Auction Purchaser Cannot Seek Reclassification of NPA In A Manner That Affects Creditor's Rights: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at New Delhi, has recently ruled that a successful auction purchaser cannot demand the reclassification of a corporate debtor's loan from Non-Performing Asset (NPA) to “standard” if it impacts a financial creditor's rights against the debtor's personal guarantors. The bench of Justice N Seshasayee and Technical Member Indevar...

NCLAT Stays Insolvency Proceedings Against Aviation Company After It Offers To Deposit Double The Debt

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently stayed the corporate insolvency proceedings against an aviation services company after it's suspended director offered to deposit Rs 1.09 crore, double the claimed dues of Rs. 54.03 lakh (with 15% interest), which had been pending since 2019, to demonstrate its bona fide intentions.The bench, comprising Chairperson...

NCLAT Restores Promoters' Right To Bid In JC World Hospitality Resolution Process

The National Company Law Appellate Tribunal has recently overturned a July 2025 order of the National Company Law Tribunal, New Delhi, that had declared the promoters of JC World Hospitality Pvt Ltd ineligible to submit resolution plan under the Insolvency and Bankruptcy Code. The Bench of Chairperson Justice Ashok Bhushan and Member Barun Mitra restored the promoters' resolution plan...

NCLAT Upholds Gujarat VAT Dept As Secured Creditor In Sterling Lam Insolvency; Says Statutory Charge Under GVAT Act Creates Security Interest

The National Company Law Appellate Tribunal (NCLAT), Principal Bench at New Delhi, has upheld the National Company Law Tribunal (NCLT) Ahmedabad's order directing that the Gujarat State Tax Department (Department) be treated as a secured creditor in the insolvency proceedings of Sterling Lam Limited (Sterling Lam), the corporate debtor. The NCLAT affirmed that the statutory charge created...

Debt Arising Out of Optionally Fully Convertible Debentures Needs Case-by-Case Evaluation: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Chennai recently (November 10) held that since Optionally Fully Convertible Debentures (OFCDs) are part debt and part equity instruments, the exact liability arising from them should be determined after evaluating each situation separately.The bench, comprising Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain, was...

Bankruptcy Proceedings Can Be Initiated Against Foreign Citizen Acting As Personal Guarantor: NCLT Hyderabad

The National Company Law Tribunal, Hyderabad Bench-II, has admitted the bankruptcy proceedings against Shri Yarlagadda Madhu Mohan, a personal guarantor and a US citizen, under Sections 121 and 123 of the IBC after his failure to submit a repayment plan. “……… Section 3(23) merely defines the term “person” to include “a person resident outside India.” It does not...

Cab-EEZ Reaches Settlement With Tata Power EV On Rs 1.9 Crore Debt Over Unmanned EV Charging Services, NCLAT Told

The National Company Law Appellate Tribunal (NCLAT) on Friday was informed that Cab-EEZ Infra Tech Ltd. and Tata Power EV Charging Solutions Ltd. have reached a settlement in the insolvency proceedings pending before the National Company Law Tribunal (NCLT) Mumbai against the electric ride hailing company. Recording the development, a bench of Chairperson Ashok Bhushan and Technical Member...

Can Telecom Spectrum License Be Subjected To Insolvency Proceedings? Supreme Court Reserves Judgment

The Supreme Court on Friday reserved judgment in a batch of appeals challenging the National Company Law Appellate Tribunal's decision in the insolvency proceedings of Aircel and Reliance Communications holding that spectrum can be subjected to insolvency/liquidation proceedings being an intangible asset of the Corporate Debtor.The NCLAT further held that the right to use the spectrum can only...

NCLT Hyderabad Orders Liquidation of Maharashtra-Based Pioneer Gas Power Limited

The National Company Law Tribunal (NCLT) at Hyderabad has recently ordered the liquidation of Maharashtra-based Pioneer Gas Power Limited after all attempts to revive the company through the insolvency process failed. A bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri, in an order passed on November 11, allowed the liquidation application filed by Bright...

NCLT Mumbai Summons Bank Of India Chairperson Over Delays In BE Billimoria Insolvency Revival

The National Company Law Tribunal at Mumbai recently summoned the Chairperson of Bank of India, MR Kumar to appear in person after expressing serious dissatisfaction over the bank's conduct in handling settlement funds and the delay in reviving insolvency proceedings against BE Billimoria & Company Limited. A coram of the Judicial Member Ashish Kalia and Technical Member Sanjiv Dutt, in...

Homebuyers With Settled Claims Can't Seek Reconstitution Of Committee Of Creditors: NCLT Kochi

The National Company Law Tribunal (NCLT) at Kochi on Wednesday said that homebuyers whose claims have been settled through the insolvency resolution process lose their stake in the corporate debtor, Samson and Sons Builders and Developers Pvt. Ltd., and therefore cannot seek the reconstitution of the Committee of Creditors (CoC). The dispute arose from a plea filed by the Nova Castle...

NCLT Kochi Directs Deposit Of Due Security And Revenue Shares In Jatayupara Tourism Project Escrow Account

The National Company Law Tribunal, Kochi Bench, has directed the Guruchandrika Builders & Property Private Limited, Mr. Rajeev Vidyadharan, and Mrs. Padmam Rajeev, proprietor of Nanma Eatery (formerly Jatayu Merchandise), to deposit the sum of Rs. 38,32,744, into the project's common pool account. An agreement dated January 1, 2024, under which Respondents Rajeev Vidyadharan and...