The National Company Law Appellate Tribunal (NCLAT) recently quashed the insolvency proceedings initiated against Ligare Aviation. The tribunal observed that the loan extended to Ligare Aviation by Religare Enterprises was essentially a round-tripping of funds, as both companies are part of the same corporate group and related parties. This decision underscores the regulatory scrutiny on financial dealings within group companies, particularly concerning loans that may not represent genuine external financing. The ruling has implications for how insolvency cases involving related-party transactions are assessed under Indian corporate law. Religare Enterprises and Ligare Aviation are both group companies and related parties. The update was published on 7 Jun 2026, 12:11 pm.