NCLAT
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...
NCLAT Delhi Upholds CIRP Against Shri Paramsukh Edible Foods Based On GST Credit And TDS Records
On 14 October, the National Company Law Appellate Tribunal (NCLAT) at Delhi upheld the admission of insolvency proceedings against Shri Paramsukh Edible Foods Pvt. Ltd., holding that tax deducted at source (TDS), claims of input tax credit (ITC) on goods and services tax (GST), and ledger entries established the supply of goods and the existence of an outstanding operational debt. A Bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Indevar Pandey dismissed the appeal...
NCLAT Stays Insolvency Proceedings Against Polycab India
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently (October 9) stayed the admission of an insolvency petition against Polycab India Limited, filed by Asier Metals Pvt. Ltd, an operational creditor. The order was passed by the bench of officiating Chairperson Justice Yogesh Khanna and Technical Members Barun Mitra and Ajai Das Mehrotra.The appeal arose from the impugned order dated 7 October 2026 of the National Company Law Tribunal, Ahmedabad, which had admitted...
CoC Approval Cannot Cure Resolution Plan's Failure To Meet Mandatory IBC Requirements: NCLAT
The National Company Law Appellate Tribunal (NCLAT) has held that the Committee of Creditors' (CoC) approval cannot cure a resolution plan that fails to meet mandatory requirements under the Insolvency and Bankruptcy Code, 2016 (IBC). It ruled that the CoC's commercial wisdom on a plan's feasibility and viability applies only when the plan complies with the law.A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Arun Baroka made the observation while dismissing...
NCLAT Issues Notice On Appeal Against Stargaze Entertainment's Liquidation Order
The National Company Law Appellate Tribunal (NCLAT) at Delhi on Tuesday issued notice to Stargaze Entertainment Pvt. Ltd. a cinema exhibition company, and its Resolution Professional, Ashok Kumar Gulla on appeal filed by the Committee of Creditors (CoC) against the liquidation order.The matter was heard by the bench of Judicial Member Justice Sharad Kumar Sharma and Technical Members Arun Baroka and Indevar Pandey. The appeal was prefered against the order of the Delhi bench of the National...
NCLAT Refuses To Recall Order Excluding Property Eviction Delay From Resolution Plan Timeline
The National Company Law Appellate Tribunal (NCLAT) at Delhi has refused to recall its earlier order excluding delays in handing over a property from the implementation timeline of a resolution plan. It held that the successful resolution applicant should not be penalised for delays caused by the unauthorised occupation of the property by a company controlled by the suspended management's family.“The exclusion of time granted on 17.07.2026 was made precisely because the Subject Property (which...
NCLAT Seeks Project-Wise Completion Timelines For 16 Supertech Housing Projects
The National Company Law Appellate Tribunal (NCLAT) at Delhi has asked the Apex Court Committee to submit tentative completion dates for each of Supertech Limited's 16 housing projects and disclose the finances available for their completion.The bench of Officiating Chairperson Justice Yogesh Khanna and Technical Members Barun Mitra and Ajai Das Mehrotra sought the project-wise timelines after finding that the committee's affidavit did not specify concrete completion dates.“However, we find from...
Going-Concern Sale Commences With Liquidation Order, Not Auction Notice: NCLAT
The National Company Law Appellate Tribunal (NCLAT), Delhi, has held that liquidation by sale of a corporate debtor as a going concern commences from the date of the liquidation order when the order directs the liquidator to pursue that mode of sale. The process does not begin only when an auction notice is issued.“Liquidation itself commences on the liquidation commencement date under Section 5(17), that is, when proceedings for liquidation commence under Section 33. Once the liquidation order...
Bankrupt Personal Guarantor Cannot Withdraw Funds After Estate Vests In Trustee: NCLAT New Delhi
On 7 October, the National Company Law Appellate Tribunal (NCLAT) at New Delhi held that a bankrupt personal guarantor cannot withdraw or otherwise deal with funds in a bank account once the bankruptcy estate has vested in the Bankruptcy Trustee. A Bench comprising Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha dismissed appeals filed by Manju Sirohi, personal guarantor of Saha Infratech Pvt. Ltd., against orders directing her to return Rs. 19,17,500 withdrawn...
NCLAT Sets Aside Separate CIRP Against Earth Towne After Supreme Court Restored EIL's Resolution Plan
The National Company Law Appellate Tribunal (NCLAT), New Delhi, has set aside insolvency proceedings against Earth Towne Infrastructure Pvt. Ltd. (ETIPL), holding that a separate Corporate Insolvency Resolution Process (CIRP) could not continue after the Supreme Court restored the resolution plan for Earth Infrastructures Ltd. (EIL) and brought ETIPL's land within that plan.A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha held that, as on June 1,...
Secured Creditor Cannot Participate In Liquidation While Keeping Option To Withdraw Assets Later: NCLAT
The National Company Law Appellate Tribunal (NCLAT) has held that a secured creditor cannot participate in the liquidation process while keeping open an option to later withdraw its secured assets from the liquidation estate.“We further observe that per combined reading of Section 52(2) of the Insolvency and Bankruptcy Code and also Regulations 21A, 31A(2) and 39BA of Liquidation Process Regulations, the Appellant cannot be permitted to simultaneously participate in the liquidation process and...
Supertech North Eye Homebuyers Move NCLAT Against NBCC Over Delay In 16 Projects
Supertech North Eye homebuyers have moved the National Company Law Appellate Tribunal (NCLAT), alleging that NBCC has not complied with timelines fixed by the tribunal for awarding construction works and commencing work on 16 stalled Supertech projects.The application has been filed by North Eye homebuyer Priyanka Srivastava and the Supertech Group Buyers Association North Eye Association.Homebuyers allege that there has been no material progress in execution of the 16 projects and that there is...