Joint Application U/S 9 Of IBC Not Maintainable If Individual Claims Do Not Meet Threshold Limit U/S 4 Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Baurn Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that in a joint application filed by operational creditors under Section 9 of the Insolvency and Bankruptcy Code, 2016 (the Code), the threshold limit prescribed under Section 4 must be independently satisfied by each operational creditor. The collective or aggregate debt of all operational...

No Claim Can Be Submitted After Approval Of Resolution Plan By CoC If Creditor Was Aware Of CIRP Initiation Against Corporate Debtor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that when a creditor is well aware of the initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor but chooses not to file a claim before the Resolution Professional, it cannot be permitted to submit the claim after the Resolution Plan has been approved by the Committee of Creditors (CoC). ...

Homebuyers Remain Financial Creditors U/S 5(8)(F) Of IBC Regardless Of Whether They Obtained RERA Recovery Certificates: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr.Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that whether or not homebuyers have obtained recovery certificates from the Real Estate Regulatory Authority (RERA), they remain financial creditors under Section 5(8)(f) of the Insolvency and Bankruptcy Code, 2016 (Code). Brief Facts: Shailendra Agarwal (Appellant) has filed the present...

NCLT Cannot Adjudicate Disputed Contractual Claims During Liquidation Under IBC If There Exists An Arbitration Clause: NCLAT Chennai

The National Company Law Appellate Tribunal (NCLAT), Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), dismissed an appeal arising out of an order passed by the NCLT, Chennai. The tribunal observed that a liquidator under the IBC, 2016, cannot seek adjudication of a disputed contractual claim if the contract provides an arbitration clause. The tribunal held that the IBC forums are not the appropriate platform for ...

When There Is Sufficient Material To Show Dispute U/S 9(5)(ii)(d) Of IBC, Adjudicating Authority Cannot Ignore The Same: NCLAT, New Delhi

The National Company Law Appellate Tribunal, Principal Bench, New Delhi (NCLAT) comprising of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member Technical) admitted appeal filed Suspended Director of the Corporate Debtor challenging the order dated 26.03.2025 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Court-I, admitting Section 9 application filed by Armaco Infralinks Pvt. Ltd. Background An appeal was filed by Bhawani Prasad Mishra...

Repeated Filing Of Applications U/S 42 Of IBC Violates Principle Of Res Judicata, Amounts To Abuse Of Law: NCLAT Chennai

The National Company Law Appellate Tribunal (NCLAT), Chennai, comprising Justice Sharad Kumar Sharma (Member (Judicial) and Jatindranath Swain (Member (Technical) dismissed appeals filed by the EPFO against the RP and SRA, stating that the same is restricted by the Doctrine of Res Judicata. Background The Employees' Provident Fund Organisation (EPFO) filed a Company Appeal before the National Company Law Appellate Tribunal (NCLAT), Chennai against the Resolution Professional of M/s ...

Adjudicating Authority Cannot Declare Sale Of Going Concern As Void Without Any Challenge: NCLAT New Delhi

The Principal Bench of NCLAT, New Delhi, consisting of Justice Ashok Bhushan (Chairperson) and Arun Baroka (Member-Technical), set aside the NCLT, Ahmedabad Bench's order and held that a sale of the corporate debtor as a going concern cannot be declared null and void suo moto by the Adjudicating Authority in the absence of any challenge to such sale. The Adjudicating Authority had earlier nullified the sale and imposed penalties on the liquidator. Background Application under Section...

Financial Creditors Proceeding With Application U/S 7 Only As A Recovery Measure Is Not The Objective Of IBC: NCLAT

The National Company Law Appellate Tribunal, Principal Bench, New Delhi (NCLAT) comprising of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member Technical) dismissed and appeal filed by a suspended director of the Corporate Debtor (Maneesh Pharmaceuticals Limited) challenging the order of admitting Section 7 application by the National Company Law Tribunal (NCLT), Mumbai Bench. Background An appeal was filed by Mr. Maneesh Ramakant, a suspended director of the Corporate...

Adjudicating Authority Cannot Declare A Sale Transaction Void U/S 66(1) Of IBC: NCLAT New Delhi

The Principal Bench of the NCLAT, New Delhi, presided over by Justice Ashok Bhushan (Chairperson) along with Barun Mitra (Member-Technical), has modified an order passed by the Adjudicating Authority (NCLT, Mumbai) and partly allowed an appeal. The tribunal partly set aside the Adjudicating Authority's order, which invalidated the transfer of two flats to the appellants, but upheld the direction to repay the fraudulent consultancy charges. The tribunal held that the Adjudicating Authority...

Section 94 Of IBC Cannot Be Used To Hinder Recovery Process Under SARFAESI Act: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising of by Justice Ashok Bhushan (Chairperson), Barun Mitra (Member-Technical), and Arun Baroka (Member-Technical) has upheld the dismissal of a Section 94 IBC petition filed by the personal guarantor and held that IBC proceedings cannot be misused to obstruct legitimate recovery under SARFAESI Act. It was held that the right given under Section 94 of the IBC cannot be taken away solely because of the ...

Section 45 Of IBC Applies To Transactions Made Prior To CIRP, Not On Date Of Initiation: NCLAT Principal Bench, New Delhi

The National Company Law Appellate Tribunal, (NCLAT), Principal Bench, New Delhi comprising of Justice Ashok Bhushan (Chairperson), Barun Mitra (Member (Technical) and Arun Baroka (Member (Technical) dismissed joint appeals filed by eight appellants against a common judgment of the adjudicating authority (NCLT, New Delhi) in various interlocutory applications (IAs) challenging the cancellation of residential unit allotments in the project developed by Corporate Debtor. Background ...

Application U/S 95 Of IBC Against Personal Guarantors Not Barred By Change In Debt Quantum After Approval Of Plan Against Corporate Debtor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that a change in the quantum of debt to be paid by the personal guarantor, following the approval of the resolution plan in the Corporate Insolvency Resolution Process (CIRP) of the corporate debtor, does not negate the right of the creditors to proceed against the personal guarantor under Section 95 of the Insolvency and Bankruptcy...