NCLT Delhi Rejects CIRP Plea Against Publisher Despite Holding Royalty Can Be Operational Debt

The Delhi bench of the National Company Law Tribunal (NCLT) has rejected an insolvency plea against Commercial Law Publishers (India) Pvt. Ltd. The tribunal held that royalty payable under a publishing agreement can qualify as “operational debt” under the Insolvency and Bankruptcy Code (IBC).It rejected the plea after finding discrepancies in the amount claimed by the author, Dr Ravi Gupta, and the invoices submitted to support his claim.The bench of Judicial Member Ashok Kumar Bhardwaj and...

NCLT Delhi Admits SVOGL Into CIRP Despite Pending Winding-Up Proceedings

The Delhi bench of the National Company Law Tribunal (NCLT) has admitted SVOGL Oil Gas and Energy Ltd. into the Corporate Insolvency Resolution Process (CIRP), ruling that pending winding-up proceedings do not prevent admission of an insolvency petition if no irreversible steps have been taken.A bench comprising President Justice Anupinder Singh Grewal and Technical Member Ravindra Chaturvedi held that “where irreversible steps have not been taken, the Company can be saved from the rigours of...

Fresh CIRP Cannot Be Allowed As A Matter Of Course: NCLT Mumbai

The National Company Law Tribunal's (NCLT) Mumbai Bench has observed that the Committee of Creditors' commercial decisions must remain within the statutory framework, emphasising that the Corporate Insolvency Resolution Process (CIRP) cannot be kept open indefinitely or repeatedly restarted merely in the hope of securing better offers. The Tribunal said a fresh resolution process cannot be permitted as a matter of course, given the time-bound nature of insolvency proceedings.“At the same time,...

NCLT Mumbai Allows Bajaj Healthcare To Acquire GENRX Pharmaceuticals

The National Company Law Tribunal's Mumbai Bench has allowed Bajaj Healthcare Limited to acquire GENRX Pharmaceuticals Private Limited as a going concern on a 'clean slate' basis, protecting it from past liabilities up to the liquidation commencement date.A Bench comprising Judicial Member K. R. Saji Kumar and Technical Member Anil Raj Chellan partly allowed Bajaj Healthcare's application, granting several reliefs to facilitate the takeover while declining certain concessions that fell...

Litigant Cannot Seek Restoration Of Dismissed Plea After Repeated Absence: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has recently ruled that applicants cannot delay proceedings by repeatedly remaining absent, observing that they cannot dictate the pace of a case after being given sufficient opportunities to appear.A coram of Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati dismissed Anil Tukaram Sawarkar's application seeking restoration of a plea earlier dismissed for non prosecution on August 24, 2026, holding that he had failed to...

Stamp Duty On NCLT-Liquidated Property Can Be Based On Auction Price, Not ASR Rates: Bombay High Court

The Bombay High Court has held that stamp duty on property sold through a liquidation auction conducted by an NCLT-appointed liquidator can be calculated on the auction value rather than the Annual Statement of Rates (ASR) value when the auction process is transparent and there is no basis to suspect deliberate undervaluation.The Court rejected the Maharashtra Advocate General's argument that the National Company Law Tribunal (NCLT) could not be treated as a civil court for this purpose. It held...

Directors Cannot Evade Liquidation Duties By Claiming One Director Managed Company Affairs: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi has recently held that directors cannot avoid their statutory obligations during liquidation merely by claiming that one director alone managed the company's affairs.“Having admitted their position as directors of the Corporate Debtor, they cannot evade the obligations cast upon them under the provisions of the Code merely by contending that Respondent No. 1 was principally managing the affairs of the Company,” a coram of Judicial Member Vinay...

NCLT Kochi Rejects EPFO's ₹59.46 Lakh Claim Against Peejay Agro Foods Over Uncrystallised Dues

The National Company Law Tribunal (NCLT), Kochi, on 15 October dismissed the appeal filed by the Regional Provident Fund Commissioner against the rejection of the Employees' Provident Fund Organisation (EPFO)'s Rs. 59.46 lakh claim in the liquidation of Peejay Agro Foods Private Limited.A Bench comprising Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy held that the EPFO cannot pursue a provident fund claim in liquidation without a final determination of the dues under the...

NCLT Must Assess Prospects Of Recovering Arbitral Claim Before Ordering Liquidation: NCLAT

The NCLAT has set aside a liquidation order against a road infrastructure company, holding that the NCLT failed to assess the recovery prospects of an arbitral claim before ordering liquidation, relying instead on the fact that the claim could also be pursued during liquidation.The company is Supreme Best Value Kolhapur (Shiroli) Sangli Tollways Pvt Ltd. A bench of Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha allowed an appeal filed by Phoenix ARC Limited, finding that the...

NCLT Bengaluru Says Govt. Companies Subject To IBC, Admits CIRP Against Karnataka Food Corporation

The Bengaluru Bench of the National Company Law Tribunal (NCLT) on 12 October held that a government company incorporated under the Companies Act cannot claim exemption from insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC), merely because it performs public welfare functions. A Bench comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada admitted a Section 9 petition filed by Daksh Jute LLP against Karnataka Food and Civil Supplies...

NCLT Chennai Approves Pothys Retail's ₹43.02 Crore Resolution Plan For Arihant Retail

The National Company Law Tribunal at Chennai has approved a resolution plan submitted by Pothys Retail Private Limited for Arihant Retail Private Limited, holding that the plan complies with the Insolvency and Bankruptcy Code and the applicable CIRP Regulations.A coram of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam approved the plan after noting that the Committee of Creditors had unanimously approved it with 100% of the voting share.Arihant Retail, an MSME engaged...

Profitable Companies Can Face Insolvency Proceedings If They Default On Loans: Supreme Court

The Supreme Court on Thursday held that a company's profitability does not prevent insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). A financial default, rather than commercial or balance-sheet insolvency, triggers the Corporate Insolvency Resolution Process (CIRP).“Profitability is neither legally relevant to, nor economically probative of, the capacity to service debt. The Code proceeds upon the principle of timely intervention rather than terminal insolvency, and adopts...