Inherent Power Under Rule 11 Of NCLAT Rules Cannot Be Invoked To Recall Orders Passed By Fraud Or Without Jurisdiction: NCLAT Chennai

The National Company Law Appellate Tribunal, Chennai, comprising Justice Sharad Kumar Sharma and Jatindranath Swain, dismissed an appeal while upholding that the inherent powers can only be utilized to fill up the vacuums that are prevailing in the given procedural law, but they cannot act as a substitute for the process of law, which could have been exercised by the appellate...

NCLT Ahmedabad Admits Blu Smart Mobility Ltd Into CIRP Over Default Of ₹1.28 Crore

The National Company Law Tribunal (NCLT), Ahmedabad bench, comprising Justice Shammi Khan (Judicial Member) and Mr. Sanjeev Kumar Sharma (Technical Member), has initiated the Corporate Insolvency Resolution Process (CIRP) against Blu-Smart Mobility Ltd. (Corporate Debtor) upon an admitted default of Rs.1,28,02,195. Brief Facts Catalyst Trusteeship Limited (Applicant/ Financial...

Operational Debt Can't Be Converted Into Financial Debt By Execution Of Subsequent Agreement Between Parties: NCLT New Delhi

The National Company Law Tribunal (NCLT) New Delhi bench of Shri Manni Sankariah Shanmuga Sundaram (Judicial Member) and Shri Atul Chaturvedi (Technical Member) has held that an Operational Debt cannot be converted into a Financial by the execution of subsequent agreement between the parties. If this is permitted, it would open the floodgates for potential misuse of the provisions of...

Supreme Court Allows Open Court Hearing Of Review Petitions Against Rejection Of JSW's Resolution Plan For Bhushan Power & Steel

The Supreme Court accepted the request for an open court hearing of the review petition filed against the May 2 judgment which had rejected JSW's resolution plan for Bhushan Power and Steel (BPSL).A Bench of Chief Justice of India BR Gavai and Justice Satish Chandra Sharma issued notice to the parties on the review petition and posted the matter for hearing on July 31 at 3 PM."Application(s)...

IBC Monthly Digest: June 2025

Nominal Index: Alok Gaur, Suspended Board of Director of Jaypee Cement Corporation Ltd. Versus State Bank of India & Anr, Company Appeal (AT) (Insolvency) No.1565 of 2024 & I.A. No. 8141 of 2024 Mr. Abhinav Bhatnagar Versus Bank of Baroda And Ors., Company Appeal (AT) (Insolvency) No. 615 & 616 of 2025 Taguda Pte Ltd. Versus State Bank of India & Anr.,...

Development Rights Crystallised Before Termination Of Collaboration Agreement Form Part Of Corporate Debtor's Assets: NCLT New Delhi

The National Company Law Tribunal (NCLT) New Delhi bench of Shri Manni Sankariah Shanmuga Sundaram (Judicial Member) and Shri Atul Chaturvedi (Technical Member) has held that developments rights crystallised before the termination of collaboration agreement can be included in the assets of the corporate debtor even though such termination of the agreement was later upheld by the...

Bank Can Classify Corporate Debtor's Account As Fraud During CIRP, Such Classification Is Not Hit By S.14 Of IBC: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of Sh. Prabhat Kumar (Technical Member) and Justice Virendrasingh Bisht (Retd.) (Judicial Member) has held that a bank is empowered to classify the account of the Corporate Debtor as fraud even during the currency of the CIRP and such classification is not hit by section 14 of the IBC. The present application has been...

Successful Bidder Prohibited From Claiming Reliefs Or Concessions Not Provided In Sale Document: NCLT Amravati

The National Company Law Tribunal (NCLT) Amravati bench of Shri Umesh Kumar Shukla (Technical Member) and Shri Kishore Vemulapalli (Judicial Member) has held that Successful Bidder cannot claim reliefs, concessions or waivers which were not included in the sale document. Reliefs and concessions can only be claimed which are expressly provided in the Sale Document. The...

Failure To Deliver Second Demand Notice After First Is Returned Unserved Renders Petition U/S 9 Of IBC Not Maintainable: NCLT New Delhi

The National Company Law Tribunal (NCLT) New Delhi bench of Shri Manni Sankariah Shanmuga Sundaram (Judicial Member) and Shri Atul Chaturvedi (Technical Member) has held that when a demand notice under section 8 of the IBC is returned unserved with the endorsement “the addressee has left without instructions” and the Operational Creditor fails to effect the delivery again by any...

IBC Does Not Impose Time Limit For Rectification Of NCLT Orders: NCLAT New Delhi Upholds Two-Year Limit Under Rule 154 Of NCLT Rules

The present appeal was filed by the erstwhile Resolution Professional of the corporate debtor against the order passed by the adjudicating authority, which approved the resolution plan submitted by the Successful Resolution Applicant. After approval of the resolution plan, the appellant moved an application before the adjudicating authority, seeking rectification of certain figures...

Restriction On CIRP Assignments Taken By IRP Is A Matter Of Code Of Conduct Between IBBI & Resolution Professional: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of Shri Prabhat Kumar (Technical Member) and Justice Shri V.G. Bisht (Judicial Member) has held that restrictions on the number of Corporate Insolvency Resolution Professional (CIRP) assignments an Insolvency Professional (IP) can take is a conduct of code between the Insolvency and Bankruptcy Board of India (IBBI) and the IP. It...

Fresh Application Correcting Typographical Error Is Barred By Res Judicata If Earlier Application Was Dismissed On Merits: NCLAT New Delhi

The present appeal has been filed against the adjudicating authority's order rejecting the section 94 application filed by the appellant. The adjudicating authority dismissed the application, noticing that a similar application (CP No. (IB)- 7) of 2025 filed by the applicant seeking the same relief had earlier been dismissed by it. The appellant contended that there was...