Order Passed By NCLT President On Transfer Application Listed In Court Is Judicial Order, Appealable U/S 421 Of Companies Act: NCLAT

The National Company Law Appellate Tribunal (NCLAT), New Delhi Bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that although the President of the NCLT exercises administrative functions such as listing and transferring cases, once a transfer application is listed before the Court, any order passed, even if by the President, becomes a judicial order, appealable under Section 421 of the Companies Act. These two Appeals have been filed against orders passed...

'Hard To Believe Corporate Debtor Who Invested ₹5.5 Crore Was Unaware Of CIRP': NCLAT Refuses To Expunge Adverse Remarks Against Suspended Directors

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member), Justice Mohd. Faiz Alam Khan (Judicial Member) and Mr. Naresh Salecha (Technical Member) has held that strong observations made against the suspended directors of the Corporate Debtor, while passing an order of dissolution due to their non-cooperation in providing requisite statutory records to the Resolution Professional or the Liquidator and their continuous...

NCLT/NCLAT Under IBC Lacks Jurisdiction To Set Aside Auction Sale Conducted Prior To Initiation Of CIRP: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan, Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that an auction sale conducted before the commencement of the CIRP cannot be set aside by the NCLT while exercising its jurisdiction under the Insolvency and Bankruptcy Code, 2016 (IBC). Such an auction is not hit by section 14 of the IBC. The present appeal has been filed against an order passed by the National...

90-Day Timeline Under Regulation 2B Of IBBI Regulations For Schemes Of Compromise/Arrangement Is Directory, Not Mandatory: NCLAT, Chennai

The National Company Law Appellate Tribunal (NCLAT) Chennai bench comprising Justice Sharad Kumar Sharma (Judicial Member) and Jatindranath Swain (Technical Member) have held that the 90-day timeline prescribed under Regulation 2B(1) of the IBBI (Liquidation Process) Regulations, 2016 for completing a scheme of compromise or arrangement under Section 230 of the Companies Act, 2013 is directory and not mandatory. The Tribunal held that the statute does not create an absolute bar on...

Inherent Power Under Rule 11 Of NCLAT Rules Cannot Be Invoked To Recall Orders Passed By Fraud Or Without Jurisdiction: NCLAT Chennai

The National Company Law Appellate Tribunal, Chennai, comprising Justice Sharad Kumar Sharma and Jatindranath Swain, dismissed an appeal while upholding that the inherent powers can only be utilized to fill up the vacuums that are prevailing in the given procedural law, but they cannot act as a substitute for the process of law, which could have been exercised by the appellate forum. The appeal was filed by the former managing director of M/s. Platino Classic Motors (India) Private ...

IBC Does Not Impose Time Limit For Rectification Of NCLT Orders: NCLAT New Delhi Upholds Two-Year Limit Under Rule 154 Of NCLT Rules

The present appeal was filed by the erstwhile Resolution Professional of the corporate debtor against the order passed by the adjudicating authority, which approved the resolution plan submitted by the Successful Resolution Applicant. After approval of the resolution plan, the appellant moved an application before the adjudicating authority, seeking rectification of certain figures in the resolution plan. The counsel for the appellant submitted that all the figures have been rectified...

Fresh Application Correcting Typographical Error Is Barred By Res Judicata If Earlier Application Was Dismissed On Merits: NCLAT New Delhi

The present appeal has been filed against the adjudicating authority's order rejecting the section 94 application filed by the appellant. The adjudicating authority dismissed the application, noticing that a similar application (CP No. (IB)- 7) of 2025 filed by the applicant seeking the same relief had earlier been dismissed by it. The appellant contended that there was certain typographical error in its earlier application hence the fresh application, CP (IB)-75(AHM)/2025, after...

DRT Recovery Certificate Confers Financial Creditor Status And Gives Rise To Fresh Cause Of Action: NCLAT Chennai

The company appeals were filed by the personal guarantors of the corporate debtor, challenging the order admitting the Insolvency Resolution Process (IRP) against them u/s 95 of the IBC, 2016. The issues before the Ld. NCLAT were whether the demand notice was properly served and whether the initiation of the proceedings was barred by the limitation. Background of the Case The corporate debtor availed the loan facility from the financial creditor and the appellants were the...

Claim Filed During Liquidation Must Be Dealt With U/S 53 Of IBC, NCLT Can't Direct RP To Make Payment Directly: NCLAT Delhi

The National Company Law Appellate Tribunal held that a claim filed during liquidation must be dealt with as per the waterfall mechanism under Section 53 of the Insolvency and Bankruptcy Code, 2016, and the NCLT cannot direct a Liquidator to make payment to any claimant directly. Justice Ashok Bhushan and Arun Baroka said: “We are of the view that when stakeholder filed a claim in the CIRP and in the liquidation, the claim is entitled to be dealt with as per Section 53 of the IBC. The...

Mere Allegation Of Coercion, Threat, Or Fraud Without Prima Facie Proof Cannot Invalidate Withdrawal Of CIRP U/S 12A Of IBC: NCLAT Chennai

The National Company Law Appellate Tribunal, Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), has held that the withdrawal of the Corporate Insolvency Resolution Process (CIRP) u/s 12A of the IBC cannot be set aside on the mere allegation of coercion or threat unless that has been proved by sufficient evidence. Background of the Case The operational creditor filed an application before the adjudicating authority u/s 9...

[Reverse CIRP] NCLAT Closes CIRP Against Grand Reality Under Its Inherent Powers Upon Handover Of Flats To Homebuyers & Satisfaction Of Claims

The National Company Law Appellate Tribunal (NCLAT), New Delhi bench comprising Justice Yogesh Khanna (Judicial Member) and Mr. Indevar Pandey (Technical Member) exercising its inherent powers under Rule 11 of the NCLAT Rules, 2016, has closed the Corporate Insolvency Resolution Process (“CIRP”) against Grand Reality Pvt. Ltd. through the 'Reverse CIRP' mechanism. The project was completed under court-monitored supervision, and possession was handed over to all homebuyers, and no...

Procedural Direction To File An Affidavit On Ledger Accuracy Is Not Appealable U/S 61 Of IBC: NCLAT Chennai

The National Company Law Appellate Tribunal, Chennai Bench, comprising Justice Sharad Kumar Sharma (Member – Judicial) and Jatindranath Swain (Member – Technical), has held that the procedural direction requiring the appellant to file an affidavit confirming the accuracy of certain ledger transactions could not be appealed. The appeal was preferred u/s 61 of the IBC. Background of the Case The appellant, who happens to be the erstwhile director of Samaara Leathers Pvt. Ltd., has...