SARFAESI, DRT Proceedings Do Not Bar IBC Action Against Personal Guarantor: NCLT Mumbai

The National Company Law Tribunal (NCLT) in Mumbai has recently held that proceedings under the SARFAESI Act and pending recovery proceedings before the Debt Recovery Tribunal do not bar insolvency proceedings against a personal guarantor to a corporate debtor under the Insolvency and Bankruptcy Code, 2016. A coram of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar passed the ruling while admitting an insolvency application filed by Canara Bank against Shewta Deepak Patel,...

Former Director Liable To Refund Diverted Rental Income Received During CIRP: NCLT Mumbai

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 29 April held that a former director who diverted rental income from properties of the corporate debtor during the Corporate Insolvency Resolution Process (CIRP) is liable to restore the amounts to the insolvency estate. Technical Member Prabhat Kumar and Judicial Member Sushil Mahadeorao Kochey allowed an application filed by the Resolution Professional in the CIRP of Barracks Retail India Pvt. Ltd., admitted on a Section 7...

NCLT Guwahati Holds No Straightjacket Definition For Fraudulent Trading Under Section 66 IBC

In a significant ruling on the scope of Section 66 of the Insolvency and Bankruptcy Code, 2016, the Guwahati National Company Law Tribunal (NCLT) on 30 April held that there is no exhaustive or straightjacket test to determine what constitutes fraudulent or wrongful trading.Judicial Member Justice Rammurti Kushawaha and Technical Member Yogendra Kumar Singh were hearing an application filed by the Resolution Professional of JSB Entrade Pvt. Ltd. against the suspended directors, promoter,...

NCLT Ahmedabad Admits Aphelion Finance's ₹6.72 Crore Section 7 Petition Against Osia Hyper Retail

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 28 April admitted a Section 7 petition filed by Aphelion Finance Pvt. Ltd. against Osia Hyper Retail Ltd, thereby initiating the corporate insolvency resolution process (CIRP) and appointing Ritesh Prakash Adatiya as Interim Resolution Professional. Judicial Member Chitra Hankare and Technical Member Dr V.G. Venkata Chalapathy held that once financial debt and default are shown through sanction letters, credit facility...

NCLT Ahmedabad Admits Cotton Corporation Claim At Notional Value ₹1, Holds Contingent Claim Not Crystallised

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 27 April held that a claim linked to pending proceedings and subject to a subsisting stay cannot be treated as a crystallised debt under the Insolvency and Bankruptcy Code, 2016, and may only be recognised at a notional value in the Corporate Insolvency Resolution Process (CIRP). Judicial Member Shammi Khan and Technical Member Sanjeev Sharma dismissed an interlocutory application filed under Section 60(5) of the Code, while...

NCLT Kochi Admits Insolvency Plea Against Inditrade Capital Filed By MediBuddy Parent Company

The Kochi Bench of the National Company Law Tribunal, on 6 May admitted an insolvency petition filed by Phasorz Technologies Private Limited, which operates the healthcare platform MediBuddy, against Inditrade Capital Limited (ITCL) over an alleged default of about Rs. 3.58 crore.Judicial Member Vinay Goel passing the order, observed: “Admittedly, despite demand and invocation of the guarantee, the Respondent has failed to discharge the demand so raised, and as such, there exists a default.” ...

NCLT Bengaluru Admits Millennium Starch Into CIRP Despite Technical Defects In Insolvency Plea

The National Company Law Tribunal (NCLT) at Bengaluru has admitted a ₹39.19 crore insolvency plea filed by Axis Bank against Millennium Starch India Private Limited, holding that procedural defects in the petition did not prejudice the company and could be cured during the proceedings. “Even if the defect remained, no prejudice is shown to have occurred to the respondent who has been afforded sufficient opportunity to file reply/objections to the petition and address arguments post service of...

NCLT Ahmedabad Directs Morakhia Copper's SRA To File NFRA Complaint Against CA For Falsifying Company Accounts

The National Company Law Tribunal (NCLT), Ahmedabad, has recentlydirected Shreenathji Rasayan Pvt. Ltd., the successful resolution applicant of Morakhia Copper & Alloys Pvt. Ltd., to file a complaint against a Chartered Accountant before the National Financial Reporting Authority (NFRA) and the Institute of Chartered Accountants of India (ICAI) for assisting in the falsification of the company's accounts. “The Applicant is directed to file a complaint against Arun Bagaria Chartered...

NCLT Ahmedabad Holds SARFAESI Notice Validly Invokes Guarantee But Dismisses Personal Insolvency Plea As Abuse

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has held that a SARFAESI demand notice can validly invoke a personal guarantee but dismissed a personal insolvency plea filed thereafter, finding it was not intended for insolvency resolution.The bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed this while examining a demand notice dated August 18, 2025 issued by Canara Bank under Section 13(2) of the SARFAESI Act. “Invocation of guarantee is a...

NCLT Ahmedabad Bars MIDC From Demolishing Structures on K-Lifestyle's Dombivli Plots During CIRP

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has restrained the Maharashtra Industrial Development Corporation (MIDC) from taking coercive action against K-Lifestyle & Industries Ltd during its Corporate Insolvency Resolution Process (CIRP). It held that demolition and lease termination cannot proceed during the subsistence of the moratorium. A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma said: “The contention of the Respondent that the...

Pollution Control Authorities Cannot Take Coercive Steps During IBC Moratorium: NCLT Bengaluru

The National Company Law Tribunal (NCLT) in Bengaluru has recently held that pollution control authorities cannot take coercive steps that disrupt the operations of a corporate debtor during the moratorium, even though they can continue regulatory oversight. A bench of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada held,“We are of a considered view that a distinction is required to be drawn between: Regulatory actions undertaken in public interest to ensure...

NCLT Delhi Holds Demand Notice Valid Despite Service At Unregistered Email, Cites Use In Prior Dealings

The National Company Law Tribunal (NCLT), New Delhi, has found that a demand notice under the Insolvency and Bankruptcy Code was valid despite being sent to an unregistered email ID, as it had been consistently used in prior dealings between the parties.The order was passed by a bench of Judicial Member Jyotsna Sharma and Technical Member Anu Jagmohan Singh.“with regard to the Demand Notice being served by the Operational Creditor on the unregistered email id of the Corporate Debtor, we note...