Interest Free Maintenance Security Collected From Homebuyers By Builder Not Financial Debt: NCLT Jaipur

The National Company Law Tribunal, Jaipur Bench has recently held that Interest Free Maintenance Security collected by a builder from flat buyers is not a financial debt under the Insolvency and Bankruptcy Code, 2016. Thus, it ruled that a residential welfare society cannot trigger insolvency proceedings on the basis of such maintenance-related claims.A coram of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar dismissed the plea filed by SDC Green Park Residential Welfare...

Unpaid Salary Cannot Trigger Insolvency If Converted Into Investment Through Settlement: NCLT Delhi

The National Company Law Tribunal (NCLT) at New Delhi, has recently ruled that salary dues converted into an investment/loan through a settlement cannot be treated as an operational debt under the Insolvency and Bankruptcy Code. The tribunal dismissed a Section 9 insolvency petition filed by a former director against a real estate company. A bench of Judicial Member Bachu Venkat Balaram Das and Technical Member Dr Sanjeev Ranjan held that once unpaid salary is consciously recast as an...

IBC Jurisdiction Depends On Debtor's Registered Office, Not Bank Branch That Issued Notices: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi recently held that insolvency proceedings can be initiated only before the bench having jurisdiction over the place where the corporate debtor's registered office is located, and not based on the bank branch that issued demand or recovery notices. A coram comprising Judicial Member Vinay Goel said this while dealing with a jurisdictional objection raised by a Kerala based corporate debtor. Reaffirming its jurisdiction to settle the dispute,...

Acceptance of Goods Does Not End Pre-Existing Dispute If Quality Issues Emerge After Use: NCLT Ahmedabad

The National Company Law Tribunal (NCLT) at Ahmedabad recently ruled that accepting and consuming goods does not, by itself, erase a dispute. Quality defects that emerge after consumption can still qualify as a valid pre-existing dispute under insolvency law. A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma passed the order on December 19, 2025, while dismissing a Section 9 CIRP application filed by Hella Infra Market Metal Private Limited against SMW Ispat Private...

Interest Stated In Invoices Not Counted To IBC Threshold Without Debtor's Acceptance : NCLT Delhi

The National Company Law Tribunal (NCLT) at New Delhi recently reiterated that interest mentioned only in invoices cannot be counted for meeting the insolvency threshold unless there is clear evidence that the corporate debtor accepted liability to pay such interest. A bench of Judicial Member Mahendra Khandelwal and Technical Member Anu Jagmohan Singh observed, “Merely because the interest is mentioned in the invoices it cannot be operated against the Corporate Debtor if there is no document...

Homebuyers Cannot Be Forced To Act As Resolution Applicants To Complete Their Own Project: NCLT Kolkata

The National Company Law Tribunal (NCLT) at Kolkata has stepped in on the insolvency resolution of Riverbank Developers Pvt Ltd. It held that homebuyers cannot be forced to step into the shoes of a resolution applicant just because a housing project remains incomplete. The tribunal made it clear that the objective of insolvency proceedings is timely and fair resolution, not the imposition of additional financial or construction obligations on homebuyers who lack the means or willingness to...

NCLT Mumbai Grants Interim Protection To Provogue Liquidator From Arrest Over IBC Actions

The National Company Law Tribunal (NCLT) at Mumbai recently protected a liquidator from arrest by the Economic Offences Wing in a dispute arising from actions taken under the Insolvency and Bankruptcy Code. The tribunal said that section 236 of the Code bars courts from taking cognisance of IBC offences unless a complaint is filed by the Insolvency and Bankruptcy Board of India or the Central Government. The court, comprising Judicial Member Lakshmi Gurung and Technical Member Hariharan...

Jet Airways Liquidation: NCLT Mumbai Rejects Jalan-Kalrock's Plea To Refund ₹370 Crore As CIRP Costs

The National Company Law Tribunal (NCLT) at Mumbai recently refused to grant any refund to the Jalan-Kalrock consortium in relation to the over Rs 370 crores infused by it during the insolvency proceedings of Jet Airways Ltd. In an order dated December 15, a coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar dismissed the consortium's plea, holding that the amounts claimed could not be classified as insolvency resolution process costs and were therefore not...

Threat To Cut Electricity To Hotel During Insolvency Violates Moratorium: NCLT Chandigarh

The National Company Law Tribunal (NCLT) at Chandigarh has recently held that electricity is essential to the functioning of a hotel and must continue during insolvency proceedings. The tribunal restrained the Chandigarh Electricity Department from disconnecting power supply to a hotel undergoing the Corporate Insolvency Resolution Process.A bench of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal said that a hotel cannot operate without uninterrupted electricity and that...

NCLT Kolkata Dismisses UCO Bank's ₹846 Crore Insolvency Plea Against Nicco Uco Alliance

The National Company Law Tribunal (NCLT) at Kolkata has dismissed an insolvency petition filed by UCO Bank against Nicco Uco Alliance Credit Ltd., a listed financial services company over an alleged default of Rs 846 crore. It held that the plea was barred by limitation and could not be entertained. The tribunal found that the bank approached the insolvency forum far too late. It noted a gap of nearly nine years between the original default and the first acknowledgment of debt. This delay, the...

NCLT Bengaluru Slaps ₹5 Lakh Penalty On Lifestyle International For Non-Disclosure In Capital Reduction Plea

The National Company Law Tribunal (NCLT) Bengaluru has approved a Rs. 6.08 crore reduction in the share capital of Lifestyle International Private Limited, a fashion and lifestyle retail company, but imposed a Rs. 5 lakh penalty for what it termed a “casual approach” to the proceedings. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada passed the order on December 15, 2025. The tribunal approved the selective capital reduction under Section 66 of the...

NCLT's Power To Order Forensic Audit Is Self-Ordained, No Separate Application Needed: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Chennai on Tuesday held that the National Company Law Tribunal can direct a forensic audit on its own even if no party has filed a separate application seeking such relief. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Indevar Pandey dismissed an appeal filed by Able Automobiles Private Limited and its directors, challenging the June 30, 2022 order of the NCLT, Kochi Bench appointing an independent chartered...