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 not bar the voluntary handover of property leased by the corporate debtor to the lessors if retaining the asset is deemed unviable and the Committee of Creditors (“CoC”) endorses the decision. High Court Insolvency Resolution Professional Is Public Servant, Sanction Needed To Prosecute Him Under Prevention of Corruption Act: Madras High Court Case Title: Anil Kumar Ojha v. The State and Others Case Number: Crl.O.P.No.16812 of 2025 The Madras High Court has recently directed the Insolvency and Bankruptcy Board of India to consider granting sanction for prosecuting a Resolution Professional for allegedly mismanaging funds of a company during a resolution process. Justice Bharatha Chakravarthy noted that the resolution professional performed duties in connection with the administration of justice, was a person from whom a report was called for by the court of justice, and was performing a public duty. Thus, the court noted that the Resolution Professional would come within the definition of public servant as provided under Section 2(c)(v), 2(c)(vi), and 2(c)(viii) of the Prevention of Corruption Act. NCLAT NCLT Declares Former DHFL Chairman Kapil Wadhwa Bankrupt Over ₹4546 Crore Debt Case Name: Union Bank of India v. Mr. Kapil Wadhawan Case No.: C.P. No. (IB) 755/MB/C-III/2025 The petition was filed by the Union Bank of India before the NCLT, Mumbai Bench-Court III, seeking initiation of bankruptcy proceedings under section 123 of the IBC, 2016. The respondent, Mr. Kapil Wadhawan, acted as the personal guarantor of the DHFL, a corporate debtor that had undergone the corporate insolvency. NCLAT Judge Recuses From Case Saying He Was Approached By 'Higher Judiciary Member' To Favour A Party Case Name: Mr. Attluru Sreenivasulu Reddy Suspended Director of M/s. KLSR Infratech Ltd. v. M/s. AS Met Corp Pvt. Ltd. & Anr Case No.: IA No. 487/2025 in Company Appeal (AT) (CH) (Ins) No. 210/2023 The judicial member of NCLAT, Chennai Bench, Justice Sharad Kumar Sharma, recused himself from hearing an insolvency appeal citing that he was approached by "one of the most revered members of the higher judiciary" seeking a favourable order for one of the parties. The appeal challenges a July 14, 2023, order admitting KLSR Infratech Ltd. to Corporate Insolvency Resolution Process under Section 9 of the Insolvency and Bankruptcy Code, 2016. Employees Can't Be Paid Gratuity Dues In Addition To Payouts Allocated To Them In Resolution Plan: NCLAT Case Name: Jadeja Ravirajsinh Juvansinh Versus Nuvoco Vistas Corporation Ltd. & Ors Case No.: Company Appeal (AT) (Insolvency) No.733 of 2025 The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that the employees of the corporate debtor cannot be paid gratuity dues in addition to the proposed payouts allocated to them in the Resolution Plan when it is clearly provided in the Resolution Plan. Once Assignment Of Debt Is Declared Illegal, Assignee Loses Its Rights To File Application U/S 7 Of IBC: NCLAT Case Name: Rajesh Vilasrao Patil Versus Savannah Lifestyle Pvt. Ltd. & Anr. Case No.: Company Appeal (AT) (Insolvency) No. 1201 of 2023 & I.A. No. 5907 of 2024 The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that when the assignment of debt from the bank to the applicant is found to be illegal and unauthorized, the very basis of filing an application under Section 7 of the IBC is knocked out, and such an applicant cannot be allowed to file the application on the basis of financial creditor's status. Mere Rescheduling Of Payment Through New Agreement Does Not Change Repayment Obligations Under Original Agreement: NCLAT Case Name: Vikram Bhavanishankar Sharma, Member of the Suspended Board of Directors of Supreme Panvel Indapur Tollways Pvt. Ltd. Versus State Bank of India & Anr. Case No.: Company Appeal (AT) (Insolvency) No. 1811 of 2024 & I.A. No. 6979 & 8862 of 2024 The National Company Law Appellate Tribunal (NCLAT), New Delhi Bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member), has held that mere rescheduling of the payment date through an agreement does not alter the repayment obligations under the original Common Loan Agreement, nor does it result in novation. Therefore, an application under Section 7 of the IBC can be filed based on the original agreement. Resolution Professional's...

IBC Monthly Digest: August 2025

Mohd Malik Chauhan

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