Automated Set-Off Of Income Tax Refunds During Moratorium Violates IBC: NCLT Indore

The National Company Law Tribunal (NCLT) at Indore recently held that even automated adjustment of income tax refunds during the IBC moratorium is illegal, directing the Income Tax Department to refund Rs 30.16 lakh set off against pre-CIRP tax dues of Sanwaria Consumer Limited. “The mere fact that the adjustment was effected through an automated or system-driven process does not alter its legal character. The effect of the action remains the same, namely recovery of pre-CIRP dues during the...

NCLT Kolkata Refuses To Exclude Stay Period For Liquidator's Fee Calculation Amid Misconduct Allegations

The National Company Law Tribunal (NCLT) at Kolkata has refused to exclude, for the purpose of computing a liquidator's fee, the period during which the liquidation process was affected by appellate orders, holding that such benefit cannot be granted where the delay is linked to disputes over the liquidator's conductA coram of Judicial Member Labh Singh and Technical Member Rekha Kantilal Shah said, “In our view, if any dispute arises due to misconduct of the liquidator, resulting in litigation...

Homebuyers With RERA Refund Orders Still 'Allottees', Must Meet IBC Threshold: NCLT Chennai

The National Company Law Tribunal (NCLT) at Chennai has held that homebuyers who have obtained refund orders from RERA cannot be treated differently from other allottees for initiating insolvency proceedings, ruling that all such buyers must meet the collective threshold under the Insolvency and Bankruptcy Code. “The allottee even after the order of RERA directing for refund by the Corporate Debtor continues to be allottee and has to mandatorily comply with Section 7 (1) 2nd Proviso. The Home...

Suspended Director Cannot Reopen CIRP Process After Repeated Eligibility Defaults: NCLT Bengaluru

The Bengaluru Bench of the National Company Law Tribunal (NCLT) on 6 April, refused to permit a suspended director of a corporate debtor to submit a resolution plan at a belated stage after he repeatedly failed to satisfy eligibility conditions under the Corporate Insolvency Resolution Process (CIRP), reiterating the strict time-bound framework under the Insolvency and Bankruptcy Code, 2016. A Bench comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada...

Subsequent Demand Notices Cannot Create Fresh Cause Of Action Against Personal Guarantor: NCLT Mumbai

On 23 April, the Mumbai Bench of the National Company Law Tribunal (NCLT) held that subsequent demand notices issued to a personal guarantor do not give rise to a fresh cause of action for initiating proceedings under Section 95 of the Insolvency and Bankruptcy Code, 2016, and that limitation must be computed from the first invocation of the guarantee.Section 95 deals with the initiation of insolvency resolution process against a personal guarantor to a corporate debtor.A Bench comprising...

Limitation Against Personal Guarantor Starts From Guarantee Invocation, Not Corporate Default: NCLT Kolkata

The National Company Law Tribunal (NCLT), Kolkata Bench, has reiterated that the limitation period for initiating insolvency proceedings against a personal guarantor runs from the date of invocation of the guarantee and not from the date of default of the corporate debtor. The bench of Judicial Member Bidisha Banerjee and Technical Member Rekha Kantilal Shah observed, “We rely on the judgment of the Hon'ble Supreme Court, in Civil Appeal No. 6894 of 1997 (Syndicate Bank vs. Channaverappa Beleri...

NCLT Mumbai Approves Rs. 730 Crore Resolution Plan For Rajesh Business And Leisure Hotels

The National Company Law Tribunal (NCLT) in Mumbai has approved a Rs. 730 crore resolution plan for Rajesh Business and Leisure Hotels Pvt Ltd, submitted by a consortium of Rare Asset Reconstruction Limited and Check-Inn Hotels Pvt Ltd. A bench of Judicial Member Ashish Kalia and Technical Member Sanjiv Dutt was dealing with an application filed by the resolution professional seeking approval of the plan, which had been cleared with a 100% voting share of the committee of creditors. The...

NCLT Delhi Directs Indian Bank Senior Officer To Appear In Nimitiya Hotel CIRP Over RP Replacement Dispute

The National Company Law Tribunal (NCLT) at Delhi has recently directed a senior officer of Indian Bank to appear in person after finding that the bank filed a 60 page affidavit far beyond a limited clarification it had sought in a dispute over replacing the resolution professional of Nimitiya Hotel and Resorts Limited. A bench of Judicial Member Justice Jyotsna Sharma and Technical Member Reena Sinha Puri said, “The affidavit contains many facts which are beyond the scope of the direction...

Homebuyer Who Has Paid Full Consideration And Is In Possession Entitled To Sale Deed: NCLT Kochi

The Kochi Bench of the National Company Law Tribunal (NCLT) on 23 April, held that a homebuyer who has paid the entire consideration and is placed in possession of the property is entitled to execution of the sale deed, and such property cannot form part of the liquidation estate of the corporate debtor under the Insolvency and Bankruptcy Code framework. A Bench comprising Judicial Member Vinay Goel allowed an application filed by Tom Thomas seeking execution and registration of a sale deed in...

NCLT Holds Kanoovi Foods Directors, Third Parties Liable For ₹58.27 Cr Siphoning Under Section 66 IBC

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 20 April, held a forensic audit in Kanoovi Foods Pvt. Ltd. established diversion of funds and fraudulent as well as wrongful trading, attracting liability under Section 66 of the Insolvency and Bankruptcy Code, 2016 (IBC), against promoters, directors, and associated third parties. A Bench comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma directed the company to restore Rs. 58.27 crore to the assets of...

NCLT Mumbai Orders Liquidation Of Quality Care Dialysis After Multiple Attempts Yield No Resolution Plan

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 21 April 2026 ordered liquidation of Quality Care Dialysis Private Limited under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, after it received no resolution plan despite repeated attempts during the Corporate Insolvency Resolution Process (CIRP). A Bench of Judicial Member Nilesh Sharma and Technical Member Charanjeet Singh Gulati allowed the application that the Resolution Professional, Ms. Sapna Pankaj Chourasia,...

NCLT Hyderabad Rejects Insolvency Plea Against Madhucon Over Disputed Debt, Inconsistent Claims

The National Company Law Tribunal (NCLT) at Hyderabad has dismissed a corporate insolvency plea filed by Sri Balaji Associates against Madhucon Projects Ltd. for an alleged operational debt of Rs.83.84 lakh. It held that material inconsistencies in the computation of debt, along with a pre-existing dispute, meant the claim could not be admitted under the Insolvency and Bankruptcy Code, 2016. The bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri found that the...