NCLT New Delhi dismissed a Section 9 petition, holding that a security amount provided for performance under a commercial agreement is not operational debt and Section 9 petitions are maintainable only if debt meets operational and statutory threshold criteria.

Post-CIRP transfer of a Corporate Debtor’s vehicle through registration change based on a sham pre-CIRP agreement was held void ab initio, with the NCLT reiterating the absolute bar imposed by Section 14(1)(b) of the IBC and warning of penal consequences for suspended directors.

NCLAT confirmed that principal borrower’s acknowledgment extends limitation for Section 7 proceedings against corporate guarantors, overriding prior limitation bar and COVID-19 exclusion.

An auction sale based on a stale valuation violates Rule 8(5) of the SARFAESI Rules and cannot be sustained, even where statutory notices were duly served.

A redevelopment agreement terminated before CIRP does not survive as an asset of the corporate debtor, and Section 14 moratorium cannot be used to revive extinguished contractual rights or block statutory redevelopment approvals.