NCLT Hyderabad clarified that foreign citizenship does not exempt a personal guarantor from IBC obligations. Deemed rejection of repayment plans under Section 115(2) allows initiation of bankruptcy proceedings under Section 121.

IBBI’s Circular dated 18 November 2025 introduces heightened due-diligence duties for Resolution Professionals under Section 29A of the IBC. The directive mandates strict verification of eligibility, documentation of findings, and compulsory placement of a detailed compliance note before the CoC, reinforcing transparency and reducing post-approval litigation in CIRP.

The Kerala High Court held that a pre-deposit under Section 18 SARFAESI cannot exceed the auction value of the concerned asset and that any reduction from the mandatory 50% threshold must be supported by written reasons.

The IBBI’s 17 November 2025 Discussion Paper proposes mandatory minimum shareholding requirements for directors and partners of Insolvency Professional Entities, aiming to strengthen governance, accountability, and professional independence across India’s insolvency ecosystem.

The Supreme Court ruled that Cumulative Redeemable Preference Shares (CRPS) issued in satisfaction of past dues are share capital and not financial debt, as their redemption is restricted under Section 55 of the Companies Act. With no default occurring, the CRPS holder lacked standing to initiate proceedings under Section 7 of the IBC.