Inactivity Of Company For Two Years No Bar To Insolvency Proceedings: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently ruled that a company cannot avoid insolvency proceedings simply because it has not been operating for two years. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra while upholding insolvency proceedings against Sant Kripa Appliances said, “the mere fact that CD was not functioning for last two years cannot be a ground to not take a proceeding for resolution of the CD which has defaulted...

Resolution Professional Has No Vested Right To Be Liquidator, Mid-Process Replacement Unwarranted: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has held that a resolution professional has no "vested right to be appointed as liquidator" and that replacing the liquidator midway through the process is inappropriate when it risks additional costs and the majority creditor supports the incumbent. A bench of Judicial Member Justice N Seshasayee and Technical Members Arun Baroka and Indevar Pandey said that while the adjudicating authority cannot overrule the Committee of...

Byju's RP Moves NCLAT After Aakash Withholds Rights-Issue Shares Over FEMA Concerns

The resolution professional of debt-laden ed-tech Think and Learn Pvt Ltd (Byju's) has moved an application before the National Company Law Appellate Tribunal (NCLAT), Chennai after Aakash Educational Services refused to allot shares to the company in its recently concluded rights issue, even though forums from NCLT to Supreme Court had earlier declined to halt the process. Aakash has withheld allotment to Think and Learn' against its Rs 25 crore subscription amount, citing possible FEMA and...

Registered Homebuyer Society Can Initiate Insolvency Against Builders Only With Consent From All Buyers: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has ruled that a registered society of homebuyers can file an insolvency application, but only if each homebuyer individually authorises it to act on their behalf. A resolution passed only by the society's core committee does not meet this requirement, a bench of Chaiperson Justice Ashok Bhushan and Technical Member Barun Mitra held. The tribunal therefore granted the society seven days to submit individual authorisations from all 98...

NCLAT Orders Former Directors Of Gold Bullion Trader To Pay ₹16.78 Crore For Fraudulent Sales During Insolvency

The National Company Law Appellate Tribunal at New Delhi recently held that three suspended directors of Varsha Corporation Ltd, a gold bullion trading company, must personally contribute more than Rs 16.78 crore to the company's estate after finding that they carried out fraudulent gold sales while an insolvency petition against the firm was pending. A bench of Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha dismissed the suspended directors' appeal against the...

Only CoC Can Appoint Liquidator, NCLT's Power Limited To Replacing RP: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently ruled that only the Committee of Creditors (CoC) has the authority to select a liquidator when the Resolution Professional (RP) does not consent to continue, holding that the Adjudicating Authority cannot appoint a liquidator of its own choice. The tribunal was deciding appeals filed by Omkara Asset Reconstruction Company, which held nearly the entire voting share in the CoCs of two stressed companies. A coram of...

Settlement Between Debtor and Creditor Doesn't Release Personal Guarantor From Liability: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently held that a personal guarantor remains liable under a continuing guarantee even if the principal debtor enters into a mediated settlement with the financial creditor, unless the creditor expressly releases the guarantor. It also held that part-payments made by the principal debtor extend the limitation period for proceedings against the guarantor. A bench of Judicial Member Justice N Seshasayee and Technical Members...

IBC Auctions Not Ordinary Commercial Contracts, Market Volatility No Defence For Evading Bid Obligations: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently held that a successful bidder in a liquidation e-auction who voluntarily accepts statutory terms cannot avoid payment obligations by citing market fluctuations or delays not attributable to the liquidator, and set aside an NCLT Kolkata order directing refund of the Rs 2 crore earnest money deposit. A Bench of Judicial Member Justice Yogesh Khanna and Technical Member Indevar Pandey observed that liquidation...

LiveLawBiz: Business Law Round-Up: November 29 - December 1, 2025

IBCIBC | Terminated Contract Not Corporate Debtor's Asset; Moratorium Won't Revive Extinguished Contractual Rights : Supreme CourtNCLT Mumbai Rejects Indo Global Employees' Claims Filed 18 Months Late, Says Stakeholders Must Be VigilantLiquidator Must Recover Assets Even If Attached By Third Parties, Attachment Cannot Override IBC: NCLT BengaluruBuyers Of Commercial Units Are Not Homebuyers; Cannot Be Recognised As Financial Creditors: NCLT MumbaiNCLT Ahmedabad Orders Liquidation of Girdhari...

LiveLawBiz: Business Law Daily Round-Up: November 28, 2025

IBC NSEL Gets NCLT Nod For ₹1,950-Crore Settlement With 5,682 Traders Affected In 2013 ScamUploading Debt Details On Information Utility Does Not Extend Limitation For CIRP: NCLATNCLAT Upholds Order Directing Satra Properties' Suspended Directors To Refund ₹91 Lakh For Clearing Cheques During MoratoriumIBC Does Not Override Statutory First Charge Under Gujarat VAT Act, Both Laws Operate In Harmony: NCLATSupreme Court Dismisses Byju Raveendran's Appeal Against NCLAT Order Mandating CoC Nod For...

Uploading Debt Details On Information Utility Does Not Extend Limitation For CIRP: NCLAT

The National Company Law Appellate Tribunal at Delhi on Thursday observed that merely uploading financial information on an information utility does not amount to acknowledgment of debt and therefore cannot trigger a fresh limitation period for filing a Corporate Insolvency Resolution Process application under Section 9 of the Insolvency and Bankruptcy Code. The Bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra dismissed an appeal filed by Air Wave Technocrafts...

NCLAT Upholds Order Directing Satra Properties' Suspended Directors To Refund ₹91 Lakh For Clearing Cheques During Moratorium

The National Company Law Appellate Tribunal at Delhi on Thursday held that the suspended directors of Satra Properties (India) Ltd violated the Insolvency and Bankruptcy Code by allowing two cheques worth Rs 91 lakh to be cleared after the commencement of moratorium, and upheld the National Company Law Tribunal's order directing them to jointly and severally refund the amount with interest under Section 66(2). A Bench of Judicial Member Justice N Seshasayee and Technical Member Arun Baroka...