On May 4, 2023, the National Company Law Appellate Tribunal (NCLAT) annulled an earlier decision by the National Company Law Tribunal (NCLT) that had allowed insolvency proceedings against Embassy Development, a real estate firm. The NCLT's December 2025 order was based on a claim by Canara Bank, which alleged that Embassy owed ₹200 crore (approximately $24 million USD) as a corporate guarantor for a loan to Indiabulls Realtech (now Simar Thermal Power). The NCLAT ruled that the default cited by Canara Bank fell within the protective period outlined in Section 10A of the Insolvency & Bankruptcy Code (IBC), which prohibits insolvency proceedings for defaults occurring after March 25, 2020, for one year. The tribunal emphasized that the NCLT erred in its judgment by incorrectly interpreting the date of default related to the non-performing asset (NPA) status of the principal borrower. Furthermore, the NCLAT criticized Canara Bank for hastily filing the petition without adequately reviewing the relevant documents, labeling their approach as casual and careless. The decision underscores the importance of thorough documentation and the legal protections afforded to companies during economic disruptions.