LiveLawBiz IBC Weekly Digest: May 18 - May 23, 2026
Kirit Singhania
24 May 2026 8:54 PM IST
SUPREME COURT
Case Title : POOJA RAMESH SINGH vs JAMMU AND KASHMIR BANK LTD & ANR
Case Number : CIVIL APPEAL No. 11950 of 2025
The Supreme Court on Tuesday said allegations that the NCLT and NCLAT relied on allegedly fake citations in insolvency proceedings against Essel Infraprojects Ltd were already under administrative examination and had been referred to a committee. The court also reserved judgment in the appeal filed by the company's suspended director. A Bench of Justices P.S. Narasimha and Alok Aradhe made the observation while hearing the appeal filed by suspended director Pooja Ramesh Singh against orders admitting Essel Infraprojects Ltd. into the corporate insolvency resolution process.
Case Title : VENUGOPAL DHOOT vs STATE BANK OF INDIA
Case Number : DIARY NO. 31346 OF 2026
Videocon founder Venugopal Dhoot has moved the Supreme Court against an NCLAT ruling refusing to bring the group's foreign oil and gas assets into the insolvency resolution process of Videocon Industries Ltd. The matter is yet to be listed by the Supreme Court. The NCLAT on May 14, 2026 noted that Dhoot himself had earlier requested lenders in 2016 and 2017 to separate Videocon Industries from the foreign oil and gas business. It said this was done to “protect the oil and gas assets of the group from the financial stress being experienced by VIL in the domestic business.”
Case Title : KARAN BHATIA vs TATA CAPITAL LIMTED & ORS.
Case Number : Writ Petition(s)(Criminal) No(s).131/2026
Another plea has been filed in the Supreme Court seeking a declaration that proceedings under the Negotiable Instruments Act and the Payment and Settlement Systems Act cannot continue against personal guarantors once the interim moratorium under the Insolvency and Bankruptcy Code is triggered. The plea has been filed by Karan Bhatia, suspended director of Uttam Cylinders Pvt Ltd and a personal guarantor for the company's loans.
Case Title : HINDUSTHAN NATIONAL GLASS AND INDUSTRIES LIMITED Versus M/S JEEL KANDLA SERVICE AND ORS
Case Number : SLP(C) No. 18345/2026
On Friday, 22 May, the Supreme Court issued notice on a plea filed by Hindusthan National Glass & Industries Ltd, a corporate debtor, challenging the Calcutta High Court judgment dated 15 May 2026. The judgement had held that the company could not shift its registered office from Kolkata to Mumbai while appeals against its insolvency resolution plan remained pending before the NCLAT. A Division Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe, while issuing notice, declined to grant any interim direction reversing the shifting of the registered office and listed the matter for final disposal in the last week of July after the summer vacation.
HIGH COURT
Byju's Insolvency: Kerala High Court Strikes Off Voizzit Suit Over US Assets
Case Title : Claudia Z.Springer v. Voizzit Technology Private Limited
Case Number : OP(C) 335/2026
The Kerala High Court on Thursday struck off a suit by Voizzit entities claiming rights over assets of BYJU'S US subsidiaries, holding that the proceedings were barred by the insolvency moratorium against BYJU'S parent Think & Learn Pvt. Ltd. Justice Easwaran S. passed the order on a petition filed by Claudia Z. Springer, the Chapter 11 Trustee appointed by the United States Bankruptcy Court for the District of Delaware in bankruptcy proceedings concerning BYJU'S US subsidiaries, including Epic Creations Inc. and Tangible Play Inc.
Case Title : SHIVA SHAKTI SECURITY SERVICES Vs OFFICIAL LIQUIDATOR
Case Number : APOT/316/2023 WITH CP/49/2016
CITATION : 2026 LLBiz HC (CAL) 133
The Calcutta High Court has held that pending company winding-up petitions before High Courts can be transferred to the National Company Law Tribunal even after admission, a winding-up order, and appointment of an Official Liquidator, so long as the proceedings have not reached an irreversible stage.
Case Title : Pravin R. Navandar vs The State of Maharashtra, Through Ministry of Home Affairs, Govt. of Maharashtra, and others
Case Number : WRIT PETITION (LODGING) NO. 13580 OF 2026
CITATION : 2026 LLBiz HC (BOM) 304
The Bombay High Court recently (May 6) directed police to use reasonable force, if necessary, to ensure complete handover of Hotel Horizon Pvt Ltd's Juhu property to the successful resolution applicant. The court said the suspended directors were continuing to obstruct compliance with orders passed by the National Company Law Tribunal and the High Court.
NCLAT
NCLAT New Delhi Rejects PPL's Entry Tax Exemption Claim, Finds No "Deemed Consent" Under SICA
Case Title : Paradeep Phosphates (PPL) Vs State of Orissa & Anr
Case Number : Company Appeal (AT) (Insolvency) 193/2023
CITATION : 2026 LLBiz NCLAT 218
On 18 May, the New Delhi National Company Law Appellate Tribunal (NCLAT) held that the State of Orissa was not bound to grant Entry Tax exemptions to Paradeep Phosphates Ltd. (PPL) under a BIFR-sanctioned rehabilitation scheme, since the State had expressly refused consent during the proceedings. Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra dismissed PPL's appeal against the National Company Law Tribunal (NCLT), Cuttack Bench, noting that its express refusal excluded the application of “deemed consent” under Section 19(2) of the Sick Industrial Companies Act, 1985 (SICA).
Loan Or Promoter Funding? NCLAT Remands Insolvency Plea Against Jaikrishan Estates
Case Title : Rajender Prasad Mittal Vs Jaikrishan Estates Private Limited
Case Number : Company Appeal (AT) (Insolvency) 368/2025
CITATION : 2026 LLBiz NCLAT 219
The National Company Law Appellate Tribunal (NCLAT) at Delhi has remanded an insolvency plea filed by a former director of Jaikrishan Estates for fresh consideration, holding that the true nature of the alleged debt required fuller examination rather than summary rejection. “...we find the real nature of the debt to be questionable due to the existence of share purchase agreement, which is not on record and also the so called assignment by unrecoverable and unconditional gift deed dated 19.07.2019 in favour of this wife by the Appellant,” the tribunal observed.
Case Title : Lyka Labs Ltd Vs Modi Lifecare Industries Ltd
Case Number : Company Appeal (AT) (Insolvency) 726/2024
CITATION : 2026 LLBiz NCLAT 221
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that Lyka Labs' insolvency plea against Modi Lifecare Industries was not an attempt to “harass and/or embarrass and/or humiliate” the company. The tribunal found that the petition was based on material facts and that Modi Lifecare had not disputed an operational debt exceeding ₹1 lakh. A bench of Chairperson Justice Ashok Bhushan and Technical Members Barun Mitra and Arun Baroka set aside an Ahmedabad NCLT order rejecting Lyka Labs' Section 9 insolvency plea over unpaid royalty dues under a Technical Guidance Agreement.
NCLAT New Delhi Dismisses Shreenathji Infra Appeal, Finds Pre-Existing Dispute Bars IBC Action
Case Title : Shreenathji Infrastructure Vs Namasthetu Infratech Pvt. Ltd
Case Number : Company Appeal (AT) (Insolvency) 2153/2024
CITATION : 2026 LLBiz NCLAT 220
On 19 May, the New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) dismissed an appeal filed by Shreenathji Infrastructure against Namasthetu Infratech Pvt. Ltd., holding that incomplete performance of work and termination of contracts by the Corporate Debtor reflected a pre-existing dispute and rendered insolvency petition non-maintainable.
NCLAT Finds No Fault In Jet Airways Aircraft Auction, Rejects Losing Bidder's Challenge
Case Title : Industrial Asset Transaction Services Pvt. Ltd Vs Satish Kumar Gupta & Ors
Case Number : Company Appeal (AT) (Insolvency) 922/2026
CITATION : 2026 LLBiz NCLAT 222
The National Company Law Appellate Tribunal (NCLAT) has recently dismissed a challenge by a losing bidder to the auction of two Jet Airways aircraft during the airline's liquidation, holding that the process was transparent and that adequate opportunity had been given to inspect the assets before bidding.
Case Title : CMA Harshad Deshpande Vs SHRI RAKESH KUMAR RELAN & Committee of Creditors
Case Number : Company Appeal (AT) (Insolvency) 108/2026
CITATION : 2026 LLBiz NCLAT 223
The National Company Law Appellate Tribunal (NCLAT) at Delhi has upheld an equitable remedy granted by the National Company Law Tribunal (NCLT), ruling that an Interim Resolution Professional was not automatically entitled to full statutory fees where the insolvency process functioned under significant judicial restrictions. A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey dismissed the appeal filed by CMA Harshad Deshpande, former Interim Resolution Professional (IRP) of Shri Tradco Deesan Pvt. Ltd., against Resolution Professional and the Committee of Creditors (CoC) of the company.
Only Central Government Can Order SFIO Probes, Not Company Tribunals: NCLAT
Case Title : Nitin Ramchandra Jadhav & Ors Vs Vijendra Kumar Jain & Ors
Case Number : Company Appeal (AT) (Insolvency) 1044/2024
CITATION : 2026 LLBiz NCLAT 224
The National Company Law Appellate Tribunal (NCLAT) in Delhi has recently reiterated that company tribunals cannot directly order a Serious Fraud Investigation Office probe, ruling that the power to direct such an investigation rests with the Central Government.
Case Title : Suraksha Realty Limited Vs VITHAL M. DAHAKE & Ors
Case Number : Company Appeal (AT) (Insolvency) 1754/2025
CITATION : 2026 LLBiz NCLAT 226
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a mortgage created nearly seven years after a financing agreement, and just weeks before the start of insolvency proceedings, amounted to a preferential transaction under the Insolvency and Bankruptcy Code. The tribunal dismissed Suraksha Realty Limited's appeal against the avoidance of its security interest in the corporate insolvency resolution process of Radius Estate Projects Pvt. Ltd
NCLAT Upholds Liquidation of Vrundavan Ceramic Pvt. Ltd., Cautions Against Delays In IBC Resolution
Case Title : LORENZO VITRIFIED TILES PRIVATE LIMITED Vs COMMITTEE OF CREDITORS OF VRUNDAVAN CERAMIC PRIVATE LIMITED
Case Number : Company Appeal (AT) (Insolvency) 1950/2024 & 1952/2024
CITATION : 2026 LLBiz NCLAT 225
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 20 May dismissed two connected appeals filed by Lorenzo Vitrified Tiles Pvt. Ltd. (Successful Resolution Applicant) and Arvind Gaudana (Resolution Professional of Vrundavan Ceramic Pvt. Ltd.) and upheld an Order of the Ahmedabad National Company Law Tribunal (NCLT) directing liquidation of the corporate debtor. Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Ajai Das Mehrotra held that the Insolvency and Bankruptcy Code, 2016 requires strict timelines and that stakeholders cannot delay resolution in a manner that reduces the value of the corporate debtor's assets.
NCLT
NCLT Delhi Admits Cedar Hospitality Into CIRP, Holds Borrower's OTS Extends Limitation
Case Title : Bank of India Vs Cedar Hospitality Private Limited
Case Number : Company Appeal (AT) (Insolvency) 2363/2024
CITATION : 2026 LLBiz NCLT (DEL) 487
On 11 May, the Delhi Bench of the National Company Law Tribunal (NCLT) admitted a Section 7 petition filed by Bank of India against Cedar Hospitality Pvt. Ltd. and initiated the Corporate Insolvency Resolution Process (CIRP) over a default of Rs. 140.49 crore. Judicial Member Jyotsna Sharma and Technical Member Anu Jag Mohan Singh appointed Shailesh Chandra Ojha as the Interim Resolution Professional (IRP).
NCLT Ahmedabad Admits Section 95 Petition Against Sonali Exim Guarantor Over Siemens ₹5 Cr Default
Case Title : Siemens Financial Services Private Limited Vs Deepak Agarwal
Case Number : IA/1227(AHM)2025 in C.P. (IB)/298(AHM)2024
CITATION : 2026 LLBiz NCLT (AHM) 489
The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 8 May admitted an application under Section 95 of the Insolvency and Bankruptcy Code, 2016 filed by Siemens Financial Services Pvt. Ltd. against Deepak Agarwal, personal guarantor to Sonali Exim Pvt. Ltd. Judicial Member Chitra Hankare and Technical Member Dr V.G. Venkata Chalapathy initiated the personal insolvency resolution process.
Case Title : CA and IP Bhavan Trivedi v. Income Tax Department and Anr
Case Number : IA(Plan) 3 of 2026 in CP No. (IB)- 276 OF 2024
CITATION : 2026 LLBiz NCLT (AHM) 490
The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 22 April remitted the resolution plan of Button Industries Private Limited to the Committee of Creditors (CoC) for reconsideration, citing concerns over the conditional demerger structure, uncertainty on CIRP costs, and inadequate disclosure regarding the Successful Resolution Applicant's (SRA) financial capacity. Judicial Member Chitra Hankare and Technical Member Dr. Velamur G. Venkata Chalapathy heard an application under Sections 30(6) and 60(5) of the Insolvency and Bankruptcy Code, 2016, filed for approval of the resolution plan in the Corporate Insolvency Resolution Process (CIRP) of the company.
Suspended Directors Can Move Tribunal Over Asset Preservation Failures During CIRP: NCLT Kolkata
Case Title : UCO Bank v. Nandini Impex Private Limited
Case Number : IA (IB) No. 212/KB/2025 And IA (IB) No. 1446/KB/2025 In CP (IB) No. 1377/KB/2020
CITATION : 2026 LLBiz NCLT (KOL) 492
The National Company Law Tribunal (NCLT) at Kolkata has recently reiterated that members of a suspended board of directors are not completely remediless during the corporate insolvency resolution process. It held that they may approach the adjudicating authority in appropriate cases concerning conduct of the process, preservation of assets, or alleged violation of statutory duties by the resolution professional or committee of creditors.
SARFAESI Notice Not Invocation Of Personal Guarantee For Insolvency: NCLT Jaipur
Case Title : Bank of Baroda v. Shri Amit Prakash Gupta
Case Number : IA(IBC) No.20/JPR/2026
CITATION : 2026 LLBiz NCLT (JAI) 493
The National Company Law Tribunal (NCLT) at Jaipur has held that a SARFAESI notice cannot, by itself, amount to invocation of a personal guarantee for initiating insolvency proceedings against a personal guarantor. A bench of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar observed that enforcement of security interest under the SARFAESI Act and invocation of a personal guarantee are “conceptually and legally distinct.”
NCLT Hyderabad Finds GPT Pharmaceuticals–Punarnava Rasayan CIRP Collusive, Finds No Financial Trail
Case Title : GPT Pharmaceutical Pvt Ltd and Punarnava Rasayan Pvt Ltd Case Number : Miscellaneous Application (IBC)/1/2024 in Company Petition IB/108/7/HDB/2023 U/s 7 of IBC CITATION : 2026 LLBiz NCLT (HYD) 495
The Hyderabad Bench of the National Company Law Tribunal (NCLT) has held that parties cannot invoke the insolvency framework under the Insolvency and Bankruptcy Code, 2016 (IBC) in a collusive or malicious manner and that such misuse attracts proceedings and penalty under Section 65 of the Code. Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri initiated proceedings under Section 65 of the IBC and imposed a penalty of Rs. 25 lakh each on GPT Pharmaceuticals Private Limited and Punarnava Rasayan Private Limited for fraudulent initiation of the Corporate Insolvency Resolution Process (CIRP), finding that the proceedings constituted an abuse of the insolvency mechanism.
Case Title : Mukund Choudhary, Personal Guarantor Vs HEMANT SHARMA
Case Number : IA-1529/2026 IN CP (IB)-202(PB)/2021
CITATION : 2026 LLBiz NCLT (DEL) 496
The New Delhi Bench of the National Company Law Tribunal (NCLT) on 19 May held that a personal guarantor stands discharged upon full implementation of a repayment plan under the Insolvency and Bankruptcy Code, 2016, and that the Personal Insolvency Resolution Process must close once statutory compliances under the Code are fulfilled. Judicial Member Mahendra Khandelwal and Technical Member Ms. Anu Jagmohan Singh, allowed an application filed by Resolution Professional Hemant Sharma under Section 119 of the IBC and discharged Mukund Choudhary, personal guarantor to CLC Industries Ltd, while closing the PIRP.
Case Title : Navkar Ploymers v Neo Microns Private limited.
Case Number : CP(IBC)/89/AHM/2026
CITATION : 2026 LLBiz NCLT (AHM) 497
The National Company Law Tribunal (NCLT) at Ahmedabad has recently held that a corporate debtor's plea of an oral dispute over allegedly defective goods, without any supporting material, does not establish the existence of a genuine dispute, while admitting an insolvency plea over unpaid operational debt. A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed, “The plea of oral dispute, in absence of any supporting material, does not establish existence of a dispute,” adding that the defence constituted a “moonshine defence” raised only to evade liability.
Case Title : Nitin Om Kothari RP of Irfan Khan PG of Dmb Paper Mills v. Mr. Irfan Khan
Case Number : CP(IBC)/89/AHM/2026
CITATION : 2026 LLBiz NCLT (AHM) 498
The National Company Law Tribunal (NCLT) at Ahmedabad has recently held that a resolution professional cannot remain a “passive spectator” and attribute delays in a personal guarantor insolvency process to the guarantor or the financial creditor without taking proactive steps. The tribunal made the observation while dismissing a plea to close the personal insolvency resolution process with liberty to initiate bankruptcy proceedings.
Case Title : Assistant Commissioner of State taxes v. Mr. Shivadutt Bannanje
Case Number : IA 502 & 503 of 2025 in CP(IB) No. 14/BB/2017
CITATION : 2026 LLBiz NCLT(BEN) 499
The National Company Law Tribunal (NCLT) at Bengaluru recently refused to condone a 1,784-day delay and consequently declined to admit a belated ₹6.09 crore tax claim filed by the Punjab State Tax Department in the liquidation of Falcon Tyres Ltd. A bench of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada dismissed applications filed by the Assistant Commissioner of State Taxes, Jalandhar, seeking condonation of delay and admission of the claim arising under the Punjab Value Added Tax Act and the Central Sales Tax Act.
IBBI
To Cut Delays In Insolvency Professional Appointments, IBBI Seeks Applications For Empanelment
To cut delays in the appointment of insolvency professionals, the Insolvency and Bankruptcy Board of India (IBBI) has laid down a framework for preparing a panel of insolvency professionals for appointments by the National Company Law Tribunal (NCLT) and Debt Recovery Tribunal (DRT), with unjustified refusal by empanelled professionals to take up assignments attracting a six-month exclusion. The IBBI on May 18 issued the Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2026. The guidelines will remain effective from July 1 to December 31, 2026.
The Insolvency and Bankruptcy Board of India (IBBI) has amended its pre-packaged insolvency rules to require resolution professionals to appoint registered valuers within three days of taking charge, while allowing the consultation committee to require two sets of valuers if reasons are recorded in writing. The changes have been introduced through the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) (Second Amendment) Regulations, 2026, notified on May 19
IBBI Notifies New Valuation Norms For MSME Liquidation Under IBC, Allows Appointment Of Two Valuers
The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Liquidation Process) (Third Amendment) Regulations, 2026, amending the valuation framework applicable to the liquidation of MSME corporate debtors. The amendment provides that where a corporate debtor is classified as a micro, small or medium enterprise under Section 7(1) of the Micro, Small and Medium Enterprises Development Act, 2006, the liquidator shall appoint one registered valuer for each asset class of the corporate debtor. It permits the liquidator to appoint two registered valuers if the consultation committee, after consultation, decides so and records reasons in writing. The amendment came into force on 19 May 2026.