Latest court orders, judgments, and legal developments from Indian courts — AI-curated and summarized.
In a significant ruling, the Bombay High Court quashed the orders declaring directors as wilful defaulters, citing the lack of reasoned judgments as a breach of natural justice. This reinforces the requirement for transparency in such decisions.
The Bombay High Court has ruled that the interim moratorium under Section 96 of the IBC operates against the entire debt of the corporate debtor, thereby staying arbitration proceedings. This development emphasizes the comprehensive nature of the moratorium intended by the IBC.
The National Company Law Appellate Tribunal (NCLAT) has suspended the blanket ban imposed by the Insolvency and Bankruptcy Board of India (IBBI) on resolution professionals, emphasizing the need for balanced regulatory measures. The ruling highlights the importance of proportional penalties and adherence to the principles of natural justice.
The NCLT ruled that a fresh demand notice does not revive the limitation period for initiating CIRP against a corporate guarantor. This decision reinforces the importance of adhering to statutory timeframes for insolvency proceedings.
The NCLT ruled that financial creditors may simultaneously initiate the corporate insolvency resolution process (CIRP) against corporate guarantors, even if there has been a partial recovery under the principal borrower's resolution plan. This affirms the co-extensive liabilities of guarantors under the Insolvency and Bankruptcy Code (IBC).
The NCLT has accepted a Section 7 insolvency plea by Indian Overseas Bank against a toll road company following a ₹117.74 crore debt default.
The NCLT has admitted a Section 7 plea against SWAL Limited, determining that an interest-bearing inter-corporate loan constitutes financial debt under the IBC and commencing the Corporate Insolvency Resolution Process.
The NCLAT has ruled that APDCL must pay ₹37.66 lakh with interest to the liquidator of Brahmaputra Rolling Mills, highlighting the distinct legal status of companies under the IBC. The tribunal rejected the set-off plea based on mutual dealings.
The NCLT has admitted a Section 7 plea against SWAL Limited regarding the classification of an inter-corporate loan as financial debt. This development triggers the commencement of Corporate Insolvency Resolution Process (CIRP).
The NCLT directs a ₹24.45 crore repayment with 12% interest following a ruling on fraudulent transactions, emphasizing creditor protection and director accountability in insolvency matters.
The NCLT has admitted a Section 7 plea for CIRP against a corporate default, establishing ₹17.98 crore in liability.
The NCLAT has upheld the authority of the Committee of Creditors to limit the remuneration of insolvency professionals, emphasizing adherence to statutory frameworks.