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Amit Kumar Kejriwal v. UCO Bank and Another, REEDLAW 2026 NCLAT Del 02546
The NCLAT held that a Form B demand notice cannot substitute invocation of a personal guarantee and that proceedings under Section 95 IBC against a personal guarantor are not maintainable without prior contractual invocation.
1 day ago1 min read
Personal Insolvency Proceedings Under Section 95 IBC Require Prior Invocation of Guarantee: NCLAT
The NCLAT held that a Form B demand notice cannot substitute invocation of a personal guarantee and that proceedings under Section 95 IBC against a personal guarantor are not maintainable without prior contractual invocation.
1 day ago3 min read
Harish Kumar Mittal v. State Bank of India and Another, REEDLAW 2026 NCLAT Del 02529
The NCLAT, New Delhi ruled that admission of personal insolvency proceedings under the IBC without considering a reply on record and submissions advanced violates principles of natural justice and cannot be sustained in law.
3 days ago1 min read
Admission of Personal Insolvency Proceedings Without Considering Reply Violates Principles of Natural Justice: NCLAT
The NCLAT, New Delhi ruled that admission of personal insolvency proceedings under the IBC without considering a reply on record and submissions advanced violates principles of natural justice and cannot be sustained in law.
3 days ago2 min read
RR Securities and Finance Private Limited v. Rishabh Chand Lodha, REEDLAW 2026 NCLAT Del 02520
The NCLAT, New Delhi clarified that insolvency proceedings cannot be invoked to enforce contingent or inchoate rights arising from unregistered redevelopment agreements, defective guarantees, or assignments lacking crystallised obligations.
3 days ago1 min read
Contingent Rights Under Property-Linked Agreements Do Not Create Enforceable Claims in CIRP: NCLAT
The NCLAT, New Delhi clarified that insolvency proceedings cannot be invoked to enforce contingent or inchoate rights arising from unregistered redevelopment agreements, defective guarantees, or assignments lacking crystallised obligations.
3 days ago2 min read
West Bengal Housing Infrastructure Development Corporation Limited v. Kshitiz Chhawchharia, Liquidator, REEDLAW 2025 NCLAT Del 10564
The NCLAT held that leasehold rights vested in a Corporate Debtor constitute intangible assets forming part of the liquidation estate under the IBC and may be validly controlled and sold by the Liquidator despite ownership of land vesting with the lessor.
6 days ago1 min read
Leasehold Rights Transferred by Amalgamation Constitute Liquidation Estate Assets under IBC
The NCLAT held that leasehold rights vested in a Corporate Debtor constitute intangible assets forming part of the liquidation estate under the IBC and may be validly controlled and sold by the Liquidator despite ownership of land vesting with the lessor.
6 days ago3 min read
Vinita Agarwala and Others v. Power Pack Steel Industries Private Limited, REEDLAW 2026 NCLAT Del 02502
The NCLAT held that violation of deposit provisions under the Companies Act does not render an interest-bearing loan unenforceable or bar insolvency proceedings under Section 7 of the IBC.
6 days ago1 min read
Violation of Companies Act Deposit Provisions Cannot Defeat Section 7 IBC Proceedings Where Financial Debt Is Established
The NCLAT held that violation of deposit provisions under the Companies Act does not render an interest-bearing loan unenforceable or bar insolvency proceedings under Section 7 of the IBC.
6 days ago3 min read
EAS Sarma v. Union of India and Others, REEDLAW 2026 SC 01590
The Supreme Court expressed grave concern over the misuse of the Insolvency and Bankruptcy Code through systematic asset undervaluation and pre-planned resolution processes, warning against insolvency becoming a shield for legitimising financial fraud.
Feb 51 min read
Misuse of IBC Through Asset Undervaluation and Pre-Planned Auctions: Supreme Court Flags Systemic Abuse and Bank Collusion
The Supreme Court expressed grave concern over the misuse of the Insolvency and Bankruptcy Code through systematic asset undervaluation and pre-planned resolution processes, warning against insolvency becoming a shield for legitimising financial fraud.
Feb 54 min read
Redpro Construction Private Limited v. Skyline Infratech Private Limited, REEDLAW 2025 NCLAT Del 11553
NCLAT ruled that exclusion of a solitary invoice falling within the Section 10A suspension period does not bar initiation of Section 9 proceedings when remaining operational defaults arose outside the prohibited period.
Feb 41 min read
Section 10A Bar Does Not Defeat Section 9 Proceedings When Pre-Suspension Defaults Independently Cross IBC Threshold: NCLAT
NCLAT ruled that exclusion of a solitary invoice falling within the Section 10A suspension period does not bar initiation of Section 9 proceedings when remaining operational defaults arose outside the prohibited period.
Feb 43 min read
Anitha Rayapati and Others v. Arcelor Mittal Nippon Steel India Private Limited and Others, REEDLAW 2026 SC 01544
The Supreme Court held that transfer of insolvency proceedings cannot be granted merely on allegations against tribunal members, reaffirming institutional independence and limits on supervisory interference.
Feb 41 min read
Transfer of NCLT Proceedings Cannot Be Sought on Alleged Adverse Observations by Tribunal Members: Supreme Court
The Supreme Court held that insolvency proceedings cannot be transferred merely on speculative allegations against tribunal members, reaffirming judicial discipline and institutional independence.
Feb 43 min read
IFCI Limited v. Raju Palanikunnathil Kesavan, RP and Another, REEDLAW 2025 NCLAT Del 11517
The NCLAT held that a resolution plan approved without complete disclosure and valuation of all assets, including development rights and third-party secured interests, suffers from material irregularity in the conduct of the CIRP and cannot be sustained merely on the basis of Committee of Creditors’ approval.
Feb 31 min read
Non-Disclosure and Non-Valuation of Assets Vitiate CIRP Despite CoC Approval: NCLAT
The NCLAT held that a resolution plan approved without complete disclosure and valuation of all assets, including development rights and third-party secured interests, suffers from material irregularity in the conduct of the CIRP and cannot be sustained merely on the basis of Committee of Creditors’ approval.
Feb 33 min read
IBC Reforms Losing Momentum as NCLT Backlog Mounts to 30,600 Cases, Economic Survey 2025–26 Warns
The Economic Survey 2025–26 flags serious concerns over delays at the NCLT, warning that mounting insolvency backlogs are diluting the effectiveness of the Insolvency and Bankruptcy Code.
Feb 33 min read
Satinder Singh Bhasin v. Col. Gautam Mullick and Others, REEDLAW 2026 SC 01582
The Supreme Court clarified that a joint Section 7 application by real estate allottees is maintainable when the statutory threshold is satisfied at the time of valid filing and default is established due to non-delivery of lawful possession.
Feb 31 min read
Joint Insolvency under Section 7 IBC Maintainable for Integrated Real Estate Projects; Threshold Tested on Date of Filing
The Supreme Court clarified that a joint Section 7 application by real estate allottees is maintainable when the statutory threshold is satisfied at the time of valid filing and default is established due to non-delivery of lawful possession.
Feb 34 min read
Angle Infrastructure Private Limited v. Directorate of Enforcement, REEDLAW 2025 Del 11579
The Delhi High Court restrained coercive attachment action by the Enforcement Directorate during CIRP without court permission, holding that such action may undermine the insolvency resolution process.
Feb 21 min read
ED Attachment During CIRP Requires Court Leave Where Action May Jeopardise Resolution Process
The Delhi High Court restrained coercive attachment action by the Enforcement Directorate during CIRP without court permission, holding that such action may undermine the insolvency resolution process.
Feb 23 min read
Kewal Krishan Sharma v. Navneet Gupta, Resolution Professional, REEDLAW 2025 NCLAT Del 11510
The NCLAT affirmed that financial default is triggered on expiry of contractual cure periods, and Section 10A protection does not cover defaults prior to 25 March 2020, upholding the NCLT’s CIRP admission.
Feb 21 min read
Default Occurs on Expiry of Contractual Cure Period; Section 10A Cannot Shield Pre-25 March 2020 Defaults
The NCLAT affirmed that financial default is triggered on expiry of contractual cure periods, and Section 10A protection does not cover defaults prior to 25 March 2020, upholding the NCLT’s CIRP admission.
Feb 24 min read
Viney Kumar Sharma v. Improvement Trust and Another, REEDLAW 2026 SC 01006
The Supreme Court held that non-disclosure of litigation by a state authority during a public auction vitiates the sale and mandated refund of the deposited amount with 9% interest, affirming transparency and restitution principles.
Feb 11 min read
Failure to Disclose All Known Encumbrances in Public Auction Vitiates Sale and Entitles Purchaser to Refund with Interest
The Supreme Court held that non-disclosure of litigation by a state authority during a public auction vitiates the sale and mandated refund of the deposited amount with 9% interest, affirming transparency and restitution principles.
Jan 314 min read
ED Attaches ₹1,885 Crore in Assets Linked to Anil Ambani Group in Ongoing Bank Fraud Probe
The Enforcement Directorate provisionally attached ₹1,885 crore in assets linked to Reliance Anil Ambani Group entities in ongoing bank fraud and fund diversion investigations, taking cumulative attachments close to ₹12,000 crore.
Jan 302 min read
NCLT Has No Jurisdiction to Decide Trademark Ownership Disputes Outside CIRP | Supreme Court
The Supreme Court clarified that the NCLT has no jurisdiction under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 to adjudicate trademark ownership or disputed intellectual property rights outside the CIRP. It was held that transactions cannot be invalidated without a specific statutory avoidance application and that any declaration beyond an approved resolution plan amounts to an impermissible judicial modification, reaffirming the limited and insolvency-centr
Jan 286 min read
IBBI Notifies Panel of Insolvency Professionals and IPEs for Appointments under the IBC (Valid January–June 2026): Structure, Criteria, and Regulatory Significance
REEDLAW Legal News Network | Published on: 16 January 2026 | 🔗 Find Shareable Link at the End The REEDLAW Legal News Network reports: The Insolvency and Bankruptcy Board of India (IBBI), on 16 January 2026, published the updated panel of Insolvency Professional Entities (IPEs) and Insolvency Professionals (IPs) for appointment as Interim Resolution Professionals (IRPs), Resolution Professionals (RPs), Liquidators, and Bankruptcy Trustees (BTs) under the Insolvency and B
Jan 254 min read
IRP’s Right to Represent Corporate Debtor in Criminal Proceedings: Supreme Court Bars Parallel Criminal Proceedings and Protects Accused from Custody
The Supreme Court held that once insolvency begins, the IRP alone represents the Corporate Debtor in criminal cases, barred parallel proceedings, and protected the accused from custodial detention after filing of the charge sheet.
Jan 224 min read
Limits of Article 226 Judicial Review Over Disciplinary Orders: Delhi High Court Upholds Suspension of Insolvency Professional
The Delhi High Court clarified that Article 226 cannot be used to re-evaluate evidence in disciplinary matters and upheld strict standards of accountability for Insolvency Professionals.
Jan 195 min read
Admission Under Section 7 Is Mandatory on Proof of Debt and Default: Supreme Court Reaffirms the Narrow Vidarbha Exception
The Supreme Court reaffirmed that admission of a Section 7 application is mandatory once debt and default are proved, restricting the Vidarbha discretion strictly to exceptional circumstances and restoring certainty to IBC jurisprudence.
Jan 176 min read
Belated Modification of an Approved Resolution Plan Is Not Maintainable, Even by Dissenting Secured Financial Creditors
The NCLAT held that once a Resolution Plan is approved, its terms attain finality and no creditor, including a dissenting secured creditor, can seek belated modification of its distribution.
Jan 156 min read
Promoter’s Undertaking to Infuse Funds Is Not a Guarantee under Section 126 Contract Act — Section 7 Application Rejected
The Supreme Court ruled that a promoter’s undertaking to infuse funds is not a guarantee under Section 126 of the Contract Act and cannot sustain a Section 7 IBC application without an express promise to discharge the debtor’s liability.
Jan 125 min read
Applicability of Section 10A to Post-Exclusion Operational Debt Crossing IBC Threshold—Section 9 Dismissal Set Aside
The NCLAT held that a Section 9 application could not be dismissed under Section 10A where post-exclusion operational debt independently met the IBC threshold, requiring adjudication on merits.
Jan 84 min read
NCLT Cannot Insert New Terms in CoC-Approved Resolution Plan: Unauthorised 5% Public Shareholding Clause Set Aside
NCLAT ruled that the Adjudicating Authority cannot insert new or unapproved terms while approving a resolution plan, holding that unauthorised equity restructuring violates the jurisdictional limits under the IBC.
Jan 53 min read
Security Amount Not Operational Debt: Section 9 Petition Dismissed for Failing IBC Threshold and Operational Debt Criteria
NCLT New Delhi dismissed a Section 9 petition, holding that a security amount provided for performance under a commercial agreement is not operational debt and Section 9 petitions are maintainable only if debt meets operational and statutory threshold criteria.
Jan 54 min read
Moratorium Bar on Post-CIRP Transfer of Corporate Debtor’s Vehicle: Registration Change Based on Pre-CIRP Agreement Held Void Under IBC
Post-CIRP transfer of a Corporate Debtor’s vehicle through registration change based on a sham pre-CIRP agreement was held void ab initio, with the NCLT reiterating the absolute bar imposed by Section 14(1)(b) of the IBC and warning of penal consequences for suspended directors.
Jan 54 min read
Acknowledgement by Principal Borrower Extends Limitation for Section 7 Proceedings Against Corporate Guarantors
NCLAT confirmed that principal borrower’s acknowledgment extends limitation for Section 7 proceedings against corporate guarantors, overriding prior limitation bar and COVID-19 exclusion.
Jan 44 min read
Terminated Redevelopment Agreement Not an Asset of Corporate Debtor; IBC Moratorium Cannot Revive Extinguished Contractual Rights
A redevelopment agreement terminated before CIRP does not survive as an asset of the corporate debtor, and Section 14 moratorium cannot be used to revive extinguished contractual rights or block statutory redevelopment approvals.
Dec 30, 20256 min read
Company-Wide CIRP in Real Estate Insolvency Is Legally Unsustainable for Project-Specific Debt: NCLAT Enforces Project-Wise Resolution Norm
Initiation of a company-wide CIRP against a real estate developer is legally unsustainable where the debt and default arise from a single project, NCLAT holds, reiterating that project-wise insolvency remains the governing norm under the IBC.
Dec 29, 20255 min read
Prior NCLT Approval Mandatory for Private Sale in Liquidation: Swiss Challenge Invalidated Due to Unreasonable Timelines and Restrictive EMD
The Appellate Tribunal held that a private sale conducted through a Swiss Challenge process during liquidation is unsustainable in the absence of prior approval of the Adjudicating Authority and where the process is structured with unreasonable timelines and restrictive EMD conditions that stifle competition.
Dec 29, 20255 min read
Supreme Court Directs Transfer of Pending NCLAT Company Appeal for Expeditious Disposal
The Supreme Court directed the transfer of a pending NCLAT company appeal to the Principal Bench to ensure fair and expeditious adjudication. Broader administrative and public-interest concerns raised in a writ petition were treated as a representation for the Chief Justice of India’s consideration.
Dec 26, 20253 min read
Proposed IRP Must Be Appointed Under Section 16(2) IBC: NCLT Cannot Reject on Ground of Multiple Assignments Alone
Kerala High Court held that once a Section 7 or 10 application is admitted, the NCLT must appoint the proposed IRP under Section 16(2) IBC if statutory eligibility is satisfied, and cannot reject appointment merely due to multiple assignments.
Dec 26, 20254 min read
Approved Resolution Plan Authorises CoC to Pursue Avoidance Applications: Suspended Director Has No Locus to Oppose RP Substitution
NCLAT held that once a resolution plan authorises the CoC to pursue avoidance applications, a suspended director has no locus to oppose substitution of the Resolution Professional, and no separate hearing is required.
Dec 25, 20253 min read
Section 7 CIRP Barred Under Section 10A: Date of Default Stated in Demand Notice Is Determinative
NCLAT held that a Section 7 IBC application is barred under Section 10A if the date of default stated in the demand notice falls within the COVID-19 exclusion period, and cannot be modified by oral extensions or subsequent demands.
Dec 22, 20254 min read
NCLT Cannot Adjudicate Shareholding or Property Disputes: Disclosure of High Court Litigation in Information Memorandum Upheld
NCLAT held that disputes relating to shareholding and immovable property lie outside insolvency jurisdiction, and that disclosure of pending High Court litigation in the Information Memorandum is adequately ensured through the duties of the Resolution Professional.
Dec 22, 20253 min read
Rejected Prospective Resolution Applicant Lacks Locus to Challenge CIRP or Information Memorandum: NCLAT Upholds Resolution Process
NCLAT held that a rejected prospective resolution applicant lacks locus standi to challenge the CIRP or seek re-issuance of the Information Memorandum, and alleged defects therein cannot invalidate the resolution process absent a violation of Section 30(2) IBC.
Dec 22, 20254 min read
Amendment of Date of Default Permissible in Section 95 Proceedings Despite Limitation Objection
NCLAT held that amendment of the date of default in a pending Section 95 personal guarantor insolvency application is permissible even at an advanced stage, as it facilitates effective adjudication without finally deciding limitation or foreclosing statutory defences.
Dec 22, 20254 min read
Viney Kumar Sharma v. Improvement Trust and Another, REEDLAW 2026 SC 01006
The Supreme Court held that non-disclosure of litigation by a state authority during a public auction vitiates the sale and mandated refund of the deposited amount with 9% interest, affirming transparency and restitution principles.
Feb 11 min read
Failure to Disclose All Known Encumbrances in Public Auction Vitiates Sale and Entitles Purchaser to Refund with Interest
The Supreme Court held that non-disclosure of litigation by a state authority during a public auction vitiates the sale and mandated refund of the deposited amount with 9% interest, affirming transparency and restitution principles.
Jan 314 min read
ED Attaches ₹1,885 Crore in Assets Linked to Anil Ambani Group in Ongoing Bank Fraud Probe
The Enforcement Directorate provisionally attached ₹1,885 crore in assets linked to Reliance Anil Ambani Group entities in ongoing bank fraud and fund diversion investigations, taking cumulative attachments close to ₹12,000 crore.
Jan 302 min read
Promoter’s Undertaking to Infuse Funds Is Not a Guarantee under Section 126 Contract Act — Section 7 Application Rejected
The Supreme Court ruled that a promoter’s undertaking to infuse funds is not a guarantee under Section 126 of the Contract Act and cannot sustain a Section 7 IBC application without an express promise to discharge the debtor’s liability.
Jan 125 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.
Dec 8, 20253 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 24, 20253 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 12, 20253 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 26, 20253 min read
Cash Payment in Promissory Note Cannot Be Denied for Lack of Bank Proof; Decree Restored by Supreme Court
The Supreme Court restored a decree, holding that cash payments in money lending transactions cannot be denied for lack of bank evidence when supported by a valid promissory note and oral testimony.
Sep 6, 20253 min read
Bank of Baroda Classifies Reliance Communications and Anil Ambani Loan Accounts as Fraud
Bank of Baroda has classified the loan accounts of Reliance Communications and Anil Ambani as fraudulent, citing forensic audit findings of irregularities and suspected fund diversion amid ongoing IBC proceedings and regulatory scrutiny.
Sep 5, 20252 min read
SC Collegium Recommends 26 Judges for Allahabad HC, Including SC Lawyers Garima Prashad & Swarupama Chaturvedi
The Supreme Court Collegium, on 1 September 2025, recommended the appointment of 26 individuals as judges of the Allahabad High Court, including four women and a balanced representation from the Bar and judiciary.
Sep 3, 20252 min read
No Power to Recall Summoning Order in Revision; SICA Not a Shield Against Section 138 NI Act
In a judgment pronounced today, the Supreme Court ruled that revisional courts cannot recall summoning orders in Section 138 NI Act cases and clarified that SICA protection cannot shield against cheque dishonour prosecutions.
Sep 3, 20253 min read
Assignment of Stressed Loans to Operational Creditors Held Unlawful; Compromise Under CPC Must Be Lawful, Rules Bombay High Court
Bombay High Court held that assignment of stressed loans to operational creditors is unlawful under RBI norms and that CPC compromises cannot validate agreements prohibited by law.
Sep 1, 20254 min read
Arbitration Clause in Tax Invoices Amounts to Valid Arbitration Agreement, Rules Bombay High Court
Bombay High Court ruled that an arbitration clause in tax invoices accepted without objection qualifies as a valid arbitration agreement under Section 7, allowing reference to arbitration under Section 11.
Aug 30, 20253 min read
NSIC Signs MoUs with Private Sector Banks to Boost MSME Credit Access under Credit Facilitation Program
NSIC signed MoUs with Axis Bank, IndusInd Bank, Karnataka Bank, AU Small Finance Bank, and Dhanlaxmi Bank on 11 August 2025 under its MSME Credit Facilitation Program. The collaboration is expected to expand financial inclusion, strengthen credit accessibility, and foster growth in the MSME sector.
Aug 16, 20252 min read
RBI Introduces Real-Time Cheque Clearing: Settlement Within Hours from October 4, 2025
The RBI announced a major reform in cheque settlement, introducing real-time clearance from October 4, 2025. The new system will reduce settlement to hours through a phased rollout, ensuring faster liquidity and modernizing India’s banking system.
Aug 16, 20252 min read
Director Lacks Locus Post-Liquidation; MSME Framework Cannot Override SARFAESI and IBC: Bombay High Court
The Bombay High Court ruled that a director of a company under liquidation has no legal standing to challenge recovery actions, and clarified that MSME revival schemes cannot override statutory frameworks under SARFAESI and the IBC.
Aug 6, 20254 min read
Supreme Court Clarifies Territorial Jurisdiction under NI Act: Complaint Maintainable Where Payee Holds Bank Account
REEDLAW Legal News Network | 2 August 2025 | Case Citation - REEDLAW 2025 SC 07014 REEDLAW Legal News Network reports that the...
Aug 2, 20253 min read
Ministry of Finance Invites Applications for Chairperson, DRAT Delhi: Eligibility, Tenure, and Selection Guidelines Notified
REEDLAW Legal News Network | 1 August 2025 | 🔗 Find Shareable Link at the End REEDLAW Legal News Network reports that the Ministry...
Aug 1, 20252 min read
Cash Loan Above ₹20K in Violation of Income Tax Act Not a Legally Enforceable Debt Under NI Act: Kerala High Court Quashes Cheque Bounce Conviction
REEDLAW Legal News Network | 29 July 2025 | Case Citation - REEDLAW 2025 Ker 07017 REEDLAW Legal News Network reports that the...
Jul 30, 20254 min read
Supreme Court Holds Acknowledgement of Partial Debt Doesn’t Extend Limitation for Entire Claim
The Supreme Court held that acknowledgement of a partial debt does not extend the period of limitation for the entire claim under Section...
Jul 28, 20253 min read
Complaint Can Be Amended Post-Cognizance If No Prejudice Is Caused: Supreme Court Clarifies NI Act Position
The Supreme Court clarified that a complaint under the Negotiable Instruments Act can be amended even after cognizance has been taken,...
Jul 28, 20253 min read
SC Clarifies Section 18 of MSMED Act: Limitation Act Applies to Arbitration, Not Conciliation, in Time-Barred Claims
The Supreme Court clarified that under Section 18 of the MSMED Act, the Limitation Act applies to arbitration proceedings but not to...
Jul 24, 20254 min read
Mortgagor’s Right to Redeem Usufructuary Mortgage Not Time-Barred, Continues Until Decree of Sale
The High Court held that the mortgagor’s right to redeem a usufructuary mortgage is not time-barred and continues until a decree of sale...
Jul 22, 20253 min read
SC Clarifies: Partnership Firm Not Distinct Entity; Partners’ Joint and Personal Liability Upheld for Cheque Dishonour
The Supreme Court clarified that a partnership firm is not a distinct legal entity and upheld that partners bear joint and personal...
Jul 21, 20253 min read
Recovery Suit Against Bank for Fraudulent Withdrawals from Current Account Maintainable Before Commercial Court: Karnataka High Court
The High Court held that a recovery suit against the bank for fraudulent withdrawals from a current account is maintainable before the...
Jul 17, 20252 min read
“Go to RBI”: Supreme Court Declines PIL Seeking Probe into Fraudulent Loan Transactions
The Supreme Court declined to entertain the public interest litigation seeking a probe into fraudulent loan transactions, directing the...
Jul 15, 20252 min read
Adverse CIBIL Report Valid Ground to Cancel Bank Appointment, Holds Madras High Court
The Madras High Court held that an adverse CIBIL report and a poor history of loan repayment constitute valid grounds for cancellation of...
Jul 11, 20253 min read
Bank Cannot Insist on Aadhaar for Opening Account Post-Puttaswamy Verdict: Bombay High Court Awards ₹50K Compensation
The Bombay High Court held that a bank cannot insist on an Aadhaar card for opening an account after the Supreme Court’s verdict in...
Jul 9, 20253 min read
Dishonour of Cheques During CIRP and Liquidation Not Attributable to Former Directors: Bombay High Court Quashes Criminal Proceedings
Bombay High Court held that dishonour of cheques during the Corporate Insolvency Resolution Process and liquidation cannot be attributed...
Jul 7, 20253 min read
Insolvency and Bankruptcy Code Cannot Override PMLA; ED’s Asset Attachment to Remain, Rules NCLAT
The National Company Law Appellate Tribunal (NCLAT) has ruled that the Insolvency and Bankruptcy Code (IBC) cannot override the...
Jul 7, 20254 min read
SC Seeks Immediate Repossession of CJI Bungalow from Justice Chandrachud After Extended Stay Beyond Permissible Limit
Supreme Court asks Centre to reclaim official CJI residence from Justice D.Y. Chandrachud, citing overstay beyond permitted...
Jul 6, 20252 min read
SC Declines to Quash FIR Against HDFC Bank CEO: Lilavati Trust Alleges Bribery and Fraud in Governance Dispute
SC refuses to quash FIR against HDFC Bank CEO in Lilavati Trust bribery case, citing upcoming July 14 hearing before Bombay High Court....
Jul 5, 20253 min read
RBI Bans Pre-Payment Charges for MSEs and Individuals on Floating Rate Loans: A Major Push Towards Fair Lending and Borrower Mobility
In a major reform, the RBI eliminates pre-payment penalties on select floating rate loans for individuals and MSEs, empowering borrowers...
Jul 5, 20252 min read
RBI’s Deputy Governor Pushes for Real-Time Credit Reporting and Standardised Borrower IDs to Deepen Trust and Democratise Credit Access
RBI Deputy Governor M. Rajeshwar Rao urged Credit Information Companies to adopt real-time credit data reporting and implement...
Jul 4, 20252 min read
Bombay High Court: MSME Director Lacks Locus to Challenge Recovery; SARFAESI and IBC Actions Stand Despite Revival Framework Claims
The Bombay High Court held that the director of an MSME lacks the legal locus to challenge recovery actions and upheld the proceedings...
Jun 28, 20253 min read
Interest Subsidy from RBI Not Taxable under Interest Tax Act: High Court Rules in Favour of Assessee
The Bombay High Court ruled in favour of the Assessee, holding that the interest subsidy received from the Reserve Bank of India under...
Jun 25, 20253 min read
Bank Liable for Encashment of Forged Cheques: High Court Sets Aside Trial Court’s Dismissal, Upholds Customer’s Claim for Negligent Payment
The Kerala High Court held the Bank liable for encashment of cheques bearing forged signatures and set aside the trial court’s dismissal...
Jun 20, 20253 min read
Mere Professional Engagement by Party’s Law Firm Does Not Disqualify Arbitrator Under Schedule VII: High Court
The High Court held that mere professional engagement of the arbitrator by the party’s law firm does not amount to disqualification under...
Jun 15, 20253 min read
Supreme Court Restores NI Act Proceedings, Holds Unsubstantiated Retirement No Shield from Partner Liability
The Supreme Court restored proceedings under the Negotiable Instruments Act, holding that an unsubstantiated claim of retirement does not...
Jun 14, 20253 min read
Loan Settled, Yet Gold Revalued and Auctioned — Supreme Court Restores FIR Alleging Fraud by Bank Officials
The Supreme Court held that once the loan was settled, the subsequent revaluation and auction of the pledged gold raised serious doubts,...
Jun 11, 20253 min read
Supreme Court Upholds Mandatory Pre-Deposit for MSMED Act Appeals Despite Writ Invocation
The Supreme Court upheld the mandatory pre-deposit requirement under the MSMED Act for appeals, even when the party invoked the writ...
Jun 4, 20253 min read
Moratorium Under IBC Bars Section 138 NI Act Proceedings Against Corporate Debtor but Not Against Directors
The moratorium under the Insolvency and Bankruptcy Code bars proceedings under Section 138 of the Negotiable Instruments Act against the...
Jun 3, 20253 min read
Arbitration in Loan Disputes: Limited Jurisdiction of Courts and Fraud Allegations Do Not Bar Reference Unless Arbitration Clause Is Vitiated
The High Court held that arbitration in loan disputes is not barred by fraud allegations or the limited jurisdiction of courts unless the...
Jun 2, 20253 min read
Essence of Contract, Forfeiture of Earnest Money, and Specific Pleadings in Enforcement of Sale Agreements: Supreme Court Ruling
The Supreme Court, in a recent ruling, examined the essence of contract, the forfeiture of earnest money, and the necessity of specific...
May 27, 20253 min read
Supreme Court Affirms: Encashment of Bank Guarantee Is Not Duty Payment — Clarifies Refund Eligibility Under Customs Act
The Supreme Court has affirmed that the encashment of a bank guarantee does not constitute payment of duty and has clarified the...
May 20, 20253 min read
Commercial Execution Proceedings Withdrawn Following Settlement – Liberty Granted to Restore on Breach of Terms
The High Court allowed the withdrawal of commercial execution proceedings following a settlement agreement between the parties, while...
Apr 11, 20252 min read
Proceedings under Section 138 of NI Act Against an Individual are Barred During Interim Moratorium Under Section 96 of the IBC
The High Court held that proceedings under Section 138 of the Negotiable Instruments Act against an individual are barred during the...
Apr 10, 20252 min read
Personal Insolvency Proceedings Cannot Shield Individuals from Prosecution under Section 138 of the N.I. Act Despite Interim Moratorium under Section 96 of the IBC
The Supreme Court held that personal insolvency proceedings under the IBC cannot shield individuals from prosecution under Section 138 of...
Apr 5, 20254 min read
Supreme Court Reaffirms Statutory Presumption Under NI Act – Mere Denial by Accused Insufficient to Rebut Liability
The Supreme Court reaffirmed the statutory presumption under the Negotiable Instruments Act, holding that mere denial by the accused was...
Apr 3, 20253 min read
Mukund Maheswar and Another v. Axis Bank Limited and Others, REEDLAW 2026 SC 01254
The Supreme Court ruled that allegations of fraud in SARFAESI possession proceedings require judicial examination and cannot be rejected at the threshold on procedural objections.
Feb 31 min read
Authorized Officer, IDBI Bank Limited v. Sunita Devi and Others, REEDLAW 2026 DRAT Ald 01259
The DRAT Allahabad reaffirmed that borrower intention governs mortgage validity, holding that forged title deeds do not defeat a secured creditor’s first charge or SARFAESI enforcement rights.
Feb 21 min read
Validity of Mortgage Depends on Borrower’s Intention; Subsequent Sale Cannot Defeat Secured Creditor’s First Charge under SARFAESI Act
The DRAT Allahabad reaffirmed that borrower intention governs mortgage validity, holding that forged title deeds do not defeat a secured creditor’s first charge or SARFAESI enforcement rights.
Feb 23 min read
Viney Kumar Sharma v. Improvement Trust and Another, REEDLAW 2026 SC 01006
The Supreme Court held that non-disclosure of litigation by a state authority during a public auction vitiates the sale and mandated refund of the deposited amount with 9% interest, affirming transparency and restitution principles.
Feb 11 min read
Fraud Allegations in SARFAESI Proceedings Cannot Be Rejected on Technical Objections: Supreme Court
The Supreme Court ruled that allegations of fraud in SARFAESI possession proceedings require judicial examination and cannot be rejected at the threshold on procedural objections.
Feb 13 min read
Failure to Disclose All Known Encumbrances in Public Auction Vitiates Sale and Entitles Purchaser to Refund with Interest
The Supreme Court held that non-disclosure of litigation by a state authority during a public auction vitiates the sale and mandated refund of the deposited amount with 9% interest, affirming transparency and restitution principles.
Jan 314 min read
ED Attaches ₹1,885 Crore in Assets Linked to Anil Ambani Group in Ongoing Bank Fraud Probe
The Enforcement Directorate provisionally attached ₹1,885 crore in assets linked to Reliance Anil Ambani Group entities in ongoing bank fraud and fund diversion investigations, taking cumulative attachments close to ₹12,000 crore.
Jan 302 min read
Violation of Mandatory 15-Day Sale Notice under Rules 8 & 9 of SARFAESI Rules — Auction Sale Set Aside
The DRAT held that an auction sale is liable to be set aside if the mandatory 15-day sale notice and the procedural requirements under Rules 8 and 9 of the SARFAESI Rules are not strictly complied with.
Jan 134 min read
Auction Sale Invalid for Stale Valuation Under Rule 8(5) Despite Valid Service of Statutory Notices | DRAT Allahabad
An auction sale based on a stale valuation violates Rule 8(5) of the SARFAESI Rules and cannot be sustained, even where statutory notices were duly served.
Jan 24 min read
Right of Redemption Under SARFAESI After Auction Notice: Post-Notice Payment Does Not Invalidate Sale Proceedings
The High Court clarified that once an auction notice is issued under the SARFAESI Act, the borrower’s statutory right of redemption stands extinguished, and subsequent payments or settlement offers cannot invalidate the sale process or restrain completion of enforcement proceedings.
Dec 26, 20253 min read
Section 35 of SARFAESI Act Cannot Override Article 371A: Supreme Court Holds Enforcement Without Security Interest Lacks Jurisdiction
The Supreme Court held that Section 35 of the SARFAESI Act does not override Article 371A of the Constitution, and that SARFAESI enforcement without a valid security interest in Nagaland is without jurisdiction.
Dec 24, 20254 min read
One-Time Settlement Lacks Statutory Enforceability: Civil Suit Seeking Specific Performance Against Bank Liable to Rejection | Calcutta High Court
The Calcutta High Court clarified that one-time settlements are matters of commercial discretion and do not create enforceable contractual rights in favour of borrowers unless backed by a statutory or binding scheme.
Dec 20, 20254 min read
Ownership Under SARFAESI Transfers Only on Sale Certificate: Section 96 IBC Interim Moratorium Bars Completion of Auction Sale
The Bombay High Court held that ownership under SARFAESI transfers only upon issuance of a sale certificate, and an interim moratorium under Section 96 IBC bars completion of an auction sale.
Dec 18, 20255 min read
Prior Secured Creditor’s Charge Prevails Over Subsequent State Dues: High Court Clarifies Pre-Section 26E SARFAESI Priority
The Punjab & Haryana High Court held that a prior SARFAESI mortgage and auction sale could not be defeated by a subsequent State revenue attachment in the absence of a statutory first charge before Section 26E.
Dec 16, 20254 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.
Dec 13, 20254 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.
Dec 12, 20253 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 6, 20254 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 29, 20253 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 24, 20253 min read
Supreme Court Strikes Down 25-Year Experience Requirement for Chartered Accountants as Tribunal Members
The Supreme Court clarified that Chartered Accountants cannot be required to possess 25 years of experience to be eligible for appointment as Technical Members in tribunals, declaring the requirement unconstitutional and extending parity with earlier rulings concerning advocates.
Nov 20, 20253 min read
Pre-Deposit Above Auction Price Without Written Justification Held Illegal Under Section 18 SARFAESI
The Kerala High Court held that a pre-deposit under Section 18 SARFAESI cannot exceed the auction value of the concerned asset and that any reduction from the mandatory 50% threshold must be supported by written reasons.
Nov 18, 20253 min read
High Court Holds: Auction Purchaser Cannot Claim Relief for Undisclosed Society Dues under ‘As Is Where Is’ Sale
The Allahabad High Court held that an auction purchaser buying property on an ‘as is where is’ basis assumes full responsibility for undisclosed liabilities and cannot seek relief for society dues discovered after the sale.
Nov 9, 20253 min read
Writ Jurisdiction Not Maintainable in SARFAESI Matters where Debts Recovery Tribunal has the Exclusive Remedy
Kerala High Court held that writ petitions under Article 226 are not maintainable in SARFAESI matters where an effective remedy before the DRT exists under Section 17.
Oct 17, 20254 min read
Supreme Court Mandates Timely Disposal of Securitisation Applications by DRT Under SARFAESI Act
The Supreme Court ruled that under Section 17(5) of the SARFAESI Act, DRTs must dispose of securitisation applications within sixty days, extendable to four months with recorded reasons, and directed strict compliance with the statutory timeline.
Oct 13, 20253 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 12, 20253 min read
Limitation Bar on Section 7 IBC Applications Where Prior Valid DRT Proceedings Exist — Section 14 Limitation Act Inapplicable
NCLAT held that Section 14 of the Limitation Act cannot be applied to extend limitation for a Section 7 IBC application where prior DRT proceedings were validly instituted, rendering such applications time-barred.
Oct 10, 20253 min read
Borrower’s Redemption Rights Extinguished on Auction Notice Under Amended Section 13(8) SARFAESI Act
NCLAT ruled that a borrower’s redemption right under amended Section 13(8) of the SARFAESI Act ends once the auction notice is issued, rendering subsequent sales immune from challenge under the IBC even during moratorium, thereby safeguarding secured creditor actions and public auction integrity.
Oct 9, 20255 min read
DRAT Empowered to Reduce Interest Granted by DRT under Section 19(20): Rajasthan High Court
The Rajasthan High Court upheld DRAT’s discretion under Section 19(20) of the RDB Act to reduce interest granted by DRT, ruling that a reasoned exercise of such discretion cannot be interfered with in writ jurisdiction.
Oct 6, 20253 min read
Bank’s Failure to Disclose Encumbrances of Property in Auction Notice Renders Sale Invalid, Supreme Court Orders Refund
The Supreme Court held that a bank-conducted auction of leasehold property without disclosure of the lessor’s statutory dues and mandatory consents is void, directing a refund to the purchaser under Rule 53 of the Income Tax Act read with Section 29 of the Recovery of Debts and Bankruptcy Act.
Sep 26, 20254 min read
High Court Rules Magistrate Acts Only Ministerially Under Section 14 SARFAESI; Condition Protecting Third-Party Possession Quashed
Karnataka High Court ruled that a Magistrate exercising powers under Section 14 SARFAESI acts ministerially and cannot impose conditions protecting third-party possession; such claims lie before the DRT under Section 17.
Sep 20, 20253 min read
DRAT Quashes SARFAESI Auction for Rule 8 Violations, Rendering Sale Void
The DRAT Allahabad quashed a SARFAESI auction, holding that failure to issue proper notice and conduct fair valuation under Rule 8 renders the sale void and the creditor’s possession illegal.
Sep 18, 20254 min read
Supreme Court: Borrower Has No Vested Right to OTS; Claim Fails Without Mandatory Deposit
The Supreme Court ruled on 15 September 2025 that a borrower has no vested right to a One Time Settlement and that any claim fails if the mandatory deposit under the scheme is not made.
Sep 17, 20253 min read
Secured Creditor Entitled to Invoke Section 14 SARFAESI Act for Physical Possession Even After Sale: Calcutta HC
The Calcutta High Court held that a secured creditor may invoke Section 14 of the SARFAESI Act even after sale, and the District Magistrate’s role is executory, limited to ensuring physical possession, without adjudicatory powers.
Sep 14, 20254 min read
No Adjudicatory Role of District Magistrate Under SARFAESI; Functions Purely Ministerial
The Rajasthan High Court ruled that the District Magistrate’s role under Section 14 of the SARFAESI Act is purely ministerial, limited to verifying compliance and facilitating possession, without authority to adjudicate disputes.
Sep 13, 20253 min read
Borrowers Have No Vested Right to Extension Under OTS: High Court Upholds Bank’s Power to Cancel and Auction Secured Assets
Allahabad High Court ruled that borrowers have no vested right to extension under OTS; failure to comply within 180 days lapses the settlement, enabling banks to cancel and auction secured assets.
Sep 11, 20253 min read
Bank of Baroda Classifies Reliance Communications and Anil Ambani Loan Accounts as Fraud
Bank of Baroda has classified the loan accounts of Reliance Communications and Anil Ambani as fraudulent, citing forensic audit findings of irregularities and suspected fund diversion amid ongoing IBC proceedings and regulatory scrutiny.
Sep 5, 20252 min read
Failure to Execute Section 14 SARFAESI Orders Within Prescribed Time Will Attract Contempt: Punjab & Haryana High Court
P&H High Court holds that failure to execute Section 14 SARFAESI orders within the prescribed timeframe attracts contempt as such powers are ministerial.
Sep 4, 20253 min read
SC Collegium Recommends 26 Judges for Allahabad HC, Including SC Lawyers Garima Prashad & Swarupama Chaturvedi
The Supreme Court Collegium, on 1 September 2025, recommended the appointment of 26 individuals as judges of the Allahabad High Court, including four women and a balanced representation from the Bar and judiciary.
Sep 3, 20252 min read
Section 94 IBC Not Available to Personal Guarantors of Sole Proprietorship Firms – SARFAESI Recovery Proceedings Valid
MP High Court ruled that Section 94 IBC cannot be invoked by personal guarantors of sole proprietorship or partnership firms, validating SARFAESI recovery proceedings.
Aug 30, 20253 min read
Fresh Cause of Action for Each SARFAESI Enforcement Step Extends Limitation, Rules Allahabad High Court
Allahabad High Court ruled that each SARFAESI enforcement step extends limitation by creating a fresh cause of action, with the period computed from the last impugned measure, not the initial notice.
Aug 27, 20254 min read
DRAT Delhi Issues Notice on Filing Praecipe and Affidavit for Urgent Hearings Before DRAT Kolkata
DRAT Delhi issued a notice prescribing filing of a praecipe and affidavit confirming service for urgent hearing requests before DRAT Kolkata, ensuring procedural fairness and transparency.
Aug 22, 20251 min read
Tenancy Created After Mortgage Cannot Defeat Bank’s Rights Under SARFAESI Act: High Court Rules Possession Must Be Handed to Secured Creditor
Allahabad High Court held that tenancy created post-mortgage cannot defeat a bank’s rights under the SARFAESI Act, mandating delivery of possession to the secured creditor, with disputes triable only before the DRT.
Aug 21, 20253 min read
NSIC Signs MoUs with Private Sector Banks to Boost MSME Credit Access under Credit Facilitation Program
NSIC signed MoUs with Axis Bank, IndusInd Bank, Karnataka Bank, AU Small Finance Bank, and Dhanlaxmi Bank on 11 August 2025 under its MSME Credit Facilitation Program. The collaboration is expected to expand financial inclusion, strengthen credit accessibility, and foster growth in the MSME sector.
Aug 16, 20252 min read
RBI Introduces Real-Time Cheque Clearing: Settlement Within Hours from October 4, 2025
The RBI announced a major reform in cheque settlement, introducing real-time clearance from October 4, 2025. The new system will reduce settlement to hours through a phased rollout, ensuring faster liquidity and modernizing India’s banking system.
Aug 16, 20252 min read
Bombay High Court: DRT Has Exclusive Jurisdiction Over Recovery Suits After NBFC-Bank Amalgamation, Purposive Interpretation of S.31 Applied
The Bombay High Court held that, after the amalgamation of a non-banking financial company with a bank, the Debt Recovery Tribunal has exclusive jurisdiction over pending recovery suits, applying a purposive interpretation of Section 31 of the RDB Act.
Aug 14, 20253 min read
Borrower’s Subsequent Death Does Not Mandate Fresh Notice to Legal Heirs Under SARFAESI If Section 13(2) Notice Served in Lifetime: High Court
J&K&L High Court clarifies that once a valid SARFAESI Section 13(2) notice is served during the borrower’s lifetime, no fresh notice is required to legal heirs before taking possession under Section 14.
Aug 11, 20253 min read
Director Lacks Locus Post-Liquidation; MSME Framework Cannot Override SARFAESI and IBC: Bombay High Court
The Bombay High Court ruled that a director of a company under liquidation has no legal standing to challenge recovery actions, and clarified that MSME revival schemes cannot override statutory frameworks under SARFAESI and the IBC.
Aug 6, 20254 min read
DRAT: DRT Cannot Dismiss Entire Securitisation Application if Challenge to Sale Notices is Within Limitation
DRAT Kolkata clarified that a Securitisation Application cannot be wholly dismissed if timely challenges to SARFAESI sale notices exist, even if some notices are time-barred.
Aug 5, 20253 min read
Legal Heirs of Deceased Guarantor Must Comply with Section 21 Pre-Deposit to Challenge DRT Recovery Proceedings: Delhi High Court
The Delhi High Court ruled that legal heirs of a deceased guarantor must mandatorily make the Section 21 pre-deposit under the RDB Act before appealing DRT recovery orders, even if they weren’t parties to the original case.
Aug 4, 20253 min read
Ministry of Finance Invites Applications for Chairperson, DRAT Delhi: Eligibility, Tenure, and Selection Guidelines Notified
REEDLAW Legal News Network | 1 August 2025 | 🔗 Find Shareable Link at the End REEDLAW Legal News Network reports that the Ministry...
Aug 1, 20252 min read
Amit Kumar Kejriwal v. UCO Bank and Another, REEDLAW 2026 NCLAT Del 02546
The NCLAT held that a Form B demand notice cannot substitute invocation of a personal guarantee and that proceedings under Section 95 IBC against a personal guarantor are not maintainable without prior contractual invocation.
1 day ago1 min read
Personal Insolvency Proceedings Under Section 95 IBC Require Prior Invocation of Guarantee: NCLAT
The NCLAT held that a Form B demand notice cannot substitute invocation of a personal guarantee and that proceedings under Section 95 IBC against a personal guarantor are not maintainable without prior contractual invocation.
1 day ago3 min read
Harish Kumar Mittal v. State Bank of India and Another, REEDLAW 2026 NCLAT Del 02529
The NCLAT, New Delhi ruled that admission of personal insolvency proceedings under the IBC without considering a reply on record and submissions advanced violates principles of natural justice and cannot be sustained in law.
3 days ago1 min read
Admission of Personal Insolvency Proceedings Without Considering Reply Violates Principles of Natural Justice: NCLAT
The NCLAT, New Delhi ruled that admission of personal insolvency proceedings under the IBC without considering a reply on record and submissions advanced violates principles of natural justice and cannot be sustained in law.
3 days ago2 min read
RR Securities and Finance Private Limited v. Rishabh Chand Lodha, REEDLAW 2026 NCLAT Del 02520
The NCLAT, New Delhi clarified that insolvency proceedings cannot be invoked to enforce contingent or inchoate rights arising from unregistered redevelopment agreements, defective guarantees, or assignments lacking crystallised obligations.
3 days ago1 min read
Contingent Rights Under Property-Linked Agreements Do Not Create Enforceable Claims in CIRP: NCLAT
The NCLAT, New Delhi clarified that insolvency proceedings cannot be invoked to enforce contingent or inchoate rights arising from unregistered redevelopment agreements, defective guarantees, or assignments lacking crystallised obligations.
3 days ago2 min read
West Bengal Housing Infrastructure Development Corporation Limited v. Kshitiz Chhawchharia, Liquidator, REEDLAW 2025 NCLAT Del 10564
The NCLAT held that leasehold rights vested in a Corporate Debtor constitute intangible assets forming part of the liquidation estate under the IBC and may be validly controlled and sold by the Liquidator despite ownership of land vesting with the lessor.
6 days ago1 min read
Leasehold Rights Transferred by Amalgamation Constitute Liquidation Estate Assets under IBC
The NCLAT held that leasehold rights vested in a Corporate Debtor constitute intangible assets forming part of the liquidation estate under the IBC and may be validly controlled and sold by the Liquidator despite ownership of land vesting with the lessor.
6 days ago3 min read
Vinita Agarwala and Others v. Power Pack Steel Industries Private Limited, REEDLAW 2026 NCLAT Del 02502
The NCLAT held that violation of deposit provisions under the Companies Act does not render an interest-bearing loan unenforceable or bar insolvency proceedings under Section 7 of the IBC.
6 days ago1 min read
Violation of Companies Act Deposit Provisions Cannot Defeat Section 7 IBC Proceedings Where Financial Debt Is Established
The NCLAT held that violation of deposit provisions under the Companies Act does not render an interest-bearing loan unenforceable or bar insolvency proceedings under Section 7 of the IBC.
6 days ago3 min read
EAS Sarma v. Union of India and Others, REEDLAW 2026 SC 01590
The Supreme Court expressed grave concern over the misuse of the Insolvency and Bankruptcy Code through systematic asset undervaluation and pre-planned resolution processes, warning against insolvency becoming a shield for legitimising financial fraud.
Feb 51 min read
Misuse of IBC Through Asset Undervaluation and Pre-Planned Auctions: Supreme Court Flags Systemic Abuse and Bank Collusion
The Supreme Court expressed grave concern over the misuse of the Insolvency and Bankruptcy Code through systematic asset undervaluation and pre-planned resolution processes, warning against insolvency becoming a shield for legitimising financial fraud.
Feb 54 min read
Redpro Construction Private Limited v. Skyline Infratech Private Limited, REEDLAW 2025 NCLAT Del 11553
NCLAT ruled that exclusion of a solitary invoice falling within the Section 10A suspension period does not bar initiation of Section 9 proceedings when remaining operational defaults arose outside the prohibited period.
Feb 41 min read
Section 10A Bar Does Not Defeat Section 9 Proceedings When Pre-Suspension Defaults Independently Cross IBC Threshold: NCLAT
NCLAT ruled that exclusion of a solitary invoice falling within the Section 10A suspension period does not bar initiation of Section 9 proceedings when remaining operational defaults arose outside the prohibited period.
Feb 43 min read
Anitha Rayapati and Others v. Arcelor Mittal Nippon Steel India Private Limited and Others, REEDLAW 2026 SC 01544
The Supreme Court held that transfer of insolvency proceedings cannot be granted merely on allegations against tribunal members, reaffirming institutional independence and limits on supervisory interference.
Feb 41 min read
Transfer of NCLT Proceedings Cannot Be Sought on Alleged Adverse Observations by Tribunal Members: Supreme Court
The Supreme Court held that insolvency proceedings cannot be transferred merely on speculative allegations against tribunal members, reaffirming judicial discipline and institutional independence.
Feb 43 min read
IFCI Limited v. Raju Palanikunnathil Kesavan, RP and Another, REEDLAW 2025 NCLAT Del 11517
The NCLAT held that a resolution plan approved without complete disclosure and valuation of all assets, including development rights and third-party secured interests, suffers from material irregularity in the conduct of the CIRP and cannot be sustained merely on the basis of Committee of Creditors’ approval.
Feb 31 min read
Mukund Maheswar and Another v. Axis Bank Limited and Others, REEDLAW 2026 SC 01254
The Supreme Court ruled that allegations of fraud in SARFAESI possession proceedings require judicial examination and cannot be rejected at the threshold on procedural objections.
Feb 31 min read
Non-Disclosure and Non-Valuation of Assets Vitiate CIRP Despite CoC Approval: NCLAT
The NCLAT held that a resolution plan approved without complete disclosure and valuation of all assets, including development rights and third-party secured interests, suffers from material irregularity in the conduct of the CIRP and cannot be sustained merely on the basis of Committee of Creditors’ approval.
Feb 33 min read
IBC Reforms Losing Momentum as NCLT Backlog Mounts to 30,600 Cases, Economic Survey 2025–26 Warns
The Economic Survey 2025–26 flags serious concerns over delays at the NCLT, warning that mounting insolvency backlogs are diluting the effectiveness of the Insolvency and Bankruptcy Code.
Feb 33 min read
Satinder Singh Bhasin v. Col. Gautam Mullick and Others, REEDLAW 2026 SC 01582
The Supreme Court clarified that a joint Section 7 application by real estate allottees is maintainable when the statutory threshold is satisfied at the time of valid filing and default is established due to non-delivery of lawful possession.
Feb 31 min read
Joint Insolvency under Section 7 IBC Maintainable for Integrated Real Estate Projects; Threshold Tested on Date of Filing
The Supreme Court clarified that a joint Section 7 application by real estate allottees is maintainable when the statutory threshold is satisfied at the time of valid filing and default is established due to non-delivery of lawful possession.
Feb 34 min read
Authorized Officer, IDBI Bank Limited v. Sunita Devi and Others, REEDLAW 2026 DRAT Ald 01259
The DRAT Allahabad reaffirmed that borrower intention governs mortgage validity, holding that forged title deeds do not defeat a secured creditor’s first charge or SARFAESI enforcement rights.
Feb 21 min read
Validity of Mortgage Depends on Borrower’s Intention; Subsequent Sale Cannot Defeat Secured Creditor’s First Charge under SARFAESI Act
The DRAT Allahabad reaffirmed that borrower intention governs mortgage validity, holding that forged title deeds do not defeat a secured creditor’s first charge or SARFAESI enforcement rights.
Feb 23 min read
Angle Infrastructure Private Limited v. Directorate of Enforcement, REEDLAW 2025 Del 11579
The Delhi High Court restrained coercive attachment action by the Enforcement Directorate during CIRP without court permission, holding that such action may undermine the insolvency resolution process.
Feb 21 min read
ED Attachment During CIRP Requires Court Leave Where Action May Jeopardise Resolution Process
The Delhi High Court restrained coercive attachment action by the Enforcement Directorate during CIRP without court permission, holding that such action may undermine the insolvency resolution process.
Feb 23 min read
Kewal Krishan Sharma v. Navneet Gupta, Resolution Professional, REEDLAW 2025 NCLAT Del 11510
The NCLAT affirmed that financial default is triggered on expiry of contractual cure periods, and Section 10A protection does not cover defaults prior to 25 March 2020, upholding the NCLT’s CIRP admission.
Feb 21 min read
Default Occurs on Expiry of Contractual Cure Period; Section 10A Cannot Shield Pre-25 March 2020 Defaults
The NCLAT affirmed that financial default is triggered on expiry of contractual cure periods, and Section 10A protection does not cover defaults prior to 25 March 2020, upholding the NCLT’s CIRP admission.
Feb 24 min read
Viney Kumar Sharma v. Improvement Trust and Another, REEDLAW 2026 SC 01006
The Supreme Court held that non-disclosure of litigation by a state authority during a public auction vitiates the sale and mandated refund of the deposited amount with 9% interest, affirming transparency and restitution principles.
Feb 11 min read
Fraud Allegations in SARFAESI Proceedings Cannot Be Rejected on Technical Objections: Supreme Court
The Supreme Court ruled that allegations of fraud in SARFAESI possession proceedings require judicial examination and cannot be rejected at the threshold on procedural objections.
Feb 13 min read
Failure to Disclose All Known Encumbrances in Public Auction Vitiates Sale and Entitles Purchaser to Refund with Interest
The Supreme Court held that non-disclosure of litigation by a state authority during a public auction vitiates the sale and mandated refund of the deposited amount with 9% interest, affirming transparency and restitution principles.
Jan 314 min read
ED Attaches ₹1,885 Crore in Assets Linked to Anil Ambani Group in Ongoing Bank Fraud Probe
The Enforcement Directorate provisionally attached ₹1,885 crore in assets linked to Reliance Anil Ambani Group entities in ongoing bank fraud and fund diversion investigations, taking cumulative attachments close to ₹12,000 crore.
Jan 302 min read
NCLT Has No Jurisdiction to Decide Trademark Ownership Disputes Outside CIRP | Supreme Court
The Supreme Court clarified that the NCLT has no jurisdiction under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 to adjudicate trademark ownership or disputed intellectual property rights outside the CIRP. It was held that transactions cannot be invalidated without a specific statutory avoidance application and that any declaration beyond an approved resolution plan amounts to an impermissible judicial modification, reaffirming the limited and insolvency-centr
Jan 286 min read
IBBI Notifies Panel of Insolvency Professionals and IPEs for Appointments under the IBC (Valid January–June 2026): Structure, Criteria, and Regulatory Significance
REEDLAW Legal News Network | Published on: 16 January 2026 | 🔗 Find Shareable Link at the End The REEDLAW Legal News Network reports: The Insolvency and Bankruptcy Board of India (IBBI), on 16 January 2026, published the updated panel of Insolvency Professional Entities (IPEs) and Insolvency Professionals (IPs) for appointment as Interim Resolution Professionals (IRPs), Resolution Professionals (RPs), Liquidators, and Bankruptcy Trustees (BTs) under the Insolvency and B
Jan 254 min read
IRP’s Right to Represent Corporate Debtor in Criminal Proceedings: Supreme Court Bars Parallel Criminal Proceedings and Protects Accused from Custody
The Supreme Court held that once insolvency begins, the IRP alone represents the Corporate Debtor in criminal cases, barred parallel proceedings, and protected the accused from custodial detention after filing of the charge sheet.
Jan 224 min read
Limits of Article 226 Judicial Review Over Disciplinary Orders: Delhi High Court Upholds Suspension of Insolvency Professional
The Delhi High Court clarified that Article 226 cannot be used to re-evaluate evidence in disciplinary matters and upheld strict standards of accountability for Insolvency Professionals.
Jan 195 min read
Admission Under Section 7 Is Mandatory on Proof of Debt and Default: Supreme Court Reaffirms the Narrow Vidarbha Exception
The Supreme Court reaffirmed that admission of a Section 7 application is mandatory once debt and default are proved, restricting the Vidarbha discretion strictly to exceptional circumstances and restoring certainty to IBC jurisprudence.
Jan 176 min read
Belated Modification of an Approved Resolution Plan Is Not Maintainable, Even by Dissenting Secured Financial Creditors
The NCLAT held that once a Resolution Plan is approved, its terms attain finality and no creditor, including a dissenting secured creditor, can seek belated modification of its distribution.
Jan 156 min read
Violation of Mandatory 15-Day Sale Notice under Rules 8 & 9 of SARFAESI Rules — Auction Sale Set Aside
The DRAT held that an auction sale is liable to be set aside if the mandatory 15-day sale notice and the procedural requirements under Rules 8 and 9 of the SARFAESI Rules are not strictly complied with.
Jan 134 min read
Promoter’s Undertaking to Infuse Funds Is Not a Guarantee under Section 126 Contract Act — Section 7 Application Rejected
The Supreme Court ruled that a promoter’s undertaking to infuse funds is not a guarantee under Section 126 of the Contract Act and cannot sustain a Section 7 IBC application without an express promise to discharge the debtor’s liability.
Jan 125 min read
Applicability of Section 10A to Post-Exclusion Operational Debt Crossing IBC Threshold—Section 9 Dismissal Set Aside
The NCLAT held that a Section 9 application could not be dismissed under Section 10A where post-exclusion operational debt independently met the IBC threshold, requiring adjudication on merits.
Jan 84 min read
NCLT Cannot Insert New Terms in CoC-Approved Resolution Plan: Unauthorised 5% Public Shareholding Clause Set Aside
NCLAT ruled that the Adjudicating Authority cannot insert new or unapproved terms while approving a resolution plan, holding that unauthorised equity restructuring violates the jurisdictional limits under the IBC.
Jan 53 min read
Security Amount Not Operational Debt: Section 9 Petition Dismissed for Failing IBC Threshold and Operational Debt Criteria
NCLT New Delhi dismissed a Section 9 petition, holding that a security amount provided for performance under a commercial agreement is not operational debt and Section 9 petitions are maintainable only if debt meets operational and statutory threshold criteria.
Jan 54 min read
Moratorium Bar on Post-CIRP Transfer of Corporate Debtor’s Vehicle: Registration Change Based on Pre-CIRP Agreement Held Void Under IBC
Post-CIRP transfer of a Corporate Debtor’s vehicle through registration change based on a sham pre-CIRP agreement was held void ab initio, with the NCLT reiterating the absolute bar imposed by Section 14(1)(b) of the IBC and warning of penal consequences for suspended directors.
Jan 54 min read
Acknowledgement by Principal Borrower Extends Limitation for Section 7 Proceedings Against Corporate Guarantors
NCLAT confirmed that principal borrower’s acknowledgment extends limitation for Section 7 proceedings against corporate guarantors, overriding prior limitation bar and COVID-19 exclusion.
Jan 44 min read
Auction Sale Invalid for Stale Valuation Under Rule 8(5) Despite Valid Service of Statutory Notices | DRAT Allahabad
An auction sale based on a stale valuation violates Rule 8(5) of the SARFAESI Rules and cannot be sustained, even where statutory notices were duly served.
Jan 24 min read
Terminated Redevelopment Agreement Not an Asset of Corporate Debtor; IBC Moratorium Cannot Revive Extinguished Contractual Rights
A redevelopment agreement terminated before CIRP does not survive as an asset of the corporate debtor, and Section 14 moratorium cannot be used to revive extinguished contractual rights or block statutory redevelopment approvals.
Dec 30, 20256 min read
Company-Wide CIRP in Real Estate Insolvency Is Legally Unsustainable for Project-Specific Debt: NCLAT Enforces Project-Wise Resolution Norm
Initiation of a company-wide CIRP against a real estate developer is legally unsustainable where the debt and default arise from a single project, NCLAT holds, reiterating that project-wise insolvency remains the governing norm under the IBC.
Dec 29, 20255 min read
Prior NCLT Approval Mandatory for Private Sale in Liquidation: Swiss Challenge Invalidated Due to Unreasonable Timelines and Restrictive EMD
The Appellate Tribunal held that a private sale conducted through a Swiss Challenge process during liquidation is unsustainable in the absence of prior approval of the Adjudicating Authority and where the process is structured with unreasonable timelines and restrictive EMD conditions that stifle competition.
Dec 29, 20255 min read
Supreme Court Directs Transfer of Pending NCLAT Company Appeal for Expeditious Disposal
The Supreme Court directed the transfer of a pending NCLAT company appeal to the Principal Bench to ensure fair and expeditious adjudication. Broader administrative and public-interest concerns raised in a writ petition were treated as a representation for the Chief Justice of India’s consideration.
Dec 26, 20253 min read
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