Application U/S 9 IBC Can't Be Rejected Over Issuance Of Demand Notice In Wrong Form When Invoices Contained In Notice Are Unchallenged: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain, Justice Mohammad Faiz Alam Khan and Mr. Naresh Salecha (Technical Member) has held that an application under Section 9 of the IBC cannot be rejected on a hyper-technical plea that, since the claim was based on invoices, the demand notice should have been issued in Form 4 of Rule 5 of...

Successful Auction Purchaser Liable To Pay 'True-Up' Charges After Sale Of Corporate Debtor As Going Concern: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain, Justice Mohammad Faiz Alam Khan and Mr. Naresh Salecha (Technical Member) has held that once the Corporate Debtor is taken over by a Successful Auction Purchaser on a going-concern basis and a sale certificate is issued by the Liquidator, the purchaser cannot avoid its responsibility to pay...

Right To Sue U/S 9 Of IBC Begins When MSME Arbitral Award Becomes Final: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has held that the right to sue under section 9 of the IBC begins when the MSME award becomes final and operative. The MSME Council passed an arbitral award in favor of the appellant in the year 2011. The award was...

Restoration Of Plea U/S 7 Of IBC Not Permissible After Payment Of Principal & Interest By Corporate Debtor Upon NCLT's Order: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that Once the principal amount mentioned in Part IV of the application under Section 7 of the IBC along with interest is paid in pursuance of an order of the NCLT, the financial creditor cannot seek restoration of the application merely on...

Plea U/S 9 IBC Can't Be Admitted Once Affidavit Confirming Settlement Between Corporate Debtor & Operational Creditor Is Filed: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that once the Corporate Debtor entered into a settlement with the Operational Creditor to discharge its liability, for which an affidavit confirming the settlement was also filed, the Adjudicating Authority cannot, overlooking these facts,...

Rejection Of Legal Consultant's Claims By RP Over Absence Of Invoices In Corporate Debtor's Records Can't Be Set Aside: NCLAT

The National Company Law Appellate Tribunal (NCLAT), New Delhi Bench of Justice Rakesh Kumar Jain, Justice Mohd Faiz Alam Khan and Mr. Naresh Salecha (Technical Member), has held that the rejection of the legal consultancy service provider's claim by the Resolution Professional, based on the absence of invoices for services in the Corporate Debtor's records, cannot be interfered...

Corporate Debtor's Liability As Guarantor Remains Unaffected By Internal Adjustments Among Financial Creditors: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain, Justice Mohammad Faiz Alam Khan and Mr. Naresh Salecha (Technical Member) has held that internal adjustments among the Financial Creditors in the form of merger, demerger, or amalgamation do not affect the liability of the Corporate Debtor as guarantor, especially when all terms and...

IBC Monthly Digest: August 2025

Supreme Court IBC Moratorium Doesn't Bar Voluntary Surrender Of Corporate Debtor's Leased Property To Lessor: Supreme Court Cause Title: Sincere Securities Private Limited & Ors. Versus Chandrakant Khemka & Ors. Citation : 2025 LiveLaw (SC) 774 The Supreme Court on Tuesday (August 5) held that the moratorium under the Insolvency and Bankruptcy Code, 2016 (IBC), does...

Corporate Debtor's Statement To Enter Into OTS With Financial Creditor Indicates Existence Of Debt And Default: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that the Corporate Debtor's submission before the Adjudicating Authority regarding entering into a One Time Settlement with the Financial Creditor itself amounts to an admission of debt and default. The present appeal has been filed under section...

NCLT, NCLAT Vacancies Must Be Filled On War Footing; RERA Must Be Adequately Staffed : Supreme Court

The Supreme Court directed the Union Government to fill up the vacancies at the National Company Law Tribunals(NCLT) and the National Company Law Appellate Tribunal(NCLAT) on a "war-footing"."Dedicated IBC benches with additional strength should be constituted. Services of retired judges may be utilized on ad hoc basis until regular appointments are made," the Court observed.The Court noted...

Absence Of Charge Defeats Income Tax Department's Secured Creditor Status: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial) and Mr. Naresh Salecha (Member-Technical), has held that in the absence of the charge, the income tax department cannot be considered as a secured creditor. The financial creditor, M/s Prutha Enterprises, filed a section 7 application before the adjudicating...

Vehicles Repossessed Before CIRP Can't Form Part Of Corporate Debtor's Assets: NCLAT In Appeal By SMAS Auto Leasing Against Gensol

The National Company Law Appellate Tribunal bench of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical), disposed of an appeal filed by SMAS Auto Leasing India Pvt. Ltd. against the order of the National Company Law Tribunal Ahmedabad,which had admitted filed by the Indian Renewable Energy Development Agency Limited against Gensol Engineering Limited. It held that since...