Latest court orders, judgments, and legal developments from Indian courts — AI-curated and summarized.
The NCLT has admitted Canara Bank's insolvency plea against a corporate guarantor worth ₹119.64 crore, confirming that the Corporate Insolvency Resolution Process (CIRP) of a principal borrower does not preclude the initiation of insolvency proceedings against the guarantor.
The NCLT has ruled that a personal guarantor moratorium cannot impede independent corporate insolvency proceedings against a debtor with a financial default of ₹46.62 crore. This decision underscores the separate legal identities of guarantors and corporate debtors.
In a significant ruling, the NCLAT has upheld the resolution professional's right to obtain mall revenue records, deeming them vital for scrutinizing disputed transactions during the CIRP.
Due to the repeated failure to supply a mandatory Performance Bank Guarantee, the NCLT has ordered the liquidation of a corporate entity, deeming the resolution plan non-responsive.
The NCLT has rejected a resolution plan that proposed ₹7 Crores against a liquidation value of ₹9.42 Crores, finding it inadequate in protecting the statutory rights of dissenting creditors.
The NCLT has rejected a resolution plan involving ₹1,000 share conversion due to non-compliance with statutory valuation requirements under the Companies Act, leading to an order for liquidation.
The National Company Law Appellate Tribunal (NCLAT) has upheld the right of the Resolution Professional (RP) to request additional evidence for claim verification, reinforcing the protocols surrounding claims in insolvency proceedings.
The Kerala High Court has mandated that Micro, Small, and Medium Enterprises (MSMEs) must proactively seek rehabilitation upon experiencing financial distress. The court clarified that the banks' awareness of an MSME's status does not absolve the MSME of this obligation.
The NCLAT has restored the corporate debtor's right to file a reply in insolvency proceedings, emphasizing that a litigant should not suffer due to their counsel's lapse. This ruling reinforces the importance of natural justice in insolvency protocols.
The NCLT has admitted an application for Corporate Insolvency Resolution Process (CIRP) against Sun Granite Export after confirming a default of ₹3.95 crore. The decision was made despite objections regarding the records presented by NeSL.
The NCLT has admitted a Corporate Insolvency Resolution Process (CIRP) against Sun Granite Export due to a default of ₹3.95 crore. This decision underscores the strength of documentary evidence including loan records and bank statements in insolvency proceedings.
The Kerala High Court has ruled that a Chief Judicial Magistrate (CJM) is empowered to restore possession of a secured asset to a creditor following an early delivery of possession under Section 14 of the SARFAESI Act.