"IBC code" most commonly refers to India's Insolvency and Bankruptcy Code, 2016, an act that consolidates and amends laws for the time-bound resolution of insolvency for corporate bodies, firms, and individuals.

The National Company Law Tribunal (NCLT) is a quasi-judicial body in India that adjudicates issues relating to Indian Companies. The National Company Law Tribunal is the adjudicating authority for the insolvency resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016, while the National Company Law Appellate Tribunal (NCLAT) was constituted under Section 410 of the Companies Act, 2013, for hearing appeals against the orders of National Company Law Tribunal(s) (NCLT),

Numerous rulings by the NCLT have served as judicial precedents, offering insights into the methodology adopted by courts to resolve disputes on insolvency timelines, promoter disqualifications, and financial creditor rights.

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

IDBI Bank Limited vs Wind World (India) Infrastructure Private Limited CITATION : 2025 TAXSCAN (NCLT) 201

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

Kailash Ramkishan Gupta & Another vs Indian Commodity Exchange Limited & Ors. CITATION : 2025 TAXSCAN (NCLT) 202

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

Kamal Rajkumar Sharma vs Dunnimaa Engineers and Divers Enterprises Pvt. Ltd. CITATION : 2025 TAXSCAN (NCLT) 204

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

M/S SREE UGCL PROJECTS LTD vs M/S GEOSPHERE INDUSTRIES PVT. LTD CITATION : 2025 TAXSCAN (NCLT) 205

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

Maruti Suzuki India Limited vs Suzuki Motor Gujarat Private Limited CITATION : 2025 TAXSCAN (NCLT) 206

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

M/s. Kerala Financial Corporation v Dr. Bharath Chandran CITATION : 2025 TAXSCAN (NCLT) 207

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

M/s. Cochin Aircraft Maintenance Company Ltd vs Registrar of Companies Kerala CITATION : 2025 TAXSCAN (NCLT) 208

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

MIRAE ASSET SHAREKHAN FINANCIAL SERVICES LIMITED CITATION : 2025 TAXSCAN (NCLT) 209

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

Amit Chandrashekhar Poddar vs Consortium of Shantech International Pvt Ltd. and Worldfa Exports Pvt Ltd. CITATION : 2025 TAXSCAN (NCLT) 210

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

Mr. Dhiren Shah, Resolution Professional of Sterling Healthcare Limited vs Sterling Healthcare Limited" CITATION : 2025 TAXSCAN (NCLT) 211

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

HDFC Bank Limited vs SHRI BHAGWATI AGRO INDUSTRIES PRIVATE LIMITED CITATION : 2025 TAXSCAN (NCLT) 212

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

Capacite Infraprojects Limited vs Jayesh Natvarlal Sanghrajka CITATION : 2025 TAXSCAN (NCLT) 213

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

Solapur Janata Sahakari Bank Limited vs Mukund Pandharinath Kulkarni CITATION : 2025 TAXSCAN (NCLT) 215

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

Mr. Nitin Vasant Adate vs Mr. Ravi Sethia CITATION : 2025 TAXSCAN (NCLT) 216

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

Rexel India Private Limited vs Proto D Industries Private Limited CITATION : 2025 TAXSCAN (NCLT) 218

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).

PNB Seeks Insolvency Resolution Against Rice Mills Over ₹74.35 Crore Outstanding Debt: NCLT Considers Section 7 Plea

PUNJAB NATIONAL BANK vs BHAGWATI RICE MILLS PRIVATE LIMITED CITATION : 2025 TAXSCAN (NCLT) 219

The Allahabad Bench of National Company Law Tribunal (NCLT) moved Punjab National Bank (PNB) to initiate CIRP Proceedings under section 7 against Rice Mills (Corporate Debtor) for a ₹74.35 crore default dated 08.06.2023 and held that debt and default established, there was limited scope to consider the insolvency application.

The Tribunal, after considering the submissions made, rejected the Corporate Debtor's submissions and admitted the application. On authority, it held that Anil Kumar, Chief Manager, possessed a valid Power of Attorney dated 12.05.2022, from Punjab National Bank authorizing him to initiate IBC proceedings, and that upon bank merger, officers of the transferor bank continue to exercise the same powers in the transferee bank. Accordingly, the Tribunal admitted the application filed by the applicant for initiating CIRP against the Corporate Debtor with a declaration of moratorium under Section 14 of the IBC, 2016 and Babita Jain was appointed as the Interim Resolution Professional.

Full Settlement: NCLT Approves Resolution Plan with 100% Voting Share from Creditors

Ajay Gupta vs Latakisan Construction Private Limited CITATION : 2025 TAXSCAN (NCLT) 220

The Mumbai Bench of the National Company Law Tribunal (NCLT) has approved a resolution plan, bringing the corporate insolvency resolution process to a close after it received unanimous approval from the committee of creditors.

The order relates to Latakisan Construction Private Limited, in respect of which an application was filed by the Resolution Professional seeking approval of the resolution plan under Section 31 of the Insolvency and Bankruptcy Code, 2016. The resolution plan had been approved with 100 per cent voting share at the 12th meeting of the committee of creditors held in November 2024.

The Tribunal, comprising Prabhat Kumar (Technical Member) and Sushil Mahadeorao Kochey (Judicial Member) observed that the resolution plan satisfied the requirements of Section 30(2) of the Insolvency and Bankruptcy Code and the applicable CIRP Regulations. Relying on settled judicial precedents, the bench reiterated that once a resolution plan is approved by the requisite majority of the committee of creditors, the adjudicating authority’s jurisdiction is limited to examining statutory compliance.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates