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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 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
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
Oppression and Mismanagement Petition Not Maintainable by Non-Member: Private MoU and Section 89 Non-Compliance Insufficient
The NCLAT held that a former shareholder who has ceased to be a member cannot maintain an oppression and mismanagement petition based on a private MoU, and that Section 89 non-compliance attracts only statutory penalties.
Dec 22, 20254 min read
Liquidator’s Fee Payable Only on Asset Realisation or Distribution: Fixed Monthly Remuneration Barred Without CoC or SCC Approval
The NCLAT clarified that a liquidator cannot claim fixed monthly remuneration without CoC or SCC approval, holding that fees under Regulation 4 of the Liquidation Regulations are payable only upon actual asset realisation or distribution.
Dec 22, 20253 min read
Financial Debt Established from Balance Sheet Entries Even Without a Loan Agreement: NCLAT Upholds Section 7 CIRP
The NCLAT held that balance sheet entries and acknowledgments can establish financial debt for Section 7 IBC even in the absence of a formal loan agreement.
Dec 21, 20255 min read
Section 9 IBC Applications Require Reasoned Orders After Notice: NCLAT Sets Aside Cryptic Rejection and Orders Remand
The NCLAT held that cryptic rejection of a Section 9 IBC application without notice or reasons is impermissible, and reasoned adjudication after hearing is mandatory.
Dec 21, 20254 min read
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