Interest On Unilateral Invoices For Delayed Payment Doesn't Constitute Operational Debt In Absence Of Contractual Clause: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson), Barun Mitra (Member-Technical), and Arun Baroka (Member-Technical), has dismissed an appeal arising out of a decision by the NCLT, Chandigarh Bench-I. The bench held that in the absence of any contractual clause, interest on the unilateral invoices for...

Application For Approval Of Resolution Plan Can't Be Rejected Solely Based On Withdrawal Of Consent By One Of Coc Members: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Yogesh Khanna (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member) has held that an application seeking approval of a Resolution Plan, approved by an overwhelming majority of 98.15%, cannot be rejected solely due to the withdrawal of consent by one Committee of Creditors (CoC) member...

Amendment In Application U/S 7 Of IBC Cannot Be Permitted If It Amounts To Withdrawal Of An Admission: NCLAT Chennai

The National Company Law Appellate Tribunal (NCLAT), Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), allowed an appeal arising out of a decision of the NCLT, Amravati Bench. The main issue before the tribunal was whether an amendment in a Section 7 IBC application can be allowed if it withdraws a pleading...

Secured Creditors Relinquishing Security Interest Cannot Claim Priority During Distribution Of Sale Proceeds Of Secured Assets: NCLT Cuttack

The National Company Law Tribunal (NCLT), Cuttack comprising of Justice Deep Chandra Joshi (Member (Judicial) and Banwari Lal Meena (Member (Technical) dismissed an application filed by the liquidator seeking directions for distribution of the balance sale consideration and for extending the time for distribution of sale proceeds under Section 53 of the IBC...

IBC Weekly Round Up [28th April-4th May 2025]

Nominal Index: Kalyani Transco vs M/s Bhushan Steel and Power Ltd and connected appeals | C.A. No. 1808/2020, 2025 LiveLaw (SC) 524 VISA COKE LIMITED VERSUS M/S MESCO KALINGA STEEL LIMITED, 2025 LiveLaw (SC) 505 Employees' Provident Fund Organization v/s Dr. Madurai Sundaram Sankar, Company Appeal (AT) (CH) (Ins) No. 193/2025 Kavindra Kumar and Ors. Vs M/s...

Employment Contract Disputes Cannot Be Adjudicated By NCLT/NCLAT Under IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that a dispute arising from an employment contract concerning the determination of emoluments and salaries to be paid to an employee of a company after his termination cannot be adjudicated by the National Company Law Tribunal...

No Provision Under IBC Mandating Resolution Professional To Share Valuation Report With Suspended Management Of Corporate Debtor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that there is no provision in the Insolvency and Bankruptcy Code, 2016 (Code), that mandates the valuation report to be shared with the suspended management of the Corporate Debtor. Therefore, the Resolution Professional cannot...

S. 61(2) IBC | Appeal Filed Beyond 45 Days Not Condonable By NCLAT : Supreme Court

The Supreme Court today (May 7) ruled that the National Company Law Appellate Tribunal (NCLAT), acting as the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016 (Code), has no power to condone delays in filing appeals beyond the prescribed limit of 45 (30+15) days under Section 61(2) of the Code. Accordingly, the bench of Justices JB Pardiwala and R Mahadevan set aside...

SEBI-Imposed Penalty Qualifies As A 'Fine' & Is An 'Excluded Debt' U/S 79(15)(A) Of IBC: NCLAT Chennai

The National Company Appellate Tribunal (NCLAT), Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), has upheld a decision passed by the Adjudicating Authority (NCLT, Hyderabad), admitting an application filed under Section 122(1) of the IBC, 2016. The Adjudicating Authority has earlier held that the penalty imposed by the...

No Cause of Action Arises Unless the Section 95 IBC Petition Is Admitted Against the Personal Guarantors: NCLAT Chennai

The National Company Law Appellate Tribunal (NCLAT), Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), has ruled that the personal guarantors cannot challenge the appointment of the resolution professional and other procedural actions taken under Section 95 to 100 of the IBC, 2016. The tribunal observed that these...

NCLAT Dismisses Appeal Against DLF U/S 61 Of IBC For ₹4.65 Crores Debt, Says Multiple Exchanges Between Parties Prove Pre-Existing Dispute

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra and Mr. Arun Baroka (Technical Member) has dismissed an appeal filed by the contractor under Section 61 of the Insolvency and Bankruptcy Code, 2016 (Code) against DLF, claiming a debt of Rs. 4.65 crores, was dismissed on the grounds that multiple...

Absence Of Assignee Name In Balance Sheet Of Corporate Debtor Does Not Negate Applicability Of Section 18 Of Limitation Act: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that the fact that the debt was assigned to Assignee and the assignee was not named in the balance sheets does not negate the applicability of Section 18 of the Limitation Act, 1963 (Limitation Act). It further held that the debt...