In a ruling in favour of SBI, the Hyderabad bench of the National Company Law Tribunal (NCLT) has held that the lease dues incurred during the corporate insolvency resolution period prior to the vesting date are payable to the financial creditor.

The application has been filed by the State Bank of India ( Sole Secured Financial Creditor/Applicant) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 ( IBC) . The Applicant seeks a direction to the Successful Resolution Applicant ( Respondent No. 1/SRA) to pay the lease amount arising out of the Lease Agreement dated 19.12.2020 and the Memorandum of Understanding dated 01.02.2021 , entered into with M/s Srikanth International Private Limited ( Corporate Debtor) , to the tune of Rs 74,56,673/- for the period from 01.08.2023 to 13.10.2023.

The application has been filed by the State Bank of India ( Sole Secured Financial Creditor/Applicant) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 ( IBC) . The Applicant seeks a direction to the Successful Resolution Applicant ( Respondent No. 1/SRA) to pay the lease amount arising out of the Lease Agreement dated 19.12.2020 and the Memorandum of Understanding dated 01.02.2021 , entered into with M/s Srikanth International Private Limited ( Corporate Debtor) , to the tune of Rs 74,56,673/- for the period from 01.08.2023 to 13.10.2023.

Unconditional Consent by Sole Financial Creditor is sufficient for withdrawal of CIRP Regulations: NCLT

The National Company Law Tribunal, New Delhi, has held that unconditional consent by the sole financial creditor is sufficient for withdrawal of Corporate Insolvency Resolution Process ("CIRP'') regulations.

The instant interlocutory application was filed by Mrs. Neha Bhasin; the Resolution Professional of M/s. Victory Electric Vehicles International Limited ("Corporate Debtor") under section 12A of the Insolvency and Bankruptcy Code, 2016 (''IBC") read with Regulation 30A of the Insolvency and Bankruptcy Board of India Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("CIRP Regulations'') seeking withdrawal of the Corporate Insolvency Resolution Process ("CIRP'') initiated against the Corporate Debtor, vide order dated 09.05.2025 passed by the Tribunal.

The bench comprising Justice Jyotsna Sharma (Member-Judicial) and Anu Jagmohan Singh (Member-Technical) held that in compliance with Regulation 30A, the Resolution Professional has filed an affidavit dated 05.06.2025 stating that demand drafts amounting to ₹3,10,000/- have been issued towards CIRP costs incurred till filing of this application.

NCLT Admits Application of IDBI Bank u/s 7 of IBC as Corporate Debtor Acknowledges OTS on Due Debt within period of limitation

In a recent case, the Cuttack bench of the National Company Law Tribunal(NCLT) admitted the application of IDBI Bank filed under section 7 of the Insolvency and Bankruptcy Code,2016 (IBC) as the Corporate Debtor acknowledged the one-time Settlement (OTS) on due debt within period of limitation.

The two members bench of Deep Chandra Joshi (Member Judicial) and Banwari Lal Meena (Member Technical) viewed that as the default has occurred on 31.03.2021 and the subsequent acknowledgement made by the Corporate Debtor through OTS extends the limitation period. It is seen that the Applicant had filed this application on 07.03.2024 which is well within the period of limitation. Hence, the period of limitation stands satisfied.

NCLT admits CIRP Application of Canara Bank Citing Default payment of a debt amount beyond Rs, 1 Crore

The National Company Law Tribunal ( NCLT) Cuttack Bench admitted the application filed by Canara Bank citing the default payment of a debt amount beyond Rs, 1 Crore as evident from the Form-C and Form-D of the NeSL certificate, from the loan account statement of the respondent maintained by the Financial Creditor and from the acknowledgement of debt instrument executed by the respondent.

A two member bench of Deep Chandra Joshi, Member (Judicial) and Banwari Lal Meena, Member (Technical) allowed the application filed under Section 7 of the Code read with Rule 4(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating CIRP of S.S. Aluminium Private Limited, Corporate Debtor.

NCLT Allows Liquidation Application filed by Ultratech Cement against Corporate Debtor citing 66.29 % of voting approval by CoC

In a recent case, the National Company Law Tribunal Mumbai Bench allowed the liquidation of corporate debtor Jaatvedas Construction Company Private Limited citing the 66.29 % of vote approval by CoC. The Corporate Insolvency Resolution Process (CIRP) application was filed under Section 9 of the Code by Ultratech Cement Limited, the Operational Creditor against the corporate debtor.

A two member bench of Ashish Kalia, Member (Judicial) and Sanjiv Dutt, Member (Technical) observed that the members of the CoC having 66.29% voting share have already approved the resolution to initiate liquidation of the Corporate Debtor and to appoint Incorp Restructuring Services LLP (Erstwhile M/s Vinay and Keshava Resolution Professionals LLP), IPE, as the Liquidator of the Corporate Debtor in its 25th and 26th meetings held on 04.04.2025 and 25.04.2025.

Corporate Debtor Defaults in Repayment of Financial Debt over Minimum Threshold of Rs. 1 crore u/s 4 of IBC: NCLT admits CIRP Petition

The National Company Law Tribunal (NCLT) Mumbai Bench admitted the petition for Corporate Insolvency Resolution Process (‘CIRP’) on finding that the Corporate Debtor has defaulted in repayment of financial debt over minimum threshold of Rs. 1 crore under section 4 of the Insolvency & Bankruptcy Code 2016 (IBC).

The two member bench of Sameer Kakar , Member (Technical) and Nilesh Sharma , Member (Judicial) viewed that the execution and invocation of the six corporate guarantees, which are referred to in the table hereinabove, are not in dispute. Further, the Respondent/Corporate Debtor has not produced any evidence to show that the guarantees were discharged or that the debt was paid in full. Thus, the existence of debt and default stand proven on record.

Corporate Applicant’s Own Petition under IBC S. 10 Admitted: NCLT Initiates CIRP on Finding Default Due and Payable Beyond IBC Section 4(1) Threshold

The National Company Law Tribunal (NCLT) Mumbai Bench initiated the Corporate Insolvency Resolution Process (CIRP) against the corporate applicant on finding a default due payable.

The Company Petition is filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 (“Code”) by Asis Corporate Advisors Limited (“Corporate Applicant/ACAL”), seeking to initiate its own Corporate Insolvency Resolution Process (“CIRP”). The Corporate Applicant is preferring the said application owing to financial stress faced by it, consequent to which it is not in a position to repay the debts due to its creditors.

After hearing the submissions and upon perusing the supporting documents annexed with the Petition, a two member bench of Prabhat Kumar, Member (Technical) and Sushil Mahadeorao Kochey, Member (Judicial) viewed that the application made by the Corporate Applicant is complete in all respects as required by law. It clearly shows that the Corporate Applicant is in default of a debt due and payable, and the default is in excess of the minimum amount stipulated under section 4(1) of the IBC, at the relevant time.

NCLT Allows Liquidation of Phalcom Infra Solutions Pvt Ltd

In a recent case, the Mumbai bench of the National Company Law Tribunal (NCLT) allowed the liquidation of Phalcom Infra Solutions Pvt Ltd. The Applicant has also procured the written consent of the proposed Liquidator, which was received on 14th July, 2025.

The Application has been filed by Stakeholder Committee of Phalcomm Infra Solutions Private Limited through Kuber Financial Services, the sole Financial Creditor, under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 r/w Rule 11 of the NCLT Rules, 2016 seeking following reliefs.

A two member bench Prabhat Kumar and Sushil Mahadeorao Kochey viewed that the SCC has passed the resolution by requisite majority for appointment of Manish Dawda, Insolvency Professional, having AFA Certificate as the Liquidator in the matter of Liquidation Process of the Phalcomm Infra Solutions Private Limited, Corporate Debtor.

Minor clerical mistakes do not affect maintainability of an IBC petition, When Identity of Parties is not in dispute: NCLT Admits Petition u/s 9

In a recent case, the Mumbai bench of the National Company Law Tribunal ( NCLT ) held that minor clerical mistakes do not affect maintainability of an Insolvency Bankruptcy Code (IBC) petition when the identity of the parties is not in dispute and admitted the petition filed under section 9 of the code, 2016.

A two member bench of Shri Sameer Kakar, Member (Technical) and Shri Nilesh Sharma, Member (Judicial) observed that the contention that the Application is defective because the name of the CD is mentioned as “Kute Sons Dairy Ltd.” instead of “Kute Sons Dairys Ltd.” is hyper-technical and not fatal to the Application. The CD has participated in the proceedings without raising any confusion about its identity.

Application under section 7(5) of IBC cannot be Rejected due to non furnishing of NeSL when existence of debt and default by CD is established: NCLT

In a recent case, the Mumbai bench of the National Company Law Tribunal(NCLT) has held that application under section 7(5) of the Insolvency & Bankruptcy Code 2016 (‘the Code’) cannot be Rejected due to non furnishing of NeSL when existence of debt and default by Corporate Debtor is established.

A two member bench of Shri Sameer Kakar, Member (Technical) and Shri Nilesh Sharma, Member (Judicial) observed that “we cannot dismiss the instant application under section 7(5) of the Code on the ground that the record of default from the Information Utility i.e. NeSL, has not been furnished, especially when the existence of debt and the factum of default committed by the Corporate Debtor in repayment of financial debt to the Financial Creditor have been satisfactorily established from other evidence. Accordingly, we reject the aforesaid plea of the Corporate Debtor to dismiss this petition on the ground that the debt and default have not been registered with NeSL.”

Directors who Invested ₹5.5 Cr in Corporate Debtor Cannot Claim to be Unaware of CIRP: NCLAT Upholds Denial of Exclusion/Extension

The National Company Law Appellate Tribunal (NCLAT) recently dismissed an appeal filed by the suspended directors of a corporate debtor, holding that directors who had invested a sum of ₹5,49,99,950 into the corporate debtor company cannot possibly and credibly claim to have been unaware of the initiation of corporate insolvency resolution process (CIRP) against their company.

A three-member NCLAT bench comprising Justice Rakesh Kumar Jain (Member Judicial), Justice Mohd. Faiz Alam Khan (Member Judicial) and Naresh Salecha (Member Technical) reviewed the record and communications, including multiple emails and postal processes and observed that some notices were returned but others were received and acted upon by promoter directors.

NCLT allows Exclusion of Time spent by Liquidator in complying with Judicial Orders and Directions of Stake Holders

Central Bank of India vs SasaMusa Sugar Works Private Limited CITATION : 2025 TAXSCAN (NCLT) 173

The bench comprising Justice Bidisha Banerjee (Member-Judicial) and Siddharth Mishra (Member-Technical) viewed that applying the combined scheme of Regulation 47 (model timeline, directory in nature) and Regulation 33 read with Schedule I (strict auction cycles but subject to SCC advice and Tribunal’s leave).

Adjudicating Authority Bound to Initiate CIRP if Application u/s.10 is Complete and There is No Ineligibility u/s.11: NCLT

A Division Bench of the National Company Law Tribunal at Chennai held that when an application under Section 10 of the Insolvency and Bankruptcy Code is deemed complete and the corporate applicant does not stand disqualified by any of caveats of Section 11, the Adjudicating Authority is bound to admit the petition and initiate the Corporate Insolvency Resolution Process (CIRP).

The Bench of Sanjiv Jain, Member (Judicial) and Venkataraman Subramaniam, Member (Technical) examined the provisions of section 10 of the IBC. The Tribunal further referenced the decision of the NCLAT, New Delhi in M/s. Unigreen Global Private Limited vs. Punjab National Bank and others (2017) and Go Airlines(India) Limited (2024 TAXSCAN (NCLT) 141) to hold that when an application under Section 10 is complete and no ineligibility under Section 11 exists, the adjudicating authority is bound to admit the company petition.

Equity Investment Made through Commercial MoU does not Convert Underlying Claim into Operational Debt: NCLT

The National Company Law Tribunal( NCLT), Hyderabad Bench has held that an equity investment made through Commercial memorandum of understanding (MoU) doesn't convert the underlying claim into operational debt. An equity investment, does not relate to the provision of goods or services, and hence does not fall within the meaning of “operational debt” under the Insolvency and Bankruptcy Code, 2016 (IBC).

The tribunal comprising Mr. Rajee Bhardwaj (Member-Judicial) and Mr. Sanjay Puri (Member-Technical) viewed that the existence of a mere investment or commercial arrangement, without such disbursement, does not satisfy the statutory test. It was found that the transaction clearly falls outside the ambit of Section 5(21). The present transaction, being an equity investment, does not relate to the provision of goods or services, and hence does not fall within the meaning of “operational debt” under the Code.

Application under section 7(5) of IBC cannot be Rejected due to non furnishing of NeSL when existence of debt and default by CD is established: NCLT

n a recent case, the Mumbai bench of the National Company Law Tribunal(NCLT) has held that application under section 7(5) of the Insolvency & Bankruptcy Code 2016 (‘the Code’) cannot be Rejected due to non furnishing of NeSL when existence of debt and default by Corporate Debtor is established.

A two member bench of Shri Sameer Kakar, Member (Technical) and Shri Nilesh Sharma, Member (Judicial) observed that “we cannot dismiss the instant application under section 7(5) of the Code on the ground that the record of default from the Information Utility i.e. NeSL, has not been furnished, especially when the existence of debt and the factum of default committed by the Corporate Debtor in repayment of financial debt to the Financial Creditor have been satisfactorily established from other evidences. Accordingly, we reject the aforesaid plea of the Corporate Debtor to dismiss this petition on the ground that the debt and default have not been registered with NeSL.”

NCLT Admits Rs 2,888 Cr Insolvency Petition by Canara Bank Against Gupta Power Infrastructure, Appoints IRP

The National Company Law Tribunal (NCLT) Kolkata bench admitted Rs 2,888 Cr Insolvency petition by Canara Bank against Gupta Power Infrastructure, holding that when a financial creditor consortium establishes a valid default exceeding the threshold limit under Section 4 of the IBC, supported by proper authorization and undisputed evidence of debt, the Adjudicating Authority is bound to admit the Section 7 petition and initiate the Corporate Insolvency Resolution Process (CIRP).

The Bench of Smt. Bidisha Banerjee, Member (Judicial) and Cmde. Siddharth Mishra, Member (Technical) examined the provisions of Section 7 and relied on Supreme Court precedents including Rajendra Narottamdas Sheth v. Chandra Prakash Jain (2022) 5 SCC 600, Pioneer Urban Land (2019) 8 SCC 416, and Innoventive Industries Ltd. (2018) 1 SCC 407.

NCLT Approves ₹3.4 Cr Resolution Plan of Ship Leasing Company with 100% CoC Assent subject to Statutory Scrutiny

The National Company Law Tribunal, Mumbai Bench-I (NCLT) recently approved a resolution plan worth ₹3.4 crore submitted by M/s Priyam Projects (I) Pvt. Ltd. for the corporate debtor M/s Steadfast Shipping Pvt. Ltd. (Steadfast Shipping) - a ship leasing company.

The Tribunal approved the resolution plan after noting that the plan had secured 100 percent assent from the Committee of Creditors (CoC). However, the Tribunal maintained that any reliefs or waivers sought in the plan would remain subject to statutory scrutiny by the authorities.

In a recent ruling, the National Company Law Tribunal (NCLT), Chennai Division Bench, admitted a Section 7 application filed by Punjab National Bank against Aban Offshore Ltd., initiating the Corporate Insolvency Resolution Process (CIRP) for a default of over Rs. 1062 crore.

The application stemmed from a debt dating back to 2017. Aban Offshore, the Corporate Debtor, contested the petition, arguing that it was a solvent company facing temporary difficulties and had submitted several One-Time Settlement (OTS) proposals.

The Ahmedabad bench of the National Company Law Tribunal (NCLT) held that under Section 9(5) of the IBC, 2016, a dispute limited to interest does not amount to a pre-existing dispute and therefore does not bar initiation of the Corporate Insolvency Resolution Process.

The present application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by the operational creditor, Mr Mukeshkumar Shah, Proprietor of M/s Radhey Traders, against the corporate debtor, Synergy Food and Agro Processors Pvt. Ltd., seeking initiation of the Corporate Insolvency Resolution Process (CIRP).

The Tribunal noted that under IBC, once a corporate debtor defaults, the reason for default (including inability to pay) is irrelevant for admitting a petition, citing Swiss Ribbons Private Limited v. Union of India. Hence, financial hardships due to the pandemic cannot bar the initiation of CIRP.

The two-member bench of Sanjiv Dutt (Technical Member) and Ashish Kalia (Judicial Member) concluded that the Section 7 petition met all statutory pre-requisites and that the Corporate Debtor’s defences, including COVID-19 hardships and technical objections, were untenable. Also, NPV Insolvency Professionals Private Limited was appointed as the Interim Resolution Professional

No Illegibilities u/s 11 of IBC: NCLT Admits CIRP u/s 10 Amid COVID-19 Losses

The National Company Law Tribunal (NCLT), New Delhi, admitted the Corporate Insolvency Resolution Process (CIRP) application under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, as no illegibilities were restricting the CIRP under Section 11.

The two-member bench comprising Atul Chaturvedi (Technical Member) and Manni Sankariah Shanmuga Sundaram (Judicial Member) concluded that CIRP should be admitted, appointed Mr. Ashok Arora as the Interim Resolution Professional, and directed a public announcement.

The Corporate Applicant was instructed to deposit Rs. 2 lakh to cover IRP expenses. A moratorium under Section 14 was declared, preventing the continuation of suits, the transfer of assets, or the enforcement of security interests against the Corporate Debtor. The IRP was directed to manage day-to-day affairs, protect assets, and perform all functions under Sections 15–21 of the Code.

NCLT Sanctions Resolution Plan u/s 30(6) After NCLAT Upholds Asset Valuation and Creditor Protections u/s 30(2)

The National Company Law Tribunal (NCLT) approved the resolution plan under Section 30(6) of the Insolvency and Bankruptcy Code after the National Company Law Appellate Tribunal (NCLAT) upheld its compliance with the requirements of Section 30(2), including fair asset valuation and equitable treatment of creditors.

Following NCLAT’s order, the two-member bench comprising Kaushalendra Kumar Singh(Technical Member) and Khetrabasi Biswal (Judicial Member) sanctioned the resolution plan, declaring it binding on the company, creditors, guarantors, employees, statutory authorities, and other stakeholders under Section 31 of the IBC. The RP was directed to implement the plan while complying with company law and other applicable regulations.

Resolution Plan Below CoC’s Commercial Expectations: NCLT Approves Liquidation After Failed CIRP

Invest Assets Securitization and Reconstruction Pvt Ltd vs APF EstatesPvt Ltd CITATION : 2025 TAXSCAN (NCLT) 189

The Hyderabad bench of the National Company Law Tribunal (NCLT), ordered the liquidation of SAPF Estates Private Limited after the Corporate Insolvency Resolution Process (CIRP) failed to secure a commercially viable resolution.

The CoC maintained that the submitted plan failed to protect creditor interests and was materially lower than the liquidation value. With 100% voting in favor, the CoC recommended liquidation and proposed the existing RP as Liquidator to ensure continuity.

The bench of Sanjay Puri (Technical Member) and Rajeev Bhardwaj (Judicial Member)observed that the Resolution Plan did not meet the commercial expectations of the CoC and was substantially below the liquidation value of the Corporate Debtor’s assets. Given the PRA’s unwillingness to enhance the Plan, the Tribunal concluded that continuing the CIRP would serve no fruitful purpose.

Non-Cooperation by Management: NCLT Upholds 92.53% CoC Vote for Liquidation u/s 33(2) After Failed CIRP

The National Company Law Tribunal (NCLT), New Delhi Bench, ordered the liquidation of SN Cinema Advertising Pvt. Ltd. under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, rejecting the suspended directors’ objections that liquidation was premature and that the company’s MSME status entitled them to revive operations.

Thetwo member bench of Dr Sanjeev Ranjan (Technical Member) and Bachu Venkat Balaram Das (Judicial Member) referred to precedents in K. Sashidhar, Vallal RCK, and K.N. Raja Kumar, reiterating that CoC’s decisions are not subject to judicial review unless tainted by illegality or fraud. It further noted that the CIRP had already extended beyond permissible limits, and continuation served no purpose given the cessation of business operations and unavailability of records.

Alleged Quality Issues Not a Pre-existing Dispute: NCLT Allows Section 9 Application, Admits Operational Debt of ₹1.44 Crore

The Mumbai Bench of the National Company Law Tribunal (NCLT) admitted a Section 9 application filed by holding that alleged quality issues in the supply of ready-mix concrete did not constitute a genuine pre-existing dispute.

The two-member bench of Nilesh Sharma (Judicial Member) and Shri Sameer Kakar (Technical Member) held that the operational creditor had established an operational debt of ₹1.44 crore and a default beyond the statutory threshold, and admitted the petition under Section 9 of the IBC.

The Tribunal initiated the Corporate Insolvency Resolution Process (CIRP) against Theme Developers Pvt. Ltd., appointed Mr Debi Prasanna Sarangi as the Interim Resolution Professional (IRP), and declared a moratorium under Section 14, prohibiting institution or continuation of suits and transfer of assets.

Debt Acknowledgement Overcomes Limitation Defence: NCLT Admits CIRP u/s 7 on ₹147 Cr Claim of Punjab National Bank

The New Delhi Bench of the National Company Law Tribunal (NCLT) admitted a Section 7 petition filed by Punjab National Bank against M/s Shriram Skill and Education Ltd., initiating the corporate insolvency resolution process (CIRP) over a financial debt of ₹147.31 crore.

The two-member bench of Dr Sanjeev Ranjan (Technical Member) and Bachu Venkat Balram Das (Judicial Member) admitted the Section 7 application and initiated CIRP against M/s Shriram Skill and Education Ltd. under the IBC. A moratorium was imposed under Section 14,

Mr. Prabhakar Kumar was appointed as the Interim Resolution Professional (IRP). The IRP was directed to take charge of the corporate debtor’s management, assets, and records, and to report periodically to the NCLT. The Financial Creditor was ordered to deposit ₹2 lakh to meet IRP expenses, recoverable through adjustment by the Committee of Creditors.

In a recent ruling, the National Company Law Tribunal (NCLT), Indore Bench, admitted a Section 7 application filed by a group of 125 investors against Garima Real Estate & Allied Ltd., initiating the Corporate Insolvency Resolution Process (CIRP) for a default of over Rs. 1.15 crore.

The application originated from an investment scheme in which the company had promised fixed returns to its investors. The Securities and Exchange Board of India (SEBI) had, in 2016, barred the company from raising funds under such schemes and directed it to refund investors, an order which the Corporate Debtor failed to comply with.

The two member bench comprising Mahendra Khandelwal (Judicial Member) and Anu Jagmohan Singh (Technical Member) heard the counsels for the financial creditor and reviewed the petition. Since the registered office of the corporate debtor was in Delhi, the Tribunal had jurisdiction to decide the matter under Section 7 of the Insolvency and Bankruptcy Code.

It noted that the applicant had sanctioned working capital limits to the corporate debtor, starting with ₹40 crore on 07.06.2010, which were later enhanced. The documents and financial statements confirmed that a financial debt existed. The account was overdrawn on 25.01.2019 and classified as a Non-Performing Asset on 30.04.2019.

Forged Bank Guarantee Scuttles Rescue Plan: NCLT Orders Liquidation of Unitech Transformers

In a recent ruling, the National Company Law Tribunal ( NCLT ), Mumbai Court-II, allowed an application under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, ordering the liquidation of Unitech Transformers Pvt. Ltd. based on an application filed by the Resolution Professional.

The NCLT bench, comprising Ashish Kalia (Member, Judicial) and Sanjiv Dutt (Member, Technical), analyzed the contentions. The Tribunal held that Section 33(2) of the Code allows for liquidation when the committee of creditors, with approval of not less than sixty-six percent of the voting share, decides to liquidate the corporate debtor.

NCLT Initiates Insolvency against Labhanshi Multitrade Over Rs. 1.17 Crore Default

Avanti Finance Pvt Ltd vsLabhanshi Multitrade Pvt Ltd CITATION : 2025 TAXSCAN (NCLT) 198

The Special Bench of the National Company Law Tribunal (NCLT) at Indore has admitted a Section 7 application under Insolvency and Bankruptcy Code (IBC), 2016 and initiated the Corporate Insolvency Resolution Process (CIRP) against Labhanshi Multitrade Private Limited, holding that the existence of a financial debt and default was undisputed.

A bench comprising Judicial Member Mohan P. Tiwari and Technical Member Sanjeev Sharma observed that the requirements of Section 7(5)(a) of the Insolvency and Bankruptcy Code, 2016 (IBC) were satisfied. The Tribunal noted that the existence of a financial debt exceeding Rs. 1 crore and the default in its repayment were "undisputed".

It held that the Financial Creditor had successfully discharged its burden of proof under Section 7 of the IBC by demonstrating the debt and default with comprehensive documentation.

NCLT Admits S. 9 Application, Initiates CIRP Against Tirumalla Agro Industries for ₹1.11 Crore Default

The National Company Law Tribunal (NCLT), Mumbai Bench, has admitted a Section 9 application filed by an Operational Creditor, thereby initiating the Corporate Insolvency Resolution Process (CIRP) against Tirumalla Agro Industries Private Limited for a default of over ₹1.11 Crore.

The NCLT bench, comprising Shri Nilesh Sharma (Member Judicial) and Shri Sameer Kakar (Member Technical), after considering the rival submissions, admitted the application. The Tribunal found that the OC had established the existence of an operational debt exceeding the threshold limit and that a default had occurred.

It noted that the CD had failed to file a substantive reply despite multiple opportunities and that its own correspondence had admitted the liability. The Tribunal held that the belated technical objections could not be considered a "dispute" within the meaning of the IBC, especially when the existence of the debt was acknowledged by the CD.

NCLT Admits IDBI Bank's Petition, initiates CIRP against Wind World Infrastructure for Default of over ₹55 Crore

The National Company Law Tribunal (NCLT), held that the petition filed by IDBI Bank was within the period of limitation, as the Corporate Debtor had acknowledged the debt in its audited balance sheets for multiple financial years. Each such acknowledgment, under Section 18 of the Limitation Act, 1963, was construed to have extended the limitation period, thereby rendering the Section 7 application timely.

The Tribunal bench of Charanjeet Singh Gulati Member (Technical) and Mohan Prasad Tiwari, Member (Judicial) concluded that the proceedings under the IBC are for the resolution of a financially distressed corporate debtor and are not merely a recovery mechanism. It noted that the Corporate Debtor, having no source of revenue and being unable to service its debt, was clearly in financial distress, warranting the initiation of CIRP, and the pendency of a recovery proceeding before the DRT was not a bar to admitting the application.

NCLT Waives One-Tenth Shareholding Mandate, Allows Former ICEX Promoters to Maintain Oppression & Mismanagement Case

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) recently waived the statutory one-tenth shareholding requirement under Section 244(1)(a) of the Companies Act, 2013, permitting former promoters and shareholders of the Indian Commodity Exchange Limited (ICEX) to maintain an oppression and mismanagement case against the commodity and derivatives exchange’s management.

The matter was heard by a Bench comprising Shammi Khan (Judicial Member) and Sanjeev Sharma (Technical Member). The alleged acts of oppression and mismanagement including those of undervalued asset sales, excessive managerial remuneration and non-compliance with statutory obligations were found to be prejudicial to shareholders’ interests.

Financial Debt Default of over Rs. 45 Crores: NCLT Admits SBI's Application and Initiates CIRP Against Giga Pipe Systems

STATE BANK OF INDIA vs GIGA PIPE SYSTEMS INDIA PVT. LTD CITATION : 2025 TAXSCAN (NCLT) 203

The National Company Law Tribunal (NCLT), New Delhi, has admitted an application filed by the State Bank of India (SBI) under Section 7 of the (IBC), thereby initiating the Corporate Insolvency Resolution Process (CIRP) against Giga Pipe Systems India Pvt. Ltd. The application was based on a financial debt default exceeding Rs. 45 Crores.

In its analysis, the NCLT bench, comprising Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Atul Chaturvedi, held that the existence of a financial debt and the occurrence of default were established on record. The Tribunal addressed the limitation issue, stating that even if the earliest date of default (03.05.2022, as per NeSL records) was considered, the application filed on 01.05.2025 was still within the three-year limitation period.

NCLT Approves Resolution Plan for Dunnimaa Engineers Submitted by Amphitrite Subsea

The National Company Law Tribunal (NCLT), Mumbai bench has approved the resolution plan submitted by Amphitrite Subsea Private Limited for the revival of Dunnimaa Engineers and Divers Enterprises Private Limited, which was undergoing Corporate Insolvency Resolution Process (CIRP) since November 2022.

The NCLT observed that the resolution plan complied with the requirements of Section 30(2) of the IBC and related regulations. The Tribunal relied on Supreme Court precedents, including K. Sashidhar v. Indian Overseas Bank and Essar Steel India Limited v. Satish Kumar Gupta, to emphasize that its role is limited to verifying whether the resolution plan as approved by the CoC meets the requirements specified in Section 30(2) of the IBC.

The bench comprising Shri Anil Raj Chellan (Member, Technical) and Shri K.R. Saji Kumar (Member, Judicial) approved the resolution plan with several conditions as the Resolution Plan is not in contravention of any of the provisions of Section 29A of the Code

Unilateral Credit Note and Ledger Write-off Not Proof of Debt Discharge: NCLT Initiates CIRP u/s 9 of IBC

The National Company Law Tribunal (NCLT), Cuttack Bench, in a recent case, rejected the petitioner’s defence that an operational debt of ₹18.56 crore stood settled through a unilateral credit note and ledger write-off.

The Tribunal concluded that (i) unilateral credit notes and ledger write-offs do not extinguish an operational debt, (ii) no credible proof of settlement was shown, and (iii) the petition was bona fide. Consequently, the two-member bench of Deep Chandra Josh (Judicial Member) and Banwari Lal Meena (Technical Member) initiated CIRP, and both interim applications ( filed by the debtor were dismissed.

Corporate Restructuring: NCLT Approves Maruti Suzuki's Amalgamation with Suzuki Motor Gujarat

In a recent ruling, the National Company Law Tribunal (NCLT), Principal Bench, sanctioned the amalgamation of Suzuki Motor Gujarat Private Limited with its parent company, Maruti Suzuki India Limited.

NCLT held that the proposed Scheme of Amalgamation, under Sections 230-232 of the Companies Act, 2013, was in the best interest of the companies and their stakeholders, sanctioning the transfer of all assets and liabilities from the subsidiary to the parent company.

A two member bench of Ramalingam Sudhakar, President and Ravindra Chaturvedi, Member (Technical) held that “the Petitioner Companies shall within thirty days of the date of the receipt of this Order or on sanction of the Scheme with respect to Transferee Company, whichever is later, cause a Certified Copy of this Order to be delivered to the Registrar of Company for registration and on such Certified Copy being so delivered, the Transferor Company shall be dissolved and the Registrar of Company shall place all documents relating to the Transferor Company on the file kept by him in relation to the Transferee Company and the files relating to all the Petitioner Companies shall be consolidated accordingly.

Limitation Act Applies to IBC: NCLT Condones Delay in Kerala Financial Corp's Bankruptcy Applications

While allowing the bankruptcy applications filed by Kerala Financial Corporation against personal guarantors, the Kochi bench of National Company Law Tribunal (NCLT) has held that the provisions of the Limitation Act, 1963, apply to proceedings under the Insolvency and Bankruptcy Code, 2016, and has condoned the delay in filing the applications.

The bench comprising Vinay Goel (Member-Judicial) and Madhu Sinha (Member-Technical), has held that the Limitation Act, 1963, applies to IBC proceedings. The Tribunal relied on Supreme Court precedents, including Sesh Nath Singh & Ors. v. Baidyabati Sheoraphuli Cooperative Bank Ltd. and B.K. Educational Services Pvt. Ltd. v. Parag Gupta & Associates, to hold that the word 'shall' in Section 121(2) of the IBC is directory and not mandatory.

NCLT Approves Cochin Aircraft Maintenance Company’s ₹87.75 Lakh Capital Reduction Following Shift to Consultancy Services

The National Company Law Tribunal (NCLT) Kochi Bench has approved Cochin Aircraft Maintenance Company Limited’s proposal to reduce its paid-up share capital under Section 66 of the Companies Act, 2013.

The company, originally engaged in aircraft maintenance and training, decided to discontinue aviation operations and shift to engineering consultancy, rendering its existing capital structure excessive.

Approving the petition, the two-member bench comprising Vinay Goel (Judicial Member) and Madhu Sinha(Technical Member) confirmed the capital reduction from ₹1,13,58,450 to ₹25,83,450 by returning ₹87,75,000 to shareholders and directed the company to file the approved minute with the ROC within 30 days.

NCLT Sanctions Merger of Sharekhan into Mirae Asset Financial Services to Comply with RBI Directive

The National Company Law Tribunal (NCLT), Mumbai Bench, has approved the scheme of amalgamation between Mirae Asset Sharekhan Financial Services Limited and Mirae Asset Financial Services (India) Private Limited, primarily to comply with a directive from the Reserve Bank of India (RBI).

“The Applicant Companies shall publish a joint advertisement, once each in "Business Standard" (Mumbai edition) in the English language and a Marathi translation thereof in 'Loksatta' (Mumbai edition) both circulated in Mumbai, at least 21 clear days before the meeting of the equity shareholders of Applicant Company 1, in the prescribed form CAA. 2, as per Rule 7 of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 convening the said meeting on such day, date, time and mode as aforesaid, stating that copy of the Scheme and the statement disclosing all material facts as required under Section 230(3) of the Companies Act, 2013 read with Rule 6 of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016.”, the bench of Prabhat Kumar, Member (Technical) and Sushil Mahadeorao Kochey, Member (Judicial) concluded.

NCLT Upholds CoC Decision, dismisses Applications Challenging Unijules Resolution Plan

The National Company Law Tribunal (NCLT), Mumbai Bench, has upheld the decision of the Committee of Creditors (CoC) and dismissed applications filed by an unsuccessful resolution applicant and a dissenting financial creditor that challenged the approval of a resolution plan for Unijules Life Sciences Limited.

A division bench of Justice Prabhat Kumar and Justice S. Sushil Mahadeorao Kochey, in its detailed order, rejected these contentions and upheld the CoC's commercial wisdom. The Tribunal emphasized that its jurisdiction is limited and circumscribed by Section 31 of the Insolvency and Bankruptcy Code, and it cannot interfere with the commercial decision of the CoC unless the plan fails to meet the mandatory requirements of Section 30(2) of the Code.

NCLT Sanctions Over Rs. 12.80 Crore Payout in Sterling Healthcare Resolution Plan

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The National Company Law Tribunal (NCLT), Mumbai Bench, has approved a resolution plan for Sterling Healthcare Limited, sanctioning a total payout of over Rs. 12.80 crore to its creditors. The plan, submitted by Mrs. Kanak S. Kewalramani, was approved by 100% of the voting share of the Committee of Creditors (CoC) following a competitive Swiss Challenge process.

A division bench of Justice Sushil Mahadeorao Kochey and Member (Technical) Sh. Prabhat Kumar, in its order, clarified that its role was limited to scrutinizing the CoC-approved plan for compliance with Section 30(2) of the Insolvency and Bankruptcy Code (IBC). Citing the Supreme Court's decision in K Sashidhar v. Indian Overseas Bank, the bench reiterated that its discretion is circumscribed and it cannot re-evaluate the commercial wisdom of the CoC. The NCLT found the plan to be compliant with all statutory requirements and not in contravention of any law.

NCLT Admits HDFC Bank's Insolvency Petition u/s 7 citing clear acknowledgment of liability , Initiates CIRP

The National Company Law Tribunal (NCLT), Indore Bench, has admitted a Section 7 application filed by HDFC Bank Limited against Shri Bhagwati Agro Industries Private Limited, leading to the initiation of a Corporate Insolvency Resolution Process (CIRP) citing clear acknowledgment of liability..

A division bench of Justice Brajendra Mani Tripathi and Member (Technical) Man Mohan Gupta, after a detailed analysis, rejected the contentions of the Corporate Debtor. The Tribunal found that the certificate from the Information Utility (NESL) showing the default, read with the Corporate Debtor's own proposal for a One-Time Settlement (OTS), constituted a clear acknowledgment of liability.

Contractor accepting Flats as Payment Cannot be Reclassified as a Financial Creditor: NCLT

The National Company Law Tribunal (NCLT), Mumbai Bench, has dismissed an application seeking to be classified as a 'financial creditor' in the insolvency proceedings of Radius & Deserve Builders LLP. The bench held that an operational creditor cannot be converted into a financial creditor through a property settlement.

The NCLT, however, rejected this contention. The bench, comprising Ms. Lakshmi Gurung (Member Judicial) and Sh. Hariharan Neelakanta Iyer (Member Technical) held that the fundamental requirement for being a financial creditor is that money must be 'raised from' an allottee for a real estate project, which has the commercial effect of a borrowing.

In this case, the Tribunal found that no money was disbursed by Capacite to the corporate debtor; instead, the flats were offered as a 'barter arrangement' to settle a pre-existing operational debt for construction services.

SARFAESI Notice Deemed Valid Invocation: NCLT Orders Insolvency Against Personal Guarantor

The National Company Law Tribunal (NCLT), Mumbai Bench, has admitted an application to initiate the insolvency resolution process against a personal guarantor, holding that a notice issued under the SARFAESI Act constituted a valid invocation of the guarantee and that the application was filed within the period of limitation.

The bench, comprising Shri Anil Raj Chellan (Member Technical) and Shri K. R. Saji Kumar (Member Judicial), analysed the contentions. It held that the SARFAESI notice, which was addressed to the guarantors and demanded payment, satisfied the terms of the guarantee deed and constituted a valid invocation.

NCLT dismisses Ex-Employee’s 18 Month delayed Salary Claims in Yes Bank Insolvency Case

The Mumbai Bench of the National Company Law Tribunal (NCLT) has dismissed six interlocutory applications filed by former employees of Yes Bank Limited, holding their claims for salary dues, provident fund, and other benefits were time-barred and filed after the corporate resolution plan had already been approved.

The Tribunal, comprising Judicial Member K.R. Saji Kumar and Technical Member Anil Raj Chellan, emphasized that the Insolvency and Bankruptcy Code (IBC) process is strictly time-bound. The claims were filed nearly 18 months after the Corporate Insolvency Resolution Process (CIRP) commenced against Yes Bank and subsequent to the approval of a resolution plan by the Committee of Creditors (CoC) on two occasions.

NCLT Rejects 'Res Judicata' Defense, Admits Insolvency Plea Against Proto D Industries

The Mumbai Bench of the National Company Law Tribunal (NCLT) has admitted an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) against Proto D Industries Private Limited, holding that the operational creditor had established a default of over Rs. 5.8 crore and the corporate debtor had failed to prove any 'pre-existing dispute'.

The Tribunal, comprising Judicial Member Shri Nilesh Sharma and Technical Member Shri Sameer Kakar, rejected the debtor's primary contention that the application was barred by the doctrine of 'res judicata' due to pending proceedings under Section 138of the Negotiable Instruments Act (NI Act) for dishonoured cheques.

The bench pointed that proceedings under the NI Act are quasi-criminal in nature and fundamentally distinct from the civil proceedings under the IBC, which is a beneficial legislation aimed at reviving a corporate debtor, not merely a recovery tool. Consequently, the pendency of a criminal case does not bar the initiation of a Corporate Insolvency Resolution Process (CIRP).