REEDNews

Latest News on the Insolvency, Bankruptcy and Debt Recovery laws

High Court Sanctions One-Time Ex-Gratia Welfare Payment to Company Paid Staff from Official Liquidator’s Common Pool Fund

The High Court permitted a one-time ex-gratia welfare payment to Company Paid Staff of the Official Liquidator from surplus Common Pool Funds, holding that such equitable relief was permissible where no creditor interest was prejudiced and no precedent was created.

12 hours ago3 min read

Time-Barred CIRP Claims Cannot Be Revived After Final Rejection: NCLAT Affirms Limited Scope of Remand

CIRP claims earlier rejected as time-barred cannot be reopened on remand, as limitation finality and strict IBC timelines prevail; prospective Regulation 13(1B) amendments do not create new rights.

1 day ago4 min read

CoC Remand Nullifies Prior Plan Approval: Homebuyer Claims Must Be Independently Re-evaluated Under IBC

In a significant clarification on homebuyer rights under the IBC, NCLAT ruled that once a resolution plan is remanded to the CoC, the earlier approval stands nullified. The Adjudicating Authority must independently examine all pending homebuyer claims, and rejection based solely on the previous CoC approval is contrary to the remand directions and legally untenable.

2 days ago4 min read

Debt Acknowledgement in Balance Sheets Extends Limitation Against Guarantor under Section 95 IBC

NCLAT ruled that acknowledgment of outstanding dues in balance sheets constituted a valid statutory acknowledgment under Section 18 of the Limitation Act. Since the guarantee remained continuing, the limitation period against the guarantor stood extended, making initiation of insolvency proceedings under Section 95 maintainable.

3 days ago4 min read

Banks Cannot Enforce Credit Card Recovery on Disputed Transactions Without Proving Authorization: Delhi HC

Banks cannot enforce credit card recovery or impose charges where electronic transactions are disputed unless prior authorization is proven through verifiable and accountable authentication mechanisms.

6 days ago3 min read

Supreme Court Reveals Attempt by Retired High Court Chief Justice to Influence NCLAT Judge; Accountability Now Rests with New CJI Surya Kant

The outgoing Chief Justice of India disclosed that a retired High Court Chief Justice had attempted to influence a judicial member of the NCLAT in a corporate matter. As the implicated judge retired before a formal inquiry could be commenced, the issue has been placed before the new CJI Surya Kant for administrative action.

Nov 243 min read

RBI’s 15-Day Banking Rule: Ensuring Faster Claim Settlements and Enhanced Customer Experience

RBI’s 15-day banking rule mandates all banks to process key requests and claim settlements within 15 calendar days, strengthening transparency, accountability, and customer trust.

Oct 123 min read

Supreme Court Reaffirms Presumption in Cheque Bounce Cases, Restores Conviction and Orders Faster NI Act Trials

The Supreme Court restored a conviction in a cheque dishonour case, holding that statutory presumptions under Sections 118 and 139 NI Act remain unless rebutted with credible evidence, and financial capacity allegations cannot defeat enforceability.

Sep 263 min read

High Court Sets Aside DRAT Order: NPA Classification After 90 Days of Default Upheld and SARFAESI Auction Sustained

Continuous default beyond ninety days justifies NPA classification, and borrower’s express consent to auction operates as waiver, barring subsequent SARFAESI challenges.

19 hours ago4 min read

DRT Cannot Impose Overseas Travel Restrictions Without Statutory Authority: High Court Quashes Recovery Officer’s Conditions as Unconstitutional

The Madhya Pradesh High Court has ruled that the DRT and its Recovery Officer cannot impose overseas travel restrictions without statutory authority. Since the 1993 Act contains no provision permitting curtailment of the right to travel abroad, such conditions violate Articles 19 and 21 and are unconstitutional.

2 days ago3 min read

Provident Fund Dues Override SARFAESI Priority Even After Section 26E Registration

The Supreme Court held that security-interest registration under Section 23 gives Section 26E priority over all dues, but provident fund liabilities legally retain first-charge status and must be discharged before allocation of sale proceeds to secured debt.

Dec 64 min read

Guarantor Bound by Executed Guarantee: Appeal Dismissed for Lack of Contrary Evidence

DRAT Allahabad held that a guarantor who executed the guarantee cannot deny liability without producing contrary evidence.

Nov 293 min read