NCLAT ruled that a Section 9 petition under the IBC is not maintainable solely for recovery of disputed interest after the principal debt has been paid, as invoices cannot override written supply agreements.

The NCLAT held that Section 7 IBC proceedings cannot be initiated against an NBFC merely due to registration status, and liability depends on proof of financial services. Admission was set aside and matter remanded to NCLT.

The NCLAT declared that any sale of a company’s sole immovable asset under an OTS without Tribunal approval and shareholder consent is invalid, affirming the NCLT’s order directing majority shareholders to complete the OTS in the company’s interest.

The IBBI has tightened the Continuing Professional Education framework for Insolvency Professionals, mandating 30 credit hours annually, graded in-person learning, and structured credit allocations for publications, research, and professional development.

The IBBI has released a discussion paper proposing the deletion of Clause 6 from the Insolvency Professionals’ Code of Conduct to avoid duplication, simplify compliance, and align with liquidation and bankruptcy regulations.

The IBBI released a discussion paper on 12 August 2025 to rationalise assignment limits for Insolvency Professionals. The proposed framework introduces unified caps across IRP, RP, and Liquidator roles to curb delays, ensure fair distribution of assignments, and provide equitable opportunities for new IPs.

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.

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.

The proposed IBC amendments aim to strengthen revival mechanisms by permitting partial asset sales and granting insolvency tribunals a 120-day second opportunity for resolution after the expiry of the 330-day statutory limit, thereby prioritising business continuity over liquidation.

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.