NCLAT has reaffirmed that Section 95 IBC applications must be filed within three years from the issuance of the recovery certificate, under Article 137 of the Limitation Act, and that the twelve-year limitation for suits does not apply to insolvency matters.

The NCLAT reaffirmed the absolute discretion of the Committee of Creditors to adopt or forego the Swiss Challenge Mechanism under the IBC and RFRP, validating its non-justiciable commercial approval of a compliant resolution plan.

NCLAT held that a secured creditor’s failure to comply with Regulation 21A results in the secured assets forming part of the liquidation estate, allowing the Liquidator to validly sell them through auction.

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.

NCLAT has reaffirmed that mere allegations against a Successful Resolution Applicant, if not impacting statutory compliance under Section 30(2) of the IBC, cannot be a ground to question the CoC’s commercial wisdom in approving a resolution plan.

The Supreme Court held that the Section 14(1)(d) moratorium under the IBC does not prevent the corporate debtor from voluntarily surrendering leased property during CIRP where the CoC, exercising its commercial wisdom, decides retention is unnecessary, thereby upholding the binding nature of CoC decisions.

The NCLAT ruled that while Regulation 39(1A) bars a resolution professional from unilaterally modifying a plan, it does not restrict the CoC’s authority to seek multiple revisions before approval, affirming the primacy of its commercial wisdom.

The NCLAT held that a Section 9 IBC application is barred when substantive pre-existing disputes exist over defective goods, as demonstrated through communications, warranty obligations, and an indemnity bond, reaffirming the Mobilox test.

The NCLAT ruled that recall of a CoC inclusion order cannot be sought on the basis of publicly available documents unless there is demonstrable fraud, and that related party status must meet the strict evidentiary standard under Section 5(24) of the IBC.

NCLAT held that a delay by the liquidator in communicating asset details may justify relaxation of the mandatory 90-day timeline under Regulation 21A of the IBBI Liquidation Regulations.