Liquidation Can Be Recalled Using Inherent Powers Where Debt Is Settled: NCLT Hyderabad

The Hyderabad Bench of the National Company Law Tribunal (NCLT) on 6 March, held that even though the Insolvency and Bankruptcy Code (IBC), 2016, does not expressly provide for withdrawal of liquidation proceedings, the Tribunal can exercise its inherent powers in appropriate cases to secure the ends of justice. The Bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri recalled the liquidation process against Ravi Cranes & Movers Ltd., preventing the liquidation...

Mere Pendency Of Arbitration Does Not Constitute Realizable Asset Or Extinguish Liability: NCLT Chandigarh

The National Company Law Tribunal (NCLT) at Chandigarh recently held that mere pendency of arbitration cannot be a ground to defer insolvency proceedings once debt and default are established. A bench of Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh while admitting a Tollways company to CIRP observed, “Mere pendency of arbitration does not constitute a realizable asset or extinguish an admitted financial liability. In contrast, the Financial Creditor has...

Mere Non-Reflection Of Funds In Books Not Proof Of Fraud Under IBC: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi has dismissed an application filed by the liquidator of Vysali Pharmaceuticals Ltd against its suspended Managing Director, holding that mere non-reflection of amounts in the books of accounts cannot by itself establish fraudulent diversion of funds under Section 66 of the Insolvency and Bankruptcy Code.A coram of Judicial Member Vinay Goel observed that allegations of fraud must be supported by cogent and credible evidence and cannot be...

NCLT Jaipur Says Only CoC Can Approve CIRP Costs, Dismisses Plea By RP Of Aesthetic Stone Arts As Not Maintainable

The National Company Law Tribunal (NCLT) at Jaipur has dismissed an application filed by the erstwhile Resolution Professional of Aesthetic Stone Arts India Pvt. Ltd. seeking ratification of Corporate Insolvency Resolution Process (CIRP) costs, holding that determination of such costs lies exclusively within the domain of the Committee of Creditors (CoC).A coram of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar also held that no interlocutory application is maintainable...

NCLT Mumbai Admits Personal Insolvency Plea Against Frost International's Guarantor Over Rs 285 Crore Default

The National Company Law Tribunal's Mumbai bench has admitted an insolvency application filed by Indian Bank (erstwhile Allahabad Bank) against Anoop Kumar Wadhera, personal guarantor to Frost International Ltd, in a case involving a default of approximately Rs 285.77 crore. A coram of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar, while admitting the petition and initiating an insolvency resolution process against Wadhera, observed: “Considering the above facts...

NCLT Mumbai Partly Allows Anil Ambani Access To Pre-CIRP Records Of Reliance Communications To Defend ED-CBI Proceedings

The National Company Law Tribunal (NCLT) at Mumbai has partly allowed an application by former Reliance Communications Ltd director Anil Dhirajlal Ambani seeking access to insolvency records of the company, including documents furnished to the Enforcement Directorate and the Central Bureau of Investigation, holding that a suspended director cannot be denied pre-CIRP records required to defend himself in proceedings based on those materials.Ambani told the tribunal that proceedings have been...

S.7 IBC | Only Financial Creditor And Corporate Debtor Have Vested Right To Be Heard At Pre-Admission Stage: NCLT Bengaluru

The National Company Law Tribunal (NCLT) at Bengaluru has held that no third party has a right to intervene at the pre-admission stage of a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, reiterating that the Tribunal's scope at that stage is limited to examining the existence of financial debt and default. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada was dealing with an interlocutory application seeking permission to intervene...

NCLT Bengaluru Admits Insolvency Against BNH Infra Projects On ₹11.3 Crore Loan Default In Canara Bank's Plea

The Bengaluru Bench of the National Company Law Tribunal (NCLT) on March 16 admitted insolvency proceedings against BNH Infra Projects India Pvt. Ltd. over a loan default of about Rs 11.3 crore, after Canara Bank claimed total outstanding dues of over Rs 64 crore. A coram comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada noted that the respondent was proceeded ex parte due to failure to appear and comply with the tribunal's directions, observing that...

Fraud Must Be Clearly 'Found,' Not Presumed To Invoke Fraudulent Trading Under IBC: NCLT Hyderabad

The Hyderabad Bench of the National Company Law Tribunal (NCLT) has held that proceedings under Section 66 of the Insolvency and Bankruptcy Code, which deals with fraudulent and wrongful trading by directors, cannot be sustained on mere suspicion and require a clear finding of intent to defraud supported by cogent evidence. A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri passed the ruling while dismissing an application filed by the Resolution Professional of Kobo...

Third-Party Impleadment Not Ordinarily Contemplated In Section 7 CIRP At Pre-Admission Stage: NCLT Hyderabad

The National Company Law Tribunal (NCLT) at Hyderabad has held that third parties cannot ordinarily be impleaded in proceedings under Section 7 of the Insolvency and Bankruptcy Code at the pre-admission stage unless their presence is indispensable for determining the existence of financial debt and default. The observations came in an order dated March 9, 2026, passed by a bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri while dismissing an intervention petition...

Interest In Invoices Without Acceptance By Corporate Debtor Cannot Count Toward Threshold Under IBC: NCLT Ahmedabad

The National Company Law Tribunal (NCLT) at Ahmedabad has reiterated that interest mentioned only in invoices without any contractual stipulation cannot be counted as operational debt for determining the statutory threshold under Section 4 of the Insolvency and Bankruptcy Code, 2016, while dismissing a plea filed by an operational creditor seeking initiation of insolvency proceedings. The bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed that, “Where interest is...

S.94 IBC | Parallel SARFAESI, DRT Proceedings No Bar To Personal Guarantor Insolvency: NCLT Indore

The National Company Law Tribunal (NCLT) at Indore has held that insolvency proceedings against a personal guarantor under the Insolvency and Bankruptcy Code cannot be rejected merely because recovery proceedings are pending before the Debts Recovery Tribunal or under the SARFAESI Act. The tribunal also observed that the exact quantum of debt can be verified during the process and does not affect admission at this stage. A coram of Brajendra Mani Tripathi and Man Mohan Gupta was hearing a...