Refusal Of Demand Notice By Guarantor Counts As Valid Service: NCLT Hyderabad

The National Company Law Tribunal (NCLT) at Hyderabad has recently held that refusal by a personal guarantor to accept delivery of a demand notice constitutes valid and deemed service under the Insolvency and Bankruptcy Code, 2016, and has admitted the petition filed by STCI Finance Ltd. to initiate personal insolvency proceedings against Ramnath Nandakumar, personal guarantor of Natems...

IBC | Section 7 Application Can't Be Rejected For Curable Defects In Affidavit : Supreme Court

The Supreme Court on Monday (November 24) observed that procedural defects in a Section 7 insolvency application under IBC, such as a defective affidavit, are curable and cannot be used as a basis for summary dismissal. “Mere filing of a 'defective' affidavit in support of an application would, however, not render the very application non est and liable to be rejected on that ground as it...

NCLT Clears First Motion Toward Consolidation Of Mirae Asset Sharekhan's NBFC Operations

The National Company Law Tribunal (NCLT) at Mumbai has recently approved the initial application filed by Mirae Asset Sharekhan Financial Services Limited, the lending business formerly associated with stock broking company Sharekhan, for its merger with Mirae Asset Financial Services (India) Private Limited, facilitating consolidation of the Mirae Asset Group's non banking finance operations...

IBBI Caps Assignments For Individual Insolvency Professionals At Ten At A Time

The Insolvency and Bankruptcy Board of India has issued the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2025, placing limits on the total number of assignments that an individual insolvency professional may handle at a given time. The regulations come into force on November 20. The amendment introduces Regulation 7B titled Number...

Transfer Of Asset After Commencement Of CIRP, Even With NOC From Lender, Illegal: NCLT Allahabad

The National Company Law Tribunal (NCLT) at Allahabad has recently held that any transfer of assets after the commencement of an insolvency process is illegal, even if supported by a No Objection Certificate from a secured creditor. The tribunal said such transfers cannot be considered procedural outcomes and amount to a breach of the moratorium. The tribunal was deciding an application filed...

Advance Paid Under Land-Development MoU Not Financial Debt, Can't Trigger CIRP: NCLAT

The National Company Law Appellate Tribunal at Delhi recently held that advance amounts paid under a 2013 land development Memorandum of Understanding for acquiring and amalgamating land in Noida were not financial debt under the Insolvency and Bankruptcy Code and upheld the dismissal of insolvency applications filed by Airwil JKM Infrastructure Pvt. Ltd. and JKM Infrastructure Pvt. Ltd....

NCLT Cannot Alter Capital Structure Proposed By Successful Auction Purchaser If Legally Compliant: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that the adjudicating authority (NCLT) has no jurisdiction to modify the capital structure proposed by a successful auction purchaser, particularly when neither the stakeholders nor the liquidator objected and the proposal was not shown to violate any law. In an order pronounced on November 20, Judicial...

NCLT Defers Order On Riju Ravindran's Plea Against Glas Trust's Aakash Rights Issue Funding Plan; Subscription Closes Today

The National Company Law Tribunal at Bengaluru on Friday deferred its order on former Byju's promoter Riju Ravindran's interim plea challenging the Committee of Creditors' approval of a Compulsorily Convertible Debenture structure proposed by Glas Trust to fund Think and Learn Private Limited's (Byju's) participation in Aakash Educational Services Limited's ongoing rights issue. A coram...

IBBI Issues Fresh Guidelines For Appointment of Insolvency Professionals

In order to reduce administrative delays in appointing of Resolution Professionals, the Insolvency and Bankruptcy Board of India (IBBI) on Friday issued fresh guidelines to streamline how insolvency professionals (IPs) are shortlisted and appointed across tribunals from January 1, 2026. Under the new framework, only IPs with a clean record and a valid Authorisation for Assignment through...

Personal Criminal Liability Of Directors U/S 138 NI Act Survives Corporate Liquidation Under IBC: Himachal Pradesh High Court

The Himachal Pradesh High Court has reiterated that liquidation of a company under the IBC does not shield its directors from personal criminal liability in cheque bounce cases under Section 138 of the Negotiable Instruments Act, 1881(“N.I Act”) “15. ….Therefore, the orders passed by the learned Trial Court ordering the continuation of the proceedings against accused nos. 2 and...

NCLT Approves Piramal Fund's Move to Set Off Losses With Rs 200-Crore Securities Premium

The National Company Law Tribunal at Mumbai on Monday approved Piramal Fund Management Pvt. Ltd.'s plan to utilise Rs 200 crore (Rupees Two Hundred Crore Only) from its Securities Premium Account to wipe out accumulated losses, clearing the company's capital-reduction proposal under the Companies Act. A coram of Judicial Member KR Saji Kumar and Technical Member Anil Raj Chellan recorded...

Security Deposit Is Not Operational Debt; Non-Refund Cannot Trigger CIRP: NCLT Delhi

The National Company Law Tribunal (NCLT) at Delhi has recently ruled that the non-refund of a contractual security deposit meant only as collateral cannot be treated as operational debt and cannot be used to initiate corporate insolvency proceedings. A coram of Judicial Member Mahendra Khandelwal and Technical Member Anu Jagmohan Singh said the security deposit paid in this case “as...