Courts and tribunals handed down a run of insolvency rulings in the week of 28 September to 3 October 2026, according to the LiveLawBiz IBC weekly digest. Seven of them are summarised here. The digest gives amounts for only some cases.
Supreme Court
In Greenopolis Welfare Confederation v. Rakesh Kumar Gupta, the Court held that the NCLT can recall an admission order if fraud or collusion affected the facts that gave it jurisdiction, but that this does not automatically end the insolvency process.
NCLAT
In Vijaybhai Dhanjibhai Detroja v. Vidres India Ceramics, the appellate tribunal held that a settlement after admission cannot by itself set aside a Section 9 admission order or end the process. In Uma Maheswari v. UCO Bank, it held that failing to comply with a one-time settlement is not a fresh default; the original debt position revives. In Tamil Nadu Mercantile Bank v. E. Santhanalakshmi, a personal guarantor who settled the company's dues did not become a financial creditor, since there was no assignment of the debt and no substitution. In Rajesh Uttamchandani v. Vijay Pitambar Lulla, it held that once the resolution period ends without a plan or a valid extension, liquidation is mandatory, and a failed creditors' vote on liquidation is irrelevant.
NCLT
In Jayanti Lal Jain v. Arvind Mathur (Mumbai), the tribunal held a bank guarantee can be invoked during the moratorium under the Section 14(3)(b) exception. In R N Buildcon v. Ocean Infraheight (Allahabad), pursuing insolvency and a state-council recovery of the same claim was treated as forum shopping, and the plea was dismissed.
Key numbers
- Rulings summarised: 7 (From the week's digest)
- Supreme Court: 1 (Recall of admission order)
- NCLAT: 4 (Settlement, OTS, guarantor, liquidation)
- NCLT: 2 (Moratorium; forum shopping)
What boards and CFOs should note
Three points stand out. First, a settlement or one-time settlement does not by itself protect a debtor from the process. Second, a guarantor who pays does not automatically become a creditor. Third, a bank guarantee can still be invoked during a moratorium.
Source: LiveLawBiz IBC Weekly Digest, 28 September to 3 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
