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Claims Must Be Supported by Valid Documents; Agreements by Disqualified Directors Are Unenforceable: NCLAT Upholds Resolution Plan Sanctity
NCLAT ruled that CIRP claims must be backed by valid documents and timely submitted, and agreements by disqualified directors or sister concerns lacking privity are unenforceable, thereby upholding the sanctity of the resolution plan.
Oct 133 min read
Legality of Liquidation Filing Post-CIRP Expiry: Upholding Committee of Creditors’ Commercial Wisdom and Insolvency Code Compliance
The NCLAT, New Delhi, held that once the CIRP period expires without an approved resolution plan, the Resolution Professional is empowered to file for liquidation with the Committee of Creditors’ consent, and the CoC’s commercial wisdom—including abstention from voting—remains beyond judicial review under the IBC framework.
Oct 124 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 123 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 103 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 95 min read
Interim Resolution Professional Cannot Claim Fees or Expenses During Stay of CIRP Proceedings: NCLT Bengaluru
The NCLT, Bengaluru Bench, held that an IRP cannot claim fees during the period CIRP proceedings are stayed and that closure due to settlement is not a withdrawal under Section 12A of the IBC.
Oct 94 min read
Adjudicating Authority Cannot Interfere with CoC’s Commercial Wisdom Once Resolution Plan Meets IBC Compliance: NCLT Mumbai
The NCLT, Mumbai Bench, ruled that once a resolution plan is CoC-approved and compliant under Section 30(2) IBC, the Adjudicating Authority cannot question the CoC’s commercial wisdom.
Oct 84 min read
ESI Contributions Constitute Trust Property and Not Part of Corporate Debtor’s Liquidation Estate
The NCLAT clarified that ESI contributions deducted from employees’ wages are trust property and cannot be included in the liquidation estate under Section 36(4)(a)(i) of the IBC.
Oct 83 min read
No Scope for Symbolic Possession under IBC: NCLAT Affirms IRP’s Right to Full Control of Corporate Debtor’s Assets
NCLAT Chennai held that the concept of ‘symbolic possession’ has no legal standing under the IBC, and the Interim Resolution Professional must assume complete control of the Corporate Debtor’s assets once CIRP commences.
Oct 73 min read
Email and Physical Service Constitute Proper Notice – NCLAT on Section 7 IBC
NCLAT ruled that email service and attempted physical delivery satisfy notice requirements under Rule 38 NCLT Rules, and upheld admission of a Section 7 IBC application once debt and default were established.
Oct 43 min read
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