IBC News
Corporate Insolvency And Bankruptcy Laws Bar Association Requests Operationalisation Of Second Bench At NCLAT Chennai
The Corporate Insolvency and Bankruptcy Laws Bar Association, established to promote the study and advancement of corporate, insolvency, bankruptcy, economic, and allied laws, has submitted a representation to the Hon'ble Chairperson of the NCLAT on May 28, 2025, seeking the early constitution of a second bench at NCLAT, Chennai. They stated that On 25.01.2019, in Swiss Ribbons v....
Non-Payment Of Outstanding Lease Rent Amounts To Operational Debt: Nclt Delhi
The National Company Law Tribunal (NCLT), New Delhi bench of Shri Mahendra Khandelwal (Judicial Member) and Shri Atul Chaturvedi (Technical Member) held that when the lease amount is unpaid by the Corporate Debtor it amounts to Operational Debt under the Insolvency & Bankruptcy Code, 2016 (“the Code”). Background Facts: M/s Unified Credit Solutions Private Limited...
Byju's Insolvency : Supreme Court Issues Notice On Riju Ravindran's Plea Against NCLAT Mandating CoC Nod For CIRP Withdrawal
The Supreme Court recently issued notice on an appeal challenging the National Company Law Appellate Tribunal (NCLAT) judgment holding that the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) of Think and Learn Pvt Ltd (trade name Byju's) needed approval from 90 percent of the Committee of Creditors. A bench of Justice Vikram Nath and Justice Sanjay Kumar...
Corporate Applicant Can't Take Shield Of CIRP To Avoid Legally Recoverable Government Dues: NCLT Delhi
The National Company Law Tribunal Bench of Shri Mahendra Khandelwal (Judicial Member) and Shri Atul Chaturvedi (Technical Member) dismissed a Section 10 application filed under the Insolvency & Bankruptcy Code, 2016 (“the code”) holding that the Corporate Applicant cannot take the shield of CIRP to avoid the legally recoverable government dues. Background Facts: M/s...
Liquidated Damages Clause Does Not Permit Automatic Recovery Of Full Amount, Actual Loss Must Be Proven: Delhi High Court
The Delhi High Court bench of Justice Manoj Kumar Ohri has held that the law mandates proof of actual loss despite the presence of an Liquidated Damages (LD) clause and does not allow automatic recovery of the entire LD amount upon breach. Therefore, the Petitioner's unilateral adjustment without adjudication was unlawful. The AT rightly held that such unilateral recovery does not obviate...
Limitation Act Applies To Proceedings Under Interest On Delayed Payments To Small Scale & Ancillary Industrial Undertakings Act: Telangana High Court
The Telangana High Court bench of Justice P. Sam Koshy and Justice N. Tukaramji have held that the provisions of the Limitation Act, 1963 are applicable to proceedings initiated under the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993. The Court clarified that the overriding effect under Section 10 of the 1993 Act applies only to the express...
NCLAT Upholds Admission Of CIRP Against Pushp Ratna Realty
The National Company Law Appellate Tribunal (NCLAT), New Dehi bench of Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) have upheld the admission of the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Pushp Ratna Realty Pvt. Ltd. The Tribunal also upheld the rejection of a settlement proposal made by...
Demand Notice Sent To Wrong Address Invalidates Insolvency Petition: NCLT Hyderabad
The National Company Law Tribunal Hyderabad Bench of Shri. Rajeev Bhardwaj (Judicial Member) and Shri Sanjay Puri (Technical Member) dismissed a petition filed under Section 9 of the Insolvency & Bankruptcy code (“the Code”), holding that if demand notice u/s 8 of the code is not sent to the correct address, it does not meet the mandatory requirements of...
S. 13(2) SARFAESI Act Notice Demanding Payment From Guarantor Constitutes Invocation Of Personal Guarantee: 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 where a Section 13(2) notice explicitly demands payment from the guarantor in terms of the guarantee agreement, it amounts to an invocation of the personal guarantee. Background...
CoC Not Barred From Holding Second Challenge Process Despite Declaration Of Highest Bidder: 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 the Committee of Creditors is not barred from holding a Second challenge process for auction of Corporate Debtor's asset, even if a highest bidder has already been declared in the...
Receiver Of Goods Who Has Made Advance Payments Is Also An Operational Creditor: NCLT Chandigarh
The National Company Law Tribunal (NCLT), Chandigarh bench of Shri Harnam Singh Thakur (Judicial Member) and Shri Ashish Verma (Technical Member), held that the receiver of goods who has made advance payments for the goods purchased is also an Operational Creditor. Background Facts: Kiranakart Technologies Pvt. Ltd. (“Operational Creditor”) is engaged in the business of trading...
Liberty Granted By NCLAT To File Fresh Application Does Not Permit Appellant To Alter Date Of Default In Application U/S 7 Of IBC: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member) and Mr. Indevar Pandey (Technical Member) has held that the mere fact that the NCLAT granted the Appellant liberty, and the Appellant subsequently failed to pursue the first appeal against the order dated 10.04.2023 by which the...