LiveLawBiz IBC Weekly Digest: May 25 - May 30, 2026
Kirit Singhania
1 Jun 2026 10:53 AM IST
SUPREME COURT
Case Title : VIJAI PRATAP SINGH vs UNION OF INDIA
Case Number : W.P. (C) No. 670/2026
The Supreme Court on Wednesday declined to entertain a writ petition filed by former National Company Law Appellate Tribunal (NCLAT) Technical Member Vijai Pratap Singh challenging the statutory restriction prohibiting former tribunal members from appearing before the National Company Law Tribunal (NCLT) and NCLAT after retirement. Appearing in person, Singh argued that an absolute prohibition was excessive and suggested that a cooling-off period could instead be introduced.
Successful Resolution Applicant Cannot Renegotiate After CoC Approves Resolution Plan: Supreme Court
Case Title : SANJAY DAVE VS ANDHRA BANK LTD. & ORS.
Case Number : CIVIL APPEAL NOS.12264-12266 OF 2024
CITATION : 2026 LLBiz SC 209
The Supreme Court on Wednesday held that a Successful Resolution Applicant cannot seek to renegotiate or stall implementation of a resolution plan after it has been approved by the Committee of Creditors (CoC). A Bench of Justices K. V. Viswanathan and Vipul M. Pancholi passed the ruling while dismissing appeals filed by Sanjay Dave, former promoter-director and Successful Resolution Applicant (SRA) of Oracle Home Textiles Ltd.
Case Title : VANDANA SABHARWAL VERSUS UNION OF INDIA & ORS.
Case Number : Writ Petition(s)(Civil) No(s).661/2026
The Supreme Court on Tuesday issued notice on a writ petition alleging that Rs. 13,833 crore out of Rs. 14,599 crore collected from homebuyers by the Jaypee Group was diverted through transfers to group entities and undervalued land transactions. The matter came up before a bench comprising the Chief Justice Surya Kant, Justice Joymalya Bagchi and Justice Vipul M. Pancholi issued notice. “Issue notice, returnable on 15.07.2026,” the court recorded.
HIGH COURT
Case Title : MEDIMEX TRADECOM PRIVATE LIMITED Vs BIJAY MURMURIA
Case Number : CO 941 OF 2026
CITATION : 2026 LLBiz HC (CAL) 140
The Calcutta High Court has recently reiterated that a court exercising contempt jurisdiction cannot travel beyond the four corners of the order alleged to have been violated or venture into the merits of the underlying dispute while setting aside part of a National Company Law Tribunal order that had allowed a liquidator to complete the sale of a company's assets. Justice Om Narayan Rai held that while exercising contempt jurisdiction, “the Court must confine itself to the four corners of the order in question.” He added that it is “not open to the Court to touch upon the merits of the matter, much less to make observations that amount to setting aside the very interim order of which contempt is alleged.”
Look-Out Circular Cannot Bar Bankrupt Guarantor's Travel For Official Duties: Karnataka High Court
Case Title : ADITYA ARORA Vs BUREAU OF IMMIGRATION MINISTRY OF HOME AFFAIRS GOVERNMENT OF INDIA & Ors
Case Number : WRIT PETITION NO. 3143 OF 2026
CITATION : 2026 LLBiz HC(KAR) 72
The Karnataka High Court on 30 April held that a Look-Out Circular (LOC) cannot operate as an absolute bar on a bankrupt guarantor's overseas travel where such travel is required to discharge professional obligations, and that authorities must balance such restrictions against constitutional protections and employment needs. Justice Sachin Shankar Magadum passed the order while disposing of a writ petition filed by Aditya Arora challenging an LOC issued at the instance of Bank of Baroda.
NCLAT
Case Title : SUMEET INDUSTRIES LIMITED Vs DAKSHIN GUJARAT VIJ COMPANY LIMITED & Eagle Group
Case Number : Company Appeal (AT) (Insolvency) 251/2026
CITATION : 2026 LLBiz NCLAT 229
The National Company Law Appellate Tribunal (NCLAT) at Delhi has refused to reopen a dispute involving more than ₹12 crore in electricity dues and security deposit adjustments concerning Sumeet Industries Ltd. It held that disturbing the issue after approval and implementation of the resolution plan would unsettle settled commercial rights. A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey also observed that reopening the dispute after the resolution plan had attained finality and implementation had commenced would disturb settled commercial rights.
Homebuyers' Statutory Rights Cannot Be Negated By Landowner Or Developer: NCLAT In Developer's CIRP
Case Title : ISHAN SINGH Vs NARENDER KUMAR SHARMA
Case Number : Company Appeal (AT) (Insolvency) 1107/2025
CITATION : 2026 LLBiz NCLAT 230
The National Company Law Appellate Tribunal at Delhi has held that homebuyers' statutory rights in a real estate project cannot be defeated by disputes between the landowner and the developer. It dismissed landowner Ishaan Singh's challenge to the inclusion of the unsold inventory and project land of the Spaze Arrow commercial project in Gurugram in the insolvency valuation of Spaze Towers Pvt. Ltd.
Case Title : Dharampal Premchand Ltd Vs Jitendra Bhandari & Ors
Case Number : Company Appeal (AT) (Insolvency) 1872/2025
CITATION : 2026 LLBiz NCLAT 231
The National Company Law Appellate Tribunal (NCLAT) at Delhi has dismissed the challenge by Dharampal Premchand Ltd, the company behind the BABA brand, to reopen Trimurti Foodtech Ltd's approved insolvency resolution plan over the treatment of its disputed ₹6.81 crore claim. A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey held that Dharampal Premchand's claim was never treated as an admitted, crystallised operational debt but was consistently classified as contingent because of reciprocal contractual disputes and counterclaims raised by the corporate debtor.
NCLAT Sets Aside Order Initiating Insolvency Against Naxnova After NeSL Marks Debt 'Disputed'
Case Title : Salil Musale Vs Lintec India Pvt. Ltd. & Ors.
Case Number : Company Appeal (AT) (Insolvency) 870/2026
CITATION : 2026 LLBiz NCLAT 232
The National Company Law Appellate Tribunal (NCLAT) at Delhi has set aside the admission of Lintec India's insolvency plea against Naxnova after finding that the corporate debtor had raised a pre-existing dispute and that the alleged default was also marked as “disputed” on the National E-Governance Services Ltd. (NeSL) information utility portal.
Winding-Up Petitions Transferred From High Courts Must Meet Prevailing Insolvency Threshold: NCLAT
Case Title : Aidem Ventures Pvt. Ltd Vs Skyline Radio Network Ltd.
Case Number : Company Appeal (AT) (Insolvency) 782/2026
CITATION : 2026 LLBiz NCLAT 233
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that winding-up proceedings transferred from High Courts must satisfy the prevailing insolvency threshold applicable at the time they are considered by the tribunal, dismissing appeals filed by Aidem Ventures Pvt. Ltd. against three media companies.
'Wafer-Thin Majority' Alone No Ground To Reject Insolvency Resolution Plan: NCLAT
Case Title : Express Resorts and Hotels Limited Vs Amit Jain & Ors
Case Number : Company Appeal (AT) (Insolvency) 517/2024
CITATION : 2026 LLBiz NCLAT 235
The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a resolution plan cannot be rejected merely because it was approved by a “wafer-thin majority,” setting aside the NCLT's rejection of Express Resorts and Hotels Ltd's plan for Neesa Leisure Ltd. A bench of Judicial Member Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra said the Ahmedabad bench of the NCLT had rejected the plan on legally unsustainable grounds despite it securing the requisite creditor approval.
Prima Facie Case Of Contempt Must Be Established Before Issuing Show-Cause Notice: NCLAT
Case Title : State Bank of India & Ors Vs Jyoti Structures Limited & Ors
Case Number : Company Appeal (AT) (Insolvency) 388/2026 & 389/2026
CITATION : 2026 LLBiz NCLAT 236
The National Company Law Appellate Tribunal (NCLAT) at Delhi on Tuesday held that courts must first ascertain whether a prima facie case of contempt is made out and identify specific alleged contemnors before issuing notice to show cause. It set aside a National Company Law Tribunal order directing State Bank of India, Bank of India, Canara Bank, ICICI Bank, Indian Bank and Union Bank of India to release rolled-over bank guarantee limits within one month, failing which the officers concerned would undergo one day of simple imprisonment in civil prison.
Case Title : "Chandra Prakash Lohia Vs West Bengal Agro Textile Corporation Ltd. & Anr " Case Number : Company Appeal (AT) (Insolvency) 1668/2025
CITATION : 2026 LLBiz NCLAT 234
The New Delhi National Company Law Appellate Tribunal (NCLAT) on 25 May held that an application for withdrawal of insolvency proceedings under Regulation 30A of the CIRP Regulations, 2016, filed before constitution of the Committee of Creditors (CoC), does not require issuance of notice to other creditors and remains valid if authorities comply with the prescribed procedure. Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey dismissed two appeals filed by Chandra Prakash Lohia and Basanti Devi Lohia and upheld the Kolkata Bench of the National Company Law Tribunal's order permitting withdrawal of insolvency proceedings against West Bengal Agro Textile Corporation Ltd.
NCLAT Says Dispute Over Title To Cotton Bales In Galaxy Cotton Liquidation Lies Before DRAT
Case Title : Giriraj Enterprise Vs Rameshkumar Totla & Ors
Case Number : Company Appeal (AT) (Insolvency) 2036/2024 & 2037/2024
CITATION : 2026 LLBiz NCLAT 239
The National Company Law Appellate Tribunal (NCLAT) has dismissed appeals filed by two cotton traders seeking exclusion of cotton bales claimed by them from the liquidation estate of Galaxy Cotton & Textiles Pvt. Ltd., after noting that the liquidator had already excluded the disputed stock from the liquidation process and that disputes over title and security interest in the goods were pending before the Debt Recovery Appellate Tribunal (DRAT).
Case Title : Chandra Shekhar Jha & Ors Vs Religare Enterprise Ltd & Ors
Case Number : Company Appeal (AT) (Insolvency) 992/2023 & 1238/2023
CITATION : 2026 LLBiz NCLAT 237
The National Company Law Appellate Tribunal (NCLAT) at Delhi has set aside the admission of insolvency proceedings against Ligare Aviation Ltd., holding that the transactions relied upon by Religare Enterprises Ltd. were “only round tripping of money” and not “for the purpose of any genuine financial transaction.”
NCLAT New Delhi Restores Resolution Plan Approval Process For Aldiam Motors, Quashes NCLT Order
Case Title : Manohar Lal Vij Vs Khushvinder Singhal & Ors
Case Number : Company Appeal (AT) (Insolvency) 512/2026 & 513/2026
CITATION : 2026 LLBiz NCLAT 238
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) on 27 May set aside an order of the National Company Law Tribunal (NCLT), Ahmedabad Bench, which had rejected the resolution plan submitted by Meghdoot Leisure LLP for Aldiam Motors Pvt. Ltd. Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held that the Corporate Insolvency Resolution Process (CIRP) was conducted in accordance with the directions of the Committee of Creditors (CoC) and found no material irregularity on the part of the Resolution Professional (RP).
NCLT
Case Title: Supreme Plascare India Private Limited v. Shiroo Polymers Private Limited
Case Number : CP/IB/76/CHE/2025
CITATION : 2026 LLBiz NCLT(CHE) 500
The Chennai Bench of the National Company Law Tribunal (NCLT) on 5 May held that parties cannot subsequently recharacterise ordinary commercial transactions as financial debt to invoke insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC). Judicial Member Jyoti Kumar Tripati and Technical Member Ravichandran Ramasamy dismissed Supreme Plascare India Private Limited's plea seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Shiroo Polymers Private Limited over an alleged default of Rs.1.13 crore after finding that it failed to establish the existence of a “financial debt” under the IBC.
NCLT Bengaluru Bars Investors From Other Dreamz Projects From Taking Part In Samhita Project CIRP
Case Title : Dreamz GK Investors Welfare Association v. Ms. Ramanathan Bhuvaneshwari Case Number : IA No. 543 of 2024 in CP(IB) No. 113/BB/2022
CITATION : 2026 LLBiz NCLT(BEN) 503
The National Company Law Tribunal (NCLT) at Bengaluru has refused to allow an investors' association representing depositors in other Dreamz Infra projects to intervene in the project-specific insolvency proceedings for the Dreamz Samhita project, holding that it had failed to establish any project-specific interest. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada dismissed an application filed by Dreamz GK Investors Welfare Association seeking impleadment in the Corporate Insolvency Resolution Process (CIRP) of Dreamz Infra India Limited's Dreamz Samhita project and a stay on the August 24, 2023 admission order commencing insolvency proceedings.
Case Title : IL&FS Financial Services Limited Versus M/s Ansal Properties and Infrastructure Limited
Case Number : IA/6306/ND/2025 IN IB/558/ND/2024
CITATION : 2026 LLBiz NCLT (DEL) 504
The National Company Law Tribunal (NCLT) at New Delhi Bench has directed restoration of electricity supply to the golf course at Ansal Properties and Infrastructure Ltd's Sushant Golf City project in Lucknow. The relief is subject to the operator paying ₹2 lakh within three days and the balance ₹33.75 lakh within two months, while the Tribunal adjudicates a dispute over termination of its operating agreement during the company's insolvency proceedings.
Title Disputes Over Mortgaged Property Do Not Bar Personal Guarantor Insolvency: NCLT Guwahati
Case Title : Canara Bank Limited Vs Keishing James Lalrongbawl (PG) to North East Region Finservices Limited (CD)
Case Number : CP(IB)/20/GB/2025
CITATION : 2026 LLBiz NCLT(GUW) 505
The National Company Law Tribunal (NCLT) at Guwahat has recently held that pending title disputes over mortgaged property do not bar insolvency proceedings against a personal guarantor, since such proceedings turn on the existence of debt and default rather than adjudication of property rights. A bench of Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh passed the ruling while admitting Canara Bank's insolvency petition against Keishing James Lalrongbawl, personal guarantor to North East Region Finservices Limited.
NCLT Kolkata Rejects EPFO's ₹8.23 Crore Additional PF Claim In Corporate Power Liquidation
Case Title : Central Board of Trust, Employees Provident Fund through Regional P.F. Commissioner-II (Legal)… Applicant Versus M/s Corporate Power Limited …Corporate Debtor And Mr. Pankaj Dhanuka, Liquidator of the Corporate Debtor namely M/s Corporate Power Limited (in liquidation)
Case Number : I.A. (IB) No. 1262/KB/2024 In Company Petition (IB) No. 23/KB/2019
CITATION : 2026 LLBiz NCLT(KOL) 506
The National Company Law Tribunal (NCLT) in Kolkata has dismissed the Employees Provident Fund Organisation's plea to admit an additional ₹8.23 crore claim towards provident fund damages and interest in the liquidation of Corporate Power Limited(CPL). A bench of Judicial Member Bidisha Banerjee and Technical Member Siddharth Mishra held that the additional EPFO claim, which arose from an assessment completed after the commencement of liquidation, could not be admitted in the process.
Case Title : JM Financial Asset Reconstruction Company Limited vs. KOBO Biotech Limited Case Number : IA (IBC) (Plan) 01/2026 In CP (IB) NO. 277/7/HDB/2023
CITATION : 2026 LLBiz NCLT (HYD) 501
The Hyderabad bench of the National Company Law Tribunal has approved Beaufond Industries Ltd's ₹70.11 crore resolution plan for KOBO Biotech Ltd. The plan provides for a composite restructuring. Beaufond will merge into KOBO Biotech, the API business will be demerged into a separate entity, and the surviving company will be renamed Beaufond Ltd. The coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri clarified that while approval of the resolution plan would suffice to implement the restructuring for KOBO Biotech, other entities involved in the scheme would still need to follow the prescribed Companies Act process.
Case Title : Kunnel Engineers and Contractors Private Limited v. Nest Realtors India Private Limited
Case Number : CP(IBC)/05/KOB/2026
CITATION : 2026 LLBiz NCLT(KOC) 507
The National Company Law Tribunal (NCLT) at Kochi has dismissed an insolvency petition filed by Kunnel Engineers and Contractors Private Limited against Nest Realtors India Private Limited. It held that once construction dues were extinguished under a settlement agreement, a later breach could not revive the original debt for insolvency proceedings.
Highest Score In Evaluation Matrix Doesn't Guarantee Resolution Plan Approval: NCLT Kochi
Case Title : Ayyappan Nair Raghavan Pillai v. Committee of Creditors
Case Number : IA(IBC)/379/KOB/2025 in CP(IBC)/22/KOB/2024
CITATION : 2026 LLBiz NCLT(KOC) 508
Securing the highest score under the evaluation matrix does not give a resolution applicant any vested right to have its plan approved by the Committee of Creditors (CoC), the National Company Law Tribunal at Kochi has reiterated. A coram of Judicial Member Vinay Goel said: “It is now well settled that the Evaluation Matrix is only a guiding tool intended to facilitate comparative assessment of Resolution Plans and does not confer any vested or enforceable right upon the highest-scoring Resolution Applicant to demand approval of its Resolution Plan.”
NCLT Chennai Reiterates Unauthorised Communications Cannot Trigger CIRP, Dismisses ₹1.24 Crore Plea
Case Title : Daedong Sidpping Company Limited v. Srivi Exports And Imports Private Limited Case Number : CP(IB)/78(CHE)/2024
CITATION : 2026 LLBiz NCLT(CHE) 509
The Chennai Bench of the National Company Law Tribunal (NCLT) on 5 May dismissed an insolvency application filed by Daedong Shipping Company Limited, a South Korean shipping company, holding that communications from an unauthorised person cannot be used to establish an operational debt or initiate proceedings under the Insolvency and Bankruptcy Code, 2016. Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy reiterated that corporate liability must rest on valid authorisation and a crystallised debt, while rejecting the plea to initiate Corporate Insolvency Resolution Process (CIRP) against Srivi Exports and Imports Private Limited over an alleged operational debt of about Rs 1.24 crore.
Auction Purchaser Of CoC Member Company Cannot Represent It Until Sale Completion: NCLT Kolkata
Case Title : Gouri Iron & Steel Private Limited v. Chaitanya Alloys Private Limited
Case Number : I.A. (IB) No. 1141/KB/2025 and IA (IB) No. 1025(KB) 2025 in Company Petition (IB) No. 13/KB/2024
CITATION : 2026 LLBiz NCLT(KOL) 511
The National Company Law Tribunal (NCLT), Kolkata Bench, has recently held that a successful auction purchaser of a company that is a committee of creditors (CoC) member in another insolvency process cannot participate in that other company's CoC meetings until the acquisition is legally completed. It held that mere purchase through auction does not by itself confer that right. The bench of Judicial Member Bidisha Banerjee, and Technical Member Siddharth Mishra held that the liquidator would continue to represent the CoC member until ownership effectively passes.
Case Title : Empire Housing Projects Pvt. Ltd. v. M/s Ninaniya Estates Limited
Case Number : CP (IB)No. 90/7/JPR/2025
CITATION : 2026 LLBiz NCLT(JAI) 512
The Jaipur Bench of the National Company Law Tribunal (NCLT) has refused to admit Empire Housing Projects Pvt. Ltd.'s insolvency plea against Ninaniya Estates Ltd. It held that the dispute arose from a complex and seriously contested commercial arrangement linked to a real estate transaction, which could not be resolved in summary insolvency proceedings. The matter was heard by a bench of Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar.
Agreement To Sell Does Not Confer Ownership Rights Over Corporate Debtor's Property: NCLT Bengaluru
Case Title : Fortuna Integral Projects Private Limited v. Shivadutt Bannanje
Case Number : IA No. 596 of 2024 in CP(IB) No. 124/BB/2017
CITATION : 2026 LLBiz NCLT (BEN) 513
The Bengaluru National Company Law Tribunal (NCLT) on 26 May held that an agreement to sell, by itself, does not confer ownership rights or create any interest in an immovable property in favour of a purchaser in insolvency proceedings. Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada dismissed an application seeking execution of a sale deed in respect of a commercial property owned by Fortuna Buildcon (India) Private Limited, which is undergoing Corporate Insolvency Resolution Process (CIRP).
NCLT Jaipur Holds Section 95 IBC Maintainable For Pre-2019 Guarantees If Default Occurs Later
Case Title : Tata Capital Limited v. Mr. Ashit Jain
Case Number : IA(IBC) No. 316/JPR/2025 in CP No.(IB)-7/95/JPR/2025
CITATION : 2026 LLBiz NCLT (JAI) 514
The Jaipur National Company Law Tribunal (NCLT) on 26 May held that insolvency proceedings under Section 95 of the Insolvency and Bankruptcy Code, 2016 can be initiated against a personal guarantor even where the guarantee was executed prior to the coming into force of the personal guarantor framework, so long as the default and invocation of the guarantee occurred thereafter. Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar admitted an insolvency application filed by Tata Capital Limited against Ashit Jain, personal guarantor of Nidhikamal Automobiles Private Limited.
NCLT New Delhi Holds Cancellation Agreement Claim Outside Operational Debt, Rejects Section 9 Plea
Case Title : PARSVNATH DEVELOPERS LTD.Versus VINU PROMOTERS PRIVATE LTD
Case Number : Company Petition No. (IB)-233/ND/2025
The New Delhi Bench of the National Company Law Tribunal (NCLT) on 20 May 2026 held that a claim arising from a cancellation agreement executed for relinquishment of rights under an earlier development arrangement does not constitute “operational debt” under Section 5(21) of the Insolvency and Bankruptcy Code, 2016 (IBC). Judicial Member Ashok Kumar Bhardwaj and Technical Member Atul Chaturvedi dismissed a Section 9 application filed by Parsvnath Developers Ltd. seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Vinu Promoters Pvt. Ltd.
Case Title : Himalaya Food International Limited Vs A.P.J. Laboratories Limited
Case Number : CP (IB) No.161/Chd/HP/2023
CITATION : 2026 LLBiz NCLT(CHA) 516
The Chandigarh Bench of the National Company Law Tribunal on 25 May admitted a Section 7 petition filed by Himalaya Food International Limited and initiated Corporate Insolvency Resolution Process (CIRP) against A.P.J. Laboratories Limited for default of Rs 14.41 crore, holding that the debt and default stood admitted and undisputed. Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh admitted the petition, appointed an Interim Resolution Professional, and declared a moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016.
Case Title : Anil Arora Vs The Commissioner, Municipal Corporation, Faridabad
Case Number : IA(I.B.C.)/877(CH)2022 IN CP(IB) No.41/Chd/Hry/2019
CITATION : 2026 LLBiz NCLT(CHA) 515
The Chandigarh bench of the National Company Law Tribunal (NCLT) has held that recovery proceedings initiated by the Municipal Corporation of Faridabad could not impede the corporate insolvency resolution process of SRS Entertainment India Ltd. The tribunal directed the civic body to provide the company's resolution professional access to its sealed registered office and records. The bench of Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh allowed an application filed by Resolution Professional Anil Arora seeking access to the premises and records required for conducting the insolvency resolution process.
Case Title : Union Bank of India vs. Shailesh Desai (Liquidator) and Ors.
Case Number : I.A. 43/2022 in C.P. No. (IB) 2660/2018
CITATION : 2026 LLBiz NCLT (MUM) 517
The Mumbai Bench of the National Company Law Tribunal (NCLT) has held that Union Bank of India could not claim exclusive entitlement to Rs 1.83 crore refunded after the wrongful invocation of bank guarantees during the corporate insolvency resolution process of EMI Transmission Ltd, finding that the amount was not covered by the bank's disclosed security and formed part of the liquidation estate.
Case Title : ICP India Private Limited v. Mr. Kanekal Chandrashekhar IN THE MATTER OF M/s Allahabad Bank v. M/s Southern Batteries Private Limited
Case Number : I.A. No. 573 of 2024 in C.P. (IB) No. 357/BB/2019
CITATION : 2026 LLBiz NCLT (BEN) 519
The National Company Law Tribunal (NCLT), Bengaluru Bench, has held that a decree obtained from a Commercial Court does not confer any superior status on a creditor under the Insolvency and Bankruptcy Code, 2016 (IBC). Such a creditor continues to be governed by its classification under the insolvency framework for the purposes of distribution under Section 53 of the Code. The tribunal observed, “A decree obtained during or after the commencement of insolvency proceedings does not confer any superior status upon the decree-holder in the distribution waterfall under Section 53. The Code does not recognize any special category for decree-holders, and such creditors continue to be governed by their respective classification under the insolvency framework.”