NCLAT
Pending Appeal Against CoC Formation Not Grounds To Oppose Appointment Of New Resolution Professional: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that an ongoing appeal questioning the validity or constitution of a Committee of Creditors (CoC) does not prevent the CoC, once constituted and functioning, from replacing the resolution professional (RP) with the approval of the NCLT.A bench of Chaiperson Justice Ashok Bhushan and Technical Member Barun Mitra while dismissing the challenge raised by the suspended director of the insovent company...
NCLAT Dismisses Challenge To Grainotech's Plan For Resolution Of KSG Sugar.
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that the failure to communicate the individual score and ranking of a resolution applicant does not invalidate the corporate insolvency resolution process. The Tribunal ruled that the Consortium of Govindrao Sable's objection to the non disclosure of its scorecard did not affect the approval of the successful resolution plan for KGS Sugar and Infra Corporation Private Limited. The Insolvency and Bankruptcy Code does...
Parties Cannot Be Penalised for Lawyer's Absence: NCLAT Orders Rehearing In Sagar Power Preferential Deal Case
The National Company Law Appellate Tribunal (NCLAT) at Chennai has reaffirmed that parties cannot be penalised because their lawyer failed to appear, and has directed the National Company Law Tribunal (NCLT) Bengaluru to rehear the liquidator's application alleging preferential transactions by former directors of Sagar Power after giving them an opportunity to be heard.The appeal was filed by Narappa Manohar Reddy and Narappa Sharada Reddy, shareholders and former directors of Sagar Power...
NCLAT Dismisses Plea Challenging Investigation Into Alleged Siphoning By Exclusive Capital, Promoters
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently dismissed an appeal filed by Exclusive Capital Ltd. and its promoters, upholding the National Company Law Tribunal (NCLT) Delhi's decision directing a full investigation into the company's affairs. The probe concerns allegations that the management siphoned funds through related-party transactions and diversion of assets, including unsecured loans worth more than Rs 21 crore and luxury vehicles valued at over Rs 16 crore,...
Advance Paid Under Land-Development MoU Not Financial Debt, Can't Trigger CIRP: NCLAT
The National Company Law Appellate Tribunal at Delhi recently held that advance amounts paid under a 2013 land development Memorandum of Understanding for acquiring and amalgamating land in Noida were not financial debt under the Insolvency and Bankruptcy Code and upheld the dismissal of insolvency applications filed by Airwil JKM Infrastructure Pvt. Ltd. and JKM Infrastructure Pvt. Ltd. against Cadillac Infotech Pvt. Ltd. The appeals arose from the rejection of the pleas filed to initiate...
NCLT Cannot Alter Capital Structure Proposed By Successful Auction Purchaser If Legally Compliant: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that the adjudicating authority (NCLT) has no jurisdiction to modify the capital structure proposed by a successful auction purchaser, particularly when neither the stakeholders nor the liquidator objected and the proposal was not shown to violate any law. In an order pronounced on November 20, Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Arun Baroka observed that the powers of the Adjudicating...
NCLAT Fines Prospective Resolution Applicant Rs 15 Lakh For Obstructing Insolvency Process, Turning It Into A “Tom & Jerry Show"
The National Company Law Appellate Tribunal (NCLAT) at New Delhi on Tuesday imposed a cost of Rs. 15 lakh on Astral Agro Ventures, a Prospective Resolution Applicant (PRA), for obstructing the Corporate Insolvency Resolution Process (CIRP) of Megi Agro Chem Ltd. The tribunal observed that the insolvency resolution process “cannot be reduced to a Tom & Jerry show” where a PRA, who doesn't have any right to challenge continuously seeks extensions only to derail the resolution. The tribunal...
NCLT Must Verify ED Attachment Before Refusing Property Release To Successful Resolution Applicant : NCLAT
The National Company Law Appellate Tribunal (NCLAT) on Tuesday held that the National Company Law Tribunal (NCLT), Mumbai, should have verified whether a Bangalore-based flat was provisionally attached by the Enforcement Directorate (ED) before refusing its release to the successful resolution applicant (SRA) of insolvent DSK Southern Projects Pvt. Ltd.A coram comprising of Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Indevar Pandey observed,"...the adjudicating authority has...
Auction Purchaser Cannot Seek Reclassification of NPA In A Manner That Affects Creditor's Rights: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at New Delhi, has recently ruled that a successful auction purchaser cannot demand the reclassification of a corporate debtor's loan from Non-Performing Asset (NPA) to “standard” if it impacts a financial creditor's rights against the debtor's personal guarantors. The bench of Justice N Seshasayee and Technical Member Indevar Pandey observed, “.. the Successful Auction Purchaser of the assets of the CD can only concern itself...
NCLAT Stays Insolvency Proceedings Against Aviation Company After It Offers To Deposit Double The Debt
The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently stayed the corporate insolvency proceedings against an aviation services company after it's suspended director offered to deposit Rs 1.09 crore, double the claimed dues of Rs. 54.03 lakh (with 15% interest), which had been pending since 2019, to demonstrate its bona fide intentions.The bench, comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra, observed, “The Appellant having offered to deposit...
NCLAT Restores Promoters' Right To Bid In JC World Hospitality Resolution Process
The National Company Law Appellate Tribunal has recently overturned a July 2025 order of the National Company Law Tribunal, New Delhi, that had declared the promoters of JC World Hospitality Pvt Ltd ineligible to submit resolution plan under the Insolvency and Bankruptcy Code. The Bench of Chairperson Justice Ashok Bhushan and Member Barun Mitra restored the promoters' resolution plan for consideration and directed the NCLT to decide the pending plan approval application within three months. ...
NCLAT Upholds Gujarat VAT Dept As Secured Creditor In Sterling Lam Insolvency; Says Statutory Charge Under GVAT Act Creates Security Interest
The National Company Law Appellate Tribunal (NCLAT), Principal Bench at New Delhi, has upheld the National Company Law Tribunal (NCLT) Ahmedabad's order directing that the Gujarat State Tax Department (Department) be treated as a secured creditor in the insolvency proceedings of Sterling Lam Limited (Sterling Lam), the corporate debtor. The NCLAT affirmed that the statutory charge created by “operation of law” under Section 48 of the Gujarat Value Added Tax Act, 2023 (GVAT Act),...