Continued Reflection Of Debt In Balance Sheet Amounts To Acknowledgement U/S 18 Of Limitation Act: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that a default in repayment obligations is said to occur when the debt is continuously reflected in the Corporate Debtor's balance sheets over an extended period, particularly when no fresh borrowing was undertaken during that time. In such circumstances, the continued inclusion of the liability...

Liquidation Of Corporate Debtor Can Be Ordered If Successful Resolution Applicant Cannot Obtain Necessary Approvals Within One Year: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that when a successful resolution applicant fails to obtain all necessary approvals within one year from the date of approval of the resolution plan— as mandated under Section 31(4) of the Insolvency and Bankruptcy Code, 2016—liquidation of the corporate debtor must follow as a necessary...

Resolution Plan Providing Contingencies To Ensure Compliance With Building Norms Can't Be Deemed Unviable: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that one of the contingencies outlined in the resolution plan has been accepted, and Successful Resolution Applicant (SRA) has expressed readiness to execute the construction in accordance with any of the approved options. These contingencies are lawful alternatives designed to facilitate...

Court Records Can't Be Disputed Without Filing Correction Application: NCLAT Delhi

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member) & Barun Mitra (Technical Member), dismissed an appeal challenging the National Company Law Tribunal's refusal to accept a reply filed after the closure of arguments. The Tribunal held that the record of the Court is correct until and unless an application is made to the same Court for any correction in case, there is any error. Background Facts: An application was...

NCLT Lacks Authority To Restrain Replacement Of Liquidator In Voluntary Liquidation: NCLAT Delhi

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) held that the National Company Law Tribunal can't compel the corporate debtor to retain the same liquidator once a valid board resolution has been passed for their replacement under voluntary liquidation. Background Facts: In February 2024, Transmissions International India Private Limited, Corporate...

Payment Made During Pendency Of CIRP Application Cannot Be Considered For Calculating Threshold U/S 4 Of IBC: NCLAT New Delhi

The National Company Law Appellate Tribunal, Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial) and Naresh Salecha (Member-Technical), has allowed an appeal filed by the operational creditor. The issue before the tribunal was whether the threshold has to be seen at the time of filing of the application or at the time of admission of the application. Background of the Case The appellant used to sell iron ore to the respondent, but the respondent failed...

If Rights Under Debenture Deed Are Transferred Without Prior Approval From Holders, Liabilities Of Corporate Debtor Remain Undischarged: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that when a debenture deed mandates prior approval of the Debenture Trustee for any transfer of rights or liabilities, any such transfer made through an Acquisition Agreement without obtaining the required approval is in contravention of the principal deed and, therefore, unenforceable....

NCLAT Chennai Dismisses Appeal By Bjyu's Challenging NCLT Interim Order In Aakash Shareholding Dispute

The National Company Law Appellate Tribunal (NCLAT) Chennai bench comprising Justice Sharad Kumar Sharma (Judicial Member) and Jatindranath Swain (Technical Member) has dismissed the appeal filed by Think & Learn Private Limited (Byju's) against Aakash Educational Services Limited and others. The Tribunal held that the impugned order under challenge was interlocutory in nature and passed with the consent of the parties, and therefore no interference was warranted at the appellate...

Subsequent Application U/S 95 IBC Is Barred Where Proceedings Against Same Personal Guarantor Are Already Pending: 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 where proceedings under Section 95 of the Insolvency and Bankruptcy Code (IBC) have already been initiated by one Financial Creditor, a subsequent application under the same provision by another creditor against the same Personal Guarantor is barred by Section 96 of the Code.Brief Facts The Appellant, Indian...

When Entire Debt Amount Has Been Re-Paid, CIRP Process Can't Be Continued: NCLAT Delhi

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) held that when the admitted dues have been repaid by the debtor there is no point in continuing the Corporate Insolvency Resolution Process. Background Facts: M/s Rajasthan Land Holdings Ltd. (RLHL), the Corporate Debtor, was originally a wholly owned subsidiary of M/s Road Infrastructure...

Suspended Management Cannot Disburse Funds Of Corporate Debtor Post-CIRP Commencement Without Authorisation Of IRP: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), New Delhi bench comprising Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) have held that after commencement of Corporate Insolvency Resolution Process (CIRP) once moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC) kicks in, no person can unilaterally recover any amount from the account of the Corporate Debtor. The Tribunal held that the suspended...

Corporate Insolvency And Bankruptcy Laws Bar Association Requests Operationalisation Of Second Bench At NCLAT Chennai

The Corporate Insolvency and Bankruptcy Laws Bar Association, established to promote the study and advancement of corporate, insolvency, bankruptcy, economic, and allied laws, has submitted a representation to the Hon'ble Chairperson of the NCLAT on May 28, 2025, seeking the early constitution of a second bench at NCLAT, Chennai. They stated that On 25.01.2019, in Swiss Ribbons v. Union of India, 2018 the Supreme Court recorded the undertaking given by the Union of India for “setting up...