NCLAT ruled that acknowledgment of debt in a company’s balance sheet extends limitation for Section 7 IBC proceedings, even without a formal loan agreement.

The Supreme Court ruled that speculative homebuyers with buyback or assured return agreements cannot invoke Section 7 of the IBC, affirming that only genuine allottees qualify to initiate insolvency proceedings.

The NCLAT Chennai Bench held that the Resolution Professional’s report under Section 99 of the IBC is recommendatory, and personal guarantors’ hearing rights apply only at Section 100 adjudication, validating proceedings without a Section 99 hearing.

The Calcutta High Court clarified that the IBC moratorium bars asset seizure under FEMA during CIRP and post-liquidation, except against personally liable directors or officers.

The NCLAT clarified that once a Resolution Plan is approved by the CoC, disputed or unverified homebuyer claims cannot obstruct its implementation, reaffirming the IBC framework.

NCLAT ruled that insolvency applications under Section 95 IBC cannot be mechanically admitted against personal guarantors and mandated an independent judicial assessment by the Adjudicating Authority.

The Supreme Court held that homebuyers with duly verified claims during CIRP cannot be treated as late claimants and are entitled to possession under the approved Resolution Plan.

NCLAT ruled that a purchaser who defaults on the agreed sale consideration cannot retain share certificates or subsidiary documents, reaffirming the RP’s authority under Sections 18 and 25 of the IBC to take custody of such assets.

NCLAT upheld that pre-existing contractual disputes bar Section 9 IBC petitions; both debt and default must be undisputed to trigger CIRP.

NCLAT affirmed that personal guarantees covering existing credit facilities are enforceable even without fresh disbursement, and pending recovery proceedings do not bar Section 95 insolvency action under the IBC.