NCLT

Cumulative Redeemable Preference Shareholders Cannot Trigger Insolvency Proceedings: Supreme Court

Summary: In EPC Constructions India Ltd. v. Matix Fertilizers & Chemicals Ltd., the Supreme Court addressed whether holders of non-cumulative redeemable preference shares can initiate insolvency proceedings under Section 7 of the IBC, as financial creditors. The Court held that preference shareholders are not creditors and cannot trigger insolvency proceedings, as preference shares remain part of the share capital even upon maturity, and conversion of debt into preference shares permanently extinguishes the original creditor relationship. This landmark judgement reinforces the fundamental distinction between debt and equity, clarifying that IBC remedies are available only to creditors and not shareholders.Continue Reading Cumulative Redeemable Preference Shareholders Cannot Trigger Insolvency Proceedings: Supreme Court

Judicial Interplay with Legislation: Analysing the Insolvency and Bankruptcy (Amendment) Bill, 2025 [Part I]

The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 (“Bill”), introduced in the Lok Sabha on August 12, 2025, represents a significant legislative response to India’s evolving insolvency jurisprudence by codifying key judicial pronouncements and introducing global best practices. This two part blog elaborates upon the Bill that recommends comprehensive reform addressing critical ambiguities and operational challenges that have emerged through landmark judicial decisions, whilst strengthening India’s position as a jurisdiction conducive to business revival and creditor protection. Understanding the Bill is essential for insolvency practitioners, creditors, and corporate stakeholders to navigate the enhanced framework for value maximisation and timely resolution of corporate distress.Continue Reading Judicial Interplay with Legislation: Analysing the Insolvency and Bankruptcy (Amendment) Bill, 2025 [Part I]

Transforming India’s Merger Landscape: How MCA’s Fast-Track Expansion Will Reshape Corporate Restructuring

Summary: The Ministry of Corporate Affairs has significantly expanded India’s fast-track merger framework beyond small companies and wholly-owned subsidiaries to include unlisted companies with borrowings under INR 200 crore (with certain conditions). Additionally, demergers have also been brought under the ambit of the fast-track route. This will reduce NCLT’s burden, accelerate corporate restructuring timelines, and make restructuring more accessible to mid-sized companies across India.Continue Reading Transforming India’s Merger Landscape: How MCA’s Fast-Track Expansion Will Reshape Corporate Restructuring

Beyond Approval: Decoding The Committee of Creditors’ Continuing Role Under the IBC

Summary: The article addresses a critical unanswered question in Indian insolvency law: whether the Committee of Creditors (CoC) becomes functus officio after NCLT approval of a resolution plan under Section 31 of the IBC, a question with significant academic and practical implications. Through harmonious interpretation of existing provisions, the authors argue that the CoC remains in existence until the Supreme Court finally decides on any questions pertaining to the resolution plan, as the corporate insolvency resolution process continues through the appellate hierarchy. However, while inferential support exists for this position, urgent legislative intervention is needed to provide an explicit statutory framework defining the CoC’s post-approval powers and to eliminate the current legal uncertainty.Continue Reading Beyond Approval: Decoding The Committee of Creditors’ Continuing Role Under the IBC

Supreme Court Reiterates Finality of Approved Resolution Plans: No Scope for Reviving Arbitration Claims Post-CIRP

Introduction

In an authoritative pronouncement concerning the interplay between arbitration proceedings and the Insolvency and Bankruptcy Code, 2016 (“IBC”), the Hon’ble Supreme Court in Electrosteel Steel Limited v. Ispat Carrier Private Limited (Civil Appeal No. 2896 of 2024, decided on April 21, 2025)[1] (“Electrosteel”) has reinforced the legal position that once a resolution plan is approved by the adjudicating authority under Section 31 of the IBC, all claims not forming part of the plan stand extinguished. This includes claims that are subject to pending legal proceedings.Continue Reading Supreme Court Reiterates Finality of Approved Resolution Plans: No Scope for Reviving Arbitration Claims Post-CIRP

Recognition of Indian CIRP in Singapore: A Step Forward for Cross-Border Insolvency

INTRODUCTION

    In Re Compuage Infocom Ltd[1] (“Judgment”), the Singapore High Court (“Court”) has recognized the Corporate Insolvency Resolution Process (“CIRP”) of an Indian company under the Insolvency and Bankruptcy Code, 2016 (“IBC”) and granted assistance to the Resolution Professional (“RP”) appointed by the National Company Law Tribunal (“NCLT”). Applying the UNCITRAL Model Law on Cross-Border Insolvency (1997)[2] (‘Model Law’), as adopted by Singapore by way of Section 252 and the Third Schedule of the Insolvency, Restructuring and Dissolution Act, 2018 (“IRDA”), the Judgment deals with several key issues, including whether the NCLT is a ‘foreign court’, whether RPs are ‘foreign representatives’, and whether repatriation of assets located in a foreign jurisdiction can be permitted for the benefit of creditors in other jurisdictions. This is the first such ruling in Singapore and is a welcome development. This piece discusses the key findings in the Judgment and their implications for all stakeholders involved in the CIRP of Indian companies.Continue Reading Recognition of Indian CIRP in Singapore: A Step Forward for Cross-Border Insolvency

    Navigating Legal Crossroads: Interplay between IBC and NI Act

    INTRODUCTION

    The intersection between the Insolvency and Bankruptcy Code, 2016 (“IBC”), and the Negotiable Instruments Act, 1881 (“NI Act”), has caused significant judicial deliberation, particularly concerning creditor rights, financial discipline, and the resolution of financial distress. Section 138 of the NI Act holds the drawer of the cheque liable in case of dishonour of cheque due to insufficient funds. The provision imposes penal consequences on the drawer, serving as a deterrent against indiscriminate issuances of cheques and safeguarding creditors’ interests.[1]Continue Reading Navigating Legal Crossroads: Interplay between IBC and NI Act

    CCI Nod Mandatory Before Committee Of Creditors’ Approval Under The Code, Says Supreme Court

    The Hon’ble Supreme Court of India (“Court”) recent judgment in Independent Sugar Corporation Ltd. v. Girish Sriram Juneja, 2025 SCC Online Sc 181 is a landmark decision. It highlights the interplay between the Insolvency and Bankruptcy Code, 2016 (“Code”), and the Competition Act, 2002 (“Competition Act”), in the context of resolution plans involving combinations that may have an appreciable adverse effect on competition (“AAEC”) in the relevant market.Continue Reading CCI Nod Mandatory Before Committee Of Creditors’ Approval Under The Code, Says Supreme Court

    “Related Party” Creditor Under IBC: Making A Case For Purposive Interpretation

    The Insolvency and Bankruptcy Code, 2016 (“Code”), has marked a significant shift in India’s corporate insolvency landscape, transitioning from a debtor-centric approach to a creditor-centric approach. With the committee of creditors (“CoC”) now driving the resolution process, it has become imperative for “related parties”, likely to sabotage the resolution process of a corporate debtor, to be excluded from the same. For this purpose, the Code stipulates that “related parties” should not (i) regain control of the company either by means of submitting a resolution plan (Section 29A); or (ii) be allowed to influence the resolution process by participating and voting in CoC meetings (first proviso to Section 21(2)).Continue Reading “Related Party” Creditor Under IBC: Making A Case For Purposive Interpretation

    Choosing the Correct Door: NCLAT Clarifies Jurisdiction for Insolvency of Personal Guarantors

    The National Company Law Appellate Tribunal, New Delhi (“NCLAT”), has clarified and resolved the ambiguity surrounding the question of jurisdiction of the National Company Law Tribunal (“NCLT”) to entertain insolvency applications against personal guarantors where no corporate insolvency resolution process (“CIRP”) is pending against the corporate debtor. The issue was addressed through a recent judgment dated January 23, 2025, in Anita Goyal vs. Vistra ITCL (India) Ltd. & Anr.[1] (“Judgement”).Continue Reading Choosing the Correct Door: NCLAT Clarifies Jurisdiction for Insolvency of Personal Guarantors