#Insolvency Resolution

NCLAT rules that a personal guarantor filing a Section 94 application after a SARFAESI possession notice has been issued, and enjoying a two-year interim moratorium, constitutes abuse of process to frustrate secured creditor recovery. The ruling clarifies that the IBC moratorium for guarantors does not override SARFAESI enforcement once possession proceedings have commenced.

NCLAT ruled that co-developers of the completed 'Doon Square' project can execute registration deeds for homebuyers under the Master Agreement dated 08.10.2024, despite the corporate debtor's insolvency. The Tribunal directed statutory authorities to accept joint applications, reinforcing homebuyers' rights in project-wise resolution under the Insolvency and Bankruptcy Code.

The Madras High Court has struck down Section 77A of the Registration Act as unconstitutional, ruling that registration officers lack jurisdiction to cancel sale deeds - even where possession is disputed. Only civil courts may adjudicate title claims, reinforcing the separation between administrative registration functions and substantive property rights. This empowers corporate debtors and long-term possessors to challenge cancellations through civil litigation, not bureaucratic orders.

Supreme Court holds that NCLT cannot adjudicate trademark title disputes under Section 60(5)(c) IBC when resolution plan recognizes rival claims and no application under Sections 43/45 was filed.