#NCLT

The Supreme Court has ruled that corporate guarantees qualify as financial debt under Section 5(8) of the IBC irrespective of non-disclosure in financial statements or stamping irregularities, affirming that procedural defects cannot override substantive creditor rights. This strengthens the position of financial creditors in CIRP and curbs reliance on technicalities to defeat claims.

Madras High Court dismisses writ petition seeking urgent disposal of an interlocutory application to unfreeze a bank account, reaffirming that judicial interference under Article 226 is unwarranted absent proven delay or exceptional circumstances. The ruling underscores the principle of judicial restraint in tribunal case management.

Bombay HC rules that principles of natural justice in Corporate Insolvency Resolution Process (CIRP) withdrawal applications are satisfied by hearing the Interim Resolution Professional (IRP) and objecting financial creditors, excluding suspended directors or unrepresented creditors. The ruling clarifies the scope of audi alteram partem in IBC proceedings, impacting creditor participation rights.

The Supreme Court ruled that courts must grant strong interim relief in oppression and mismanagement cases under Section 242 of the Companies Act, 2013, to prevent dissipation of disputed assets until final adjudication. The judgment rejects vague restraints and directs NCLT to dispose of such cases expeditiously, ensuring minority shareholders' rights are protected against prejudicial actions by majority stakeholders.