Application U/S 7 Of IBC Can Be Admitted In Absence Of NeSL Certificate If Loan Disbursal & Default Are Proved By Other Documents: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench of Justice V.G Bisht, (Retd). and Prabhat Kumar (Technical Member ) has held that even in the absence of a NeSL certificate, an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 can be admitted if the disbursal of the loan amount and occurrence of default are established through other reliable and...

Payment Made During Pendency Of CIRP Application Cannot Be Considered For Calculating Threshold U/S 4 Of IBC: NCLAT New Delhi

The National Company Law Appellate Tribunal, Principal Bench, New Delhi, comprising Justice Rakesh Kumar Jain (Member-Judicial) and Naresh Salecha (Member-Technical), has allowed an appeal filed by the operational creditor. The issue before the tribunal was whether the threshold has to be seen at the time of filing of the application or at the time of admission of...

If Rights Under Debenture Deed Are Transferred Without Prior Approval From Holders, Liabilities Of Corporate Debtor Remain Undischarged: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that when a debenture deed mandates prior approval of the Debenture Trustee for any transfer of rights or liabilities, any such transfer made through an Acquisition Agreement without obtaining...

IBC Monthly Digest: May 2025

Nominal Index: Riju Ravindran Versus Pankaj Srivastava, C.A. No. 6613 of 2025 TATA STEEL LTD Versus Raj Kumar Banerjee & Ors., 2025 LiveLaw (SC) 542 Kalyani Transco Versus M/s Bhushan Steel and Power Ltd and connected appeals, C.A. No. 1808 of 2020 VISA COKE LIMITED Versus M/s MESCO KALINGA STEEL LIMITED, 2025 LiveLaw (SC) 505 NCLT Advocates Bar Association &...

NCLAT Chennai Dismisses Appeal By Bjyu's Challenging NCLT Interim Order In Aakash Shareholding Dispute

The National Company Law Appellate Tribunal (NCLAT) Chennai bench comprising Justice Sharad Kumar Sharma (Judicial Member) and Jatindranath Swain (Technical Member) has dismissed the appeal filed by Think & Learn Private Limited (Byju's) against Aakash Educational Services Limited and others. The Tribunal held that the impugned order under challenge was interlocutory in nature and...

Subsequent Application U/S 95 IBC Is Barred Where Proceedings Against Same Personal Guarantor Are Already Pending: NCLAT, Chennai

The National Company Law Appellate Tribunal (NCLAT), Chennai bench comprising Justice Sharad Kumar Sharma (Judicial Member) and Jatindranath Swain (Technical Member) have held that where proceedings under Section 95 of the Insolvency and Bankruptcy Code (IBC) have already been initiated by one Financial Creditor, a subsequent application under the same provision by another creditor...

Corporate Debtor Can't Deny Transaction For Which It Earlier Gave Approval: NCLT Delhi

The National Company Law Tribunal Bench of Shri Mahendra Khandelwal (Judicial Member) and Shri Atul Chaturvedi (Technical Member) upheld a Section 9 petition filed under the Insolvency & Bankruptcy Code, 2016 (“the Code”) stating that if the Corporate Debtor has given its approval for an amendment in the wage structure, it can't deny it later. Background...

When Entire Debt Amount Has Been Re-Paid, CIRP Process Can't Be Continued: NCLAT Delhi

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) held that when the admitted dues have been repaid by the debtor there is no point in continuing the Corporate Insolvency Resolution Process. Background Facts: M/s Rajasthan Land Holdings...

Interest-Free Debt Must Involve Time Value Of Money To Qualify As Financial Debt: NCLT Delhi

The National Company Law Tribunal Bench of Shri Mahendra Khandelwal (Judicial Member) and Shri Atul Chaturvedi (Technical Member) dismissed a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“the code”) stating that when the loan is granted without any interest it should have a consideration of time value of Money. Background Facts: Mr. Sunil...

Absence Of Formal Written Agreement Does Not Preclude Establishment Of Financial Debt: NCLT Delhi

The National Company Law Tribunal Bench of Shri Mahendra Khandelwal (Judicial Member) and Shri Atul Chaturvedi (Technical Member) the absence of a formal loan agreement does not defeat the existence of a financial debt. Documentary evidence such as tax filings (Form 26AS), TDS deductions, ledger entries, financial statements, and written acknowledgments are sufficient to establish...

Merely Extending Financial Assistance Can't Be Considered As Loan In Absence Of A Loan Agreement: NCLT Delhi

The National Company Law Tribunal Bench of Shri Mahendra Khandelwal (Judicial Member) and Shri Atul Chaturvedi (Technical Member) dismissed a Section 7 application filed under the Insolvency & Bankruptcy Code, 2016 (“the code”) holding that merely providing financial assistance can't be construed as a short-term or long-term loan in the absence of a formal...

Suspended Management Cannot Disburse Funds Of Corporate Debtor Post-CIRP Commencement Without Authorisation Of IRP: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), New Delhi bench comprising Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) have held that after commencement of Corporate Insolvency Resolution Process (CIRP) once moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC) kicks in, no person...