal held that once a plan satisfies the requirements of the Insolvency and Bankruptcy Code, the tribunal cannot interfere with the commercial decisions of lenders. A bench comprising Judicial Member Mohan Prasad Tiwari and Technical Member Charanjeet Singh Gulati observed that...

Avoidance Provisions Under Insolvency Code Are Restorative, Not Punitive: NCLT Kochi

The National Company Law Tribunal at Kochi has clarified that the avoidance provisions under the Insolvency and Bankruptcy Code are meant to undo the preferential effect of certain transactions and restore the corporate debtor's estate, not to impose punitive liability on the beneficiary. Judicial Member Vinay Goel made the observation while partly allowing an avoidance application filed by the Resolution Professional of Astern Properties and Developers Pvt Ltd under Sections 43 and 44 of the...

NCLT Kochi Orders Original Concessionaire To Transfer ₹35.83 Lakh Jatayu Project Revenue To Common Pool

The National Company Law Tribunal (NCLT) at Kochi has directed that Rs 35.83 lakh lying in the current account of Guruchandrika Builders and Property Private Limited, the original concessionaire of the Jatayupara Tourism Project, be transferred to the project's common pool account, saying the move was necessary to maintain continuity of financial supervision. The direction was issued in an order delivered on Monday (January 5, 2026) by Judicial Member Vinay Goel. The dispute centers on the...

NCLT Delhi Clears Merger Of Fortis Subsidiaries Into Fortis Hospitals Despite SFIO Probe Concerns

The National Company Law Tribunal (NCLT) at New Delhi has approved the merger of four Fortis group subsidiaries into Fortis Hospitals Limited, overruling objections linked to an ongoing investigation into the group's former promoters. The approval was granted on January 5, 2026, nearly two years after the tribunal passed its first order in the matter. The merger will take effect from April 1, 2022. A coram of Judicial Member Ashok Kumar Bhardwaj and Technical Member Ravindra...

Settlement Between Operational Creditor and Suspended Director Can't Override Lenders' Claims: NCLT Ahmedabad

The National Company Law Tribunal (NCLT) at Ahmedabad has recently held that a settlement between an operational creditor and a suspended director cannot be used to withdraw a company from insolvency once the Committee of Creditors is in place.Dismissing a withdrawal plea in the insolvency of Vimla Fuels & Metals Limited, the tribunal said such a private arrangement cannot override the claims of financial creditors exceeding Rs 61 crore. A bench of Judicial Member Shammi Khan and Technical...