LiveLawBiz IBC Weekly Digest: August 31 - September 5, 2026
Kirit Singhania
7 Sept 2026 1:25 PM IST
SUPREME COURT
Case Title : CANARA BANK (E-SYNDICATE BANK) VS. EQUINOX INDIA DEVELOPMENTS LIMITED
Case Number : DIARY NO. - 36294/2026
The Supreme Court on Monday issued notice on Canara Bank's challenge to the NCLAT order setting aside the admission of its Section 7 insolvency petition against Equinox India Developments Ltd., formerly Indiabulls Real Estate Ltd. A Bench of Justices J.B. Pardiwala and K. Vinod Chandran said the matter requires consideration and issues notice in Canara Bank's special leave petition.
Case Title : STATE BANK OF INDIA AND ORS. Versus MANOJ KUMAR DAS AND ORS.
Case Number : C.A. No. 10778-10780/2026
The Supreme Court on Monday, 31 August, declined to interfere with the National Company Law Appellate Tribunal's (NCLAT) 30 June order which held that provident fund, gratuity and pension dues payable to Jet Airways' workmen do not form part of the liquidation estate, even where segregated funds were not available on the liquidation commencement date. A Bench of Chief Justice Surya Kant with Justices Joymalya Bagchi and V. Mohana refused to interfere with the order, while leaving the questions of law raised by the financial creditors open for consideration in an appropriate future case.
Supreme Court Issues Notice On Plea Against NCLAT Ruling Allowing ED Action During IBC Moratorium
Case Title : VALUE WISE CONSULTANCY PRIVATE LIMITED vs THE DEPUTY DIRECTOR AND ORS.
Case Number : C.A. 10730/2026
Today, the Supreme Court issued notice on a plea by Value Wise Consultancy Private Limited, the liquidator of Siddhi Vinayak Logistics Ltd, challenging a National Company Law Appellate Tribunal (NCLAT), Delhi judgment which held that the Insolvency and Bankruptcy Code (IBC) moratorium does not stop the Enforcement Directorate (ED) from taking action under the Prevention of Money Laundering Act (PMLA).
Termination of Insolvency Process Cannot Be Challenged When Order Also Granted Relief: Supreme Court
Case Title : SANJAY KUMAR BHUWALKA VERSUS ACHAL KUMAR JINDAL & ANR.
Case Number : CIVIL APPEAL NO(S).10657/2026
CITATION : 2026 LLBiz SC 292
The Supreme Court has dismissed a creditor's appeal against the termination of a company's insolvency process, observing that it failed to understand how the order could be challenged when the proceedings had been terminated and relief had also been granted through that termination. “Termination of legal proceedings cannot be a ground for assailing the same particularly when the relief has also granted by such termination of legal proceedings viz., Corporate Insolvency Resolution Process (CIRP) in the instant case,” the top court observed.
Homebuyers Cannot Be Made To Bear Penal Charges For Project Delays As CIRP Costs: Supreme Court
Case Title : The Authorised Representative for Granite Gate Properties Private Limited, Ms. Rakesh Verma Versus M/s New Okhla Industrial Development Authority and Ors.
Case Number : Civil Appeal No. 3132 of 2026
CITATION : 2026 LLBiz SC 295
The Supreme Court has ruled in a case that time extension charges imposed for delays caused by a defaulting developer are penal in nature. They cannot be passed on to homebuyers as costs of the Corporate Insolvency Resolution Process (CIRP), observing that the default was that of the developer and homebuyers could not be made to bear that liability.
"The time extension charges in any event are penal in nature and the developer who has caused the default having ended up in a CIRP, the inclusion as CIRP costs would be unjust and misconceived. The default was of the developer and homebuyers cannot be mulcted with that liability," the court observed.
HIGH COURT
Case Title : Jaiprakash Associates Limited vs The Office Of The Commissioner Of Customs Air Cargo Complex Import & Anr.
Case Number : W.P.(C) 10387/2026
CITATION : 2026 LLBiz HC (DEL) 915
The Delhi High Court has held that a pre-insolvency customs claim against Jaiprakash Associates Limited stood extinguished after the Customs Department failed to submit it during the company's insolvency process and the resolution plan was approved.
NCLAT
NCLAT New Delhi To Hear Creditors' Challenge To NCLT Approval Of Subhash Chandra's ₹6.25 Crore Plan
On Monday, 31 August, the National Company Law Appellate Tribunal (NCLAT), New Delhi will hear creditors' appeal against the National Company Law Tribunal (NCLT), New Delhi Bench's approval of Dr. Subhash Chandra's Rs. 6.25 crore repayment plan against admitted claims of Rs. 22,006.57 crore. A Bench comprising officiating Chairperson Justice Yogesh Khanna with Technical Members Barun Mitra and Ajai Das Mehrotra agreed to hear the appeal urgently after Solicitor General Tushar Mehta, appearing for creditors including LIC Housing Finance, HDFC Bank and Union Bank of India, sought an urgent hearing; the Bench fixed the matter for 10:30 am on Tuesday.
NCLAT New Delhi To Hear Appeal Against Subhash Chandra's ₹6.5 Cr Repayment Plan Tomorrow
Case Title : Union Bank of India (UK) Ltd. Vs. Subhash Chandra & Anr.
Case Number : Comp. App. (AT) (Ins) No. 1613 of 2026
Today, the National Company Law Appellate Tribunal (NCLAT), New Delhi, agreed to hear at 10:30 am tomorrow, an appeal by creditors against approval of Dr Subhash Chandra's Rs. 6.5 crore repayment. Officiating Chairperson Justice Yogesh Khanna with Technical Members Ajai Das Mehrotra and Barun Mitra noted the reference of the matter to a new five-member Bench of the National Company Law Tribunal (NCLT).
Case Title : Union Bank of India (UK) Ltd. Vs. Subhash Chandra & Anr
Case Number : Comp. App. (AT) (Ins) No. 1613 of 2026
Today, the National Company Law Appellate Tribunal (NCLAT), New Delhi, kept appeals filed by financial creditors against the repayment plan of Essel Group Chairman Dr Subhash Chandra pending. A Bench of Officiating Chairperson Justice Yogesh Khanna with Technical Members Ajai Das Mehrotra and Barun Mitra posted the matter for 7 October.
Solicitor General Tushar Mehta, appearing for the financial creditors, informed the Bench about the background to the reference made to the President of the National Company Law Tribunal (NCLT) and the subsequent constitution of a larger five-member Bench.
Public CIRP Announcement Creates Presumption Of Knowledge Of Moratorium: NCLAT
Case Title : Moving Pixels Pvt. Ltd. Vs Jitendra Kothari
Case Number : Company Appeal (AT) (Insolvency) 2219/2024
CITATION : 2026 LLBiz NCLAT 336
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that the public announcement of a company's insolvency process, along with the uploading of the admission order on the National Company Law Tribunal website, creates a deemed presumption that the appellant had knowledge of the moratorium imposed on the company. The tribunal made the observation while dismissing an appeal by Moving Pixels Pvt. Ltd. against an order directing it to return ₹80 lakh received from NDS Art World Pvt. Ltd. during the moratorium period.
Case Title : Ashish Arjunkumar Rathi Vs Goyal Energy And Steel Private Limited
Case Number : Company Appeal (AT) (Insolvency) 1226/2026
CITATION : 2026 LLBiz NCLAT 337
The National Company Law Appellate Tribunal at Delhi has ruled that an inadvertent clerical error in a mandatory form filed during the insolvency resolution process cannot be characterised as “gross dereliction” of duty when it caused no prejudice to any stakeholder and had no impact on the approved resolution plan or the insolvency resolution process. A bench comprising Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha, while expunging the adverse remarks against a former Resolution Professional observed.
RP Can Revisit Admitted Claim After Verification Fails To Establish Financial Debt: NCLAT New Delhi
Case Title : Somani Worsted Limited v. Amit Aggarwal, Resolution Professional of Celebration City Projects Private Limited
Case Number : Company Appeal (AT) (Ins.) No. 150 of 2026
CITATION : 2026 LLBiz NCLAT 339
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, on 1 September held that a Resolution Professional (RP) can revisit an earlier admitted claim during subsequent verification if the material on record fails to establish the existence of an independent financial debt. A Bench comprising Judicial Member Justice N. Seshasayee with Technical Members Arun Baroka and Indevar Pandey dismissed Somani Worsted Limited's appeal against the National Company Law Tribunal's (NCLT) order refusing to restore its claim to the list of creditors and reconstitute the Committee of Creditors (CoC).
NCLAT New Delhi Clears Hurdles For ₹15-Cr Talwalkars Sale, Orders ROC To Reset Status To 'Active'
Case Title : RAVIKUMAR GAURISHANKAR PATEL Vs GAJESH LABHCHAND JAIN
Case Number : Company Appeal (AT) (Insolvency) 710/2026
CITATION : 2026 LLBiz NCLAT 340
The National Company Law Appellate Tribunal (NCLAT), New Delhi, on 3 September partly allowed an appeal by Ravikumar Gaurishankar Patel, the successful auction purchaser of Talwalkars Better Value Fitness Ltd., and granted several reliefs sought by him to give effect to the Rs. 15 crore going-concern sale of the company during liquidation. A Bench of Officiating Chairperson Justice Yogesh Khanna with Technical Members Barun Mitra and Ajai Das Mehrotra held that the National Company Law Tribunal (NCLT) had erred in refusing consequential reliefs required to operationalise the sale, including those concerning shareholding, past liabilities, financial creditors, subsisting licences and the company's status on the Ministry of Corporate Affairs (MCA) portal.
Case Title : Loknath Prasad Gupta Vs Dinesh Chand
Case Number : Company Appeal (AT) (Insolvency) 1332/2026
CITATION : 2026 LLBiz NCLAT 342
The National Company Law Appellate Tribunal (NCLAT) at Delhi on 25 August set aside the Kolkata Bench of the National Company Law Tribunal (NCLT) order admitting an insolvency application against Raja Udyog Private Limited.
Post-2026 IBC Amendment, CIRP Withdrawal Barred Before CoC Formation Or After Plan Invitation: NCLAT
Case Title : Aayush Prashant Agarwal Vs Uma Export Limited & Klass Insolvency Resolution Professionals Private Limited
Case Number : I.A. No. 5601 of 2026 in Company Appeal (AT) (Insolvency) 1366/2024
CITATION : 2026 LLBiz NCLAT 338
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently clarified that the 2026 amendment to the Insolvency and Bankruptcy Code has made withdrawal of an admitted insolvency case more stringent. An admitted case cannot be withdrawn before the Committee of Creditors is constituted or after the Resolution Professional issues the first invitation for resolution plans.
Company Cannot Claim Non-Service of Notices After Keeping Registered Office Non-Functional: NCLAT
Case Title : RENU LALIT AGARWAL Vs SIDBI & AJIT GYANCHAND JAIN
Case Number : Company Appeal (AT) (Insolvency) 2264/2024
CITATION : 2026 LLBiz NCLAT 343
The National Company Law Appellate Tribunal (NCLAT) at Delhi has ruled that a company cannot complain of inadequate service of notices when it has itself allowed its registered office to remain non-functional for several years. Dismissing an appeal by the suspended director of AS Infracon Pvt. Ltd., Judicial Member Mohd Faiz Alam Khan and Technical Member Naresh Salecha upheld the initiation of insolvency proceedings against the company.
NCLT
NCLT Chennai Rejects Jyoti Ltd's Insolvency Plea Against Marg Ltd Over Pre-Existing Dispute
Case Title : Jyoti Limited v. Marg Limited
Case Number : CP/IB/262/CHE/2022
CITATION : 2026 LLBiz NCLT(CHE) 846
The National Company Law Tribunal (NCLT) at Chennai on 7 August dismissed an insolvency application filed by Jyoti Limited against Marg Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), over an operational debt of Rs. 22.67 crore.
Suspended Directors Cannot Pursue 'Proxy Grievances' On Behalf Of Homebuyers: NCLT Chandigarh
Case Title : Vinod Bagai and Anr v. Rahul Jindal and Ors.
Case Number : I.A. No.1064 of 2025 In CP(IB) No. 98/Chd/Hry/2022 (Admitted)
CITATION : 2026 LLBiz NCLT(CHA) 848
The National Company Law Tribunal (NCLT), Chandigarh, on 13 August held that suspended directors cannot challenge a Corporate Insolvency Resolution Process (CIRP) or a Resolution Plan by raising grievances on behalf of a class of creditors to which they do not belong.
Case Title : Ingram Micro India Private Limited v. Planet Infrastructure Management Private Limited
Case Number : C.P. (I.B.) No. 278/KB/2025
CITATION : 2026 LLBiz NCLT(KOL) 849
The National Company Law Tribunal (NCLT), Kolkata on 10 August admitted Planet Infrastructure Management Private Limited into the Corporate Insolvency Resolution Process (CIRP) on a Section 9 petition filed by Ingram Micro India Private Limited.
NCLT Delhi Refers Subhash Chandra's ₹6.5 Cr Plan To 5-Member Bench After No Majority, Hearing Today
At 10:15 am today, a Special Five-Member Bench of the New Delhi National Company Law Tribunal (NCLT) is scheduled to hear the insolvency proceedings involving Essel Group Chairman Dr Subhash Chandra, following a reference after no majority view emerged on the approval and scope of his repayment plan.
NCLT Kochi Waives Meetings For Vallabhdas Kanji's Amalgamation With Three Wholly-Owned Subsidiaries
Case Title : In the matter of Composite Scheme of Arrangement among Vallabhdas Kanji Limited and Others
Case Number : CA(CAA)/10/KOB/2026
CITATION : 2026 LLBiz NCLT(IND) 851
The National Company Law Tribunal, Kochi (NCLT), on 11 August dispensed with the requirement of convening meetings of shareholders and creditors for a composite Scheme of Arrangement involving the amalgamation of three substantially wholly-owned subsidiaries with their holding company, Vallabhdas Kanji Limited.
Case Title : Indiabulls Housing Finance Limited vs Dr Subhash Chandra
Case Number : IB-97/ND/2022
NCLT Hyderabad Says IBC Section 7 Default Amount Not A Ceiling On CIRP, Upholds ₹73.98 Cr. Claim
Case Title : M/s Global Insolvency Professionals Private Limited v. Frontline Enterprises Limited & Anr.
Case Number : IA (IBC) No. 901 of 2026 in CP (IB) No. 217/7/HDB/2024
CITATION : 2026 LLBiz NCLT (HYD) 856
The National Company Law Tribunal (NCLT) at Hyderabad has held that the amount of default stated in a Section 7 application under the Insolvency and Bankruptcy Code, 2016 (IBC) does not cap the claim that a creditor may subsequently submit and the Resolution Professional may admit during the corporate insolvency resolution process (CIRP).
NCLT Indore Admits Hinduja Leyland Finance's ₹117.28 Crore Insolvency Plea Against Owais Metal
Case Title : Hinduja Leyland Finance Ltd Vs Owais Metal & Mineral Processing Ltd
Case Number : CP(IB)/76(MP)2025
CITATION : 2026 LLBiz NCLT(IND) 847
The Indore Bench of the National Company Law Tribunal (NCLT) on 13 August admitted an insolvency petition filed by Hinduja Leyland Finance Ltd against Owais Metal & Mineral Processing Ltd for default of Rs. 117.28 crore.
Case Title : AWFIS Space Solutions Private Limited Vs RAB Enterprises (India) Private Limited
Case Number : IA/196/2026 C.P. (IB)/689(MB)2024
CITATION : 2026 LLBiz NCLT (MUN) 854
The National Company Law Tribunal (NCLT), Mumbai on 20 August imposed Rs. 1 lakh costs on RAB Enterprises (India) Pvt Ltd for an approximately 11-month delay in seeking to place additional documents on record in an insolvency petition filed by Awfis Space Solutions Ltd.
Corporate Guarantee Continues Despite Transfer Of Mortgaged Property To New Owner: NCLT Mumbai
Case Title : Jammu And Kashmir Bank Limited Vs Essel Infraprojects Limited
Case Number : RCP(IB)/6(MB)2023
CITATION : 2026 LLBiz NCLT (MUM) 853
The National Company Law Tribunal (NCLT), Mumbai on 24 August held that a Corporate Debtor's liability under a Corporate Guarantee does not end merely because the bank obtains a mortgage from the new owner of the mortgaged property.
Case Title : IDBI Bank Limited V/s Mr. Artish Niranjan Nanavaty, Insolvency Professional & Anr.
Case Number : IA(I.B.C)/5231(MB)2025
CITATION : 2026 LLBiz NCLT (MUM) 855
The National Company Law Tribunal (NCLT), Mumbai on 21 August, held that the approved resolution plan for Reliance Communications Infrastructure Ltd. (RCIL) could not presently be implemented as the available funds were insufficient to meet mandatory payments to dissenting financial creditors (DFCs).
Case Title : Kritikal Solutions Pvt Ltd v. Byju's K3 Education Pvt Ltd
Case Number : I.A (IBC) 768/2026
CITATION : 2026 LLBiz NCLT (BEN) 860
The National Company Law Tribunal, Bengaluru, has recently directed the Resolution Professional of Byju's and the successful bidder to maintain the status quo over auctioned assets. The order came after the Resolution Professional of Byju K3 claimed that assets worth about ₹150 crore had been auctioned for about ₹16 crore despite an ownership dispute.
Case Title : Annapurna Pet Private Limited Vs Manpasand Beverages Limited
Case Number : C.P. (IB)/267(AHM)2024
CITATION : 2026 LLBiz NCLT (AHM) 858
The Ahmedabad Bench of the National Company Law Tribunal has recently dismissed an insolvency petition filed by a manufacturer of PET preforms against Mango Sip manufacturer Manpasand Beverages Limited.
NCLT Ahmedabad Rejects Kothamangalam Aggregates' Insolvency Plea Against ACC Limited
Case Title : Kothamangalam Aggregates Prestressed Concrete Industries Vs ACC Limited
Case Number : C.P.(IB)/128(AHM)2026
CITATION : 2026 LLBiz NCLT (AHM) 861
The Ahmedabad bench of the National Company Law Tribunal has rejected as not maintainable an insolvency plea filed by Kothamangalam Aggregates Prestressed Concrete Industries against ACC Limited over alleged unpaid dues of approximately ₹1.91 crore. It held that most of the claimed dues were barred by limitation. The amount that remained within time was below the minimum required to start the insolvency process.
NCLT Mumbai Directs Former Directors To Pay ₹344.58 Crore Over Fraudulent Diversion Of DHFL Loan
Case Title : Incorp Restructuring Services LLP vs Amar Arun Vajrekar, Suspended Director of Notion Real Estate Private Limited
Case Number : I.A. 2777 of 2025 IN C.P. (IB) No. 915/(MB)/2023
CITATION : 2026 LLBiz NCLT (MUM) 862
On 2 September, the National Company Law Tribunal (NCLT), Mumbai directed two former directors of Notion Real Estate Pvt. Ltd. and Kyata Advisors Pvt. Ltd. to jointly and severally contribute Rs. 344.58 crore to the Corporate Debtor's assets over the diversion of a project loan sanctioned by Dewan Housing Finance Limited (DHFL) for development of a project.
Case Title : ERNST & YOUNG LLP vs MOBASE ELECTRONICS INDIA PRIVATE LIMITED
Case Number : CP(IBC)/370(CHE)/2025
CITATION : 2026 LLBiz NCLT (CHE) 863
The National Company Law Tribunal (NCLT) at Chennai has recently dismissed EY's insolvency plea against a company. EY was seeking a 1% success fee for relief obtained in GST proceedings. The tribunal found a genuine dispute over EY's entitlement to the outcome-based fee. It also observed that the nature of EY's professional engagement and the permissibility of the outcome-based fee arrangement may be examined by the Institute of Chartered Accountants of India if the services were rendered through persons governed by its regulatory framework.
NCLT Chennai Admits Insolvency Plea Filed By Wootu Nutrition Against Itself
Case Title : Mani Geetha Priya
Case Number : CP(IBC)/359(CHE)2025
CITATION : 2026 LLBiz NCLT(CHE) 865
The National Company Law Tribunal at Chennai has admitted an insolvency petition filed by Wootu Nutrition Private Limited, a Chennai-based chain of diet and nutrition clinics, initiating the Corporate Insolvency Resolution Process against the company.