Misuse of Insolvency and Bankruptcy Code by Loan Defaulters Has Tendency to Badly Impact Economy: HC

A bench of Justices Manish Pitale and Shreeram Shirsat, in an order passed on Wednesday, said such strategies by loan defaulters frustrate the very objective of the IBC and paralyse the whole process of lawful steps taken by secured creditors, adding that the court cannot remain a mute spectator when misuse of legal provisions demonstrates failure of justice, the Economic Times of India reported.
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NCLAT Restores Insolvency Appeal Filed Against Dilip Buildcon

The National Company Law Appellate Tribunal (NCLAT) on Monday restored an insolvency appeal against Dilip Buildcon, a construction and infrastructure development company, the Economic Times of India reported. A two-member bench of the NCLAT on December 12, 2025, dismissed the appeal filed by Shyamji Construction Co against Dilip Buildcon on the ground of 'non-prosecution'. However, an application was filed by Shyamji Construction Co for condonation of delay and restoration of appeal against Dilip Buildcon, which was allowed.
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SBI Flags Reliance Telecom Loan as Fraud Amid Ongoing Insolvency Process

Reliance Communications Limited has disclosed that its subsidiary, Reliance Telecom Limited, has had its loan account classified as fraudulent by State Bank of India following a decision by the bank’s fraud identification committee, TipRanks.com reported. SBI intends to report RTL’s name to the Reserve Bank of India in line with regulatory requirements, highlighting legacy credit issues that predate the insolvency process and intensifying scrutiny over the group’s past financing arrangements.
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Hero Electric’s Revival Bid Collapses, Liquidation Ordered

The National Company Law Tribunal (NCLT) has ordered the liquidation of Hero Electric Vehicles Pvt. Ltd. after efforts to revive the company through the insolvency resolution process failed to produce an approved plan, the Times of India reported. The order was passed by the NCLT’s New Delhi Bench on March 3, 2026. The tribunal noted that no resolution proposal received the required support from creditors within the timeline set under the Insolvency and Bankruptcy Code (IBC). As a result, the provisions related to liquidation under the code were triggered.

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Sonata Software Files Bankruptcy Petition Against U.S. Retail Client over $10.65 Million Dues

Sonata Software Ltd has filed an involuntary bankruptcy petition in a US court against a retail client over unpaid dues of about $10.65 million, an amount equivalent to roughly 6.6% of the company’s incremental revenue last fiscal, LiveMint.com reported. The claim highlights the financial exposure from a client ramp-down in Sonata’s retail segment, which contributes about $100 million, or 8% of the company’s revenue, and comes as the firm is also grappling with a reduction in business from Microsoft Corp.
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United States
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NCLAT Junks Reliance Realty's Plea for Insolvency Against Altruist Customer Management

Corporate dispute appellate tribunal NCLAT has set aside an appeal filed by Reliance Realty seeking insolvency proceedings against Altruist Customer Management, the Economic Times of India reported. A three-member bench of the appellate tribunal upheld the order of the Delhi-based National Company Law Tribunal (NCLT) which had rejected the insolvency plea after it observed a pre-existing dispute between the parties. The NCLT, on October 5, 2024, dismissed the plea after it observed a dispute of over Rs 24.34 crore.
India
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