IBC - NCLAT FORTNIGHTLY SUMMARY (May 1 – May 15, 2025)

The following is a snapshot of the important orders passed by the National Company Law Appellate Tribunal ("NCLAT"), under the Insolvency and Bankruptcy Code, 2016 ("Code"), during the period between May 1, 2025 to May 15, 2025.

For ease of reference, the orders have been categorized and dealt with in the following categories i.e., Pre-admission stage, Corporate Insolvency Resolution Process ("CIRP") stage, Post CIRP stage, Liquidation and Miscellaneous.

A. Pre-admission Stage

1. In Devika Resources Private Limited v.MAA Manasha Devi Alloys Private Limited (Comp. App. (AT) (Ins) No.938 of 2024), the NCLAT clarified that for the purpose of maintaining an application under Section 9 of the Code, the threshold default prescribed under Section 4 should be assessed at the time of filing the application, and not at the time of its admission. It was observed that any subsequent reduction in the amount of default, such as due to a payment made after filing, which