Separate CIRP For Another Project Of Same Builder Cannot Be Initiated Through Interlocutory Pleas: NCLT Bengaluru

The Bengaluru Bench of the National Company Law Tribunal (NCLT) on 28 April held that a separate Corporate Insolvency Resolution Process (CIRP) for another real estate project cannot be initiated through interlocutory applications in an already admitted insolvency proceeding. Judicial Member Justice Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada ruled that the Insolvency and Bankruptcy Code, 2016 (IBC) permits initiation of CIRP only through independent applications under...

Invoice Dues, Supply Advances Can Be Clubbed As Operational Debt Under IBC: NCLT Chennai

The Chennai Bench of the National Company Law Tribunal (NCLT) on 28 April held that outstanding invoice dues and advance payments made towards supply of goods can be clubbed together as “operational debt” under the Insolvency and Bankruptcy Code, 2016 (IBC) for the purpose of maintaining a petition under Section 9 of the IBC. Technical Member Venkataraman Subramaniam and Judicial Member Sanjiv Jain admitted the application filed by Enmas India Pvt. Ltd. seeking initiation of Corporate...

NCLT Mumbai Holds Water Supply And Service Charges To RIICO Not CIRP Costs

The National Company Law Tribunal (NCLT) at Mumbai on 5 May held that water supply charges and industrial service/maintenance charges payable to Rajasthan State Industrial Development & Investment Corporation Ltd. (RIICO) do not qualify as Corporate Insolvency Resolution Process (CIRP) costs under the Insolvency and Bankruptcy Code, 2016. Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar partly allowed RIICO's application seeking payment of dues from Shrivallabh...

Show Cause Notice Does Not Create Enforceable Debt Claimable In Liquidation: NCLT Ahmedabad

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has recently held that a show cause notice is merely a proposal to determine liability and does not create an enforceable debt while dismissing the Commissioner of Customs' delayed Rs 1.63 crore claim against Spel Granito Pvt. Ltd. in liquidation. Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed: “A Show Cause Notice is only a proposal to determine liability and does not create an enforceable or adjudicated...

NCLT Indore Allows AU Small Finance Bank To Intervene In Aviral Bio Tech CIRP Over Pending Vehicle Loan

The Indore bench of the National Company Law Tribunal has allowed AU Small Finance Bank Limited to join the insolvency proceedings against Aviral Bio Tech & Fertilisers Pvt. Ltd. Holding that the bank, which had extended a vehicle loan to the company, qualifies as a financial creditor, the Tribunal said its objections deserved consideration. “It is not in dispute that the Applicant has extended financial assistance to the Corporate Applicant by way of a vehicle loan, thereby qualifying as...

NCLT Ahmedabad Disposes Gensol's Insolvency Case Against Mindra EV After ₹1.5 Crore Settlement

The National Company Law Tribunal (NCLT) at Ahmedabad has recently disposed of as infructuous insolvency proceedings initiated by Gensol EV Lease Limited against Mindra EV Private Limited after the parties entered into a settlement agreement. A coram of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma passed the order. Gensol had filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 seeking initiation of Corporate Insolvency Resolution Process against...

IBC Individual Insolvency Process Applies To Personal Guarantors, Not Co-Borrowers: NCLT Jaipur

The National Company Law Tribunal (NCLT) at Jaipur has dismissed an insolvency plea after holding that the individual insolvency framework under the Insolvency and Bankruptcy Code applies only to personal guarantors of corporate debtors and not co-borrowers. “In view of the scheme of the Code, we are of the opinion that the legislature in its wisdom extended the application of individual insolvency process only to the Personal Guarantors to the Corporate Debtor,” the tribunal said. A bench of...

NCLT Mumbai Approves Mantra Properties' Rs 201 Crore Resolution Plan For Nirmal Lifestyle

The National Company Law Tribunal's Mumbai Bench has approved a resolution plan involving an infusion of Rs 201 crore by Mantra Properties and Developers Pvt Ltd for Nirmal Lifestyle (Mulund) Pvt Ltd, which has been undergoing corporate insolvency resolution proceedings since July 11, 2023. A Bench of Judicial Member Lakshmi Gurung and Technical Member Hariharan Neelakanta Iyer passed the order on April 29, 2026, allowing an application filed by Resolution Professional Amit Vijay Karia under...

MSME Protections Cannot Override IBC Once Debt And Default Are Established: NCLT Mumbai

The Mumbai Bench of the National Company Law Tribunal (NCLT) has admitted insolvency proceedings against Amar Seeds Private Limited, holding that its status as a Micro, Small and Medium Enterprise would not bar initiation of proceedings under the Insolvency and Bankruptcy Code once financial debt and default were established. The bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar observed: “While the CD's MSME status is not in dispute, the reliefs under the MSMED Act and...

SARFAESI, DRT Proceedings Do Not Bar IBC Action Against Personal Guarantor: NCLT Mumbai

The National Company Law Tribunal (NCLT) in Mumbai has recently held that proceedings under the SARFAESI Act and pending recovery proceedings before the Debt Recovery Tribunal do not bar insolvency proceedings against a personal guarantor to a corporate debtor under the Insolvency and Bankruptcy Code, 2016. A coram of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar passed the ruling while admitting an insolvency application filed by Canara Bank against Shewta Deepak Patel,...

Former Director Liable To Refund Diverted Rental Income Received During CIRP: NCLT Mumbai

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 29 April held that a former director who diverted rental income from properties of the corporate debtor during the Corporate Insolvency Resolution Process (CIRP) is liable to restore the amounts to the insolvency estate. Technical Member Prabhat Kumar and Judicial Member Sushil Mahadeorao Kochey allowed an application filed by the Resolution Professional in the CIRP of Barracks Retail India Pvt. Ltd., admitted on a Section 7...

NCLT Guwahati Holds No Straightjacket Definition For Fraudulent Trading Under Section 66 IBC

In a significant ruling on the scope of Section 66 of the Insolvency and Bankruptcy Code, 2016, the Guwahati National Company Law Tribunal (NCLT) on 30 April held that there is no exhaustive or straightjacket test to determine what constitutes fraudulent or wrongful trading.Judicial Member Justice Rammurti Kushawaha and Technical Member Yogendra Kumar Singh were hearing an application filed by the Resolution Professional of JSB Entrade Pvt. Ltd. against the suspended directors, promoter,...