NCLT Delhi Allows Insolvency Withdrawal Against HIL India After Creditor Settlements

The Delhi Bench of the National Company Law Tribunal (NCLT) on 30 September allowed withdrawal of the corporate insolvency resolution process (CIRP) against HIL (India) Limited under Section 12A of the Insolvency and Bankruptcy Code, 2016 (IBC), following settlements with its creditors. A Bench comprising President Anupinder Singh Grewal and Technical Member Ravindra Chaturvedi allowed the application filed by Interim Resolution Professional (IRP) Rohit Sehgal for withdrawal of the CIRP. It...

Financial Creditor's RP Recommendation Does Not Invalidate Appointment Under IBC: NCLT Hyderabad

The Hyderabad Bench of the National Company Law Tribunal (NCLT) held on 7 September that a Financial Creditor's recommendation of an Insolvency Professional in a Section 95 application does not, by itself, invalidate the subsequent appointment of that person as Resolution Professional under Section 97 of the Insolvency and Bankruptcy Code, 2016 (IBC). A Bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri held that the recommendation does not amount to an...

Post-Liquidation CoC Resolution Cannot Cure Missing Recommendation For Compromise With Creditors: NCLT Amravati

The National Company Law Tribunal (NCLT), Amravati Bench, has recently held that a CoC resolution passed after commencement of liquidation cannot retrospectively satisfy the requirement of a prior recommendation under Regulation 39BA for pursuing a compromise or arrangement under Section 230 of the Companies Act.The bench comprising Judicial Member Kishore Vemulapalli and Technical Member Umesh Kumar Shukla held that a later resolution authorising the liquidator to explore such a compromise...

Settlement In Principal Borrower's CIRP Does Not Extinguish Corporate Guarantor's Liability: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi has ruled that a settlement reached during the insolvency proceedings of a principal borrower does not, by itself, prevent insolvency proceedings against its corporate guarantor. The settlement must specifically release the guarantor from its obligations for it to have that effect.The tribunal observed, “any arrangement or settlement among the members of the Committee of Creditors concerning their inter se rights and obligations cannot, by...

Can NCLT Grant Blanket Immunity From Statutory Liabilities During CIRP? NCLT Jaipur Delivers Split Verdicts

The National Company Law Tribunal (NCLT), Jaipur Bench, on Monday delivered a split verdict on whether it can grant blanket protection from statutory, civil, and penal consequences arising from alleged defaults during a company's Corporate Insolvency Resolution Process (CIRP).Technical Member Kavita Bhatnagar held that such consequences must be examined by the authorities empowered under the respective statutes, while Judicial Member Reeta Kohli took a contrary view and allowed the application...

NCLT Ahmedabad Rejects Button Industries' Insolvency Plea Against Viaz Tyres Over ₹1.16 Crore Dues

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 24 September rejected an insolvency petition filed by Button Industries Private Limited against Viaz Tyres Limited over alleged dues of Rs. 1.16 crore. Judicial Member Chitra Hanakre and Technical Member Dr VG Venakata Chalapathy held that the transaction did not qualify as a financial debt under the Insolvency and Bankruptcy Code, 2016 (IBC), as it did not involve disbursal of funds with consideration for the time value of...

RP Can Re-Verify Earlier Claims Admitted By Erstwhile RP Where Records Reveal Deficiencies: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai on 11 September held that a Resolution Professional (RP) can re-verify claims admitted by an erstwhile RP when the available records disclose deficiencies, discrepancies or concerns regarding their authenticity. Such verification is part of the RP's statutory duty to maintain and update the list of creditors and does not amount to adjudication of disputed rights. A Bench comprising Judicial Member Vinay Goel and Technical Member Charanjeet...

Bank Guarantee Can Be Invoked During CIRP Moratorium; Section 14 IBC Does Not Bar Encashment: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai, has ruled that a bank guarantee can be invoked and encashed during the moratorium imposed on a company undergoing insolvency proceedings.The bench of Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati held that the bank guarantee in the case fell within the exception under Section 14(3)(b) of the Insolvency and Bankruptcy Code (IBC). The provision excludes a surety in a contract of guarantee to a corporate debtor from the...

Corporate Debtor's Sub-Threshold Default Does Not Bar Personal Guarantor Insolvency: NCLT Chennai

The National Company Law Tribunal (NCLT) at Chennai on 15 September held that insolvency resolution proceedings can be initiated against a personal guarantor even when the corporate debtor's default is below the statutory threshold for initiating the Corporate Insolvency Resolution Process (CIRP). A Bench comprising Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy observed: “The default of the Corporate debtor is below the threshold prescribed for initiation of...

Appellate Challenge Affecting Resolution Plan Can Extend Timeline Under Plan Terms: NCLT Kolkata

The National Company Law Tribunal (NCLT), Kolkata Bench, has held that where an approved Resolution Plan provides for exclusion of the period affected by appellate proceedings, the implementation timeline stands extended in accordance with the Plan without requiring a formal stay order or fresh approval by the Committee of Creditors (CoC). A Bench comprising Technical Member Rekha Kantilal Shah and Judicial Member Labh Singh on 25 August, directed the Monitoring Committee to recompute the...

IBC Amendment On Personal Guarantors Applies Retroactively To Pending Proceedings: NCLT New Delhi

The National Company Law Tribunal (NCLT), New Delhi held on 31 August that the 2026 amendment to Section 96 of the Insolvency and Bankruptcy Code, 2016 (IBC) applies retroactively to pending insolvency proceedings against personal guarantors to corporate debtors.A Bench comprising Judicial Member Ashok Kumar Bhardwaj and Technical Member Atul Chaturvedi held that the amended Section 96 does not bar insolvency proceedings against personal guarantors merely because proceedings initiated by Canara...

NCLT Seeks Power Of Attorney, RP Consent Before Orders On Byju's-Aakash Settlement In Rights Issue Dispute

The National Company Law Tribunal at Bengaluru on Thursday deferred orders on the settlement between Byju's parent Think & Learn Private Limited and Aakash Educational Services Limited over Aakash's rights issue, directing the parties to first comply with several requirements.The order was passed by Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada.The parties had filed joint applications seeking to place on record the Compromise Memorandum and dispose of the...