Mere Non-Explanation Of Fund Use Not Enough To Prove Fraudulent Trading Under IBC: NCLT Chennai

The National Company Law Tribunal (NCLT) in Chennai has held that mere non-explanation of fund utilisation or irregular accounting, without clear evidence of intent to defraud creditors, is insufficient to invoke fraudulent trading under Section 66 of the Insolvency and Bankruptcy Code. Examining the scope of Section 66, the Tribunal held that mere inability to explain fund utilisation in a business context does not meet the statutory requirement unless accompanied by clear evidence of intent...

NCLT Delhi Admits CIRP Pleas by JC Flowers Against Rana Kapoor-Linked RAB Subsidiaries Over ₹260 Crore Default

The Delhi Bench of the National Company Law Tribunal (NCLT) has admitted four CIRP pleas filed by JC Flowers Asset Reconstruction Pvt. Ltd. against subsidiaries of RAB Enterprises (India) Private Limited, a group promoted by Rana Kapoor and Bindu Kapoor. The proceedings have been initiated under Section 7 of the Insolvency and Bankruptcy Code, 2016. The order, delivered on April 7, 2026, was passed by Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri. The four...

NCLT Bengaluru Dismisses Kingfisher Employees' Plea For Salary Dues, Says Karnataka High Court Is Proper Forum

The National Company Law Tribunal (NCLT) at Bengaluru has dismissed an application filed by former employees of Kingfisher Airlines seeking disbursement of their admitted salary dues, holding that the Karnataka High Court, which is supervising the winding-up proceedings, is the appropriate forum.A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada passed the order. 78 former pilots and staff of Kingfisher Airlines Limited filed an application before the NCLT...

Resolution Professional Cannot Convene Creditors' Meeting Without Repayment Plan: NCLT Kochi

On 13 April, the Kochi Bench of the National Company Law Tribunal (NCLT) held that, in the absence of a repayment plan, insolvency proceedings against a personal guarantor cannot proceed to the stage of convening a creditors' meeting and the Resolution Professional must file a report recording such non-submission. A Bench comprising Judicial Member Vinay Goel observed: “Where no Repayment Plan is submitted, the Resolution Professional has no option but to refrain from convening a meeting of...

Lease Rentals Not IRPC Without CoC Nod: NCLT Chennai Rejects DBS Bank's ₹46 Crore Claim In Orchid Pharma Insolvency

The National Company Law Tribunal (NCLT) at Chennai has dismissed an application by DBS Bank India Ltd seeking over Rs. 46 crore in lease rentals and CIRP-related expenses in the insolvency of Orchid Pharma Ltd, holding that in the present case such claims cannot be treated as Insolvency Resolution Process Costs in the absence of approval by the Committee of Creditors and cannot be raised after approval of the resolution plan. A coram of Judicial Member Jyoti Kumar Tripathi and Technical Member...

RP, Liquidator Cannot Deal With Third-Party Assets Under IBC Even If In Corporate Debtor's Name: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has reiterated that the powers of a Resolution Professional and Liquidator under the Insolvency and Bankruptcy Code, 2016 (“IBC”) are confined strictly to assets owned by the Corporate Debtor, and do not extend to properties belonging to third parties even if such assets are reflected in the Corporate Debtor's records. The Bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar observed, "It is trite that the powers...

NCLT New Delhi Admits CIRP Against Madhuvan Tieup, Rejects Corporate Debtor's NBFC Claim

The New Delhi National Company Law Tribunal (NCLT), on 6 April admitted the Corporate Insolvency Resolution Process (CIRP) of Madhuvan Tieup Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, for a default of approximately Rs 80.78 crore. A Bench comprising Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri rejected the Corporate Debtor's claim that it was a Non-Banking Financial Company (NBFC), holding that it did not engage in financial services as...

Breach Of Interim Orders Cannot Trigger Fresh Contempt After Final Order In Insolvency Case: NCLT Kochi

The National Company Law Tribunal at Kochi has held that once a final order is passed in a matter, all acts and issues arising during the pendency of the proceedings stand merged in that order, and any alleged breach of interim directions cannot later be used to initiate contempt proceedings for past acts.A Bench of Judicial Member Vinay Goel observed:“Upon finalisation of the proceedings, all acts and matters arising during the pendency of the proceedings stand merged in the final order. Any...

NCLT Mumbai Admits Insolvency Plea Against Videocon Guarantor Venugopal Dhoot Over ₹6,157 Crore Default

The National Company Law Tribunal at Mumbai has admitted a personal insolvency application filed by State Bank of India against Venugopal Nandlal Dhoot, promoter of the Videocon Group and personal guarantor to Videocon Industries Limited and Videocon Telecommunications Limited, involving a default of Rs 6,157 crore. A Bench of Judicial Member Nilesh Sharma and Technical Member Charanjeet Singh Gulati admitted the application filed under Sections 95 and 97 of the Insolvency and Bankruptcy Code,...

NCLT Indore Dismisses ₹2.56 Crore Insolvency Plea Against Bari Foods Pvt. Ltd. Over Pre-Existing Dispute

The National Company Law Tribunal (NCLT) at Inodre has rejected a Rs 2.56 crore insolvency plea by ADM Agro Industries Kota & Akola Pvt. Ltd. against Bari Foods Pvt. Ltd., holding that disputes over contract formation, resale of goods and quantification of losses constitute a genuine pre-existing dispute beyond the scope of summary proceedings under the Insolvency and Bankruptcy Code. The bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta said the issues...

No New Claims Maintainable After CIRP Settled In White Water Hospitality Case: NCLT Chandigarh

The National Company Law Tribunal at Chndigarh has held that in the case of a company whose insolvency process was set aside by the Supreme Court and whose dues to the initiating financial creditor were paid, the insolvency process comes to an end and all steps taken during it lose their legal basis.The order was passed by a coram of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal while deciding pleas filed by Bharat Food and Agro Products and its partner, Kamal Kant Dewan...

Financial Creditor Who Initiated CIRP Must Bear Costs When Proceedings Are Set Aside: NCLT Chandigarh

The National Company Law Tribunal (NCLT) at Chandigarh has held that in the present case, where a corporate insolvency process was set aside and the parties settled their dispute, the costs incurred during the process must be borne by the financial creditor that initiated it. A coram of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal said, “It can be seen that once the admission of CIRP itself is set aside and the dispute is settled between the initiating Financial...