NCLAT Rejects Ex-Director's Plea for Resolution Plans in Aviom Housing Finance Insolvency

The National Company Law Appellate Tribunal (NCLAT) at Delhi has refused a suspended director of Aviom India Housing Finance Pvt. Ltd. access to resolution plans submitted during the company's insolvency process. The tribunal reiterated that once the board of a financial service provider is superseded by the Reserve Bank of India, former directors have no right to participate in the CIRP or seek copies of resolution plans. The order was passed by a coram comprising Chairperson Justice...

Issuing Cheques For Another Entity's Dues Doesn't Create Operational Debt: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently held that a company cannot be pushed into insolvency merely for issuing cheques on behalf of another entity, in the absence of a direct contractual relationship with the creditor. A coram comprising Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra set aside an order of the National Company Law Tribunal, Delhi that had admitted Nayati Healthcare and Research NCR Pvt. Ltd. into insolvency on a plea filed by...

NCLAT Upholds Order Directing Dagcon's Former Directors To Contribute ₹10.54 Crore For Fraudulent Transactions

The National Company Law Appellate Tribunal (NCLAT) at New Delhi recently held that the former directors of the realty company Dagcon (India) Pvt. Ltd. must contribute Rs 10.54 crore to the company's assets for fraudulent transactions. The tribunal dismissed an appeal filed by suspended director Rana Sarkar and upheld an order of the National Company Law Tribunal at Kolkata.A bench comprising Judicial Member Justice Mohd. Faiz Alam Khan and Technical Member Naresh Salecha held, “The Resolution...

Insolvency Plea Cannot Be Admitted When Information Utility Records Dispute: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT) held that a record of dispute in an Information Utility obligates the tribunal to reject an insolvency application filed by an operational creditor.A bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra set aside the order initiating insolvency against OFB Tech Pvt. Ltd. on an appeal filed by the company's suspended director.The appellate tribunal held that “When there is record of dispute in the Information...

Civil Suit, Anticipatory Bail Application Filed After CIRP Plea Cannot Amount To Pre-Existing Dispute: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi recently held that civil proceedings or anticipatory bail applications filed after a Section 9 CIRP plea cannot be used to claim a pre-existing dispute or block the admission of a valid insolvency petition. The tribunal affirmed the NCLT Indore's order admitting a Section 9-CIRP application against Steelexpert Industries (Indore) and dismissed an appeal filed by former director Yusuf Malubhaiwala. A bench of Chairperson Justice...

SRA Cannot Seek Interest On Performance Bank Guarantee If Letter Of Intent Does Not Provide For It: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Chennai has ruled that a successful resolution applicant (SRA) whose resolution plan was scrapped after the Committee of Creditors opted for liquidation, cannot claim interest on his performance bank guarantee if the Letter of Intent and the Request for Resolution Plan issued by the Resolution Professional does not provide for it. A coram of Judicial Member Justice Sharad Kumar Sharma and Technical Member Indevar Pandey held that the...

Reliance Capital Insolvency: NCLAT Issues Notice On SEBI's Challenge To Plan Clause Allegedly Shielding Subsidiary From Penalties

The National Company Law Appellate Tribunal on Friday issued notice on SEBI's appeal challenging an NCLT Mumbai order that refused to recall or clarify a paragraph in the Reliance Capital resolution plan which, according to SEBI, is being misused to claim that all liabilities of the company's subsidiaries also stand extinguished. SEBI says this interpretation is being deployed by a subsidiary Reliance Exchangenext Limited to avoid a Rs 25 lakh penalty imposed on it for allegedly taking part in...

Amounts Shown As 'Other Advances' In Company's Balance Sheet Not Financial Debt Under IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that amounts shown in a company's balance sheet as “other advances”, including sums advanced years earlier without any repayment demand, do not qualify as borrowings and cannot therefore give rise to a financial debt under the Insolvency and Bankruptcy Code A coram of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra delivered the ruling on December 10, 2025, while dismissing appeals filed by...

Acknowledgment Of Creditor's Email Ledger Sufficient To Prove Debt Even Without Invoices: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a corporate debtor's email acknowledgment of a creditor's ledger is sufficient acknowledgment of operational debt and is enough to justify admission of a Section 9-CIRP application.The tribunal ruled that once such acknowledgment is on record, the absence of invoices cannot defeat a claim or prevent crystallization of debt. A coram of Judicial Member Justice Ashok Bhushan and Technical Member Barun Mitra set aside the...

NCLAT Orders Adani Infrastructure To Pay 12% Interest For Delayed Payment In Ahmedabad Land Auction

The National Company Law Appellate Tribunal (NCLAT) has directed Adani Infrastructure & Developers to pay 12% interest on the delayed Rs 305-crore payment for Ahmedabad land bought in a liquidation auction. It held that a successful bidder cannot escape mandatory payment timelines by citing a tax attachment when the auction terms made clear that the buyer would have to take the property in its existing condition, with all encumbrances, defects and limitations.Delivering its judgment on...

Inactivity Of Company For Two Years No Bar To Insolvency Proceedings: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently ruled that a company cannot avoid insolvency proceedings simply because it has not been operating for two years. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra while upholding insolvency proceedings against Sant Kripa Appliances said, “the mere fact that CD was not functioning for last two years cannot be a ground to not take a proceeding for resolution of the CD which has defaulted...

Resolution Professional Has No Vested Right To Be Liquidator, Mid-Process Replacement Unwarranted: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has held that a resolution professional has no "vested right to be appointed as liquidator" and that replacing the liquidator midway through the process is inappropriate when it risks additional costs and the majority creditor supports the incumbent. A bench of Judicial Member Justice N Seshasayee and Technical Members Arun Baroka and Indevar Pandey said that while the adjudicating authority cannot overrule the Committee of...