On 3 February 2026, a two-judge bench upheld a joint Section 7 CIRP against two intrinsically linked Bhasin entities running the Grand Venezia project, formally endorsing group insolvency at the apex level.
The May 2026 cycle in Indian insolvency law has produced three threads running in parallel — the IBBI omnibus 19 May 2026 cluster amending the CIRP, Liquidation Process and PPIRP Regulations on a single day; the May 2026 operational implementation of the IBC (Amendment) Act 2026, including the new s.12A withdrawal architecture, the 14-day admission discipline, the new Chapter IV-A creditor-initiated insolvency resolution process, the 2-year avoidance look-back and the abolition of the fast-track CIRP; and the Supreme Court's real-estate course-correction in Alpha Corp v. GNIDA, the Dhanlaxmi Bank v. Mohd. Javed Sultan IBC-as-coercive-recovery line, the e-filing-without-certified-copy discipline under s.61(2), and the NCLAT's Purusottam Behera v. SBI reading on PIRP duration. Read together, the cycle discloses the operational architecture in which Indian insolvency practice now operates.
A practitioner-oriented synthesis of the IBC dispositions that have shaped the first half of 2026 — Elegna's reaffirmation of the mandatory-admission threshold, Embassy Developments' clean reversal at the NCLAT Principal Bench, Gokul Aggarwal on the limits of Section 12A withdrawal post-liquidation, Kejriwal on the personal-guarantor invocation question, the Sunil Kumar Jain order on EPFO assessment within the Section 14 moratorium, and the KLSR Infratech costs order. The piece reads them as a coherent doctrinal map of where insolvency law in India stands at mid-2026.
On 15 January 2026, a Supreme Court bench of Justices J.B. Pardiwala and R. Mahadevan held in Elegna Co-operative Housing Society v. Edelweiss ARC that once a financial debt and default are established, admission under Section 7 of the IBC is mandatory — viability, prejudice to homebuyers, and creditor motive are wholly extraneous. A digest of the disposition, the doctrinal lineage from Innoventive through Vidarbha to M. Suresh Kumar Reddy, and what the homebuyer locus question looks like after Elegna and the companion Mansi Brar Fernandes line.
Valkya Editorial··8 min
Landmark JudgmentNational Company Law Appellate Tribunal, Principal Bench, New Delhi
On 4 May 2026, the NCLAT Principal Bench set aside an NCLT order from December 2025 that had admitted Embassy Developments Limited into CIRP — and closed the insolvency proceedings in their entirety. A digest of the disposal, the institutional posture it signals, and what it means for promoters fighting Section 7 / Section 9 admission at the threshold.
A clean NCLAT ruling on a question that had been quietly bedeviling resolution professionals across the country: can the EPFO continue assessment proceedings during a moratorium under Section 14 of the IBC? The Tribunal has held that it cannot — and that an assessment order passed during CIRP is, accordingly, unenforceable against the corporate debtor.
Valkya Editorial··8 min
Landmark JudgmentNational Company Law Appellate Tribunal, Principal Bench, New Delhi
After a judicial member of the NCLAT Chennai bench recused himself in August 2025 — disclosing an attempt to influence the order through a former High Court judge — the matter went to the Principal Bench under the Supreme Court's directions. On 23 March 2026, the Principal Bench under Chairperson Ashok Bhushan, J. set aside the insolvency proceedings and imposed ₹10 lakh costs on the operational creditor. A short but consequential disposition.
The withdrawal mechanism under Section 12A of the Insolvency and Bankruptcy Code was Parliament's compromise between commercial pragmatism and statutory discipline — a structured route for settlement during CIRP. The NCLAT has, in a line of 2026 decisions including Gokul Aggarwal v. Bank of India, held that the route closes when liquidation commences. A digest of the doctrinal architecture, the line of cases, and what it means for the settlement-exit practice that had grown up around the section.