Personal Guarantor Cannot Escape Liability Due To Creditor's Withdrawal from CIRP: NCLT Jaipur

The Jaipur Bench of the National Company Law Tribunal (NCLT) has held that withdrawal of a creditor's claim in the corporate insolvency resolution process (CIRP) of a corporate debtor does not, by itself, extinguish the liability of a personal guarantor under an independent contract of guarantee. Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar dismissed the application filed by Hemant Kumar Bohra, personal guarantor of Bohra Industries Limited (BIL), challenging the admission...

Santosh Devcon Shareholder's Multi-Forum Relief Bid Was 'Forum Choosing,' Not Forum Shopping: NCLT Indore

The National Company Law Tribunal (NCLT) in Indore has rejected Santosh Devcon Pvt. Ltd.'s objection that shareholder Sunil Mandwani was forum shopping by pursuing remedies before multiple fora in a dispute over the alleged reduction of his stake, holding that the company law case raised a distinct cause of action. “The present petition has been filed under Sections 241 and 242 of the Companies Act, 2013 alleging oppression by illegal reduction of the Applicant's shareholding and suppressive...

NCLT Kolkata Refuses Consolidation Of Group Companies' CIRPs Over Advanced Stage Of One Insolvency Process

The Kolkata Bench of the National Company Law Tribunal (NCLT) has refused to consolidate the corporate insolvency resolution processes (CIRPs) of Sarita Steel & Power Limited and Ankit Metal & Power Limited, holding that Ankit Metal's resolution process had already reached an advanced stage with multiple plans evaluated. “The assets are interconnected, but the CIRP of Ankit Metal has reached an advanced stage with multiple resolution plans already evaluated. The CIRP of Sarita Steel is...

Corporate Debtor Cannot Be Directly Dissolved Under IBC Without Liquidation: NCLT Mumbai

The Mumbai bench of the National Company Law Tribunal (NCLT) has held that a corporate debtor cannot be directly dissolved under the Insolvency and Bankruptcy Code without first undergoing the insolvency and liquidation process. The bench of Judicial Member K. R. Saji Kumar and Technical Member Anil Raj Chellan observed: “A plain reading of Section 54 makes it clear that an application for dissolution of the Corporate Debtor is to be filed by the Liquidator and not by the IRP/RP of the...

NCLT Ahmedabad Orders Steel Konnect Directors To Repay ₹20.25 Crore For Operating Hidden Account

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has directed suspended directors of Steel Konnect (India) Pvt. Ltd. and a related company to contribute Rs 20.25 crore to the corporate debtor's assets after finding they operated a concealed bank account and diverted company funds, including during the insolvency process. The order was passed by Judicial Member Shammi Khan and Technical Member Sanjeev Sharma. The application was filed by liquidator Kedarram R. Laddha seeking...

NCLT Mumbai Dismisses CIRP Plea Filed To Avoid Consequences Of ₹250 Crore Statutory Demands

The National Company Law Tribunal (NCLT) at Mumbai has dismissed an insolvency plea filed by Infinite Pinnacle Pvt Ltd against Mart Overseas Pvt Ltd. The tribunal held that the petition was a fraudulent application filed to get away from criminal consequences arising from statutory demands of about ₹250 crores against the corporate debtor. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar held that the petition was filed for a purpose other than the...

Running Account Entries Cannot Extend Limitation For Time-Barred Debt: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has recently held that a creditor cannot extend the limitation period for recovering a time-barred debt merely by maintaining a running account in its own books unless the debtor acknowledges the liability in writing. “The maintenance of running account of a debtor by the creditor in its books can not extend the period of limitation in respect of debt, the claim of which has become time barred, unless the said running account is acknowledged by...

NCLT Mumbai Rejects Ex-Buzz Insolvency Plea Against Future Market Networks As Debt Falls Below Rs 1 Crore

The National Company Law Tribunal (NCLT) in Mumbai has rejected an insolvency plea filed by Ex-Buzz Fire & Security Private Limited against Future Market Networks Limited, a Future Groups company. The tribunal held that the principal operational debt fell below the Rs 1 crore threshold required to trigger insolvency proceedings under the Insolvency and Bankruptcy Code. A bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar held that the principal operational debt was...

Arbitration Clause In MoU Does Not Oust Insolvency Jurisdiction Under IBC: NCLT Mumbai

Arbitration clauses in Memoranda Of Understanding (MOU) do not bar insolvency proceedings when debt and default are established, the National Company Law Tribunal's Mumbai bench has held while admitting PS IT Infrastructure & Services Ltd into insolvency. “The presence of an arbitration clause in an MoU does not oust the jurisdiction of the Adjudicating Authority while dealing with an application under Section 7 of the Code. The existence of an arbitration clause in the MoU does not bar the...

Liquidator Cannot Outsource Core Duties: NCLT Hyderabad Directs Deloitte To Refund ₹7.48 Crore In Lanco Case

The National Company Law Tribunal (NCLT), Hyderabad, has held that while liquidation rules allow a liquidator to appoint professionals to assist in the process, that power cannot be used to outsource the liquidator's own statutory duties or claim payments beyond the prescribed fee structure. Applying this principle, the tribunal directed Deloitte Touche Tohmatsu India LLP to refund ₹7.48 crore to Lanco Infratech's liquidation estate. Under the liquidation framework, Regulation 7 permits a...

Pending Avoidance Applications No Bar To Dissolution Of Corporate Debtor: NCLT Hyderabad

The Hyderabad Bench of the National Company Law Tribunal (NCLT) on 6 May held that pendency of avoidance applications, including those relating to preferential, undervalued, fraudulent and extortionate (PUFE) transactions, cannot preclude dissolution of a corporate debtor under Section 54 of the Insolvency and Bankruptcy Code, 2016, particularly in view of Regulation 44A of the Liquidation Process Regulations. Judicial Member Justice Rajeev Bhardwaj and Technical Member Sanjay Puri allowed an...

Decision On Corporate Debtor's Leased Premises Falls Within CoC's Commercial Wisdom: NCLT Kochi

On 8 May 2026, the National Company Law Tribunal (NCLT), Kochi held that the decision on whether leased premises occupied by a corporate debtor should be retained or vacated during CIRP or liquidation falls within the commercial wisdom of the Committee of Creditors (CoC). Judicial Member Vinay Goel passed the order and disposed of the application by directing the CoC to convene a meeting within 15 days and take a considered decision on the issue of continuation or vacation of the premises. He...