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...

IBC | Limitation For Appeals Against NCLAT Orders Runs From Pronouncement, Not Certified Copy Receipt: Supreme Court

The Supreme Court on Wednesday held that the limitation period for filing an appeal against an order of the National Company Law Appellate Tribunal (NCLAT) begins from the date of pronouncement of the order and cannot be postponed until a litigant chooses to apply for and collect a certified copy.The Court cautioned that Parliament's provision for excluding the time required to obtain a certified copy would be redundant if limitation did not begin upon pronouncement of the order.“The phrase...

Supreme Court Allows Creditor Who Suffered 99.28% Haircut In CIRP To Claim Full Set-Off In Arbitration

The Supreme Court has held that an operational creditor who suffered a 99.28% haircut under an approved resolution plan can use its entire ₹12.26 crore claim to set off amounts found payable to a successful resolution applicant in arbitration. The relief is limited to set-off, and the creditor cannot independently recover the extinguished claim.“However, in the more compelling circumstance of the SRA, being the very erstwhile promoters of the CD, who accepted the claim of the OC, in the CIRP...

Supreme Court Orders Status Quo Over ₹54 Crore Deposit In Moser Baer Solar Asset Auction

The Supreme Court on Thursday directed parties to maintain status quo in a dispute concerning the ₹54 crore deposit made by JFC Finance (India) Ltd. in the fresh auction of assets of corporate debtor Moser Baer Solar Ltd.The dispute concerns whether the Liquidator can retain JFC's deposit until the successful bidder pays the entire sale consideration of ₹168 crore.The NCLAT rejected the Liquidator's plea, holding that the condition in paragraph 56(iv) had been triggered once another bidder...

NCLT Can Recall Fraudulently Initiated CIRP At Any Time; Applicants Have Public Duty Not To Mislead: Supreme Court

The Supreme Court has held that the National Company Law Tribunal (NCLT) can recall an order admitting insolvency proceedings if the jurisdictional facts on which the proceedings were based are later found to have been affected by fraud or collusion. The court, however, clarified that such a finding does not automatically mean that the entire Corporate Insolvency Resolution Process (CIRP) must end. Once insolvency proceedings are admitted, they become a collective process involving all...

Can NCLT Allow Withdrawal Of CoC-Approved Resolution Plan? Supreme Court Reserves Verdict

The Supreme Court on Wednesday reserved its judgment on whether the National Company Law Tribunal can permit withdrawal of an application seeking approval of a resolution plan after the Committee of Creditors has approved the plan and submitted it to the Adjudicating AuthorityA Bench of Justices J.B. Pardiwala and K. Vinod Chandran was hearing Indian Bank's challenge against the National Company Law Appellate Tribunal's April 20, 2026, order concerning TD Toll Road Pvt Ltd, which had set aside...

Supreme Court Directs Impleadment Of CoC In Plea To Remove GLAS Trust From Byju's CoC

The Supreme Court has recently directed the Committee of Creditors (CoC) of Think & Learn Pvt Ltd. to be impleaded in proceedings concerning a plea by suspended director Riju Ravindran seeking removal of GLAS Trust Company LLC from the CoC.A division bench of Justices J.B. Pardiwala and K. Vinod Chandran taking into account the consent of the parties, directed that IA No. 466 of 2025, which was reserved for orders on Riju Ravindran's plea concerning the removal of GLAS Trust from the...

Supreme Court Issues Notice On Plea Against NCLAT Ruling That Suspended IPs Can't Act In Other CIRPss

The Supreme Court on Monday issued notice on a plea filed by insolvency professional Anshul Gupta challenging the National Company Law Appellate Tribunal's (NCLAT) order holding that an insolvency professional whose registration is suspended cannot continue to act in other ongoing insolvency proceedings. A Bench of Justices Manoj Misra and Vijay Bishnoi, however, did not stay the NCLAT order and directed the appellate tribunal to decide Gupta's appeal in the meantime. "Issue notice, returnable...

Byju's Insolvency: Supreme Court Reserves Verdict On CoC's Impleadment In Plea To Remove GLAS Trust From It

The Supreme Court on Monday reserved its verdict on a challenge by the Committee of Creditors (CoC) against its exclusion from proceedings concerning a plea to remove GLAS Trust Company LLC from the CoC of Think & Learn Pvt. Ltd. The challenge arises from the NCLAT's February 24, 2026, order concerning the CoC's impleadment in the proceedings initiated by former Byju's director Riju Ravindran.The NCLAT held that while a CoC is not a juristic person like a company or statutory corporation,...

NCLAT E-Filing Glitch Caused One-Day Delay: Supreme Court Sets Aside Order Dismissing IBC Appeal As Time-Barred

The Supreme court has held that a litigant cannot be made to suffer when a court or tribunal's e-filing system prevents papers from being filed despite a bona fide attempt within the prescribed limitation period. “When the system of the court/tribunal fails to receive the papers, which are sought to be presented bona fide and within the prescribed time, the litigant cannot be rendered remediless on the specious ground that the court/tribunal has no power to condone the delay,” a bench of...

IBC Appeal Limitation Runs From NCLAT Order, Not Receipt Of Certified Copy: Supreme Court

The Supreme Court has recently ruled that the limitation period for an appeal against an NCLAT order would run from the date the order is provided, and not from the date a certified copy is obtained.“Assuming that under the NCLAT Rules, 2016, there is an obligation to provide copy of the order to the parties, the period of limitation would run from the date when the order is provided under NCLAT Rules, 2016, and not from the date when certified copy is obtained,” a Division Bench of Justice...

Supreme Court Issues Notice In Plea Against NCLAT Order Treating Deregistered NBFC As Financial Service Provider

The Supreme Court on Thursday issued notice on a challenge to a National Company Law Appellate Tribunal (NCLAT) ruling that refused to allow an NBFC to initiate insolvency proceedings against itself. The tribunal held that the company remained a financial service provider despite cancellation of its Reserve Bank of India (RBI) registration under the Insolvency and Bankruptcy Code (IBC).The NCLAT, in its April 9, 2026, order, upheld the National Company Law Tribunal (NCLT), Hyderabad Bench's...