key NCLAT (National Company Law Appellate Tribunal) judicial precedents

 

key NCLAT (National Company Law Appellate Tribunal) judicial precedents that have shaped the interpretation and application of the Insolvency and Bankruptcy Code, 2016 (IBC):

---

🔹 1. Innoventive Industries Ltd. v. ICICI Bank Ltd.

Citation: Company Appeal (AT) (Insolvency) No. 1 & 2 of 2017
Principle:

• Affirmed that IBC overrides other laws (non obstante clause).

• Emphasized the importance of default and not just the existence of a debt.

Later affirmed by the Supreme Court.

---

🔹 2. Mobilox Innovations Pvt. Ltd. v. Kirusa Software Pvt. Ltd.

Citation: Company Appeal (AT) (Insolvency) No. 228 of 2017
Principle:

• Clarified that if there is a pre-existing dispute, the operational creditor's application under Section 9 must be rejected.

This NCLAT judgment was later appealed and upheld by the Supreme Court in its landmark judgment (2017) 1 SCC 353.

---

🔹 3. M/s. Shailesh Sangani v. Joel Cardoso

Citation: Company Appeal (AT) (Insolvency) No. 616 of 2018
Principle:

• A proprietorship firm is not a separate legal person under IBC.

• A proprietor can file an IBC petition in his own name representing the firm.

---

🔹 4. Sree Metaliks Ltd. v. Union of India

Citation: Company Appeal (AT) (Insolvency) No. 169 of 2017
Principle:

• Emphasized natural justice – the corporate debtor must be given a reasonable opportunity to be heard before admission.

---

🔹 5. Asset Reconstruction Company (India) Ltd. v. Shivam Water Treaters Pvt. Ltd.

Citation: Company Appeal (AT) (Insolvency) No. 74 of 2017
Principle:

• Reiterated that a Section 7 application does not require notice to the debtor prior to admission.

• Once default is established, the Adjudicating Authority must admit the application.

---

🔹 6. Rajendrakumar Kundanmal Jain v. Vijal A. Jain

Citation: Company Appeal (AT) (Insolvency) No. 1327 of 2019
Principle:

• A personal guarantor can be proceeded against under the IBC independently of the corporate debtor.

---

🔹 7. Kolkata Municipal Corporation v. Union of India

Principle:

• Statutory dues (municipal taxes, property tax) are operational debts under IBC.

---

🔹 8. Anil Kumar Jain v. Vardhman Roller Flour Mills Pvt. Ltd.

Principle:

• Acknowledgment in balance sheet is valid for extending limitation under Section 18 of the Limitation Act.