NCLT
Unauthorised Residents Association Cannot Trigger CIRP If Individual Homebuyers Miss Debt Threshold: NCLT Delhi
The National Company Law Tribunal (NCLT) at New Delhi has recently held that a Residents Welfare Association that is not authorised by individual homebuyers cannot initiate a corporate insolvency process on their behalf, particularly when those homebuyers do not individually meet the minimum debt threshold under the Insolvency and Bankruptcy Code. A coram of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Atul Chaturvedi said the Code requires strict compliance with...
Objections To Constitution of CoC Cannot Defeat RP's Plea To Reverse Preferential Deals: NCLT Ahmedabad
The National Company Law Tribunal (NCLT) at Ahmedabad has held that objections to the constitution of the Committee of Creditors cannot be used to block a Resolution Professional's application under Section 43 of the Insolvency and Bankruptcy Code seeking to avoid and reverse preferential transactions.The tribunal said that avoidance proceedings are meant to protect the corporate debtor's...
NCLT Mumbai Rejects RP's Plea To Recover ₹325 Crore Paid To Ericsson During RCom Insolvency
The National Company Law Tribunal (NCLT) at Mumbai has recently refused to order Swedish Equipment Manufacturer Ericsson India Private Limited to return nearly Rs 325 crore that was paid to it during the insolvency proceedings of Reliance Telecom Ltd and Reliance Communications Ltd, two Anil Ambani led companies undergoing corporate insolvency resolution. The payments were made not as part...
NCLT Delhi Admits Canara Bank's Insolvency Plea Against Equinox Over ₹372 Crore Guarantee Default
The National Company Law Tribunal (NCLT) at New Delhi has admitted Canara Bank's insolvency petition against Equinox India Developments Limited, earlier known as Indiabulls Real Estate Limited, for defaulting on Rs 372.35 crore for loans extended to Sinnar Thermal Power Limited for its coal-based thermal power project in Maharashtra. The tribunal rejected the company's claim that the case...
Undertakings To Infuse Equity Or Retain Control Not Guarantees; NCLT Delhi Dismisses CIRP Plea Against RattanIndia
The National Company Law Tribunal at Delhi has dismissed Canara Bank's insolvency petition against RattanIndia Enterprises Limited, holding that promoter undertakings relating to equity infusion and management control do not constitute a corporate guarantee or a financial debt under the Insolvency and Bankruptcy Code. A bench of Judicial Member Manni Sankariah Shanmuga Sundaram and...
Complaints Against Auditors Or Company Secretaries No Ground To Seek Probe Into Company: NCLT Ahmedabad
The National Company Law Tribunal (NCLT) at Ahmedabad recently held that complaints of professional misconduct against auditors or company secretaries cannot form the basis for seeking an SFIO investigation into a company under Sections 212 or 213 of the Companies Act. It said such disciplinary action concerns only the individual professional and does not give the complainant any right...
Costs Incurred For Scheme Of Compromise Or Arrangement Not Included In Liquidation Cost: NCLT Kolkata
The National Company Law Tribunal at Kolkata has clarified that expenses incurred by a Liquidator in exploring a compromise or arrangement for the corporate debtor cannot be treated as liquidation cost, and the same cannot be reimbursed to the liquidator. It reiterated the framework under the Liquidation Regulations makes a mandatory distinction between “liquidation cost”...
NCLT Refuses To Condone 384 Day Delay In Filing Reply In CIRP Citing Voluminous Records
The National Company Law Tribunal (NCLT) at Ahmedabad has refused to condone a 384 day delay in filing a reply to an interlocutory application, holding that reasons such as the volume of documents, a change of advocates and internal communication issues do not amount to “sufficient cause” under Section 5 of the Limitation Act. Invoking the principle of dura lex sed lex (The law is...
Insolvency Plea Cannot Be Dismissed For Alleged Malice Without Cogent Proof: NCLT Ahmedabad
The National Company Law Tribunal at Ahmedabad has clarified that an insolvency application cannot be dismissed on allegations of fraudulent or malicious filing unless clear and cogent evidence of mala fides is shown. While admitting insolvency proceedings against Turnrest Resources Pvt Ltd, a coram of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma said, “Section 65 of...
Company Cannot Seek Rectification Of Fraudulent Share Transfers Without Ownership Proof: NCLT Ahmedabad
The National Company Law Tribunal (NCLT) at Ahmedabad has held that a company cannot seek rectification of its register to undo fraudulent share transfers when it cannot produce the original shareholders' titles or any evidence of ownership. A coram of Judicial Member Chitra Hankare and Technical Member V G Venkata Chalapathy in an order dated December 3, 2025 said Symphony Limited had...
Family Ties Between Debtor Promoters And SRA Shareholders No Disqualification Under IBC: NCLT Kolkata
The National Company Law Tribunal (NCLT) at Kolkata has ruled that family or marital ties with a corporate debtor's promoters cannot, by themselves, render a resolution applicant ineligible under Section 29A of the Insolvency and Bankruptcy Code. The tribunal held that the disqualification arises only when the relative in question is independently barred under the Code, emphasising that...
NCLT Delhi Clears DCM Shriram's Scheme to Reorganise Its Businesses
The National Company Law Tribunal (NCLT) at New Delhi has approved a composite amalgamation and demerger scheme for DCM Shriram Industries and three group entities The bench of Judicial Member Ashok Kumar Bhardwaj and Technical Member Ravindra Chaturvedi cleared the plan on November 21, 2025 while making it clear that the tax department's recovery rights remain untouched and that any default...