Individual Homebuyer Can't Maintain Application U/S 60(5) Of IBC For Rejection Of Other Creditors' Claims: NCLT Chandigarh

The National Company Law Tribunal (NCLT) Chandigarh bench of Sh. Harnam Singh Thakur, (Judicial Member) and Sh. Shishir Agarwal (Technical Member) has held that an individual homebuyer is not permitted to approach the Adjudicating Authority seeking rejection of other creditors' claims especially when no enforcement of his rights or personal grievances is involved. The present...

DRT Recovery Certificate Confers Financial Creditor Status And Gives Rise To Fresh Cause Of Action: NCLAT Chennai

The company appeals were filed by the personal guarantors of the corporate debtor, challenging the order admitting the Insolvency Resolution Process (IRP) against them u/s 95 of the IBC, 2016. The issues before the Ld. NCLAT were whether the demand notice was properly served and whether the initiation of the proceedings was barred by the limitation. Background of...

Liabilities Incurred Before Execution Of Guarantee Agreement Can't Be Included In It Unless Explicitly Stated: NCLT Kochi

The National Company Law Tribunal (NCLT) Kochi bench of Madhu Sinha (Member Technical) and Vinay Goel (Member Judicial) has held that past liabilities incurred before the execution of the Agreement of Guarantee cannot be included in it unless an explicit clause covering such liabilities are explicitly incorporated in the Agreement. The present petitions have been filed under section 95...

Claim Filed During Liquidation Must Be Dealt With U/S 53 Of IBC, NCLT Can't Direct RP To Make Payment Directly: NCLAT Delhi

The National Company Law Appellate Tribunal held that a claim filed during liquidation must be dealt with as per the waterfall mechanism under Section 53 of the Insolvency and Bankruptcy Code, 2016, and the NCLT cannot direct a Liquidator to make payment to any claimant directly. Justice Ashok Bhushan and Arun Baroka said: “We are of the view that when stakeholder filed a claim in...

NCLT Not Empowered To Adjudicate Disputes Concerning Auction Sale Of Property Not Forming Part Of Corporate Debtor's Assets: NCLT Indore

The National Company Law Tribunal (NCLT) Indore bench of Shammi Khan (Judicial Member) and Sanjeev Kumar Sharma (Technical Member)has held that the Adjudicating Authority is not empowered to adjudicate disputes relating to auction sale of the property which does not form part of the Corporate Debtor's assets. The present application has been filed under section 60(5) of the Insolvency...

Mere Possession Of Assets Of Corporate Debtor U/S 13(8) Of SARFAESI Act Does Not Confer Title On Creditor: NCLT Kochi

The National Company Law Tribunal (NCLT) Kochi bench of Smt. Madhu Sinha (Technical Member) and Shri. Vinay Goel (Judicial Member) has held that mere possession over assets of the Corporate Debtor under section 13(8) the SARFAESI Act does not confer any title on the Creditor. A title over the property passes to the purchaser only after a valid sale. The present application has...

Mere Allegation Of Coercion, Threat, Or Fraud Without Prima Facie Proof Cannot Invalidate Withdrawal Of CIRP U/S 12A Of IBC: NCLAT Chennai

The National Company Law Appellate Tribunal, Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), has held that the withdrawal of the Corporate Insolvency Resolution Process (CIRP) u/s 12A of the IBC cannot be set aside on the mere allegation of coercion or threat unless that has been proved by sufficient...

Adjudicating Authority Cannot Direct Realisation Of Security Interest U/S 52(5) Of IBC In Absence Of Resistance From Corporate Debtor: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of Shri Anil Raj Chellan (Technical Member) and Shri K. R. Saji Kumar (Judicial Member)has held that the Adjudicating Authority cannot direct realisation of security interest under section 52(5) of the IBC when the Secured Creditor has failed to establish any resistance from the Corporate Debtor or any connected persons in realising...

IBC Weekly Round-Up: 14th July To 20th July 2025

High Court Writ Jurisdiction Cannot Be Invoked When Party Has Already Approached DRT Under SARFAESI Act: Delhi High Court Case Title: Bhadra International India Pvt. Ltd. & Ors. v. Punjab national Bank & Ors. Citation: 2025 LiveLaw (Del) 823 The Delhi High Court has dismissed a petition while upholding that if a borrower has already approached the Debt...

NCLT Can Invoke Inherent Powers To Permit Withdrawal Of Voluntary Liquidation Despite Absence Of Specific Provision In IBC: NCLT Chandigarh

The National Company Law Tribunal, Chandigarh Bench, comprising Harnam Singh Thakur (Member-Judicial) and Shishir Agarwal (Member-Technical), has disposed of an application seeking withdrawal of voluntary liquidation. The adjudicating authority held that even in the absence of specific provision under the IBC, it can allow the withdrawal of voluntary liquidation by invoking...

Prior Approval Of Adjudicating Authority Before Initiating Legal Proceedings Against Any Party U/S 33(5) Of IBC Is Mandatory: NCLT Guwahati

The National Company Law Tribunal (NCLT) Guwahati bench of Rammurti Kushawaha (Judicial Member) and Yogendra Kumar Singh (Technical Member) has held that prior approval of the Adjudicating Authority under section 33(5) is mandatory before initiating any legal proceedings against a party and such party is not required to be heard at the approval stage. The present application has...

Allottee Does Not Cease To Be Financial Creditor On Ground Of Being Speculative Investor: NCLT Chandigarh

The National Company Law Tribunal (NCLT), Chandigarh Bench of Justice Harnam Singh Thakur, (Judicial Member) and Sh. Shishir Agarwal (Technical Member) has held that the claim of an allottee cannot be rejected solely on the ground of being a speculative investor. An allottee does not cease to be a financial creditor merely because they qualify as a speculative investor. The...