IBC Monthly Digest: September 2025

Supreme Court Committee Of Creditors Continues To Exist Till Resolution Plan Is Implemented Or Liquidation Order Is Passed : Supreme Court Case No.: KALYANI TRANSCO Vs MS BHUSHAN POWER AND STEEL LTD. | C.A. No. 1808/2020 and connected matters Citation: 2025 LiveLaw (SC) 954 In the JSW Steel matter, the Supreme Court held that the Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code, 2016 (IBC) does not become functus officio merely upon the approval of a resolution plan by the Adjudicating Authority. The Court held that the CoC continues to have a role until the resolution plan is fully implemented or an order of liquidation is passed. NCLT, NCLAT Vacancies Must Be Filled On War Footing; RERA Must Be Adequately Staffed : Supreme Court Cause Title: Mansi Brar Fernandes vs. Shubha Sharma and Anr. (and connected cases) Citation: 2025 LiveLaw (SC) 903 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.” The Court observed that dedicated IBC benches with additional strength should be constituted and services of retired judges may be utilized on an ad hoc basis until regular appointments are made. A bench comprising Justice JB Pardiwala and Justice R Mahadevan further directed the Union Government, within three months, to file a compliance report on measures taken to upgrade NCLT/NCLAT infrastructure nationwide. The Court also directed the States to ensure that RERA authorities are adequately staffed with infrastructure, experts, and resources, emphasizing that failure to do so may invite strict intervention by the Court. IBC | Homebuyers Can't Be Denied Flat Possession If Their Claims Were Verified & Admitted By Resolution Professional : Supreme Court Cause Title: AMIT NEHRA & ANR. VERSUS PAWAN KUMAR GARG & ORS. Citation: 2025 LiveLaw (SC) 882 The Supreme Court has held that once a claim is verified and admitted by the Resolution Professional (RP), it cannot be treated as “belated” to deny substantive relief under a resolution plan. A bench of Justices Sanjay Kumar and Satish Chandra Sharma ruled in favour of the homebuyers, observing that their verified and admitted claims could not be downgraded to 'unverified' merely because of delayed filing, especially when such treatment wrongly denied them flat possession and confined them to a partial refund despite having paid substantial consideration. The Court directed the Resolution Applicant to execute the conveyance deed and hand over possession of the flat to the appellants within two months. High Court Delhi High Court Transfers Winding-Up Petitions Against Vigneshwara Developwell Pvt Ltd To NCLT Case Name: Sh. Alok Kumar Mishra & Ors. v. M/s Vigneshwara Developwell Pvt. Ltd. & Ors. Case No.: CO.PET. 740/2014 The Delhi High Court has transferred winding-up petitions filed against Vigneshwara Developwell Pvt Ltd to the NCLT. The bench, presided over by Justice Tara Vitasta Ganju, observed that since the present application is also related to the transfer of winding-up proceedings of the respondent company to the NCLT, it would be appropriate to transfer these petitions as well so as to enable the effective adjudication of the matters. Lastly, the court granted liberty to the petitioner to proceed further with the proceedings of NCLT in accordance with law. Gujarat High Court Stays IBBI Disciplinary Committee's Order Suspending Resolution Professional For 6 Months Case Title: Chandra Prakash Jain v. Insolvency and Bankruptcy Board of India Case No.: R/SCA No. 11944 of 2025 The Gujarat High Court last week stayed an order issued by Insolvency and Bankruptcy Board of India (IBBI) which had suspended the registration of an insolvency resolution professional for six months pursuant to disciplinary proceedings. The court passed the order after the petitioner questioned the procedure by which the disciplinary proceedings were conducted. Justice Mauna M Bhatt issued notice on the petitioner's plea challenging an August 20 order passed by the Disciplinary Committee of the IBBI whereby the petitioner's registration was suspended for 6 months from the date of expiry of 30 days from the date of order. Absence Of Disciplinary Proceedings Bars NCLT From Rejecting Proposed IRP Under IBC: Madras High Court Case Name: K.J. Vinod v. Registrar, NCLT & Anr. Citation: 2025 LiveLaw (Mad) 296 Case No.: W.P. No. 22949 of 2025 The Division Bench of the Madras High Court, comprising Justice Dr. Anita Sumanth and Justice N. Senthilkumar, has held that in the absence of disciplinary proceedings pending against a professional, the NCLT is bound to appoint the IRP proposed by the applicant under Sections 7 and 10 of the IBC, 2016. The Court observed that in an application under...

IBC Monthly Digest: September 2025

Mohd Malik Chauhan

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