Alerts & Updates 14th Nov 2025
We are pleased to share some of the key updates on recent judicial pronouncements under the Insolvency and Bankruptcy Code, 2016 and related banking laws. The recent rulings by various Benches of the NCLT and NCLAT have provided clarity on several recurring issues faced by lenders and practitioners.
The NCLT (New Delhi Bench) reiterated that the Tribunal’s inherent powers cannot be invoked to supervise or micro-manage the functions of an Insolvency Professional, thereby reinforcing the autonomy of the process and delineating the limits of judicial intervention. The NCLT (Indore Bench) clarified that the limitation period for initiating insolvency against personal guarantors runs strictly from the date of default or invocation, and that subsequent one-time settlement proposals do not extend limitation. The NCLT (Ahmedabad Bench) cautioned against misuse of individual insolvency provisions to obstruct recovery actions under SARFAESI, underscoring the need to prevent parallel proceedings.
Similarly, the NCLT (New Delhi Bench) ruled that time spent in voluntary pre-litigation mediation cannot be excluded while computing limitation, ensuring adherence to statutory timelines. The NCLAT further emphasized the confidentiality of valuation reports, holding that while suspended directors may participate in the CIRP, they are not entitled to access interim or discarded valuations. Hope it would be useful for banks, financial institutions, and insolvency professionals alike.
As per the rules of the Bar Council of India, lawyers and law firms are not permitted to solicit work or advertise. By clicking on the "I Agree" button, you acknowledge and confirm that you are seeking information relating to Economic Laws Practice (ELP) of your own accord and there has been no advertisement, personal communication, solicitation, invitation or any other inducement of any sort whatsoever by or on behalf of ELP or any of its members to solicit any work through this website.