The Supreme Court has held that the NCLT can recall admission of an insolvency petition found to be fraudulent and collusive, but that the CIRP need not end automatically, as it becomes a proceeding in rem after admission. Setting aside the NCLAT’s order, it restored the Three C Shelters CIRP linked to the Greenopolis project for the NCLT to decide whether it should continue.
The Supreme Court has dismissed the appeal of a successful bidder in an IBC liquidation auction that did not pay the balance price within 90 days, upholding the NCLAT’s order affirming forfeiture of its earnest money and the other sums it paid, on the strength of the forfeiture clause in the e-auction notice.
The Supreme Court set aside NCLT and NCLAT orders in the Essel Infraprojects insolvency case after finding reliance on fake AI-generated judicial precedents. The Court adopted a zero-tolerance approach, holding that citing unverified AI-generated judgments amounts to professional misconduct by advocates.
The Supreme Court refused to entertain a plea challenging rules barring retired NCLT and NCLAT members from practising before these tribunals after retirement, while hearing former NCLAT technical member Vijai Pratap Singh’s challenge against restrictions preventing former members from appearing as advocates or consultants.
The National Company Law Appellate Tribunal (NCLAT) dismissed Jindal Poly Films Limited’s appeal challenging the National Company Law Tribunal (NCLT) order admitting a shareholder class action petition and directing issuance of public notice under the Companies Act, 2013, affirming continuation of class action proceedings.