LiveLawBiz IBC Weekly Digest: August 10 - August 16, 2026
Kirit Singhania
17 Aug 2026 11:08 AM IST
SUPREME COURT
Underlying Contract's Subsistence Cannot Revive Time-Barred Debt Under IBC: Supreme Court
Case Title : Srinivasa Reddy Velagala v. Sravanthi Infratech Pvt Ltd
Case Number : Civil Appeal No. 876 of 2021
CITATION : 2026 LLBiz SC 272
The Supreme Court on Wednesday held that the mere subsistence of an underlying contract cannot give a creditor a continuing cause of action for an IBC default that has already occurred. It consequently ruled that a time-barred debt cannot be revived through insolvency proceedings. Justices J.B. Pardiwala and Manoj Misra held that the operational creditor's claims had crystallized in 2012, but it failed to pursue them within three years. The Court held that the insolvency application filed in 2018 was therefore barred by limitation.
HIGH COURT
Case Title : Canbank Financial Services Ltd Versus Pallav Sheth
Case Number : SHOW CAUSE NOTICE NO. 2 OF 2025 IN OFFICIAL ASSIGNEE'S REPORT NO. 9 OF 2024 IN INSOLVENCY PETITION NO. 49 OF 1996
CITATION : 2026 LLBiz HC (BOM) 447
The Bombay High Court on 7 August held insolvent Pallav Sheth guilty of contempt under Section 33(4) of the Insolvency Act, 1909 for wilfully failing to disclose his assets and bank accounts to the Official Assignee, and sentenced him to one month's simple imprisonment with a fine of Rs. 2,000, with one week's further imprisonment in default. Justice N.J. Jamadar observed that an insolvent who makes positive statements on oath concealing assets and bank accounts cannot later invoke limitation to defeat contempt proceedings arising from such concealment.
Case Title : KANWAL CHAUDHARY vs INSOLVENCY AND BANKRUPTCY BOARD OFINDIA & ORS.
Case Number : W.P.(C) 9410/2021
The Delhi High Court on Thursday held that advocates rendering services as insolvency professionals must obtain GST registration, ruling that such services are subject to the forward charge mechanism and not the reverse charge mechanism applicable to legal services provided by advocates. A bench of Justices Pratibha M. Singh and Shail Jain passed the judgment on a petition filed by advocate Kanwal Chaudhary challenging an Insolvency and Bankruptcy Board of India (IBBI) order dated March 9, 2021.
Kerala High Court Expunges NCLT's Adverse Remarks Against Union Bank, Sets Aside ₹1 Lakh Cost
Case Title : Union Bank of India v. M/s Air Travel Enterprises India Limited
Case Number : WP(C) No. 25401 of 2026
CITATION : 2026 LLBiz HC(KER) 162
The Kerala High Court has expunged adverse observations made by the National Company Law Tribunal, Kochi Bench, against Union Bank of India over errors in an application seeking withdrawal of insolvency proceedings. The court also held that the bank would not be required to deposit the ₹1 lakh cost imposed by the tribunal. Justice Harisankar V. Menon observed that the bank had made mistakes in the application. These included invoking the wrong provision and not placing the settlement proposal before the Committee of Creditors.
NCLAT
Time-Barred Insolvency Plea Can Be Rejected Without RP Appointment: NCLAT New Delhi
Case Title : Prabhaben Ravjibhai Harkani Vs Bank of Baroda & Axis Bank
Case Number : Company Appeal (AT) (Insolvency) 1002/2025
CITATION : 2026 LLBiz NCLAT 318
On 7 August, the New Delhi National Company Law Appellate Tribunal (NCLAT) held that the National Company Law Tribunal (NCLT) can reject a personal guarantor's insolvency application at the threshold if it is ex facie barred by limitation, without first appointing a Resolution Professional (RP) under Section 97 of the Insolvency and Bankruptcy Code, 2016 (IBC).
A Bench of Judicial Member Justice Mohd Faiz Alam Khan with Technical Members Arun Baroka and Indevar Pandey dismissed the appeal filed by Prabhaben Ravjibhai Harkani, personal guarantor of Shubham Ginning Pressing Pvt. Ltd., challenging the Ahmedabad Bench of the NCLT's order rejecting her Section 94 insolvency petition as time barred.
NCLAT New Delhi Says IRP Cannot Keep Creditors And Homebuyers Satisfied In Real Estate Insolvency
Case Title : Catalyst Trusteeship Limited & DCB Bank Limited Vs Suman Kumar Verma
Case Number : Company Appeal (AT) (Insolvency) 1539/2025
CITATION : 2026 LLBiz NCLAT 319
The New Delhi National Company Law Appellate Tribunal (NCLAT) on 4 August held that an Interim Resolution Professional (IRP) cannot be expected to keep all stakeholders satisfied in a real estate insolvency process, where financial creditors and homebuyers have inherently conflicting interests. A Bench of Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha dismissed appeals seeking the replacement of the IRP in the insolvency proceedings of Swastik Homebuild Pvt. Ltd., observing that an IRP must remain neutral while balancing the competing interests of financial creditors and homebuyers.
Case Title : Nuzhat Aisha Naseer & Ors Vs Canara Bank & 3 Ors
Case Number : Company Appeal (AT) (Insolvency) 360/2026
CITATION : 2026 LLBiz NCLAT 320
The National Company Law Appellate Tribunal (NCLAT), Chennai, has observed that the law shows greater sympathy towards debt-trapped individuals than debt-trapped companies. It held that this approach gives tribunals greater flexibility to consider relief from bankruptcy. It has given a family of personal guarantors a fresh opportunity to work towards repayment and seek relief from bankruptcy despite their earlier failure to submit a repayment plan.
NCLT
Case Title : IDBI Trusteeship Services Limited v. Ozone Projects Private Limited
Case Number : CP/IB/49/2023
CITATION : 2026 LLBiz NCLT(CHE) 800
The Chennai National Company Law Tribunal (NCLT) has held that a financial creditor can invoke Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) where the existence of financial debt and default is established, and that a pending appeal against the insolvency proceedings does not prevent the Tribunal from deciding the petition.
A Bench comprising Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam rejected Ozone Projects Private Limited's application under Section 65 of the IBC, which permits the Tribunal to act where insolvency proceedings have been initiated fraudulently or with malicious intent, and admitted the company into CIRP on a petition filed by IDBI Trusteeship Services Limited, acting as debenture trustee
NCLT Chennai Dissolves Ashok Leyland-John Deere JV After 8-Year Voluntary Liquidation
Case Title : Guntutu Subhasree
Case Number : CP(IBC)/367(CHE)/2025
CITATION : 2026 LLBiz NCLT(CHE) 801
The Chennai National Company Law Tribunal (NCLT) on 16 July ordered the dissolution of Ashok Leyland John Deere Construction Equipment Company Private Limited after finding that the company had completely wound up its affairs and liquidated all its assets.
A Bench comprising Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam passed the order under Section 59(7) of the Insolvency and Bankruptcy Code, 2016 (which empowers the Tribunal to order dissolution after completion of voluntary liquidation).
NCLT Jaipur Replaces RP In Dropbase Liquidation, Says CIRP Beyond 330 Days Is Serious Lapse
Case Title : Karvy Forde Search Pvt Ltd v. Dropbase Software Pvt Ltd
Case Number : IA(IBC) No. 505/ 2025
CITATION : 2026 LLBiz NCLT(JAI) 802
The Jaipur National Company Law Tribunal (NCLT) on 17 July ordered liquidation of Dropbase Software Private Limited and replacing Resolution Professional Rajneesh Sharma with Anubha Singh as the Liquidator, citing his failure to adhere to the CIRP timeline. A Bench of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar held that continuing the Corporate Insolvency Resolution Process (CIRP) beyond the statutory period without following the prescribed procedure amounts to a “serious lapse in the professional conduct” of the Resolution Professional (RP).
Case Title : Anand Hariharan v. Mantri Technology Constellations Pvt Ltd
Case Number : CP(IB) No. 92/BB/2026
CITATION : 2026 LLBiz NCLT(CHE) 803
The National Company Law Tribunal (NCLT) at Bengaluru has held that a separate Corporate Insolvency Resolution Process (CIRP) cannot be initiated for a particular real estate project when the developer as a whole is already undergoing CIRP. The ruling came while dismissing a homebuyer's insolvency plea against Buoyant Technology Constellations Private Limited, who argued that his claim arose exclusively from the Mantri Manyata Energia project.
Ahmedabad NCLT Orders Liquidation Of Shriram Cements, Holds SRA Cannot Rewrite Approved Plan
Case Title : Monitoring Committee of Shriram Cement Ltd. Vs High Performance Products Industries Pvt. Ltd.
Case Number : IA/1039(AHM)2023 & IA/170(AHM)2024 In CP(IB) 195 of 2018
CITATION : 2026 LLBiz NCLT (AHM) 804
The Ahmedabad National Company Law Tribunal (NCLT) on 22 July ordered liquidation of Shriram Cements Limited after holding that the Successful Resolution Applicant (SRA) failed to implement the Resolution Plan approved under the Insolvency and Bankruptcy Code, 2016 (IBC), and could not make its obligations conditional on resolution of a pending land dispute or release of a Bank Guarantee. A Bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma held that the SRA had submitted the Resolution Plan with knowledge of the pending land dispute and the issues concerning the Corporate Debtor's property, and therefore could not subsequently avoid its binding obligations under the approved Plan.
Subsequent Liquidation Order Cannot Bar Plea Alleging Fraudulent CIRP: NCLT Allahabad
Case Title : SUDHANSHU CHAUDHARY & ORS Vs GLOBAL NEW ENERGIES & TECHNOLOGIES
Case Number : IA NO.190/2026 IN CP (IB) NO.89/ALD/2022
CITATION : 2026 LLBiz NCLT (ALL) 805
The Allahabad bench of the National Company Law Tribunal (NCLT) has held that a subsequent liquidation order cannot bar adjudication of allegations that an insolvency process was initiated fraudulently or with malicious intent. The bench of Judicial Member Praveen Gupta and Technical Member Ashish Verma observed, “...the allegations under Section 65 were raised during the subsistence of the CIRP itself; they formed the basis of proceedings initiated by the erstwhile RP; and they remained unresolved at the time when liquidation came to be ordered. In such circumstances, the subsequent liquidation of the Corporate Debtor cannot operate as a bar to the adjudication of the present application.”
NCLT Delhi Rejects Insolvency Plea Over Claims Based On Unilateral Invoice Payment Terms
Case Title : Kannodia Technoplast Ltd. Vs Kay Pee Khaini Pvt. Ltd.
Case Number : CP (IB)-612/ND/2025
CITATION : 2026 LLBiz NCLT(DEL) 806
The Delhi bench of the National Company Law Tribunal (NCLT) has rejected Kannodia Technoplast Ltd.'s insolvency petition against Kay Pee Khaini Pvt. Ltd. It held that payment terms unilaterally mentioned in invoices cannot establish default when there is no bilateral contract between the parties. The order was passed by a bench comprising Judicial Member Ashok Kumar Bhardwaj and Technical Member Banwari Lal Meena.
NCLT Ahmedabad Directs Zyngo EV Mobility To Hand Over 16 Leased EVs To Gensol EV Lease
Case Title : Keshav Khaneja RP of Gensol EV Lease Limited Vs Rajiv Khurana RP of Zyngo EV Mobility Pvt. Ltd. & ors
Case Number : IA/622(AHM)2026 in C.P.(IB)/[199(AHM)2025
CITATION : 2026 LLBiz NCLT (AHM) 807
The Ahmedabad National Company Law Tribunal (NCLT) on 27 July, partly allowed an application filed by the RP of Gensol EV Lease Ltd. and directed Zyngo EV Mobility Pvt. Ltd. to hand over 16 leased electric vehicles (EVs), along with their documents, keys and accessories. A Bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma held that a Resolution Professional (RP) can seek recovery of leased assets lying with a third party during the Corporate Insolvency Resolution Process (CIRP), while disputes over damages, vehicle condition, lease rentals and CIRP costs must be decided separately by the appropriate forum.
Case Title : Harsh Vardhan Krishnatray & Ors Vs Vatika One On One Private Limited
Case Number : CP IB NO. 29/(ND)/2026
CITATION : 2026 LLBiz NCLT(DEL) 808
The New Delhi National Company Law Tribunal (NCLT) on 23 July held that claims for assured returns and lease rentals under Builder Buyer Agreements do not qualify as “operational debt” under the Insolvency and Bankruptcy Code, 2016 (IBC), and that individual claims must meet the statutory threshold of Rs. 1 crore under Section 4 of the Code. A Bench of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Reena Sinha Puri dismissed an insolvency petition filed against Vatika One On One Pvt. Ltd., holding that the claims arose from real estate investment agreements and did not fall within the statutory definition of operational debt.
Case Title : Sane Guruji Premises Co-operative Society Limited vs ARCK Resolution Professional LLP
Case Number : IA (I.B.C)/2372(MB)2026 IN CP (IB) No. 1053/(MB)/2017
CITATION : 2026 LLBiz NCLT (MUM) 809
The National Company Law Tribunal (NCLT) at Mumbai has recently held that an explanation inserted into the Insolvency and Bankruptcy Code (IBC), excluding security interests created merely by operation of law from the definition of “security interest," will operate prospectively from May 26, 2026. A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar observed that the amendment introduces a substantive restriction on the earlier definition. It cannot retrospectively nullify security interests already created by operation of law.
Later Default After Repayment Extension Cannot Revive COVID-Period Insolvency Claim: NCLT Mumbai
Case Title : Shaanxi Baoguang Import And Export Company Limited Vs Stelmec Limited
Case Number : IA(IBC)2690/(MB)2026
CITATION : 2026 LLBiz NCLT (MUM) 810
The National Company Law Tribunal (NCLT) at Mumbai has recently held that a creditor cannot rely on a later failure to repay after giving a company extra time when the original default occurred during the COVID-19 period. A bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar ruled that extending the repayment period does not erase or extinguish the original default.
NCLT Launches E-Inspection, E-Certified Copy Services
The National Company Law Tribunal (NCLT) has launched e-Inspection and e-Certified Copy Services to provide advocates, litigants, and other stakeholders with faster and more convenient access to judicial records and certified copies. NCLT President Justice Anupinder Singh Grewal inaugurated the services through video conferencing on Wednesday. The services are part of the tribunal's broader digital transformation, which includes its revamped website and the ongoing e-Courts 2.0 initiative.
Case Title : Bharati Trading Enterprises Pvt. Ltd Vs Tecso Project Limited
Case Number : C.P.(IB)/I155(AHM)2026
CITATION : 2026 LLBiz NCLT (AHM) 811
The Ahmedabad bench of the National Company Law Tribunal (NCLT) has dismissed Bharati Trading Enterprises Pvt. Ltd.'s insolvency petition against Vadodara-based Tecso Project Ltd. over an alleged ₹18.91 crore operational debt. The tribunal found a plausible pre-existing dispute over contractual interest, computation of the principal amount, ledger entries and supporting documents. Judicial Member Shammi Khan and Technical Member Sanjeev Sharma also imposed a ₹2 lakh penalty on Bharati Trading under for misusing the insolvency process to recover debt.
NCLT Ahmedabad Dismisses Ricova International's Insolvency Plea Against Kraft Paper Manufacturer
Case Title : Ricova International Inc. Vs Shree Narayan Kraft Paper Mill LLP
Case Number : C.P.(IB)I159(AHM)2026
CITATION : 2026 LLBiz NCLT (AHM) 812
The Ahmedabad bench of the National Company Law Tribunal (NCLT) has dismissed an insolvency petition filed by Panama-based Ricova International INC against Shree Narayan Kraft Paper Mill LLP.
The bench comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma found that there was pre-existing dispute between the parties. Ricova had claimed an operational debt of Rs 3,81,87,186.24 (USD 4,44,192.34) for the alleged supply of waste paper (NDLKC) pursuant to various indents placed between October 2024 and January 2025. The claimed date of default was April 13, 2025.
Case Title : Vitol SA Vs Abhishek Nagori
Case Number : IA/371(MP)2023 in TP 161 of 2019 [CP(IB) 19 of 2017]
CITATION : 2026 LLBiz NCLT (IND) 813
The National Company Law Tribunal (NCLT) at Indore has ruled that a mere divergence between a forensic auditor's interim and final reports, without any demonstrable infirmity, is not enough to disregard the final report or appoint an alternate auditor. The bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta ruled, “Mere divergence between a preliminary draft and a final report, explained by a materially expanded record, does not by itself establish unreliability.”
Defective Or Withdrawn Liquidation Application Cannot End RP's Entitlement To Fees: NCLT Ahmedabad
Case Title : Sachin Naveen Sinha Vs Arvind D Gaudana
Case Number : IA/1097(AHM)2025 In C.P.(IB)/119{AHM)2022
CITATION : 2026 LLBiz NCLT (AHM) 815
The Ahmedabad bench of the National Company Law Tribunal (NCLT) has recently held that a liquidation application that is subsequently withdrawn cannot by itself end a Resolution Professional's entitlement to remuneration if the RP continues to discharge statutory duties. The bench said a defective or withdrawn liquidation application that does not culminate in an order of liquidation cannot terminate the RP's entitlement to remuneration when he continues to function under the Insolvency and Bankruptcy Code, 2016.
Case Title : Mahananda Udhavrao Deshkhaire
Case Number : C.P.(IB) NO. 381(MB)/2024
CITATION : 2026 LLBiz NCLT(MUM) 817
The National Company Law Tribunal (NCLT), Mumbai Bench, has recently issued a bailable warrant of arrest against a personal guarantor for failing to appear before the tribunal despite clear directions to explain why the Resolution Professional's fees had not been paid.
The order was passed by Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar in personal insolvency proceedings against Mahananda Udhavrao Deshkhaire under Section 94(1) of the Insolvency and Bankruptcy Code, 2016.
Case Title : Nirmal Ujjwal Credit Co-operative Society Ltd v. Indian Bank and Ors.
Case Number : IA. 2396 of 2026 in C.P.(IB) NO. 1318(MB)/2022
CITATION : 2026 LLBiz NCLT(MUM) 818
The National Company Law Tribunal (NCLT), Mumbai Bench-I has directed the return of a ₹5 crore Earnest Money Deposit (EMD) Bank Guarantee furnished by Nirmal Ujjwal Credit Co-operative Society Limited during the Corporate Insolvency Resolution Process (CIRP) of Morarjee Textiles Limited. The court held that the guarantee could not be forfeited under the Request for Resolution Plan (RFRP) without any misrepresentation or misleading statement about the society's eligibility.
SARFAESI Notice Alone Cannot Establish Personal Guarantee Invocation Without Deed: NCLT Chandigarh
Case Title : Vijay Singh
Case Number : CP(IB)No.133/Chd/Hry/2026
CITATION : 2026 LLBiz NCLT(CHA) 819
The National Company Law Tribunal (NCLT), Chandigarh bench, has ruled that a personal guarantor seeking insolvency resolution must place the underlying Deed of Guarantee on record to establish that status. A SARFAESI demand notice by itself cannot conclusively establish invocation of the guarantee when the deed is absent.