LiveLawBiz IBC Weekly Digest: July 13 - July 18, 2026
Kirit Singhania
20 July 2026 10:18 AM IST
SUPREME COURT
Case Title : H.D.F.C. BANK LIMITED VERSUS KISHORE K. MEHTA (DEAD) THR. LRS.
Case Number : CIVIL APPEAL NO. 4211 OF 2010
CITATION : 2026 LLBiz SC 234
The Supreme Court on Monday held that a recovery certificate issued by a Debt Recovery Tribunal (DRT) before the 2016 amendment to the Recovery of Debts and Bankruptcy Act cannot be treated as a decree or order for initiating insolvency proceedings under the Bombay's Presidency Towns Insolvency Act, 1909. Dismissing HDFC Bank's appeal, the court observed that Parliament recognised such equivalence only through the 2016 amendment.
Case Title : M/s Tata Steel Ltd v. Varsha and Anr
Case Number : Civil Appeal Nos. 9052-9053 of 2026
CITATION : 2026 LLBiz SC 242
The Supreme Court on Friday observed that small operational creditors, including MSMEs and statutory local bodies, remain "significantly disenfranchised" under the Insolvency and Bankruptcy Code (IBC) by being placed at the bottom of the repayment waterfall. Observing that the issue falls within the legislative domain, the court urged the Law Commission of India and the legislature to examine whether a fairer repayment mechanism could be devised without compromising the efficiency and commercial certainty of the insolvency resolution process.
HIGH COURT
Article 227 Cannot Be Used To Bypass NCLAT Remedy Against NCLT Orders: Kerala High Court
Case Title : The Erattupetta Municipality v. The National Company Law Tribunal and Anr
Case Number : OP(C) No. 2718 of 2023
CITATION : 2026 LLBiz HC(KER) 132
The Kerala High Court on 14 July held that parties cannot invoke the High Court's supervisory jurisdiction under Article 227 of the Constitution to challenge orders passed by the National Company Law Tribunal (NCLT) when the Insolvency and Bankruptcy Code, 2016 provides an effective statutory appellate remedy before the National Company Law Appellate Tribunal (NCLAT).
IBBI Chairperson Cannot Act As Disciplinary Committee Under IBC: Calcutta High Court
Case Title : Sashi Agarwal v. Union of India and Ors
Case Number : WPA 10330 of 2022
Citation: 2026 LLBiz HC(CAL) 176
The Calcutta High Court on 16 July held that the Chairperson of the Insolvency and Bankruptcy Board of India (IBBI) cannot act as the Disciplinary Committee under the Insolvency and Bankruptcy Code (IBC), as the Committee can consist only of Whole-Time Members of the IBBI. Justice Shampa Sarkar allowed the petition filed by Sashi Agarwal, an Insolvency Professional, and set aside the IBBI order cancelling his registration under Section 220(2) of the IBC, which empowers the Disciplinary Committee to pass orders after considering a report of investigation.
NCLAT
Delayed Homebuyer Claim Cannot Be Rejected When RP Failed To Verify Records: NCLAT New Delhi
Case Title : Rajkumar Jhawar & Ors Vs Arun Kapoor & Ors
Case Number : Company Appeal (AT) (Insolvency) 13/2025
CITATION : 2026 LLBiz NCLAT 290
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 30 June held that a genuine homebuyer cannot be denied the benefit of an approved resolution plan merely because the homebuyer filed the claim belatedly, when the delay occurred due to the Resolution Professional's (RP) failure to identify and notify the homebuyer despite the corporate debtor's records reflecting the allotment.
Equity Investment Without Repayment Obligation Does Not Qualify As Financial Debt: NCLAT New Delhi
Case Title : Metamorphosis Trading LLP Vs Kumar Motors Private Limited
Case Number : Company Appeal (AT) (Insolvency) 1083/2024
CITATION : 2026 LLBiz NCLAT 291
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 1 July held that an amount advanced under a Subscription and Shareholders Agreement (SSA) towards purchase of equity shares and convertible warrants does not qualify as “financial debt” under the Insolvency and Bankruptcy Code, 2016 (IBC), unless the agreement creates a repayment obligation. Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Ajai Das Mehrotra dismissed Metamorphosis Trading LLP's appeal against Kumar Motors Pvt. Ltd. and upheld an order of the Mumbai Bench of the National Company Law Tribunal (NCLT).
Acknowledged Interest On ICDs Forms Part Of Financial Debt Under IBC: NCLAT New Delhi
Case Title : WILD DREAMS TRADING COMPANY PVT. LTD. Vs ASCENDANCY FINANCIAL SERVICES PVT. LTD.
Case Number : Company Appeal (AT) (Insolvency) 636/2026
CITATION : 2026 LLBiz NCLAT 293
On 13 July, the New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) held that acknowledged interest on Inter Corporate Deposits (ICDs) forms part of “financial debt” under the Insolvency and Bankruptcy Code, 2016 (IBC). Judicial Member Justice N Seshasayee, along with Technical Members Indevar Pandey and Arun Baroka, allowed an appeal filed by Wild Dreams Trading Company Pvt. Ltd. against the Chandigarh Bench of the National Company Law Tribunal (NCLT), which had rejected its plea to initiate the Corporate Insolvency Resolution Process (CIRP) against Ascendancy Financial Services Pvt. Ltd.
NCLAT New Delhi Upholds CIRP Against Simbhaoli Sugar, Holds Farmers' Claims Must Be Considered
Case Title : Surender Pal Singh Mangat. Vs Oriental Bank of Commerce & Ors
Case Number : Company Appeal (AT) (Insolvency) 1404/2024 & 1405/2024
CITATION : 2026 LLBiz NCLAT 294
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 13 July upheld the admission of Corporate Insolvency Resolution Process (CIRP) against Simbhaoli Sugar Limited, holding that the insolvency proceedings were initiated independently of the Reserve Bank of India (RBI) circular later struck down by the Supreme Court.
Officiating Chairperson Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra dismissed appeals filed against the order of the Allahabad Bench of the National Company Law Tribunal (NCLT), which had admitted the CIRP application against the sugar company.
IBC Cannot Be Used to Validate Illegal Constructions Or Defeat Town Planning Laws: NCLAT
Case Title : Uttar Pradesh Housing and Development Board Vs K.S.N. Buildwell Pvt. Ltd. & Anr. Case Number : Company Appeal (AT) (Insolvency) 1581/2023 & 820/2025
CITATION : 2026 LLBiz NCLAT 295
The National Company Law Appellate Tribunal (NCLAT) in Delhi has held that while a corporate debtor's subsisting contractual and development rights under a hire-purchase agreement may constitute assets under the Insolvency and Bankruptcy Code (IBC), the insolvency process cannot be used to legitimise unauthorised construction or defeat statutory town planning laws.
Case Title : Maharashtra Airport Development Company Ltd. Vs Vinod Kumar Kothari & Anr.
Case Number : Company Appeal (AT) (Insolvency) 1355/2023 & 939/2024
CITATION : 2026 LLBiz NCLAT 296
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 14 June held that a liquidator can sell the shell legal entity of a corporate debtor through public auction during liquidation after consulting creditors, where all assets of the corporate debtor have already been realised and dissolution is the only remaining option. Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha upheld the sale of Abhijeet MADC Nagpur Energy Pvt. Ltd.'s legal entity, holding that Maharashtra Airport Development Company (MADC) could not challenge the sale when dissolution was the only alternative after the sale of all assets.
Case Title : Jiostar India Pvt. Ltd. Vs Absolute Legends Sports Pvt. Ltd
Case Number : Company Appeal (AT) (Insolvency) 1199/2026
The National Company Law Appellate Tribunal (NCLAT) on Monday issued notice in an appeal filed by Jiostar India Pvt. Ltd. against an order rejecting its insolvency plea against Absolute Legends Sports Pvt. Ltd., the promoter of the Legends League Cricket Masters T20 tournament. The appellate tribunal observed that the National Company Law Tribunal (NCLT) had failed to consider Jiostar's contention that the Media Rights Agreement had been duly signed on its behalf by Ankush Mahajan.
Case Title : UCO Bank Vs Subrata Das & Rahul Gupta
Case Number : Company Appeal (AT) (Insolvency) 451/2025 & 452/2025
CITATION : 2026 LLBiz NCLAT 297
The New Delhi National Company Law Appellate Tribunal (NCLAT) on 14 July held that financial creditors can directly initiate insolvency proceedings against personal guarantors without any pending Corporate Insolvency Resolution Process (CIRP) or liquidation proceedings against the corporate debtor. Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha allowed appeals filed by UCO Bank against orders of the Kolkata Bench of the National Company Law Tribunal (NCLT), which had rejected insolvency applications filed against personal guarantors Subrata Das and Rahul Gupta of Haridra Vintrade Private Limited.
NCLAT Sets Aside NCLT Order Applying Corporate Insolvency Threshold To Personal Insolvency Plea
Case Title : Mukesh Kumar Vs Baba Shri Chand Alloys & Ors
Case Number : Company Appeal (AT) (Insolvency) 1045/2026
CITATION : 2026 LLBiz NCLAT 298
The National Company Law Appellate Tribunal (NCLAT) in Delhi has set aside an order of the National Company Law Tribunal (NCLT) that dismissed a personal insolvency application after applying the minimum default threshold applicable to corporate insolvency proceedings. The appellate tribunal has remanded the matter to the NCLT Chandigarh for fresh consideration. A bench of Judicial Member Justice N. Seshasayee and Technical Member Barun Mitra held that the application must be reconsidered in light of the threshold prescribed for insolvency proceedings involving individuals and partnership firms.
Case Title : Association of Independent House Owners of Jaypee Greens Vs Bhuvan Madan
Case Number : Company Appeal (AT) (Insolvency) 877/2026 & 878/2026
CITATION : 2026 LLBiz NCLAT 299
The National Company Law Appellate Tribunal (NCLAT) in Delhi has dismissed appeals filed by the Association of Independent House Owners of Jaypee Greens, refusing to interfere with an order declining to direct the inclusion of a mandatory condition in Jaiprakash Associates Ltd's resolution plan for the construction of a social club. The appellate tribunal noted that the resolution plan had already been approved. It also took note of the Successful Resolution Applicant's (SRA) undertaking to engage with the association on the issue.
CoC-Approved Valuation Cannot Be Reopened At Instance Of Suspended Director: NCLAT New Delhi
Case Title : Santosh R. Shetty Vs Rajan Deshraj Agarwal & Ors
Case Number : Company Appeal (AT) (Insolvency) 1378/2024
CITATION : 2026 LLBiz NCLAT 300
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 14 July held that a suspended director cannot seek fresh valuation of a corporate debtor's assets after the Committee of Creditors (CoC) has approved the valuation reports and the resolution plan. Valuation decisions fall within the CoC's commercial wisdom. Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha dismissed appeals filed by Santosh R. Shetty, suspended director and promoter of Sristi Hospitality Pvt. Ltd., challenging orders passed by the Mumbai Bench of the National Company Law Tribunal (NCLT). The NCLAT upheld the rejection of his revaluation plea and the approval of the resolution plan
Pending Compromise Scheme No Bar To Insolvency Proceedings: NCLAT
Case Title : Kavish Gupta Vs Yes Bank Ltd & Ors
Case Number : Company Appeal (AT) (Insolvency) 1015/2025, 812, 813, 815, and 816 of 2025
CITATION : 2026 LLBiz NCLAT 301
The National Company Law Appellate Tribunal (NCLAT) in Delhi has held that a proposed scheme of compromise under the Companies Act and ongoing one-time settlement (OTS) negotiations cannot prevent the admission of insolvency proceedings once financial debt and default are established. A bench of Judicial Member Justice N. Seshasayee and Technical Members Arun Baroka and Indevar Pandey held that the National Company Law Tribunal (NCLT) was justified in admitting insolvency proceedings against KKSPUN India Limited over Yes Bank's claim of about ₹32.57 crore.
Gratuity Payable To Retiring Employee Cannot Be Equated With Salary, Not Part Of CIRP Costs: NCLAT
Case Title : Subir Mukherjee Vs Ram Ratan Modi
Case Number : Company Appeal (AT) (Insolvency) 72/2025
CITATION : 2026 LLBiz NCLAT 302
The National Company Law Appellate Tribunal (NCLAT) in Delhi has held that gratuity payable to an employee who retires during the corporate insolvency resolution process cannot be treated as part of the insolvency resolution process costs. It held that gratuity is a terminal benefit and not an expense incurred by the Resolution Professional (RP) in running the insolvency process.
A bench of Judicial Member Justice N. Seshasayee and Technical Members Arun Baroka and Indevar Pandey upheld an order of the National Company Law Tribunal (NCLT), Kolkata. The tribunal had rejected a former director and employee's plea to classify his gratuity and leave encashment dues as CIRP costs.
Case Title : Arvinder Kaur Vs Santanu Kumar Samanta & Bank of Maharashtra
Case Number : Company Appeal (AT) (Insolvency) 264/2025
CITATION : 2026 LLBiz NCLAT 303
The National Company Law Appellate Tribunal (NCLAT) in Delhi has held that the dismissal of a debt recovery case for default does not wipe out the underlying debt or prevent insolvency proceedings against a personal guarantor. It dismissed an appeal filed by a personal guarantor challenging the National Company Law Tribunal's (NCLT) order admitting the Bank of Maharashtra's application.
NCLT
CIRP Not Maintainable Against Company Struck Off From Register: NCLT Mumbai
Case Title : Adamji Investments Private Limited V/s M Cons Media Marketing Private Limited
Case Number : C.P. (IB)/159(MB)2025
CITATION : 2026 LLBiz NCLT (MUM) 713
The Mumbai Bench of the National Company Law Tribunal (NCLT) has reiterated that a Corporate Insolvency Resolution Process (CIRP) cannot be initiated against a company whose name has already been struck off from the register of companies. It observed that once the company's certificate of incorporation is cancelled, it no longer remains a "corporate person" under the Insolvency and Bankruptcy Code.
NCLT Records Highest-Ever First-Quarter Performance Under IBC, Approves 78 Resolution Plans
The National Company Law Tribunals (NCLT) across the country have recorded their highest-ever first-quarter performance under the Insolvency and Bankruptcy Code (IBC), approving 78 resolution plans between April and June 2026, according to a performance report issued by its Registrar on July 13, 2026. The 78 resolution plans, involving an aggregate approved value of ₹5,517.66 crore, surpassed the previous first-quarter high of 73 approvals recorded during April-June 2024.
During the corresponding quarter, the tribunal had approved none in 2017, 13 in 2018, 26 in 2019, 19 in 2020, 35 in 2021, 42 in 2022, 45 in 2023, 73 in 2024, and 58 in 2025.
NCLT Mumbai Rejects Resolution Professional's Two Fraudulent Transaction Pleas In RCIL Insolvency
Case Title : Anish Niranjan Nanavaty (Resolution Professional of Reliance Communications Infrastructure Limited) V/s Netizen Engineering Pvt. Ltd.
Case Number : IA (COMPANIES.ACT)/770 (MB) 2021 IN CP/3025 (MB) 2019
CITATION : 2026 LLBiz NCLT (MUM) 715
The Mumbai bench of the National Company Law Tribunal has dismissed two applications filed by the Resolution Professional of Reliance Communications Infrastructure Ltd (RCIL), which alleged fraudulent transactions involving Netizen Engineering Pvt Ltd (NEPL) and RCIL's wholly owned subsidiary, Worldtel Tamil Nadu Pvt Ltd (WTPL). The tribunal found that the transactions did not increase the corporate debtor's liabilities.
Case Title : Hinganghat Infrastructure Private Limited Vs. Mr. Jagdish Kumar
Case Number : I.A. No.3289 of 2024 In C.P (IB) No. 3402 of 2019
CITATION : 2026 LLBiz NCLT (MUM) 716
The Mumbai bench of the National Company Law Tribunal has dismissed an application filed by Hinganghat Infrastructure Pvt Ltd seeking a direction to the Resolution Professional and the Committee of Creditors (CoC) of Deegee Orchards Pvt Ltd to refund its ₹5 lakh Participation Money Deposit (PMD) and ₹25 lakh Earnest Money Deposit (EMD). The tribunal held that the company's failure to disclose its relationship and arrangement with the former management of the corporate debtor amounted to a fraudulent practice under the Request for Resolution Plan (RFRP).
NCLT Delhi Questions Indian Bank's Belated RP Removal Bid, Cites Lack Of Basis For 'Loss Of Trust'
Case Title : Indian Bank Vs Nimitiya Hotel and Resorts Limited
Case Number : IA-1222/2026 in (IB)-1913(ND)2019
CITATION : 2026 LLBiz NCLT(DEL) 717
The New Delhi National Company Law Tribunal (NCLT) on 7 July questioned Indian Bank's attempt to replace the Resolution Professional (RP) of Nimitiya Hotel and Resorts Limited more than two and a half years after approving the resolution plan, observing that the bank failed to provide any factual basis beyond citing “loss of trust”. Judicial Member Jyotsna Sharma and Technical Member Reena Sinha Puri directed that copies of its orders dated 20 March 2026, 15 April 2026, and 20 May 2026 be forwarded to the Chairman of Indian Bank for examination and necessary action.
NCLT Delhi Admits CIRP Against Regal Enterprises, Rejects Solvency Claim Without Evidence
Case Title : Akkme Food Craft Limited Vs Regal Enterprises Limited
Case Number : IA-2409/2026 & IB NO.181(PB)/2026
CITATION : 2026 LLBiz NCLT(DEL) 719
The New Delhi National Company Law Tribunal (NCLT) on 9 July admitted a Corporate Insolvency Resolution Process (CIRP) petition against Regal Enterprises Limited, holding that a financial creditor only needs to establish the existence of debt and default under Section 7 of the Insolvency and Bankruptcy Code (IBC).
Case Title : PASHUPATI FACILITY AND MANAGEMENT SERVICE PRIVATE LIMITED Vs PRODOT MEDIA PRIVATE LIMITED
Case Number : CP (IB) 127 (ND) 2025
CITATION : 2026 LLBiz NCLT(DEL) 718
The New Delhi Bench of the National Company Law Tribunal (NCLT) on 1 July held that a corporate guarantor's co-extensive liability is not extinguished merely because a Financial Creditor's claim has been partially admitted under the resolution plan of the principal borrower. Judicial Member Mahendra Khandelwal and Technical Member Atul Chaturvedi admitted an insolvency petition filed by Pashupati Facility and Management Service Pvt. Ltd. against Prodot Media Pvt. Ltd., in its capacity as a corporate guarantor for the loan default of Teriyaki Builders Pvt. Ltd.
NCLT Mumbai Dissolves BSE Institute of Research Development & Innovation After Voluntary Liquidation
Case Title : BSE Institute of Research Development & Innovation Private Limited
Case Number : CP (IB) No. 666/MB-IV/2025
CITATION : 2026 LLBiz NCLT (MUM) 720
The National Company Law Tribunal (NCLT) in Mumbai on Thursday ordered the dissolution of BSE Institute of Research Development & Innovation Private Limited after finding that its voluntary liquidation had been completed in accordance with law and that the company's affairs had been completely wound up.
NCLT Mumbai Dismisses Insolvency Plea Against Ganesh Benzoplast Over Disputed Corporate Guarantee
Case Title : UC Inclusive Credit Private Limited Vs. Ganesh Benzoplast Limited
Case Number : C.P.(IB)/1388(MB)2025
CITATION : 2026 LLBiz NCLT (MUM) 721
The National Company Law Tribunal (NCLT) in Mumbai has dismissed an insolvency plea filed by UC Inclusive Credit Pvt. Ltd. against Ganesh Benzoplast Ltd. It held that the application could not be admitted because the corporate guarantee relied upon by the lender is under challenge in multiple civil and criminal proceedings involving allegations of fraud and forgery.
A coram comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Sameer Kakar dismissed the plea seeking initiation of the corporate insolvency resolution process over an alleged default of about ₹6.25 crore.
Case Title : DCB Bank Ltd Vs Kalka Home Developers Pvt. Ltd
Case Number : IB-496/ND/2023 IA-32/ND/2025, IA-3749/ND/2025, IA-5128/ND/2025
CITATION : 2026 LLBiz NCLT(DEL) 722
The New Delhi Bench of the National Company Law Tribunal (NCLT) on 3 July held that a resolution plan cannot provide an operational creditor, including the government, an amount lower than the liquidation value payable to it under the Insolvency and Bankruptcy Code, 2016 (IBC). Judicial Member Ashok Kumar Bhardwaj and Technical Member Atul Chaturvedi rejected the plan submitted for Kalka Home Developers Pvt. Ltd., observing that the plan failed to comply with Section 30(2)(b) of the IBC, which requires operational creditors to receive at least the amount they would have received in liquidation
Case Title : Canara Bank v. KGOC Terminals Private Limited
Case Number : RCP (IBC)/1/7/AMR/2026 (Old Case CP (IB)/16/7/AMR/2023)
CITATION : 2026 LLBiz NCLT(AMR) 724
The National Company Law Tribunal (NCLT), Amaravati Bench, has admitted Canara Bank's insolvency plea against KGOC Terminals Private Limited. It held that the company could not rely on the COVID-19 suspension on insolvency filings because it had already defaulted on its loan repayments before that period began. The later classification of the loan account as a non-performing asset (NPA) did not change that position.
NCLT Kochi Recalls Oral Order Minutes After Pronouncement Over Undisclosed Facts
Case Title : CA Rajmohan R(RP) in the matter of M/s Air Travel Enterprises India Ltd
Case Number : IA(IBC)/313/KOB/2026 in CP(IBC)/33/KOB/2023
CITATION : 2026 LLBiz NCLT(KOC) 725
The National Company Law Tribunal (NCLT) at Kochi recently recalled its oral order allowing withdrawal of the corporate insolvency resolution process (CIRP) against Air Travel Enterprises India Limited. The tribunal did so within five minutes of pronouncing the order, after the Resolution Professional (RP) brought to its notice material facts regarding the Committee of Creditors (CoC) that had not been disclosed earlier.